Outback Steakhouse's "Turnaround" is Just Corporate BS, Right?
Okay, so Outback Steakhouse is closing a bunch of restaurants. Again. This time it's 21, but they're hinting at more over the next four years. And what's the excuse? A "turnaround strategy." Give me a break.
The "Turnaround" Deception
Bloomin' Brands, the parent company, is trying to spin this as some kind of positive thing. They closed 41 locations back in February 2024 too. They say it's all part of a plan to "drive long-term sustainable and profitable growth." Right. That's what they ALL say. It's corporate speak for "we screwed up, and now we're trying to look like we know what we're doing while cutting costs." Outback Steakhouse closing more restaurants amid parent company 'turnaround'
The official line is that they considered "a variety of factors, including sales and traffic, trade areas, and potential investments to improve performance." Translation: these locations weren't making enough money, so they're pulling the plug. No duh.
And get this – they're pausing shareholder dividends. Oh no! The poor shareholders! To "preserve cash for future restaurant investments and debt repayments." So, they mismanage the company, then punish the shareholders, and expect us to believe this nonsense?
I mean, I get it, companies need to adapt. But this feels like rearranging deck chairs on the Titanic. They're talking about brighter interiors, smaller kitchens, and bigger order pickup stations. As if the decor is the reason people aren't going to Outback. Last time I checked, I go to a steakhouse for, you know, a decent steak and maybe a Bloomin' Onion if I'm feeling nostalgic.
Speaking of which, who the hell orders takeout steak? I feel like I'm taking crazy pills! Steak is meant to be eaten hot off the grill, not lukewarm in a cardboard container.
The Competition is Eating Their Lunch (and Steaks)
Meanwhile, LongHorn and Texas Roadhouse are thriving. Up over 5% in sales. Why? Because they offer affordable steaks. Outback's problem isn't the lighting; it's the value proposition. They're trying to compete in a market where people are increasingly price-sensitive.
They're promising "better-quality steaks" and "more attentive service" as part of their $75 million reinvestment plan. Okay, but what does that even MEAN? "Better-quality" according to who? And how much more is that gonna cost me? I'm already paying too much for a mediocre steak.
And 22 more locations closing as leases expire? That's not a turnaround; it's a slow bleed. It's like watching a once-great brand slowly fade into irrelevance.
Honestly, I'm starting to feel bad for the employees. They're promising them jobs at nearby restaurants, but how many "nearby restaurants" are there really? And how long before those close too? This whole thing is a mess.
So, What's the Real Story?
This ain't a "turnaround." It's a desperate attempt to stay afloat. They're closing stores, cutting costs, and trying to put a fresh coat of paint on a sinking ship. Outback had a good run, but let's be real, their time is up.
