We Finally Know Why Outback Steakhouse Is So Cheap

We Finally Know Why Outback Steakhouse Is So Cheap

The First Outback Steakhouse Opened its doors in Tampa, Florida, in March of 1988. A few decades later, The business has approximately 700 outlets spread across the country.

Outback has developed a reputation for hefty meals thanks to its meat-rich menu, which is heavy on numerous types of grilled and freshly seasoned steak.

Outback Claims that a key component of its strategy is to provide ample quantities at reasonable prices. A steak at Outback typically costs around $20, which is affordable compared to some of the more upscale steakhouses nearby that might offer superior quality at a significant price.

Look no further if you’re curious how Outback manages to sell its famous steaks and other menu items at a reasonable price.

Outback Buys Choice Steak in Bulk

There are numerous ratings for beef cuts that indicate the quality of the meat, but what distinguishes Choice steak from Prime beef?

The U.S. Department of Agriculture claims that Prime beef is made from young calves and has a higher percentage of marbling, a thin layer of fat that runs throughout the beef cut.

Only 3% of beef in the US receives the Prime rating, which raises the price. Choice beef is still soft and of a high caliber, although it has a little less marbling than Prime steak.

Outback Steakhouse holds The distinction of being the largest reseller of Choice beef in the Nation as well as one of the top beef buyers in the United States, according to Beef Magazine.

Outback Saves Money by buying Choice steak in quantity rather than the more expensive Prime meat, and this enables the business to pass those savings down to customers on its menu.

Yes, you could spend more money at a more opulent restaurant and have a more expensive Prime cut of steak. But at the End of the day, Sometimes all you want is a Good steak at a good price, And that’s precisely Outback’s market niche.

The Pasta is Microwaved

Pasta is the ultimate comfort dish for many of us. Nothing beats a hearty bowl of hot noodles drenched in a delicious homemade sauce for simplicity and fillingness.

Unfortunately, And perhaps for Good Reason, Outback Steakhouse isn’t particularly well-known for its pasta offerings.

The Queensland Chicken and Shrimp Pasta, which Comes with fettuccini and alfredo sauce, is the only pasta meal offered by Outback. Fettuccini Alfredo is usually a solid choice because it is rich, cheesy, And incredibly fulfilling.

You Might want to avoid it, says a Former employee of Outback Steakhouse. The Restaurant used To create its own pasta sauce and cook everything in a skillet, but now it buys the sauce already made and reheats everything in the microwave.

It’s Good when something is inexpensive and simple, But lower quality is typically the result.

Given that it Requires more time and labor to prepare a sauce from scratch for each order than it does to utilize a pre-made sauce that is nuked in the microwave, There is no doubt that this adjustment was made to save expenses and keep prices low.

Outback is Broadening its Reach

In order to remain relevant, restaurants must develop new strategies for interacting with younger consumers.

Hiveage claims that concentrating on non-conventional demographics is one efficient method for accomplishing this. Finding social causes or initiatives that appeal to younger generations entails doing this.

According to Bloomin‘ Brands Chief Marketing Officer Danielle Vona, the restaurant has noticed that Outback seems to appeal to sports fans.

After understanding this, Outback made the decision to sign 12 student-athletes in order to increase its footprint in college athletics and the local community.

Through Outback’s online ordering systems, bundle meals will be made available to these student athletes. These chosen pupils will be monetarily rewarded by Outback as well as supported by charity initiatives to give back to the neighborhood.

Outback is establishing new connections with younger generations in order to broaden its target market. By doing this, the corporation hopes to improve sales and its market penetration, both of which contribute to lower prices.

Lowering Prices increase Sales

When it originally unveiled its new menu, Outback reduced its prices. The outcome? According to Cathie Koch, a representative for Bloomin’ Brands, which operates Outback Steakhouse, lowering pricing resulted in increased sales because customers were purchasing more drinks, appetizers, and higher-quality steak meals.

Outback cleverly drew greater attention to its new menu by offering discounts, which encouraged its clientele to place more food orders. This improved not only awareness of Outback’s new menu but also sales.

Entrepreneur claims that timing is crucial when lowering prices for the best results. It’s possible that Outback’s decision to decrease prices during the start of the epidemic when there was a lot of economic uncertainty and customers were cost-conscious contributed to its success.

Outback advertises and increases income by temporarily cutting the price of select menu items, which enables the business to keep its rates low.

It Uses Worse Cuts for Well Done Steaks

On Reddit, a former employee at Outback Steakhouse said that patrons who request well-done steaks receive inferior portions of meat.

The idea is that when the steak is grilled well done and charred to oblivion, any flaws in the cut will be considerably less obvious.

This avoids the possibility of those less desirable cuts being turned back by further diners who might have wanted them less cooked and seen the steak’s subpar quality.

Through this strategy, Outback is able to turn a profit on inferior cuts of meat. The company generates more money when there is less waste, which helps keep expenses stable.

Its Restaurants are Massive

If You’ve ever walked into an Outback Steakhouse, You’ve Probably Noticed that the Restaurant is impressively large.

In fact, the sheer size of Outback’s restaurants seems to be something the company takes pride in, considering that one of the details on Outback’s official fact sheet states that its average restaurant size is 6,000 square feet and comes equipped with an island bar and room to accommodate around 200 guests (via Outback).

Compared to the average American restaurant, Outback’s sizeable locations are in the upper tier of the norm, which tends to range between 1,000-6,000 square feet.

How does this play into Outback’s revenue and prices? According To Lightspeed, a business consultant company, size really does matter when it comes To how much revenue a restaurant can generate.

When a Restaurant has more space To accommodate more diners, the restaurant can make more money. Better sales for Outback means stable and affordable prices on its menu.

Outback Buys its Onions in Bulk

With Good Reason, the “Bloomin’ Onion” appetizer at Outback Steakhouse has gained fame. It’s Not only mouthwatering, But the Sheer magnitude of it is amazing.

For Those of you who have yet to have this fabled Appetizer, let me explain: it consists of Enormous onions that have been chopped into petals, Cooked till golden brown, spread Out on a platter like an edible flower, and served with a tart dipping sauce.

Each onion has roughly 200 petals, according to The Daily Meal, and Outback orders more than 14 million pounds of onions annually.

Outback is saving money by placing big orders for its onions. The price per unit is virtually always lower when purchasing things in bulk, according to U.S. News and World Report.

Considering how many onions Outback consumes to satisfy the demand for its “Bloomin’ Onion,” purchasing them in bulk is a smart method to cut expenses and meet demand. Who would have imagined that a bulbous root veggie could be so appealing?

Some Cooks are Paid a Below-average Wage

The unsung heroes of every restaurant are the chefs. Even Though they are Frequently out of sight, They shouldn’t be forgotten because the results of their labor are the main reason people go out to eat and spend a lot of money on a satisfying meal.

Given that Outback Steakhouse’s average annual revenues per unit are roughly $3 million as of it is typical for restaurants to not always pay its hard-working culinary enthusiasts particularly well.

The typical hourly pay for a line cook at Outback Steakhouse, according to Indeed, is around $15. According To Statista, The Average hourly wage in the United States is Almost $16.

When You realize that the minimum wage now would be $26 an hour if wages climbed at the same rate as productivity, both of these numbers become even more startling (source: CBS News). Outback is Increasing its profit margin by keeping labor costs down, which keeps the menu pricing low.

The Restaurant is Retaining its Employees

At the start of the pandemic, CEO David Deno made a truly remarkable decision: he forwent his income and elected to use the funds for staff benefits.

Even more incredible, according to Nation’s Restaurant News, is that despite lockdowns and restrictions, the business decided to keep its payrolls intact and didn’t fire any employees.

It’s critical to realize that, in addition to being exceedingly honorable on a moral level, this was ultimately profitable for the business.

According to Deno, the business sought to avoid hiring and training new workers and wanted to ensure that personnel could resume their jobs as soon as the restrictions were eliminated.

Given that the cost of turnover is very expensive for firms (per Forbes), this was a wise choice.

Outback decreased their rate of turnover, which kept hiring and training expenses low by not laying off workers during the pandemic and keeping its current workforce.

According to Nation’s Restaurant News, such maneuvers enabled Outback’s sales increase even farther than they had before the outbreak. All of your favorite menu items will continue to be reasonably priced thanks to the company’s sales growth.

Outback is improving its Curbside Pickup

Without a question, the epidemic has had a significant impact on the restaurant sector. Forbes claims that it increased consumer demand for restaurants to offer curbside pickup, and that trend is likely to continue. Outback Steakhouse has noticed this trend and understands the potential it holds for the business.

According to Christopher Meyer, executive vice president of Bloomin Brands, meeting the growing demand for curbside pickup is advantageous for the business’ profitability because there are lower labor costs associated with the service. Meyer continues by saying that curbside pickup is “leading the way” in terms of Outback’s off-site sales.

Through its redesigned app, Outback is enhancing its curbside pickup procedure in part. According to Gail Seanor, vice president of digital innovation at Outback, the company is looking at how to make curbside pickup available through its app.

It already offers diners new benefits including the ability to pay at the table or get added to the waitlist. Outback is reducing labor costs, which helps the restaurant keep its menu reasonably priced, by providing customers more digital options and aiming to improve curbside pickup.

Outback has a Special Tool To improve Efficiency

Outback Steakhouse sells one “Bloomin’ Onion” for every four appetizers, illustrating the dish’s popularity.

The cooks produced each “Bloomin’ Onion” snack by hand, which must have taken a lot of time and labor. Outback decided to create a technology to speed up the process to handle this problem and satisfy demand.

This distinctive machinery performs all of the cutting for Outback’s bloomologists—yes, that is their official job title. By removing the majority of the arduous handwork, this saves the cooks a ton of time during preparation.

By utilizing this sophisticated equipment in its kitchens, Outback is able to meet the demand for their “Bloomin’ Onions” more quickly, which increases sales. The company can ensure constant pricing, among other things, by boosting sales.

Prices May Not Stay Cheap for Long

Given Everything said above, There is a significant probability that these lower costs won’t stay for very long. Outback Steakhouse is preparing to hike prices despite recently reporting a nearly 30% rise in revenue compared to the same quarter last year.

Despite the Company’s booming sales, CEO David Deno is blaming the price rises on inflation and labor costs. Over the previous two years, Outback Steakhouse’s typical check has climbed by 7%.

Initially, a Price Rise of 3% was proposed; however, according to Deno, The Price increase would now be increased to 5%.

The Good News is that a 5% rise is probably not going to make much of a difference for any given person; On a $20 steak, That Really Only amounts To an Extra dollar. Nevertheless, as we all know, Nowadays every dollar matters.

Cooks Might Occasionally Microwave Lobsters

The king of crustaceans without a doubt is the lobster. Nothing like dipping a juicy tail or a brand-new set of sensitive claws in precisely melted garlic butter with a touch of lemon.

In addition to being flavorful and delicious, lobster is also rather simple to prepare, which is one of its many appealing qualities. Really, All You need to do is steam Or boil them until they turn brilliant red, being careful not to overcook them.

Furthermore, if you’re fortunate enough to reside near the ocean, you can even gather a bucket of seawater to cook the lobster in, which helps the lobster maintain its original marine brininess.

When you go out to a restaurant to enjoy a lovely lobster dinner, you don’t anticipate a microwave to be used. However, a video shared on TikTok shows a purported cook from Outback Steakhouse preparing lobster tails in exactly that manner.

Being completely honest, nobody really expects Outback to go above and above and use fresh seawater or anything, but simply zapping lobsters in the microwave still seems kind of uncool. This may not necessarily represent regular protocol because it’s very likely that this was just an isolated instance.

Using a Microwave is as simple as it gets, And there’s no doubting that it saves some time and labor, Which can help keep pricing a little lower.

Outback Caesar Dressing Might be Premade

Steak is always excellent with a Caesar salad. Every forkful of crisp, flavorful, and reviving Caesar salad is creamy, tangy, and garlicky. If You’ve ever tried homemade Caesar salad dressing, You know there is no comparison between it and store-bought dressing.

In Terms of taste and consistency, fresh food easily triumphs. However, it appears like Outback Steakhouse may be using pre-made Caesar dressing instead of making its own, according to a cook on Reddit who claims to be a former employee.

Actually, pre-made salad dressing is frequently used, particularly by large, prosperous restaurant chains like Outback. Given That creating Salad dressing from Scratch requires a little more work than just pouring it from a bottle, it’s fair To claim that purchasing pre-made salad dressing saves some extra time in the kitchen.

Outback’s kitchen operation is streamlined by using pre-made Caesar dressing, which helps it sell more meals and maintain fair prices.

Outback French Onion Soup Might be Premade

With French Onion soup, You really can’t go wrong. French Onion soup has the ideal texture And flavor when topped with a slice of bread and cheese, then broiled until gently browned and bubbling.

Every spoonful of French onion Soup is flavorful, rich, and somewhat sweet from the buttery slivers of caramelized onions. It is a robust and profoundly delicious dish.

So it might be disappointing to learn that the French onion soup at Outback Steakhouse might not be entirely homemade.

The French onion soup base arrives pre-made and frozen, claims a Reddit user who claims to be a former employee of Outback Steakhouse. According to the cook, all the kitchen does is warm up and add water.

Making some soups takes time, especially French onion soup, whose caramelized onion base demands extra care and attention.

It makes logical for a chain restaurant like Outback to use pre-made soup in order to maintain efficiency and ensure that there are no flavor variations.

Using a pre-made soup also without a doubt streamlines the cooking process, enabling staff to prepare batches much more quickly, which is beneficial to company and keeps prices cheap.

The Tuna Might be Frozen

In Addition To being delectable, tuna is a nutritious source of lean Protein that is rich in vitamins, minerals, And omega-3 fatty acids. The Seared ahi tuna is a blessing for customers looking for a healthier choice On Outback’s beef-heavy menu.

The Same Purported Outback worker who said the eatery uses pre-made Caesar dressing made a second confession on Reddit. They stated that the tuna at Outback is frozen.

Even while there might not be a discernible difference in flavor, it definitely enables Outback to extend the product’s expiration date given that frozen raw fish can remain fresh for three to eight months in a freezer.

By guaranteeing that the seafood lasts longer and nothing is wasted, using frozen tuna helps Outback obtain more for its money. This results in lower menu costs.

Outback Might Use Pre-mixed Seasonings

Reduce the amount of time it takes cooks to prepare food in the kitchen by purchasing pre-mixed seasoning blends. Cooks Can shake seasonings right from a bottle instead of having to measure out batches of various spices to make a seasoning blend from scratch by using a pre-mixed seasoning blend, which fully eliminates the need for measuring.

Outback Steakhouse Seems to have made a wise choice in choosing this path for its renowned horseradish dipping sauce that accompanies with their Bloomin’ Onion appetizer.

The House seasoning, according To a Redditor posing as a former employee of Outback Steakhouse, is pre-mixed and composed of salt, paprika, black pepper, onion powder, And cayenne pepper. Then, mayonnaise, milk, horseradish, and spicy sauce are combined with that house flavor mixture.

If You’ve ever had Bloomin’ Onion sauce from Outback, You know how delicious it is. Outback’s chefs can produce the dipping sauce quicker by using a pre-mixed seasoning blend, which is crucial given that the restaurant sells an amazing 14 million orders of Bloomin’ Onions annually.

The Chicken Tenders On the Kids Menu Might be Frozen

Fried chicken tenders were a wise decision for Outback to have on its kids menu because every menu requires a little something for the small ones. The fact that chicken tenders are so easy to produce and are always a hit with the crowd.

A Few tablespoons of seasoned flour, eggs, Or buttermilk, and you can quickly make some crispy, juicy chicken tenders.

The Good news is that chicken tenders typically taste very decent even when frozen; they are unquestionably superior to chicken nuggets, which frequently have a much more spongey and processed texture.

However, Anyone Who has ever made fried chicken from scratch knows That it can be time-consuming and a little dirty. The Outback Cooks could avoid hand-breading The Chicken Tenders by using pre-made chicken tenders, Which would save time and money and keep the cost down.

Conclusion

By Providing Premium Meats in generous servings at reasonable prices, Outback Restaurant has been able To maintain its position as a Go-To Restaurant.

It has kept its costs low without sacrificing taste or quality, as one can enjoy favorite steaks without worrying about the cost.

FAQs About Outback Steakhouse