Bloomin’ Brands, the operator of Bonefish Grill, Outback Steakhouse, Fleming’s Prime, and other restaurant brands, is laying off 100 corporate employees.
Bloomin’ Brands said in a Securities and Exchange Commission (SEC) filing that the layoffs would reduce workforce at its corporate Restaurant Support Center in Tampa, Florida, U.S.A., by 17 percent. It operates or franchises more than 1,450 restaurants globally.
The restaurant operator cited industry headwinds and a need to realign after refranchising its operations in Brazil in December, per Restaurant Business.
“The company believes this will further support its long-term strategy and path to sustainable growth in traffic, comparable sales, and profitability,” it said in the filing.
The company also said that Lissette Gonzalez, previously executive vice president and chief supply chain and operations excellence officer, will now serve as executive vice president and chief commercial officer. Additionally, Kelia Bazile, formerly the vice president of operations for Bonefish Grill, was promoted to president of Carrabba's Italian Grill.
Patrick Hafner was promoted to executive vice president and president of Outback in January, according to Restaurant Business.
The layoffs are not entirely unexpected as Bloomin’ Brands reported a 3.8 percent year-over-year drop in revenues in its Q3 2024 earnings report. The firm attributed the decline to lower comparable restaurant sales and the net impact of restaurant closures and openings, among other obstacles. Bonefish Grill’s sales also declined 4.1 percent.
Bloomin’ Brands will release its Q4 2024 earnings on 26 February.
Bloomin’ Brands is not the only restaurant company struggling in a difficult economic environment.
Dine Brands, the parent company of Applebee’s, IHOP, and Fuzzy’s, laid off about 9 percent of its corporate staff on 31 January. Pasadena, California, U.S.A.-based Dine is one of the largest full-service restaurant companies in the world, with more than 3,500 restaurants – most operated by franchisees – globally, per Restaurant Business.
The layoffs were “part of a strategic plan to better align with current market conditions,” Dine Vice President of Human Resources Christie Cook said in a statement to Restaurant Business.
Food costs also remain a challenge for restaurant operators and consumers as they inclined 2.5 percent year over year in January, according to the U.S. Consumer Price Index, driven by a 3.4 percent hike in food-away-from-home prices.
On top of the cost challenges, cold weather and snowstorms in the South affected earnings at restaurant chains such as Texas Roadhouse and Chipotle, according to Restaurant Business. Although Texas Roadhouse said its same store sales are up 2.9 percent in the first six weeks of the year, the company has not seen quarterly same-store sales dip below 7 percent since 2020, according to Restaurant Business.
Texas Roadhouse executives primarily blamed the lower earnings on cold and snowy weather, which forced some locations to close in January. Additionally, illnesses such as Covid-19 and the flu have taken a toll on some communities, they said.
Chipotle transactions also ran a “negative 2 percent and that included a pretty sizable impact from weather,” Chipotle Chief Financial Officer Adam Rymer said during a recent earnings call, noting that the impact of weather and the Los Angeles, California, fires impacted the company by 400 basis points in its most recent quarter.
