Bloomin' Brands closes 21 restaurants, launches turnaround strategy

Tampa-based restaurant company Bloomin’ Brands Inc. closed 21 U.S. restaurants last month and is not renewing the leases on another 22 as part of a turnaround plan focused on Outback Steakhouse.

The closures and plan were announced Thursday morning in the company’s third quarter earnings report. The report did not list what locations were shut down or which of the company’s brands were affected. The majority of the affected leases are expected to expire over the next four years. (The news also comes less than a week before the Nov. 11 scheduled opening of an Outback Steakhouse, in the chain's smaller footprint, its Joey model, in east Manatee County.) 

A spokesperson for the company says the closings are a mix of Outback, Carrabba's Italian Grill and Bonefish Grill restaurants. 

The closures are part of what Bloomin’ Brands is calling a comprehensive turnaround strategy focused primarily on Outback — the company’s largest brand.

The plan, according to the details disclosed in the earnings statement, centers on improving dine-in experiences, reinvesting in “employee culture,” and expanding its brand to attract new diners and increase return visits.

It also calls for modernizing existing locations “to ensure restaurants are updated and reflect brand standards.”

Bloomin’ Brands says the cost savings will come from “non-guest facing” areas such as contract negotiations and indirect spending. The company has also suspended its dividend, it says, as part of the plan to prioritize debt reduction and capital investments.

Officials say the strategy is backed by a strong management team that will deliver “long-term sustainable and profitable growth” across all of its restaurant brands.

Bloomin’ Brands’ restaurants include Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar. It currently operates and franchises more than 1,450 restaurants in 46 states, Guam and 12 countries.

According to the earnings report, the company's total revenue for the third quarter was $928.8 million, up 2.1% from the same time last year.