Changes Coming At Outback

TAMPA, FL-The management team at Outback Steakhouse is considering a number of initiatives in order to increase the value of the company, which posted drops in profits as well as same-store sales in its namesake chain. Future options for the restaurant company include the spinning off of one of its chains into its own IPO, “leveraging real estate in several different ways,” and revamping the Outback brand, said A. William Allen, Outback’s chief executive officer, during a conference call.

Executives are considering future initiatives, about which they were not specific, for the 926-unit Outback chain. This follows a consumer study on the restaurants that shows, among other things, that the restaurants are facing stiff competition from other chains.

“Outback has a very loyal fan base, but it’s beginning to suffer some subtle brand erosion,” Allen says. “We’ve got to reverse this narrowing-appeal issue.” One possible remedy he did mention was the renovations of its stores, which is a 12-to-18-month process.