Outback Steakhouse Is Planning Major Menu Cuts, CEO Says
Between restaurant openings, closures, remodels, and exciting new menu launches, this year has certainly been eventful for Outback Steakhouse. But amid falling sales, the chain is looking to make another big change that may disappoint many fans—and it has to do with the menu.
Outback Steakhouse saw a 1.3% drop in its same-store sales last quarter, parent company Bloomin' Brands revealed in an earnings report last week. This is the fifth consecutive quarter in which that important performance indicator has been in the negative for Outback Steakhouse, which had posted declines ranging from 0.1% to 1.2% over the previous four periods. Fellow Bloomin'-owned chains Carrabba's Italian Grill and Bonefish Grill also saw negative same-store sales last quarter, while Fleming's Prime Steakhouse & Wine Bar outperformed its peers with a 1.2% increase.
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Mike Spanos, who took on the CEO role at Bloomin' Brands in September, outlined several initiatives that he hopes will improve the performance of Outback and the other chains during a Nov. 8 earnings call. One of them is making major cuts to the chain's menu.
"I think 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. Our operators want that simplification in the back of the house. And we are looking at that," Spanos said.
He also noted that restaurants "execute more consistently" when they have fewer menu items to manage, which "drives a way better guest experience." Spanos said that emphasizing great customer experiences is part of his plan for getting guests back into Outback restaurants after the sales and traffic declines.
"If I look at where I'd like us to lean further in and accelerate, it starts with the guest experience. 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."
Spanos didn't say exactly when the potential menu simplification may occur or what types of items they're looking at eliminating. However, his comments suggest that an overhauled menu would prioritize what Outback is best known for—steak and seafood—and perhaps lean away from offerings that don't make as much sense for the brand. Chicken dishes, pasta, burgers, and salads are among the non-steak and seafood items currently served at Outback.
Bloomin' Brands declined to share more details on when these menu cuts may occur and which options might be on the chopping block when contacted by Eat This, Not That! But Spanos promised to share more information on the Outback efforts during the next earnings call in February 2025, so customers should stay tuned for updates.
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