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Why Americans have turned their backs on pricy meals at once-dominant steakhouse
Apr 1, 2025
Americans are abandoning Outback Steakhouse in droves as they swap to cheaper alternatives.
Instead of dining at one of the Australian-themed chain's hundreds of locations across the US, they are heading to Texas Roadhouse or LongHorn instead for a filet or a sirloin.
Last year in the US, both chains outsold Outback. It had been market leader for decades after riding the Australian craze sparked by Crocodile Dundee.
Wall Street has also taken note of shifting steakhouse trends.
Texas Roadhouse's stock has increased around 15 percent over the last year, while shares of LongHorn-owner Darden have soared around 25 percent, CNN reported.
Outback parent company Bloomin' Brands, meanwhile, has seen its stock plummet more than 70 percent to just $8 a share.
With inflation squeezing wallets, diners are favoring casual chains that offer better value. Instead of Outback or TGI Fridays, more diners are opting for Texas Roadhouse, LongHorn, and Chili’s, which have all leaned into value-focused deals.
The average check at Outback was $29 last year, which was $6 above Roadhouse and $2.50 more than LongHorn, according to CNN.
Outback, which is based in Tampa, Florida, was founded in 1988.
Known for its juicy steaks and signature deep fried 'bloomin' onion' dish, it became popular among American diners in the 1990s and 2000s.
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