What does a familiar steakhouse chain do when the dining room feels stuck in an earlier era but the competition keeps getting faster, fresher, and more value-focused?
The parent company of Outback Steakhouse, Bloomin’ Brands, has been responding to this question in a very unglamorous way: by reducing the number of locations, revamping the way the restaurants operate, and shifting funds from investors to operations. During the three-month period ending in late September 2025, Bloomin’ Brands has confirmed the closure of 21 restaurants in the U.S., and the closures were completed in October. The list of closed locations was not released by the company, so customers had to get verification from the local area when their local Outback closed.
The next phase is already laid out. Bloomin’ Brands announced that it intends to not renew leases for 22 additional U.S. restaurants, including Outback, Carrabba’s, and Bonefish Grill. This strategy is less about a sudden withdrawal and more about a gradual pruning of locations that have less foot traffic, are more expensive, or don’t fit the brand’s trade area.
At the heart of the matter is a clear diagnosis: Outback has been losing steam in a casual dining market where consumers are showing up to either get a better value or a more contemporary experience. In the company’s third-quarter earnings releases, Outback’s same-store sales gain of 0.4% was a small positive, but it still trailed the competition, which posted significantly stronger gains. The company did report a net loss for the quarter, which included $33 million in impairment and closure charges. Store refreshes are expensive, even when they’re planned.
One of the decisions made the priorities clear. Bloomin’ Brands had suspended its dividend payments in order to direct the funds towards debt repayment and investment.
Operationally, the turnaround appears to be a back-to-basics overhaul with new mechanics. The company has planned around $50 million of Outback turnaround investments in 2026, with about half of that going to food quality, including a greater emphasis on steak. It also allocated around $7 million to modify service during peak periods, cutting the tables per server ratio from six to four, which is intended to improve speed, service, and employee longevity, rather than simply labor optimization. Marketing expense is expected to increase by about $10 million in 2026, accompanied by a move to online media as the brand attempts to drive awareness into visits. On the leadership and training side, the company outlined an additional cultural investment.
The dining room itself is also being rethought. Outback’s newer prototype shrinks the typical size from almost 6,000 square feet to almost 5,000, with more emphasis on off-premises and pick-up orders. In a 2022 press release announcing the new concept, Outback noted a smaller size, new technology, and a new interior design, with dining rooms still designed to seat 187 guests and interior design intended to reflect a brighter, more modern look. The smaller box, the company said, also helps it to enter markets where larger units would have been more difficult to site.
As far as consumers are concerned, the immediate experience is a function of geography. Bloomin’ Brands still had approximately 679 Outback Steakhouse restaurants in the U.S. as of September 2025, but the number has been slowly shrinking for a long time. Some neighborhoods will be losing restaurants with little warning, while others will be getting new décor, a new service mix, and a louder voice about steak quality less nostalgia, more relevance.
