This year has been an active one for Outback Steakhouse, as seen by the openings and closings of restaurants, the remodeling of existing locations, and the introduction of intriguing new menu items. Now, however, in the midst of declining sales, the chain is planning to implement yet another significant change that may disappoint a great number of customers, and it is related to the menu.
The parent company, Bloomin’ Brands, said in a financial report that was released last week that Outback Steakhouse had a decrease of 1.3% in its same-store sales during the most recent quarter. This is the fourth straight quarter in which that significant performance metric has been in the negative for Outback Steakhouse. Over the course of the preceding four quarters, the restaurant chain had registered reductions ranging from 0.1% to 1.2%.
Fleming’s Prime Steakhouse & Wine Bar surpassed its competitors with a 1.2% gain in same-store sales during the most recent quarter. Other Bloomin’-owned businesses, such as Bonefish Grill and Carrabba’s Italian Grill, also had a decline in same-store sales during the same period.
During a call for results that took place on November 8th, Mike Spanos, who became the Chief Executive Officer of Bloomin’ Brands in September, presented a number of ideas that he believes would boost the performance of Australia and the other chains. A significant portion of the chain’s menu is being reduced by one of them.
“I believe that it begins with simplifying things and returning to the essence of the Australian spirit, which is the steak and seafood core, as well as being all things to some persons on the menu and not inevitably being all things to all people on the menu,” In the back of the house, our operators are looking for ways to simplify our operations. This is something that we are looking at,” Spanos added.
Additionally, he said that restaurants “execute more effectively” when they have fewer menu items to handle, which “drives a way better guest experience.” That is something that he saw. Spanos said that he intends to implement a strategy that places an emphasis on providing exceptional customer experiences in order to get customers to return to Outback restaurants after a fall in revenue and foot traffic.
“If I take a look at the areas in which I would want us to lean more or faster, it all begins with the experience that we provide for our guests. It is imperative that we provide a meal that is both delicious and affordable, all while maintaining a fun and informal atmosphere, which is also the essence of the brand.
Spanos did not provide any specific information on the prospective timing of the menu simplification or the categories of goods that they are considering removing from their menu. His words, on the other hand, imply that a redesigned menu would give priority to the items that Outback is most well-known for, which include steak and seafood, and would steer clear of items that aren’t as well-suited to the brand. There are a variety of products that are neither steak or seafood that are now being provided at Outback. These include chicken meals, spaghetti, burgers, and salads.
When Bloomin’ Brands was contacted, they refused to provide any more information on the frequency with which these menu cutbacks would take place or the specific items that might be eliminated. Customers should keep an eye out for updates since Spanos has pledged to provide further details on the Outback initiatives at the subsequent earnings call, which is scheduled to take place in February 2025.