Is Outback Steakhouse Closing? 10 Restaurants Shut as Franchisee Goes Bankrupt

Key takeaways

• A major Outback Steakhouse franchisee shut down 10 restaurants across Arizona, California, Colorado, and Nevada
• Rising food and labor costs, declining customer traffic, and financial pressures contributed to the franchisee's bankruptcy filing
• Outback's parent company proposed acquiring the bankrupt franchisee's assets

Outback Steakhouse has closed 10 restaurants in four US states after one of its largest franchisees filed for Chapter 11 bankruptcy protection. The restaurant chain faces mounting pressure from rising operating costs, declining customer traffic, and challenges in the casual dining industry.

Cerca Trova Restaurant Group Holdings, which operates as Out West Restaurant Group, filed for bankruptcy in Delaware on Nov. 2, 2026. The company operates 61 Outback Steakhouse restaurants in California, Arizona, Colorado, Nevada, and New Mexico.

Which Outback Steakhouse Locations Are Closing?

According to court documents, Out West closed 10 underperforming restaurants between Oct. 11 and Oct. 25, which affected locations in Arizona, California, Colorado, and Nevada.

The affected locations include restaurants in Tucson and Mesa, Arizona; Buena Park, Valencia, and Foothill Ranch, California; Colorado Springs, Highlands Ranch, Aurora, and Littleton, Colorado; and Reno, Nevada.

Three additional restaurants closed earlier in 2026, which brings the franchisee's total closures this year to 13.

Despite the bankruptcy filing, the company's remaining 61 restaurants are expected to continue operating while the restructuring process unfolds.

Why Is Outback Steakhouse Closing Restaurants?

Out West has struggled financially for several years due to higher operating expenses and declining customer traffic that pressured profitability. The franchisee reportedly experienced a 35% revenue decline during the COVID-19 pandemic and has struggled to recover fully.

Rising beef prices, higher wages, and increasing food production costs have complicated its financial position. The company also identified California's minimum wage requirements as a major financial burden.

Bloomin' Brands Proposes $26.3 Million Acquisition

Outback Steakhouse parent company Bloomin' Brands has stepped in with a proposed $26.3 million acquisition of substantially all of Out West's assets. The agreement was announced in a Nov. 2 regulatory filing, and it would allow Bloomin' Brands to take direct control of the franchisee's remaining restaurants, subject to bankruptcy court approval and potential competing bids.

Bloomin' Brands has also committed up to $5.5 million in financing to support operations during the bankruptcy proceedings.

Is Outback Steakhouse Going Out of Business?

Outback Steakhouse itself has not filed for bankruptcy, and there are currently no announced plans for a nationwide shutdown. However, the closures prove that there is pressure on the restaurant industry, particularly operators struggling with higher costs and changing consumer spending habits.

The proposed acquisition could help stabilize the remaining franchise locations, although the possibility of further closures has not been ruled out.