Outback’s Journey to Reignite a ‘Remarkable Dining Experience’ Continues

Outback Steakhouse has announced that Mike Spanos, who previously served as an operations chief at Delta Airlines, officially joined the brand as CEO in September 2024. His leadership comes at a pivotal moment following a significant restructuring, with the company aiming to reinvigorate its dining experience. A key highlight from Spanos’ recent managing partners conference was gaining the confidence of Outback cofounder Tim Gannon, known for introducing the iconic Bloomin’ Onion, which has accumulated over $1.4 billion in sales.

Under Spanos, Outback has initiated a comprehensive four-pillar turnaround strategy that focuses on enhancing customer experience, driving brand relevance, cultivating a culture of ownership, and investing in restaurant infrastructure. Initial results of this strategy are visible, with the company reporting year-over-year gains in guest metric scores for four consecutive quarters. Key improvements included a 7-point uptick in scores for service and atmosphere, and increased value and food rankings. Same-store sales edged up 1.4 percent, while customer traffic declined by 2.8 percent. Despite these mixed results, Spanos has indicated a long-term vision for sustaining growth, ensuring that operational execution aligns with customer sentiment.

A notable strategic shift includes Outback’s decision to refrain from repeating some previously dilutive traffic promotions, particularly those tied to third-party delivery services, where off-premises sales make up 26 percent of overall revenue. Instead, Spanos emphasized the importance of fostering a "remarkable dining experience" to enhance sustainable traffic growth moving forward. The introduction of an Aussie 3-Course Meal, priced at $14.99, illustrates this strategy, catering to a diverse range of customer preferences. Currently, about 60 percent of guests are opting for more premium dining options, indicating a successful upsell.

To improve service, Spanos implemented a new hospitality model, decreasing server-to-table ratios during peak hours, which received positive feedback and contributed to heightened service scores. The company’s continued efforts under the guidance of Spanos and support from parent company Bloomin’ Brands aim to reinforce these changes.

Ultimately, Outback Steakhouse’s progress in the coming quarters may hinge on how effectively the newly implemented strategies sustain guest engagement and traffic improvements.