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Bloomin’ Brands plans a 5% price increase to offset inflation costsBloomin’ Brands plans a 5% price increase to offset inflation costs

Bloomin’s Q4 revenue growth was driven by increased traffic and same-store sales in November and December

Joanna Fantozzi, Senior Editor

February 18, 2022

2 Min Read
outback steakhouse q4
Bloomin' Brands is not the first or only brand to raise prices recently.Bloomin' Brands

Joanna Fantozzi

Outback Steakhouse parent company Bloomin’ Brands has become the latest brand to increase prices in response to tougher-than-anticipated inflationary pressures and growing labor costs. In a fourth quarter earnings call on Friday, the Tampa, Fla.-based company announced its strong results for the quarter ended Dec. 26, 2021 with total revenues up 28.9% from the same quarter the year prior, driven by higher same-store sales.

As in-restaurant dining recovered year-over-year, U.S. same-store sales grew 27.9% compared to 2020, and 5.9% on a two-year basis. Anticipating this massive rush back to the dining room, Outback Steakhouse did not have to have as much holiday promotional activity as the brand did in Dec. 2019.

But despite a strong quarter, Bloomin’ Brands is anticipating another menu pricing increase, CEO David Deno said Friday morning. The restaurant company joins countless others that have raised prices to combat ballooning labor and commodity costs, as well as overall economic pressures due to inflation.

"To address the inflationary headwinds, we have taken pricing actions across our concepts," CFO Chris Meyer said Friday. "With the pricing we took in Q4 and an expected increase later this quarter, our total effective pricing will be 5%. We would expect to maintain this level of pricing into the fourth quarter of 2022 when we will reevaluate our go-forward strategy. It became clear that the 3% pricing we previously discussed would not be enough to offset the increased inflationary pressures our industry is facing. Given that we had not taken a material menu price increase since 2019, we are confident that 5% is appropriate."

Bloomin’ Brands has been able to mute some of the new pricing as caused by labor challenges, thanks to investment in front of the house and back of the house tech, designed to cut labor costs for both servers and kitchen staff, like advanced grills and ovens and handheld POS systems. Additionally, the company has been focusing more on off-premises sales, with 77% of off-premises sales now coming through digital channels.

“We hope we won’t have to take much more than that,” Deno said. “Attachment is up, people are trading in for [more expensive] or larger cuts of steak.”

As a result of traffic growth and increased prices, average check is up significantly on a two-year basis at all four Bloomin’ Brands: 7% at Outback Steakhouse, 8% at Carrabba’s Italian Grill, 4.4% at Bonefish Grill, and 10.8% at Fleming’s Prime Steakhouse & Wine Bar.

Overall, revenues at Bloomin’ Brands grew 28.9% year-over-year to $1.5 billion, while net income grew from a loss of $14.2 million or $0.02 earnings per share in the fourth quarter of 2020 to a gain of $63.2 million or $0.60 earnings per share in the fourth quarter of 2021. Bloomin’ Brands had a net total of 11 restaurant openings in the fourth quarter of 2021, and ended the fiscal year with 1,454 restaurants.

Contact Joanna Fantozzi at [email protected]

Follow her on Twitter: @joannafantozzi

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About the Author

Joanna Fantozzi

Senior Editor

Joanna Fantozzi is a Senior Editor for Nation’s Restaurant News and Restaurant Hospitality. She has more than seven years of experience writing about the restaurant and hospitality industry. Her editorial coverage ranges from profiles of independent restaurants around the country to breaking news and insights into some of the biggest brands in food and beverage, including Starbucks, Domino’s, and Papa John’s.  

Joanna holds a bachelor’s degree in English literature and creative writing from The College of New Jersey and a master’s degree in arts and culture journalism from the Craig Newmark Graduate School of Journalism at CUNY. Prior to joining Informa’s Restaurants and Food Group in 2018, she was a freelance food, culture, and lifestyle writer, and has previously held editorial positions at Insider (formerly known as Business Insider) and The Daily Meal. Joanna’s work can also be found in The New York Times, Forbes, Vice, The New York Daily News, and Parents Magazine. 

Her areas of expertise include restaurant industry news, restaurant operator solutions and innovations, and political/cultural issues.

Joanna Fantozzi has been a moderator and event facilitator at both Informa’s MUFSO and Restaurants Rise industry events. 

Joanna Fantozzi’s experience:

Senior Editor, Informa Restaurant & Food Group (August 2021-present)

Associate Editor, Informa Restaurant & Food Group (July 2019-August 2021)

Assistant Editor, Informa Restaurant & Food Group (Oct. 2018-July 2019)

Freelance Food & Lifestyle Reporter (Feb. 2018-Oct. 2018)

Food & Lifestyle Reporter, Insider (June 2017-Feb. 2018)

News Editor, The Daily Meal (Jan. 2014- June 2017)

Staff Reporter, Straus News (Jan. 2013-Dec. 2013)

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