Outback Steakhouse is closing about half of its locations in Hong Kong, citing market conditions in the Chinese territory, among other factors.
The Tampa-based, Australian-themed steak chain will still have 10 locations in Hong Kong, which is one of Outback’s key international markets along with Brazil.
“We have made the difficult business decision to cease operations of nine Outback restaurants in Hong Kong,” a spokesperson for parent company Bloomin’ Brands said in a statement. “This decision is the culmination of a meticulous review process that considered current market conditions, our operational costs, and the strategic direction of our Company.”
Hong Kong has been slow to bounce back after it lifted almost all of its pandemic restrictions early last year. Retail sales declined 11.5% year over year in May, according to data from Hong Kong’s Census and Statistics Department. That has been hard on restaurants.
Overseas markets have been an area of major growth for the chain in recent years. From 2018 to 2023, international sales increased 42%, while U.S. sales rose just 8%. Last year, Outback had 330 foreign outlets, nearly half of which were in Brazil.
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