Outback is No Longer America’s King of Steaks

Once a dominant force in casual dining, Outback Steakhouse is losing its grip as the go-to destination for steak lovers in the U.S. Texas Roadhouse and LongHorn Steakhouse have now overtaken Outback in sales, and their success is reflected in their soaring stock values.

Over the past year, Texas Roadhouse’s stock climbed 15%, while LongHorn’s parent company, Darden, saw a 25% increase. In contrast, Outback’s parent company, Bloomin’ Brands, has seen its shares plummet more than 70%, now trading at around $8 per share.

A Shift in Consumer Preferences

Rising costs and changing dining habits have reshaped the steakhouse landscape. Consumers are gravitating toward restaurants they perceive as offering better value, and Outback has struggled to keep up.

Originally founded in 1988, Outback became a household name in the 1990s and 2000s, drawing crowds with its affordable steaks and iconic Bloomin’ Onion appetizer. However, price hikes, excessive promotions, and cost-cutting measures have hurt food quality and service, leaving many longtime customers disappointed.

Outback’s average check last year was $29, notably higher than its rivals—$6 more than Texas Roadhouse and $2.50 more than LongHorn. Meanwhile, Texas Roadhouse capitalized on affordability, and LongHorn appealed to customers by increasing portion sizes and maintaining a consistent menu strategy.

A Changing Competitive Landscape

Texas Roadhouse has lured in Outback’s former customers with lower prices, a lively atmosphere, and engaging in-store experiences – including free peanuts, honey cinnamon butter rolls, and even line-dancing waitstaff. Meanwhile, LongHorn has repositioned itself as an upscale yet affordable steakhouse, attracting diners who previously frequented high-end restaurants.

Analysts say that both brands have benefited from consistent menu quality and better customer satisfaction ratings, ranking at the top of the American Customer Satisfaction Index.

For longtime customers like Richard Mathis, who once celebrated special occasions at Outback, the decline is evident.

“When I go into an Outback now, it feels sterile and cold,” he said. “I just want to eat and leave. It doesn’t feel fun anymore.”

Outback’s Plan for a Comeback

Despite its struggles, Outback’s leadership is confident in a turnaround.

“We know there is still strong affinity for Outback,” a company spokesperson said. “With the right investments, we are excited about our future potential.”

CEO Mike Spanos, who took over in 2023, is leading an overhaul to simplify operations, improve food quality, and modernize restaurant locations. The plan includes:

• Cutting 20% of the menu to reduce kitchen complexity
• Phasing out short-term promotional offers in favor of consistently lower prices
• Focusing on restaurant renovations instead of rapid expansion

Spanos pointed to Chili’s recent comeback as a potential model. Chili’s revived its brand by enhancing food quality, keeping prices competitive, and leveraging viral marketing strategies.

For now, Outback remains a work in progress, but loyal customers like Mathis hope to see a return to its former glory.

“I love the brand and wish it was back to the way it was,” he said. “I want to go to Outback again.”