This massive restaurant is now closing 41 locations over the next quarter due to major underperformance, sources report.
Bloomin’ Brands will close 41 stores over the next quarter, reports Restaurant Dive.
These units include 36 “predominantly older, underperforming restaurants” and five Aussie Grill locations, including three in the U.S. and two in international markets, according to the company’s latest earnings release.
Bloomin’ decided to close the restaurants in question following a periodic review of assets that included consideration of trade area, historical performance and the investment required to renovate the units and strengthen their sales, CEO David Deno said on the company’s Q4 2023 earnings call.
The company will see “asset impairments and net closure charges of $32.3 million during Q4 2023.
We expect to complete these closures during Q1 2024 and incur charges of between $8 million and $11 million,” according Bloomin’s earnings release.
Deno said Bloomin’ would offer transfer opportunities to a large number of impacted employees and severance payments to those it cannot place.
The closures were not a reflection of the performance of individual employees, Deno said.
“A majority of these restaurants were older assets with leases from the 90s and early 2000s,” Deno told analysts.
Aussie Grill, the smallest of Bloomin’s brands, will be hardest hit by the closures.
According to the chain’s Q3 earnings release, the fast casual brand had 14 units at the start of Q4, with seven in the U.S. and seven in international markets.
The chain’s five closures represent a more than 35% drop in unit count for the brand.
Bloomin’ expects to open 40 to 45 new restaurants in 2024, in areas Deno described as “promising trade areas with great potential.”
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Also Read: A Famous Restaurant Chain Now Closes 4 Locations in Florida
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A massive restaurant now closes all locations in one major state, shocking employees after such short notices were provided.
Outback Steakhouse has unexpectedly announced it would close all of its locations in Hawaii “leaving workers shocked by the news”, reports The-Sun.
Employees claimed they were given just two days’ notice before the chain closed its last three locations in Hawaii.
The Australian-themed casual dining restaurant closed down its restaurants in Kapolei, Waipahu, and Kailua-Kona on February 18, according to local ABC affiliate KITV.
This news was confirmed by the executive director of the Hawaii Restaurant Association, Sheryl Matsuoka, who said the news was unexpected, according to Fox affiliate KHON-TV.
“The Outback brand has decided to pull out of Hawaii and it’s very unfortunate that the three locations will close up,” Matsuoka said.
Staff at claimed management informed them about the Sunday closure on Saturday morning.
Vanessa Glosson, an employee at the Kailua-Kona location said she wished she had been told earlier.
“It was kind of sad that it was such short notice due that a lot of people could have been looking for jobs elsewhere at the time,” Glosson said.
Wanda Wernar, a member of staff at the Waipio branch, explained how they were informed.
“Basically we found out this morning we were closing in two days,” Wernar said on February 17.
“Tomorrow is the last day of business, we’re opening tonight for dinner, we’re opening tomorrow and that’s it that’s the last day.”
A manager at one of the final three stores alleged the reason for the closure was the rising cost of prices and utilities on the island.
Matsuoka explained that these economic conditions had proved to be difficult for many restaurants.
“Restaurants, they try their best to stay in business but the margins are so small,” she said.
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Also Read: This Massive Mall Retailer Is Now Closing In California
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