MENU MADNESS: Outback Steakhouse CEO reveals chain is ‘simplifying’ menu after closing 41 locations in latest industry bloodbath

According to The Sun , Outback Steakhouse is simplifying its menu in an effort to attract more customers and reverse a recent decline in earnings, as well as address a wave of restaurant closures. The decision comes after the chain experienced a dip in sales and struggled with underperforming locations.

Outback Steakhouse is owned by Bloomin’ Brands, which also operates Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse. In a recent earnings call for the third quarter, CEO Mike Spanos acknowledged the challenges facing the casual dining sector and revealed plans to revitalize Outback Steakhouse by streamlining its menu.

“We’ve got to create just a great meal and a great value in a fun, casual environment, which is also the core of the brand,” Spanos said. He emphasized that simplifying the menu would help improve operational consistency and enhance the overall customer experience.

By focusing on fewer, high-quality menu items that align with the brand’s steak and seafood specialties, Outback hopes to make the dining experience more consistent and enjoyable for guests and easier to execute for staff. This strategy reflects a shift toward focusing on the essentials of the Australian-themed chain’s offerings, rather than trying to cater to every customer preference.

The move comes at a time when Outback Steakhouse is facing financial difficulties. Spanos reported that the chain has not seen sustainable growth in traffic, with a drop in same-store sales and market share in the steak category. The company’s revenue for the third quarter totaled $1 billion, a 4% decrease compared to 2023. Spanos cited broader industry challenges, the impact of recent hurricanes, and execution issues as contributing factors to the decline.

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Bloomin’ Brands has also been restructuring its portfolio by closing underperforming restaurants. In February, the company announced the closure of 41 Outback locations, many of which were older restaurants with outdated leases. This led to the closure of several Outback Steakhouse locations across the U.S., including three in Hawaii and the last remaining Outback in New Hampshire. Other states, such as Iowa, Ohio, Michigan, Florida, Illinois, and Pennsylvania, also saw closures.

Despite these setbacks, Spanos remains focused on improving performance and believes the chain can return to profitability by streamlining operations and returning to its core values.