Outback Steakhouse — the iconic Aussie-themed steakhouse where so many families celebrated birthdays and date nights — is shrinking dramatically in 2026, and the news is hitting communities and workers hard. The worst part? Some employees at impacted locations are learning at the very last minute.
Decision from higher up
Bloomin’ Brands, Outback’s parent company, has confirmed it will shut down more than 40 locations nationwide by the end of 2026 as part of a sweeping turnaround plan. This decision follows the closure of 21 restaurants in late 2025 and decisions not to renew 22 additional leases over the next few years.
What this means for jobs
While Bloomin’ Brands has not released a company-wide layoff number tied solely to Outback closures, hundreds of restaurant employees are expected to be affected — from hosts and servers to cooks and managers — as dozens of leases expire and restaurants close. Many workers are offered transfers where possible, but others will receive severance and face sudden unemployment.
Former Outback employees took to Reddit, with one saying they were “…surprised to be told with zero notice that our location was being chopped effective that night. Blooming Brands gave our manager only one day notice and the [assistant managers] only found out 5 minutes before we did. We were told we’d be called in for the big menu changes, but that was not the case.”
Why it’s happening
Company executives say the closures focus on underperforming and older locations. Rising labor and food costs, intense competition, and shifting dining habits have squeezed sales—a challenge that has forced leadership to make tough decisions to preserve the brand’s future.
“These are business decisions that are part of our ongoing turnaround plan,” said a Bloomin’ Brands spokesperson. “We considered a variety of factors, including sales and traffic, trade areas, and potential investments to improve performance.”
Not the first time
The closure of over 40 locations between 2025 and 2026 isn’t the first time Outback has closed a significant number of locations. In February 2024, Bloomin’ Brands closed 41 locations, and many of them were Outback Steakhouses.
For many loyal fans and workers, the shrinking footprint of Outback Steakhouse is more than corporate strategy — it’s a reminder of how quickly cherished local institutions can disappear.
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