Tampa, Florida, U.S.A.-based restaurant group Bloomin’ Brands has continued to close restaurants in an effort to return to profitability.
In a move aligning with others made across the U.S. restaurant sector, the company has closed 21 Outback Steakhouse, Bonefish Grill, and Carrabba's Italian Grill locations, Vice President and CFO Eric Christel confirmed on a recent investor call. Additionally, Bloomin’ Brands executives have identified 22 other restaurants that will not be renewing their leases, most of which expire some time over the next four years, Christel said.
“Bloomin’ Brands’ closures are a continued reflection that the casual dining industry has too many stores with too many seats,” FoodServiceResults CEO Darren Tristano told SeafoodSource, adding that consumers are increasingly seeking independent restaurants that are more local and seasonal, whereas chains seem to turn off younger consumers “since their parents dine there and they are not designed to appeal to the younger consumer who grazes and is looking for innovative beverages and mocktails.”
The move from Bloomin’ Brands is the latest in a string of turnaround efforts from the company.
In an effort to reverse disappointing earnings in 2024, Bloomin’ Brands laid off 100 corporate employees earlier this year and said it would reduce menu sizes at its Outback, Bonefish Grill, Carrabba’s, and Fleming Prime Steakhouse & Wine Bar restaurants.
The firm has also outlined several spending initiatives slated for 2026 totaling nearly USD 50 million (EUR 43 million), Christel said.
“These investments will be offset by approximately USD 30 million [EUR 26 million] of productivity for a net investment of approximately USD 20 million [EUR 17 million] in 2026,” he said.
Investments include upgrading center-of-the-plate food quality, including “steak excellence improvements,” menu redesigns worth around USD 25 million (EUR 21.4 million), investing approximately USD 7 million (EUR 6 million) in guest service experience, and investing USD 8 million (EUR 6.9 million) in its employees, according to Christel.
The company also intends to increase its spending on marketing efforts by around USD 10 million (EUR 8.6 million).
“Our higher returns gives us increased conviction in the marketing investment we have planned to make as part of the Outback turnaround,” Bloomin’ Brands CEO and Director Michael Spanos said.
Overall revenues for Bloomin’ Brands increased 2.1 percent to USD 928.8 million (EUR 798 million) in the third quarter of 2025, largely due to the net impact of restaurant openings and closures and higher U.S. comparable restaurant sales, according to the company.
“All four brands drove positive comparable store sales growth for the first time since Q1 2023,” Spanos said. "Our teams continue to focus on consistency of execution in food quality and the guest experience – the foundation for our turnaround.”
Carrabba’s had the greatest sales increase of any Bloomin’ Brands chain during the quarter at 4.1 percent. Bonefish Grill’s comparable sales, meanwhile, rose 0.8 percent, signaling the first quarter of positive comparable sales for the brand since Q2 2023.
To further boost sales, Bonefish needs to focus on its bar business and happy hour menu to bring more customers into the dining room, Tristano told SeafoodSource, which would mimic moves made by other chains such as Red Lobster.
"Pairing adult beverages with innovative small plates will keep the alcohol flowing and get customers to return for dinner options,” Tristano said.
He further advised that seafood is not the most broadly consumed protein and is less affordable than other proteins, so Bonefish executives need to find some more attractive alternatives to younger consumers in particular.
“Again, Bonefish will need to find ways to attract younger consumers, perhaps with sushi applications or poke menu items. These upscale casual dining brands cannot make it without appealing to Gen Z and millennials,” Tristano said.
While Bloomin’ Brands is “excited” about the momentum it is starting to generate with its turnaround efforts, Spanos said his firm needs “to continue to improve our results to grow market share.”
"We know in-restaurant dining is our biggest opportunity. We know it will take time to reverse our market share trends, and we remain focused on improving our execution every day,” he said.
As of now, Bloomin’ Brands does not envision the need to close additional locations, Spanos said.
