Outback Steakhouse franchisee files for bankruptcy

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1. 17m ago

   Outback Steakhouse Franchisee Files For Bankruptcy

   Cerca Trova Restaurant Group, operating as Out West Restaurant Group and serving as a major domestic franchisee for Outback Steakhouse, has filed for Chapter 11 bankruptcy in Wilmington, Delaware. The operator cited expensive food and labor costs, declining customer traffic, and financial struggles persisting since the COVID-19 pandemic. The filing involves a 61-unit restaurant network operating across Western states including California, Arizona, Nevada, Colorado, and New Mexico. Parent company Bloomin' Brands is moving to acquire the affected locations.

   Why it matters

   Rising cost pressures have heavily strained casual dining operators, with high labor expenses in states like California accelerating distress for large franchisees. The bankruptcy filing highlights broader economic hurdles facing multi-unit restaurant operators managing substantial debt loads. Parent companies often step in to acquire troubled franchise networks to protect brand continuity.

   What is confirmed

   • Outback Steakhouse franchisee Out West Restaurant Group, affiliated with Cerca Trova Restaurant Group Holdings, filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Wilmington, Delaware.
   • The franchisee operates 61 Outback Steakhouse locations mostly in California and across Western states including Arizona, Nevada, Colorado, and New Mexico.
   • The company cited expensive food and labor costs, California's labor costs, and declining customer traffic as reasons for the bankruptcy.
   • Outback Steakhouse parent company Bloomin' Brands is moving to acquire the 61 restaurants operated by the franchisee.

   Still unconfirmed

   • Out West Restaurant Group filed for bankruptcy with $449 million in debt.
   • The operator closed 13 locations prior to seeking bankruptcy relief.

   What to watch next

   • Court approval of Bloomin' Brands acquiring the 61 franchisee locations
   • Further financial disclosures regarding the total debt and asset liquidation plans in the Delaware bankruptcy proceedings
   Sources used for this update (19)

   1. www.king5.com — Seattle's Leading Local News: Weather, Traffic, Sports and More...
   2. www.foxbusiness.com — Great Business Leaders in America & Around the World | Fox Business
   3. Bloomberg.com — Outback Steakhouse Franchisee Files Bankruptcy After Costs Swell
   4. Yahoo Finance — Outback Steakhouse restaurant franchisee files for Chapter 11 bankruptcy
   5. Nation’s Restaurant News — A 61-unit Outback Steakhouse franchisee files for bankruptcy
   6. Fox Business — Outback Steakhouse franchisee files for bankruptcy
   7. Restaurant Dive — Outback’s largest U.S. franchisee goes bankrupt
   8. Nation’s Restaurant News — Outback Steakhouse, Popeyes, and Yum
   9. MLive.com — Beloved steakhouse chain’s largest US franchisee files for bankruptcy
   10. New York Post — Rising food costs prompt big Outback Steakhouse franchisee to file for bankruptcy
   11. Los Angeles Times — SoCal Outback Steakhouse franchisee files for bankruptcy, citing California’s labor costs
   12. www.foxbusiness.com — Companies urged to adapt as restaurant franchisee files for bankruptcy: 'Businesses want to make excuses'
   confidence 95%