Outback Steakhouse Closing Restaurants in 2025: Full List of Locations Affected

We’re seeing a big shift at Outback Steakhouse in 2025. The chain has announced the closure of a large number of its U.S. locations. These closures aren’t just random; they’re part of a strategic move by its parent company, Bloomin’ Brands. For many communities, these restaurants were familiar spots for a meal. Now we’ll explore which locations are affected, why this is happening, the impact on people and the brand, and what may lie ahead.

Background: Outback’s status prior to the 2025 wave

Outback Steakhouse opened in 1988 and became a popular casual‑dining brand with an Australian theme. At its peak, it operated hundreds of restaurants across the U.S. and abroad. But by mid‑2025, it faced headwinds: higher costs, falling traffic, and stiff competition. According to Fast Company, by June 2025, the chain had around 557 company‑owned U.S. units and 121 franchises. In this context, closures in 2025 represent a pivot in its business strategy.

Full List of Locations Affected in 2025

While a full list has not been published, several confirmed closures highlight the scale. Below are specific locations reported:

• Alabama: 20th Street North at 20 Midtown, Birmingham; and the Inverness location on U.S. 280 in Birmingham.
• Arkansas: 180 Pakis St, Hot Springs.
• Florida: 3760 South 3rd Street, Jacksonville Beach; 4910 U.S. 41 North, Naples.
• Louisiana: Jones Creek Boulevard, Baton Rouge.
• Maryland: 8661 Colesville Road in Ellsworth Place Mall, Silver Spring.
• New York: 2124 Merrick Mall, Merrick.
• Texas: 1509 N Central Exwy, Plano.
• Wisconsin: 4520 E. Towne Boulevard, Madison.

In total, at least eight states are impacted. Fast Company notes that multiple locations across eight states were involved in recent closures.

Why These Locations Are Shutting Down

There are several reasons behind the closures. According to Bloomin’ Brands, the decisions “considered a variety of factors including sales and traffic, trade‑areas, and potential investments to improve performance.”

Key issues include:

• Underperforming restaurants: Some units weren’t generating enough customer traffic or sales to justify continued investment.
• Rising costs: Labor, food, rent, and utilities all increased, squeezing margins.
• Changing consumer habits: Dining out is more competitive than ever, with more delivery/take‑out and value‑oriented options.
• Strategic repositioning: The company is focusing on a leaner footprint and reinvesting in its core locations. For example, Bloomin’ Brands plans a US$75 million investment over three years for Outback improvements.

In Alabama, the two Birmingham locations closed abruptly as part of this national plan. These closures are not isolated; they are part of a larger turnaround strategy.

Impact and Implications

For employees and customers

The closure of a community’s Outback can feel sudden. Employees may face job uncertainty, although the company says transfers will be offered where possible. Customers lose familiar dining spots, and local foot traffic can be affected.

For local communities

A restaurant closing affects more than food; it can change dining patterns and local business dynamics. Especially for spots that have been open for decades. One report mentions a 35‑year‑old Outback in Florida among the closures.

For the brand and investors

This move signals that Outback is under pressure. Bloomin’ Brands’ stock has dropped sharply (over 40 % in one year) amid these changes. However, in one recent quarter, Outback reported a 0.4 % same‑store sales gain, the first positive one in two years. The hope is that shrinking weaker locations and reinvesting in the others will yield a more sustainable model.

For the dining industry

Outback’s closures reflect a broader trend in casual dining where chains must adapt to cost pressures and shifting consumer behaviour. Chains that don’t adjust may face even heavier setbacks.

What’s Next: Will More Closures or a Turnaround?

Yes, more changes are coming. The company plans to shut an additional 22 Outback locations over the next four years as leases expire. At the same time, all remaining Outback stores are slated for remodels by 2028.

Here’s what to watch for:

• Remodeled experience: The future stores will have brighter interiors, smaller kitchens, and bigger take‑out/pick‑up areas.
• Menu focus: Outback plans to simplify its menu, offering fewer items but better quality. Steaks and seafood will be core.
• Service changes: For example, servers will be assigned fewer tables to boost guest satisfaction.

Whether this leads to a full turnaround remains to be seen. The brand has strong recognition, but it must rebuild relevance, cost‑control, and value to regain momentum.

Conclusion

We’ve seen that Outback Steakhouse is undergoing a major transformation in 2025. The closures span multiple states and reflect deeper issues, rising costs, weaker traffic, and strategic shifts. For communities, employees, and diners, these changes bring disruption. For the brand, they represent both risk and opportunity. The path ahead is clearer: smaller, better‑performing units, smarter menu offerings, and renewed investment. Whether this will lead to lasting success remains to be seen, but the next few years will be critical.

FAQS

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.