Outback parent company announces dozens of restaurant closures as threat of restaurant recession looms

[rangerrebew]

Outback parent company announces dozens of restaurant closures as threat of restaurant recession looms

    Mary Hanbury

    2h 2,522

 

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Bloomin' Brands, the parent company of the Outback Steakhouse, Carrabba's, Bonefish Grill, and Fleming's Steakhouse chains, has announced plans to close multiple restaurants.

Last week, the company said in a presentation to investors announcing a loss of $4.3 million in the fourth quarter that it would close 43 underperforming restaurants. Overall, profit in 2016 dropped to $41.7 million from $127.3 million in 2015.

Bloomin' Brands is suffering from an industrywide slowdown that many analysts fear could be the beginning of a restaurant recession.

http://www.businessinsider.com/outback-closures-coming-as-bloomin-brand-struggles-2017-2

[geronl]

The one I work for has been opening new restaurants.

[truth_seeker]

What restaurant recession? Stock market, employment, real estate prices all up.

Those make people feel and behave as if they are more wealthy, and they eat out.

[XenaLee]

This makes no sense.   The economy outlook is improving and people are optimistic, after eight long years of being pessimistic (and rightly so).  I call BS.  Is this just more the same ole, same ole crap by the left to 'talk down' the economy if/when a Republican is in the WH.  I suspect so.

[truth_seeker]

This makes no sense.   The economy outlook is improving and people are optimistic, after eight long years of being pessimistic (and rightly so).  I call BS.  Is this just more the same ole, same ole crap by the left to 'talk down' the economy if/when a Republican is in the WH.  I suspect so.

And it might just be a poorly managed firm that collects restaurant chains.

[Wingnut]

Maybe they feel the pool of illegal workers will dry up and they have to pay workers more and they can not compete?
It's Trumps fault.

[XenaLee]

And it might just be a poorly managed firm that collects restaurant chains.

I think it's more a matter of folks not having as much spending money as they used to (myself included) ....pre-Obama.  Tighter budgets means less eating out.   But I see that changing, albeit slowly, under the GOP now.  Hope springs, I guess.  Hell, maybe we'll even have more jobs by next year. 

[geronl]

What restaurant recession? Stock market, employment, real estate prices all up.

The stock market is not a real sign of anything. If real estate prices eat up all your earnings, you might be less likely to eat out.

[geronl]

This makes no sense.   The economy outlook is improving and people are optimistic, after eight long years of being pessimistic (and rightly so).  I call BS.  Is this just more the same ole, same ole crap by the left to 'talk down' the economy if/when a Republican is in the WH.  I suspect so.

You think a restaurant company will shut down locations and hurt their own financial interest out of political spite?

[XenaLee]

You think a restaurant company will shut down locations and hurt their own financial interest out of political spite?

If rabid leftists are running and ruining them...

hell yeah.

Those people put politics and agenda before everything.  At least, that's what I've observed.

[GtHawk]

I think it's more a matter of folks not having as much spending money as they used to (myself included) ....pre-Obama.  Tighter budgets means less eating out.   But I see that changing, albeit slowly, under the GOP now.  Hope springs, I guess.  Hell, maybe we'll even have more jobs by next year.

This is just history repeating, many many chains have over expanded because their plans outpaced real world conditions, and the conditions have been declining employment and increasing prices which directly affect discretionary spending. I don't buy the the suddenly improving employment rate anymore now than last year. Food, labor and residence costs are still outpacing income, and when you have less money eating out and entertainment are the first to go. Hell look at seniors, one of the largest segment of the population that eats out, there was a whopping cost of living increase to Social Security of 0.3%!! A loaf of bread,at least near me, is over $3.50 a loaf, unless you buy tasteless generic brands, and costs went up across the board here with the lame A$$ .50¢ increase in minimum wage January first, so they are surely cutting back and the same for a lot of others.

[geronl]

These are underporforming locations, they would eventually be closed anyway. Nothing to do with any "restaurant recession". Plus it will actually make the company more profitable.

Why in the world would the company want to make this look like a bad thing?

[Idiot]

Maybe they feel the pool of illegal workers will dry up and they have to pay workers more and they can not compete?
It's Trumps fault.

@Wingnut ....I'm thinking one of our posters here ate tainted beef at The Outback during the "mad cow" scare.  This is the only explanation I can come up with.....

[Weird Tolkienish Figure]

This makes no sense.   The economy outlook is improving and people are optimistic, after eight long years of being pessimistic (and rightly so).  I call BS.  Is this just more the same ole, same ole crap by the left to 'talk down' the economy if/when a Republican is in the WH.  I suspect so.

Or we might be "over-restauranted" here in the US, just like we are "over-retailed". You can only have so many restaurants.

[Weird Tolkienish Figure]

If rabid leftists are running and ruining them...

hell yeah.

Those people put politics and agenda before everything.  At least, that's what I've observed.

 

[Smokin Joe]

You think a restaurant company will shut down locations and hurt their own financial interest out of political spite?

No, but rather than accept responsibility for underperforming locations it is always nice to have a boogeyman to blame it on.

Reality? If a location is doing badly, and that can't be fixed with different staff, or the required renovations would be too expensive, (or the neighborhood changed), why keep it open?

With that many shutting down, I'd wager there are either multiple causes, or the problems come from high up.

[IsailedawayfromFR]

Reality? If a location is doing badly, and that can't be fixed with different staff, or the required renovations would be too expensive, (or the neighborhood changed), why keep it open?

When I worked corporate, we always had a policy of trying to ease out the under-performing people too.  Like placing a restaurant in a poor location, some people after they are hired just do not perform and are not the right 'fit'.

Nothing wrong with this unless the numbers get to a high level, then I would look at the methodology of hiring people.

[Gefn]

They are closing an Outback in my town.

I never ate there but I was told the food there wasn't too good. I have a friend who has been to other Outbacks and said this particular one wasn't good she had been to better ones.

The one near me is next to a Bonefish Grill, and they have lines out the door on weekends.

[Applewood]

I don't eat out much anymore, mainly because of the high fat, sodium, carbs and calories. Even the so-called healthy options are not all that healthy. 

But when I do eat out, I prefer a local restaurant as opposed to chains.  Chain restaurants tend to offer a cookie-cutter approach to their food preparation  The food is the same in every restaurant in the chain.  I like home cooking, which is what local restaurants tend to offer (or at least the illusion of home cooking).  Plus the prices are generally lower than at the chains. 

[LMAO]

Or we might be "over-restauranted" here in the US, just like we are "over-retailed". You can only have so many restaurants.

@Weird Tolkienish Figure

The restaurant business is one of the most competitive industries. Drive through any town and count the number of places to eat at

[jmyrlefuller]

What restaurant recession? Stock market, employment, real estate prices all up.

Those make people feel and behave as if they are more wealthy, and they eat out.

Perhaps, but Outback runs chain restaurants. The people you describe eat out at fancy, usually independently owned restaurants.

[Idaho_Cowboy]

Outback at least is overpriced for the food quality. Bound to catch up with them. The local one had a letterboard sign out front that had two letters that fell off the message and no one fixed it for months. After seeing it for two month's I decided I wasn't going to eat there (not that I did anyways, other than if the missus wanted to for a real special occasion). If that kind of lackadaisical management goes all the way up I'm not surprised they are in trouble.