Bloomin’ Brands, the group that owns Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, Fleming’s Prime Steakhouse & Wine Bar and Aussie Grill by Outback, has closed 41 restaurants across its portfolio, a spokesperson has confirmed.
The news was first reported by Nation’s Restaurant News on Feb. 23, citing an analysts’ call in which Bloomin’ Brands CEO David Deno shared that the goal was to eliminate shops with below-average business.
“We periodically review our asset base and, in our latest review, we made the decision to close 41 underperforming locations,” Deno said, according to NRN. “The majority of these restaurants were older assets with leases from the ‘90s and early 2000s.”
Deno said that a variety of factors resulted in the decision, including sales and traffic-trade areas, which means how close customers live to a business location and how far they might travel to patronize it. He also noted that the brand plans to open 40 to 45 restaurants in 2024.
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A Bloomin’ Brands spokesperson says that all the affected locations have been closed as of Friday, Feb. 23, and include Outback, Carrabba’s and Bonefish Grill locations.
“Closing restaurants is never easy. This was a business decision that has no reflection on the staff or their service,” the Bloomin’ Brands spokesperson tells TODAY.com. “Many team members will have the opportunity to transfer to open positions at another restaurant. Employees who do not will receive severance.”
The spokesperson did not share a list of stores affected, but, according to NBC affiliate WCNC, Outback locations closed in Florida, Iowa, Illinois, Michigan, Ohio and Pennsylvania, and the last remaining Hawaii and New Hampshire Outback restaurants also shuttered. Further, Bonefish Grill locations in New Jersey and Virginia closed, as well as Carrabba’s in Virginia and at least three New York locations.
U.S. & World
Bloomin’s CEO also added during the call that the company plans on investing $20 million in 2024 to build traffic through marketing with both television and digital advertising initiatives. It also aims to increase carryout and to-go orders for its businesses.
Last quarter, Bloomin’ Brands netted $43.3 million, according to NRN, down from a net of $58 million in the same quarter last year. The company also saw declines in sales percentages across its brands year over year, with same-store sales at company-owned restaurants declining a combined 0.2%, though it reported a 2.6% increase at Carrabba’s.
As of March 1, Bloomin’ Brands has more than 1,450 restaurants in 47 states, Guam and 13 other countries. This includes 673 Outback Steakhouses in the U.S., according to a location breakdown on the Outback website.
This story first appeared on TODAY.com. More from TODAY:
