Tampa, Florida, U.S.A.-based restaurant group Bloomin’ Brands recently announced it sustained disappointing earnings in the fourth quarter of 2024.
In response, the group laid off 100 corporate employees and said it will also reduce the menu size at its Outback Steakhouse, Bonefish Grill, Carrabba’s Italian Grill, and Fleming Prime Steakhouse & Wine Bar restaurants.
Consolidated revenues for Bloomin’ Brands fell 9 percent to USD 1.1 billion (EUR 1 billion) in Q4 2024.
Comparable restaurant sales declined 1.8 percent at the company’s Outback Steakhouse restaurants, 1.5 percent at Bonefish Grill restaurants, and 0.9 percent at Carrabba’s Italian Grill. On the other hand, Fleming’s realized a sales increase of 3 percent in the quarter.
The company also discontinued its Brazil operations during the quarter.
“We are not pleased with our performance and acknowledge that we need to change the trajectory of the business,” Bloomin’ Brands CEO Mike Spanos said during an investor call on 26 February. The company is “currently not succeeding,” he said, noting that the company lost 260 basis points on sales and 410 basis points on foot traffic, as rated by Black Box Intelligence.
In an attempt to alleviate the issues, Spanos said the group is focusing on simplifying its agenda, delivering a better guest experience, and turning around the financial performance of Outback Steakhouse in particular.
More specifically, the company is reducing the number of items on its restaurants’ menus by between 10 percent and 20 percent – with the menu at Outback, which Bloomin’ plans to begin remodeling “in earnest” in the latter half of this year, seeing the largest reduction at 20 percent.
“We are removing low satisfaction and low mix menu items based on guest feedback and prep labor complexity,” Spanos said without providing details on how the cuts would impact seafood entrees and appetizers.
Bloomin’ Brands will also remove menu items that do not travel well or create complexity for its operators in its off-premise business.
“It is critical that hot food is hot and cold food is cold in all channels. Eliminating these items will improve operational execution and guest satisfaction,” Spanos said.
The restaurant company will also move away from its limited-time offer strategy that included non-core menu items with discounts every 10 to 12 weeks and transition to “abundant value that is featured as part of our everyday menu offering,” Spanos said.
Carrabba’s and Bonefish are already testing simplified menus and providing that everyday value, Spanos said.
Additionally, Bloomin' Brands is working with its suppliers to enhance product specifications and improve internal organizational structure to streamline decision-making capabilities.
“We will roll out these improved specifications throughout the balance of the year and continue to improve our center-of-the-plate quality and abundance,” Spanos said. “Previously centralized functions of marketing, training, culinary, off-premise, and domestic franchisee leadership are now housed inside the brand teams for an integrated approach. We have maintained resources within the Restaurant Support Center that deliver more capability and efficiency to support the brands.”
Starting in 2026, Bloomin’ will slow down the brand’s new unit pipeline.
“We will continue to open new restaurants but at a much slower pace. We'll shift our focus to taking care of our existing restaurants and earning the right to open new restaurants again,” Spanos said.
