Outback Steakhouse CEO reveals chain is ‘simplifying’ menu after closing 41 locations in latest industry bloodbath
OUTBACK Steakhouse has revealed plans to simplify its menu in an attempt to attract diners and reverse its downward trend.
The decision comes after a dip in earnings the past few months as well as a wave of Outback Steakhouse closures.
Outback Steakhouse is owned by Bloomin’ Brands, the parent company that also operates Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse.
In the company’s quarter three earnings call, CEO Mike Spanos detailed how Outback Steakhouse was struggling amid greater industry challenges in the casual dining space.
He outlined plans to revive Outback Steakhouse by simplifying the 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,” said Spanos.
Read More on CEO Comments
“I look at operational excellence as consistency. To me, that means we’ve got to be thoughtful about controlling what we can control, simplifying the agenda in the menu.”
The CEO explained the importance of the guest experience and how it related to the menu.
He shared that it was easier to execute fewer menu items more consistently, which in turn drives a “way better” diner experience.
“It starts with simplification and getting back to the core of that Aussie spirit, that steak seafood core and being all things to some people on the menu and not necessarily being all things to all people on the menu,” said Spanos.
The CEO also emphasized the importance of value, which combines price and experience.
He outlined Outback Steakhouse’s intention to focus on offering promotions that rely on core, staple menu items rather than adding new or complex items.
McDonald’s fans spot clue in new test menu item and ‘beg’ for return of fan favorite ‘nothing compares to’
By doing this, the Australian-themed chain aims to make the menu simpler for both guests and team members.
FINANCIAL SIZZLE
The menu simplification initiative comes amid financial trouble for Outback Steakhouse.
In the earnings call, Spanos shared that the restaurant chain had “not sustainably grown traffic.”
He pointed towards the chain’s drop in same-store sales and share in the steak category.
Outback Steakhouse’s total revenue in quarter three was $1 billion, down 4% from 2023.
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. I look at operational excellence as consistency. To me, that means we’ve got to be thoughtful about controlling what we can control, simplifying the agenda in the menu.”
Mike Spanos
Spanos blamed challenging industry trends, the impact of recent hurricanes, and the chain’s “current execution.”
“Our team is working hard but we are not pleased with our performance and we know we can do better,” said the CEO.
The executive also pointed towards the net impact of restaurant openings and closures.
Bloomin’ Brands announced in February it would begin closing 41 underperforming restaurants.
“The majority of these restaurants were older assets with leases from the ’90s and early 2000s,” former CEO David Deno said.
The wave of closures left Hawaii devoid of Outback Steakhouse restaurants after three were shut down.
New Hampshire was also left without Outback Steakhouse after the final remaining location was closed.
Iowa, Ohio, Michigan, Florida, Illinois, and Pennsylvania also saw several Outback Steakhouse closures.
Additionally, Bonefish Grill locations in New Jersey and Virginia were shut down, as well as at least three Carrabba’s restaurants in New York.
Read More on The US Sun
Check out how to score 10% off at Red Lobster all the time.
Plus, read up on Krispy Kreme’s new Thanksgiving Collection with four new flavors.