Outback Steakhouse shut 21 U.S. restaurants and promised more closures ahead.
This move caps a decade when the chain lost roughly 10% of its U.S. locations while rivals grew faster.
Investors now question how deep these cuts will go as closure costs pile up.
Falling Behind
Outback’s same-store sales rose just 0.4% last quarter. Texas Roadhouse and LongHorn Steakhouse each grew by more than 5%.
That means competitors are growing about ten times faster than Outback. The gap raises doubts about whether Outback can survive on thin margins.
From Leader To Laggard
Outback once led casual steakhouses with roughly 750 U.S. locations a decade ago. Today, it runs about 670 restaurants.
Experts blame higher prices, heavy discounts, and weak value compared to rivals. These problems set the stage for today’s closures.
Competitive Squeeze
Casual dining has become brutal competition. Texas Roadhouse offers sharp pricing and a fun vibe. LongHorn serves bigger portions and grows steadily.
Both chains score higher on customer satisfaction and traffic than Outback. Diners now choose value over Outback’s familiar name.
Nationwide Closures
In October 2025, Bloomin’ Brands shut 21 U.S. Outback restaurants. The company will let 22 more leases expire over the next 4 years.
Closures span Florida, Texas, Alabama, Wisconsin, Maryland, Louisiana, and New York. This national spread shows the scale of the pullback.
State-Level Fallout
Seven states feel the impact now. Landlords and nearby shops scramble to fill spaces that once anchored shopping centers and highway exits.
Hourly workers face sudden job hunts in a weakening labor market. Communities lose restaurants that served them for years.
Workers And Diners Affected
Each closed restaurant meant dozens of lost jobs. Some workers had the chance to move to other Bloomin’ Brands concepts. Many simply lost shifts.
Regular diners found locked doors and notices with no warning. Neighborhoods lose a familiar gathering spot overnight.
Rivals Seize Momentum
Texas Roadhouse earned nearly $5.5 billion in 2024 sales and grew 14.7% annually. LongHorn grew sales by 7.2%, and both chains continue to open new restaurants.
This expansion dwarfs Outback’s retreat and explains why its sales are racing ahead so quickly.
Shifting Steakhouse Landscape
Diners now reward chains that balance price, portion size, and atmosphere well. Outback’s check averages $29, higher than Texas Roadhouse and LongHorn.
Competitors invested more in staff and store updates. Traffic and satisfaction rankings now clearly show that difference.
Hidden Cost Of Survival
Bloomin’ Brands recorded roughly $33 million in impairment and closure charges last quarter.
The company also suspended its shareholder dividend to redirect cash.
These moves show how far management will go to stabilize Outback’s path forward.
Investor Frustration
Some investors backed the tough calls as overdue. Others saw them as signs of deeper trouble.
Bloomin’ Brands’ stock lags faster-growing rivals amid concerns about traffic and brand value. Shareholders now wait to see if the turnaround builds real earnings.
Leadership Under Pressure
CEO Mike Spanos leads the overhaul effort publicly. He recently claimed, “We have strong momentum in our operations.”
Executives insist Outback still has “remarkable” brand power with customers. The leadership team bets its reputation on making this reset work.
Costly Remodel Gamble
Bloomin’ Brands plans to spend roughly $400,000 per store to remodel nearly all Outback locations by 2028.
Upgrades include brighter interiors, updated bars, and layouts built for takeout and delivery. Success depends on whether diners actually come back.
Can Outback Catch Up?
Outback’s same-store sales finally turned positive at 0.4%, but that pales next to rivals’ mid-single-digit gains.
Experts doubt that menu tweaks and remodels alone can close such a wide gap. The chain may need to rethink its whole value promise to compete.
Future Of The Bloomin’ Brand
Outback faces a hard choice: emerge leaner and stronger or fade as rivals grow. Success hinges on whether renovations and pricing changes win back lost diners.
With leases expiring and more closures possible, the next few years will decide Outback’s fate.
Sources:
- FinanceBuzz, Outback Steakhouse Closes 21 Locations With More on …, 19 Jan 2026
- CNN, Outback abruptly closed 21 restaurants, 6 Nov 2025
- Yahoo Finance, Outback’s parent company abruptly closed 21 restaurants, 6 Nov 2025
- USA Today, Outback Steakhouse closures planned in Bloomin’ Brands …, 6 Nov 2025
- Restaurant Dive, Bloomin’ to invest $50M in Outback Steakhouse overhaul …, 5 Nov 2025
- New York Post, Outback Steakhouse owner abruptly shutters 21 …, 6 Nov 2025