Bloomin’ Brands is reworking how service happens at Outback Steakhouse.
The company began rolling out a new service model in April that reduces table loads for servers during peak hours. After testing the approach, Bloomin’ CEO Michael Spanos said a four-table-per-server ratio during busy dayparts produced a more consistent and enhanced experience than the previous one-server-to-six-table setup.
He said the thinking behind the change came directly from what the company was hearing from employees in the field
“What I heard from our servers and we know from the past is our servers want to own the guest relationship,” Spanos said during the company’s Q1 earnings call last week. “And that’s how the model was set up.”
He also framed the shift as a way to ease pressure on workers during the busiest parts of the day.
“If you’re used to having six tables as a server during the peak dinner hour and somebody else calls out, that stress level is really high,” he said. “That’s not a good guest experience, and it’s not a good team member experience.”
The obvious question is what happens to server earnings when table counts come down. Bloomin’ said its testing showed overall compensation and tips were about the same, with tips actually ticking slightly higher on a per-check basis because of differences in tip-share structure versus the old server/server-assistant model.
“We see our servers making the same, especially on a shift basis, which is really important,” Spanos said, adding that early feedback from guests has been encouraging. “We really like what we’re seeing in terms of intent to return, attentiveness of the server, and likelihood to recommend the server.”
The service-model change is arriving alongside an updated managing partner compensation program that also began rolling out in April. The new structure is designed to keep total pay competitive with local markets while tying compensation more directly to restaurant sales and profit growth.
Those spring rollouts are the latest pieces of a broader turnaround plan for Outback that management says is starting to gain traction beneath the surface. The strategy has centered on more consistent execution across food, service, experience, and value, with leadership arguing that guest metrics should improve before traffic fully follows.
Outback’s first-quarter performance was mixed. The brand posted comp sales down 0.3 percent, with traffic down 2.4 percent. Bloomin’ said severe winter weather created a meaningful drag on the quarter, and executives also emphasized they are trying to be more balanced in 2026 between protecting check and driving traffic rather than chasing less-productive volume. Spanos pointed to improving trends as the quarter progressed, saying March improved compared with January and February, and April stepped up again from there.
What gives the company confidence is that guest sentiment at Outback continues to strengthen. Guest metric scores improved year over year for the third consecutive quarter in Q1, with brand trust rising 4 points, service 6 points, value 5 points, atmosphere 5 points, food 4 points, and intent to return 4 points.
“Given that our average guest visits approximately twice per year, we expect the cumulative impact of these initiatives to become increasingly visible in traffic momentum as more guests experience the improvements we have made,” Spanos said.
A major part of that effort has been rebuilding Outback’s food credibility, particularly around steak. The company launched a new steak lineup in November and said the cuts and burgers are scoring well in menu satisfaction and reorder intent. The steak push is being reinforced by a heavy focus on consistency, with operators using Ziosk tabletop data and guest feedback to coach performance by shift and by restaurant, while monthly steak reviews and training are meant to improve execution across the system.
Value has also remained central to the turnaround. Bloomin’ said it is focused on improving the “what you get for what you pay for” equation, and Outback’s Aussie Three Course platform has become a key part of that strategy. About 60 percent of guests are trading up from the $14.99 entry point into the $17.99 and $20.99 tiers, while roughly 20 percent are also adding dessert.
Spanos said the offer is resonating across income groups, helping more value-conscious and older guests manage their checks while also encouraging younger and higher-income diners to move into the premium tiers.
“I actually like where the guest and the consumer is right now,” he said. “They’re engaging in our brands. They’re seeing casual dining and eating out as a very affordable luxury. And we’re going to keep dialing in on what you get for what you pay for to keep the guests engaged.”
The turnaround extends beyond menu and pricing. Bloomin’ is planning targeted refreshes across nearly all Outback restaurants by the end of 2028, with spending expected to average $350,000 to $400,000 per location. The focus is on guest-facing elements such as seating, lighting, paint, and exterior touches. The company is also expanding char-grill capacity to support the steak lineup.
Marketing, meanwhile, is set to become a bigger part of the story later this year, with increased spending expected in the back half once Bloomin’ is more satisfied with in-restaurant execution. Spanos told investors the campaign will be built around a sharpened Outback identity centered on steak leadership, craveability, and a casual, fun environment rooted in the brand’s Aussie positioning.
“Marketing will bring them in,” he said, “but consistent execution brings the guest back.”
At the company level, Bloomin’s total revenues rose about 1 percent year over year to $1.06 billion. U.S. comparable restaurant sales increased 0.9 percent, while traffic declined 1.8 percent. Average check rose 270 basis points versus 2025, and pricing was about 5 percent in the quarter. Off-premises sales accounted for 23 percent of total U.S. sales, in line with the same period last year. Executives said the business absorbed an estimated 240-basis-point weather impact during the quarter, driven by winter storms earlier in the period.
Bloomin’s other brands provided some brighter spots in the quarter. Carrabba’s posted comp sales growth of 1.3 percent, marking its fifth consecutive quarter of positive same-store sales gains, which the company tied to its continued emphasis on in-restaurant experience. Spanos pointed to wine dinners, a revamped happy hour, and day-of-week offers as examples of the kinds of experiential and occasion-driven promotions helping the brand.
Bonefish Grill delivered the strongest performance in the portfolio, with comp sales up 6.1 percent and traffic up 3 percent. The company said the brand has steadily improved traffic through day-specific promotions such as Martini Mondays and Bang Wednesdays, along with prix-fixe lunch affordability offers.
Fleming’s also stayed in positive territory, posting comp sales growth of 0.8 percent for its seventh consecutive quarter of positive comps, though traffic was down 2.9 percent. Bloomin’ said the brand has benefited from leaning into special occasions and experiential events while maintaining a focus on elevated service.
