Outback Steakhouse Closes More Locations in “Turnaround” Effort
Outback Steakhouse, the once-dominant casual dining chain known for its Bloomin’ Onion and laid-back charm, has quietly closed more restaurants across the United States.
Parent company Bloomin’ Brands described the move as part of an ongoing “turnaround plan,” signaling a difficult chapter for the 37-year-old brand trying to regain its footing in a changing restaurant landscape .
A Shrinking Footprint
In late October 2025, at least eight Outback Steakhouse locations shut their doors in six states, including two in Florida, where the chain was founded in 1988. The closures follow a similar round in early 2024, when Bloomin’ Brands shuttered 41 underperforming restaurants nationwide. Outback now operates roughly 670 U.S. locations, more than 10% fewer than a decade ago.
Inside the Turnaround
Bloomin’ Brands told USA Today that the decision came after a “periodic review” of restaurant performance, weighing factors like sales, customer traffic, and market potential. A spokesperson emphasized that affected employees were offered transfers to nearby locations when possible. The company said the closures were not sudden, but part of a broader restructuring meant to “improve performance and position the brand for long-term success.”
Where the Doors Closed
Among the affected locations are two restaurants in Birmingham, Alabama; Jacksonville Beach and Naples, Florida; Baton Rouge, Louisiana; Silver Spring, Maryland; Merrick, New York; and Madison, Wisconsin. Some local business owners told reporters that nearby Outback sites or declining traffic patterns had eroded sales at older stores.
Competition Heats Up
Outback once led the steakhouse segment, outselling competitors like Texas Roadhouse and LongHorn Steakhouse, but both rivals have since surpassed it. Analysts point to menu simplicity, stronger value offerings, and livelier atmospheres as key reasons. With inflation still pressuring diners, Outback’s $29 average check now faces tough competition from Texas Roadhouse’s roughly $23 steak dinners.
A Decade of Decline
The closures underscore a longer trend. Bloomin’ Brands’ share price has fallen more than 70% in recent years, while Texas Roadhouse and LongHorn’s parent, Darden Restaurants, have each gained ground. Outback’s sales have stagnated since the pandemic, and analysts note that the chain hasn’t posted positive same-store growth in over two years.
Testing New Strategies
Still, Bloomin’ Brands is experimenting with changes to win diners back. According to news reports, the company is testing a revamped menu with fewer items and higher-quality steaks at select Outback locations. It’s also reducing the number of tables per server to improve service speed and guest satisfaction, small operational shifts the company hopes will boost traffic.
A Balancing Act
Industry analysts say Outback Steakhouse’s challenge lies in balancing nostalgia with modernization. The brand’s Australian theme once stood out in the crowded dining space, but its core audience has aged, and younger customers are drawn to faster, more affordable chains. Some observers believe Outback Steakhouse must rethink its pricing, refresh its design, and reintroduce the sense of adventure that made it popular in the first place.
Employee Impact
While corporate leaders frame the closures as strategic, the human cost remains. Workers at shuttered restaurants have faced transfers or layoffs, though Bloomin’ Brands said it is “working to relocate as many team members as possible”. For many, the cuts mark the end of years spent with a company once known for its family-style culture and steady growth.
Adapting to the Changing Palate
As Outback Steakhouse retools its menu and operations, the chain’s future will depend on whether it can reconnect with today’s diners. The closures highlight a broader shift in casual dining, where loyalty is fading and value often wins. For now, the brand’s recovery depends not just on closing restaurants but also on finding a new recipe for relevance.
