4 Signs Outback Steakhouse Is Struggling

Joe's Crab Shack, Bertucci's, and On the Border are among the chains we may sadly lose in 2026, but they're not the only restaurants in hot water. Rising prices and changing consumer habits have put the dining industry on high alert and imperiled once-beloved brands. While steakhouses are one of the few dining concepts that continue to thrive, Outback Steakhouse no longer holds the sway it once did. In fact, diners are increasingly turning to competitors like Texas Roadhouse, which leaves the Australian-influenced steak restaurant in a precarious position. 

Hopping onto the scene in 1988, Outback is best known for serving up juicy steaks and appetizers like the Bloomin' Onion and Kookaburra Wings (which get their name from a carnivorous bird indigenous to Australia). At one point, the chain operated a whopping 750 locations, but these days, that figure is closer to 670 restaurants. Store closures are happening at a rapid clip, and Bloomin' Brands, the restaurant's parent company, is faced with declining sales and mounting debt. Outback has also chosen to axe certain items from its menu in the interest of cost-savings, and has been hit with sharp criticism from customers. These factors paint a dire picture, but only time will tell if Outback has what it takes to make a comeback.

When it comes to the financial outlook of Outback's parent company, 2024 was not a great year. Earnings were down by 30%, while Bloomin' Brands withdrew over $600 million from a $1.2 billion line of credit. While the company's financial fortunes marginally improved in 2025, analysts predict that decreased foot traffic into restaurants will continue to be a problem for Outback and other Bloomin' restaurants, with the exception of Fleming's Prime Steakhouse, which experienced sales growth during the last financial quarter of 2024, according to Restaurant Dive.

Poor steak quality can certainly drive customers away from a steakhouse, but Outback is facing a crisis that transcends any personal shortcomings. The restaurant industry has seen decreased foot traffic overall as a significant percentage of consumers in the U.S. choose not to dine out as often. Driving this change in habits is increasing restaurant prices, as well as broader economic uncertainty. Although Outback has expressed the desire to make meaningful changes to attract more customers, there's not much that can be done if consumer money woes are resulting in more meals at home. 

It's never a good sign when a restaurant begins closing lots of locations, especially if closures seem to come out of the blue. That's precisely what happened at Outback over the course of October, when the chain reportedly shuttered 21 restaurants in an effort to get the brand back on track. Additionally, 22 dining establishments falling under the Bloomin' Brands banner will be subject to the same fate once their leases come up for renewal — Bloomin' Brands also owns Carrabba's Italian Grill and Bonefish Grill. 

Restaurant closures are apparently part of a $50 million revitalization plan undertaken by Bloomin' Brands to capitalize on the minor boost in sales growth the company experienced in the first financial quarter of this year. It will also reduce how many new Outbacks are built in 2026. By closing underperforming locations and slowing new restaurant development, Bloomin' Brands hopes to redirect funds towards successful Outback restaurants, most of which will be remodeled to reflect a modern look and feel.

In our ranking of chain restaurant steaks from worst to best, Outback's bone-in rib eye had the dishonor of coming in dead last. We're not alone in our opinion, as the internet is replete with steak lovers asking where Outback went astray. In a Reddit thread titled "What happened to Outback steaks?" the poster claimed a recent meal at the chain amounted to "the worst [steak] I've ever had." One commenter characterized an outing to the restaurant as "Horrible steaks. Horrible experience," while another pondered, "I remember Outback having really good food 10 years ago, not sure what went wrong."

Similar sentiments were shared on Yelp, where reviewers complained about overcooked steak, with one diner stating, "My steak had a lot of gristle, and I had to spit several pieces out because I just couldn't chew it." Outback's decision to serve lower-quality beef could be one explanation for customer dissatisfaction. The steakhouse chain uses USDA Choice beef in its dishes to keep prices reasonable, as opposed to USDA Prime beef with its luscious marbling and succulent textures. While Choice beef is perfectly tasty, it could yield a tougher steak when not cooked properly.

Huge menus can indicate a lack of food quality at restaurants, while also overwhelming the staff tasked with making so many items. A Reddit post featuring an old Outback Steakhouse menu shows that the chain had its own size issues. In addition to steaks, this massive menu featured burgers, chicken sandwiches, fish tacos, grilled salmon, baby back ribs, pork chops, and lamb. The chain even offered something called No Rules Parmesan Pasta, which was Outback's rebellious version of fettuccine Alfredo.

Because bigger isn't always better where restaurant menus are concerned, Outback's parent company is slashing menus by 10% to 20% across all of its brands, with the steakhouse chain undergoing the most drastic cuts. According to Mike Spanos, chief operating officer of Bloomin' Brands (as reported by Restaurant Business), "We need to make fewer items, but make those much better." Bloomin' Brands will initially focus on removing items that aren't selling well, along with nixing those that are more challenging to make. The company will also eliminate limited-time promotions in favor of making core menu items more affordable for consumers. For example, Outback currently offers the Aussie 3-Course Meal, which starts at $14.99 and includes soup or salad, one entree, and a slice of cheesecake for dessert.