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There's a Bloomin’ Onion, Bloomin’ Burger, Bloomin' Chicken Sandwich, and Bloomin' Fried Shrimp. All told, Bloomin' Brands says, it adds up to too many bloomin' things on the menu.
Bloomin (BLMN), parent company of Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming's steakhouse, on Wednesday during a conference call said that it would reduce its menu offerings by 10% to 20% across its brands this year. (Outback, the company said, would see the largest reduction.)
On the call, CEO Mike Spanos said management had heard “loud and clear” from restaurants that they needed to simplify operations. The company, Spanos said, will “make fewer items, but make those much better," according to a transcript provided by AlphaSense. Items that don't travel well, are considered “subpar” by guests, or are hard to make could be on the chopping block.
Shares of Bloomin' were recently down some 18%, leaving them off more than 60% in the past 12 months. The company earlier today reported a more than 9% drop in fourth-quarter revenue and said comparable-restaurant sales could fall this year.
Bloomin' plans to pare back on limited-time offers, which management said require extra training and can shift the focus to non-core menu items, and toward the notion of "abundant value" every day, management said. The change in some ways echoes that of Starbucks (SBUX), which as part of its own turnaround plan is looking to streamline its menus.
Spanos didn't name specific items that might come off the company's menus. The Australian-themed Outback chain currently offers steak, seafood, chicken, pastas, burgers, and salads; in November's conference call, he said he wants to stick with items that get “back to the core of that Aussie spirit,” which he said would prioritize steak and seafood.
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