Outback Steakhouse
Australian-themed casual dining steakhouse.
PE-OWNED
Acquired by Bain Capital2007-06-01
What Made It Great
No Rules, Just Right - bold flavors and generous portions.
What PE Will Likely Do
Portions of Outback's signature dishes like the Bloomin' Onion and steaks will be reduced in size while prices remain the same or increase.
Outback will start using cheaper, lower-quality ingredients like frozen vegetables instead of fresh, and lower-grade beef in their steaks.
Outback will reduce the variety of menu items and focus on higher-margin dishes, potentially removing customer favorites.
Outback will try to extract more value from franchise locations by increasing fees and operational requirements, leading to some franchise closures.
Expected Timeline
“0 to 6 months months”
Minor changes to menu pricing and portion sizes begin, with some lower-quality ingredients introduced.
“6 to 12 months months”
Noticeable reductions in portion sizes for signature dishes, and more widespread use of frozen and lower-quality ingredients.
“12 to 24 months months”
Regular customers start noticing a significant decline in food quality, with smaller portions, less flavor, and fewer menu options.
“24 to 36 months months”
Store closures of franchise locations accelerate as the brand's reputation becomes damaged, and Outback struggles to maintain customer loyalty.
“36+ months months”
Potential bankruptcy or sale of Outback Steakhouse to another operator, as the brand's once-loyal customer base continues to decline.
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Be on the lookout for changes in portion sizes, ingredient quality, and menu variety at your local Outback Steakhouse.
If you notice a significant decline in food quality or service, consider patronizing other local restaurants that maintain their commitment to quality.
Share your feedback and concerns with Outback Steakhouse management to voice your dissatisfaction with any changes that negatively impact the customer experience.
Alternatives
Publicly traded restaurant group
Support local businesses in your area