Outback Steakhouse Closures 2026

Outback Steakhouse Closures: 10 Restaurants Shut as Bankruptcy Hits in 2026

Business

Outback Steakhouse closures follow franchisee bankruptcy, leading to 10 restaurant shutdowns across the US.

Outback Steakhouse closures affected 10 restaurants across four US states
Out West Restaurant Group filed for Chapter 11 bankruptcy
Rising costs and weaker customer traffic strained franchise operations
Bloomin’ Brands offered $26.3 million to acquire the remaining operations
61 franchise restaurants are expected to continue operating during bankruptcy proceedings

The Outback Steakhouse closures in 2026 affected 10 restaurants across four US states, including Arizona, California, Colorado, and Nevada. The shutdowns mark another setback for the steakhouse chain as its franchise operations face growing financial pressure and mounting financial services challenges.

Fast Company reported that the 10 restaurants had been losing money, while high rent and other property costs made it difficult to keep them running. Out West Restaurant Group is also seeking to terminate the leases on these locations through the bankruptcy process. The closed outlets will not be included in the proposed $26.3 million sale to Bloomin’ Brands, which is looking to take over the franchisee's remaining business.

Out West Restaurant Group has turned to Chapter 11 bankruptcy protection in the US as it struggles to keep its business running. The filing gives the company time to address its debt, work with creditors, and decide the future of its remaining restaurants. The case will also shape the franchise operator handles its outstanding financial obligations.

“By 2026, the pressures on the business had converged. Guest traffic and earnings continued to decline, while food, labor, and other production costs continued to rise,” said David Goronkin, Chief Executive of Cerca Trova Restaurant Group.

Out West Restaurant Group has also been dealing with a steady rise in its operating expenses. Fewer people visited its restaurants, affecting sales. At the same time, rising food prices and staff wages added to its expenses, leaving the company with less money to keep its restaurants running profitably.

Meanwhile, Bloomin’ Brands has offered $26.3 million to acquire Out West Restaurant Group’s remaining operations. The proposed deal would bring the franchisee's remaining operations under the ownership of Outback Steakhouse's parent company. However, the offer still needs court approval as part of the ongoing bankruptcy proceedings.

The bankruptcy filing does not mean that all Outback Steakhouse franchise locations will close. The remaining 61 restaurants are expected to continue serving customers while the case moves through the court process. Their future will partly depend on the outcome of the proposed acquisition and the franchisee's restructuring efforts.

Business Honor observes that the Outback Steakhouse closures show how rising costs and falling sales are putting pressure on restaurant franchise owners.

FAQs

Why are Outback Steakhouse restaurants closing in 2026?

The closures are linked to financial problems at franchise operator Out West Restaurant Group, including lower customer traffic and rising operating costs.