Outback shutters all nine Ontario unitsOutback shutters all nine Ontario units

Alan J. Liddle

TORTONTO Ontario Just a month after its U.S.-based parent reported a quarterly loss exceeding $500 million, Outback Steakhouse Canada -- an arm of the 978-unit, Tampa Fla.-based Outback chain -- said it closed all nine of its Ontario outlets.

Reports indicated that the move was based on deteriorating profits.

“The decision to exit Ontario was a difficult one, and it was made only after considerable reflection and analysis,” a notice at OSC’s website said.

Outback officials could not be reached for comment at press time, but the Ottawa Business Journal quoted Steve Nilsen, Outback's vice president of international marketing, as saying that the Ontario regional operation has had an "issue with profitability.”

“It's not just been in Ontario, but [the province] has been hit hard," the paper quoted Nilsen as saying, “We've had an impact on our cost structure due to ... the devaluation of the Canadian dollar against the U.S. dollar.”

Outback Steakhouse Canada officials said in the online notice to customers and employees that guests could use their outstanding Outback gift cards at the chain’s three franchised branches in Edmonton, Alberta, or, beginning March 30 at a variety of Ontario concepts operated by SIR Corp., including Jack Astor’s and Canyon Creek. They encouraged employees from the shuttered restaurants to attend job fairs at multiple SIR Corp. restaurants Wednesday and to submit resumes to SIR through the end of the week.

Outback’s action in Ontario comes just weeks after its parent, OSI Restaurant Partners LLC, reported a fourth-quarter net loss of $506.4 million on a 10-percent drop in corporate revenue and millions in asset impairment charges for reduced goodwill and closed restaurants. For the year ended Dec. 31, the multi-concept company that operates or franchises 1,491 restaurant worldwide, posted a net loss of $739.4 million, compared with a loss of $22.6 million in fiscal 2007. Full-year revenues dipped 4.9-percent dip, to $3.96 billion, versus the previous year.

Contact Alan J. Liddle at [email protected].