Outback Steakhouse has been in turnaround mode since late 2024, when Mike Spanos took over as Bloomin’ Brands CEO. He was blunt in his assessment of his company.
“The reality is that we are currently not succeeding. As noted in the release this morning, although our fourth quarter results were within our expected guidance range, we underperformed the industry and lost share as defined by Black Box by 260 basis points on sales and 410 basis points on traffic,” he said during the chain’s fourth-quarter 2024 earnings call.
Spanos admitted the need for change.
“We are not pleased with our performance and acknowledge that we need to change the trajectory of the business,” he added.
Since then, Outback Steakhouse, the company’s flagship brand, closed 24 locations in 2025, according to an SEC filing, and followed that with another 23 this year. In addition, the company has been rocked by its largest franchise operator, Cerca Trova, filing for Chapter 11 bankruptcy, even as the brand has been showing signs of improvement.
Now, as the bankruptcy puts more than 60 additional restaurants at risk, Spanos has decided to make a pricing move that customers will like.
Outback Steakhouse puts off its price increase
While Spanos acknowledged that costs have gone up, he shared that Bloomin’ has decided to hold the line on prices at least for a few months.
“We just made the decision to delay pricing moves at Outback and Bonefish, more so Outback, in terms of we’re going to move that into Q1 of 2027,” he said during Bloomin’s third-quarter 2026 earnings call.
He offered some context around the decision.
“We just think that’s the right thing to do in terms of — like I said, we’re going to be balanced, and we don’t think we need to take more pricing versus the inflationary rates. That’s what it is. We’ve seen the consumers — consumers are hanging in there is based on what we’re seeing,” he added.
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The decision to hold prices comes at a time when Bloomin Brands has seen its overall margins drop. Some of that drop, however, has come because of added investment in Outback, shared CFO Eric Christel.
“Adjusted restaurant margin was 9.3%, down approximately 20 basis points year-over-year. All of Outback’s planned turnaround investments are included in restaurant expenses, including food quality, service model, managing partner compensation, hospitality, front-of-house training, new uniforms, and an increase in advertising, which drove higher restaurant expenses,” he said.
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Outback is meeting consumers where they are
American consumers want value. That’s something that has been made very clear by Chili’s, which has driven its success by building off of its $10.99 “Three for Me” platform.
Outback Steakhouse is building similar equity with its “Aussie 3-Course” meals, according to Spanos.
“When I start with Aussie 3-course, it actually has become a platform and a sub-brand of Outback. We’ve got great brand equity in Aussie 3-Course. Our guests know it means craveable food, great service with compelling affordability,” he said.
The chain, he noted, has made the decision to keep the entry-level Aussie 3-Course price at $15.99.
“It really hits on what we want in terms of giving guests what they want. And we’ve seen that in our value scores. Our value scores have also continued to grow for five quarters in a row. And I do believe it’s because of the trust we’re getting from the guests and an increase in intent to return,” he added.
Outback needs repeat business
Brinker International Chief Marketing Officer George Felix explained how Chili’s has driven its business.
“You can’t cut your way into relevance. Guests are incredibly smart right now, and they know when value disappears,” he told Restaurant Dive. “The brands that are winning are the ones delivering clear value without compromising the experience.”
As a lapsed Outback Steakhouse customer, I’m willing to give the chain another chance. After previously being semi-regular customers, my wife and I dropped the chain after one too many meals whose quality did not meet expectations.
Now, with the chain focusing on raising standards, I’m willing to go back and try again.
That, however, is where pricing and value come in, according to RTM Nexus CEO Dominick Miserandino.
“Loyalty is a wonderful thing, and the more you can get people coming in and making a regular tradition, the better,” he told TheStreet.
Outback Steakhouse has made changes, and it’s smart to keep prices down, even if that impacts profitability. But the chain has to deliver on food and service, not just value, if it wants customers like me to keep coming back.
An update on the Outback franchisee Chapter 11 filing
Cerca Trova Restaurant Group Holdings, a San Diego-based management company that is Outback’s largest domestic franchisee, filed for Chapter 11 bankruptcy in the U.S. Court for the District of Delaware on Nov. 2, Bloomberg Law reported.
The restaurant group operates approximately 60 Outback Steakhouse locations across Western states, including California, Arizona, Nevada, Colorado, and New Mexico. It previously operated under the name T-Bird Restaurant Group.
A Bloomin’ representative called the bankruptcy “an isolated situation” that does not affect the parent company.
“This is an isolated situation involving the franchisee and does not affect Bloomin’ Brands’ corporate operations, financing, or liquidity,” the representative said in a statement it provided to TheStreet.
“Bloomin’ Brands is participating in the process as a stalking‑horse bidder to acquire Out West’s assets and seeking to support operational continuity and protect the brand while the court‑supervised process moves forward.”
Bloomin Brands has entered into a $26.3 million stalking horse agreement to buy 61 restaurants owned by franchisee Out West Restaurant Group/Cerca Trova Restaurant Group.
The deal also includes “substantially all” of Out West’s other assets, according to a filing with the U.S. Securities and Exchange Commission.
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