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At the end of 2018, Bloomin’ Brands had more than 7.2 million members in its nearly three-year-old cross-platform Dine Rewards Loyalty Program.
“Our strategic investments are gaining traction and are putting us in a position to capitalize on the change in customer dining behavior,” said Elizabeth Smith, Bloomin’ Brands CEO, told equity analysts in a conference call. Dine Rewards launched in July 2016.
Smith said the program’s focused customer relations management platform had helped Bloomin’ reduce advertising spending from 3.8 percent of sales in 2016 to about 3.1 percent over the past two years.
Dine Rewards allows guests, after three visits to Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill or Fleming's Prime Steakhouse & Wine Bar, to earn 50 percent off on their fourth visit at any of the concepts.
The company cited research at the time that indicated 75 percent of consumers would like to have one rewards program membership that was honored at multiple restaurant chains.
Bloomin’ Brands Inc. saw off-premise and delivery sales grow 18 percent in the fourth quarter ended Dec. 30, and the parent to Outback Steakhouse and Carrabba’s Italian Kitchen sees the category eventually reaching a quarter of its sales, executives said Thursday.
“We believe off-premise represents a structural tailwind for the category and has the potential to reach 25 percent of total sales in our restaurants over time,” said Elizabeth Smith, CEO and chair of the Tampa, Fla.-based casual-dining company.
“Given this potential, we have built the infrastructure, technology and capabilities to support these elevated sales volumes,” she said, adding that the company expects to complete its delivery rollout this year.
Dave Deno, Bloomin’ Brands chief financial and administrative officer who will succeed Smith April 1, said Bloomin’ had delivery in 488 units at the end of 2018 and expects the rollout to be completed with 600 units total by the end of this year. Delivery currently makes up about 14 percent of the business, he said.
Bloomin’ Brands Inc. in April expects to open the first U.S. unit of Aussie Grill, a fast-casual food-court version of its casual-dining Outback Steakhouse, in Tampa, Fla., the company confirmed in March.
Aussie Grill by Outback was developed primarily for international growth, a spokesperson said, with the fast-casual counter-order, table-delivery model giving franchisees the opportunity to use smaller spaces and lower investments. Bloomin’ Brands other four concepts are all full-service casual-dining.
The proposed domestic Aussie Grill site will be in Tampa’s International Plaza, a food-court location previously occupied by Johnny Rockets. Construction filings with city indicate the space is 687 square feet and construction costs are around $75,000.
Aussie Grill’s menu focuses on sandwiches, and more units may open in the Tampa area. The first two Aussie Grills opened in January, one a franchised location in Saudi Arabia and another a company-owned unit in Hong Kong.
Bloomin’ Brands Inc. was a casual-dining pioneer in 2017 when it debuted express combination Outback Steakhouse-Carrabba’s Italian Grill locations aimed at delivery and takeout.
Bloomin’ had five of the express units open at the end of 2018.
“The smaller footprint concept will be utilized to expand our reach into both new and fill-in trade areas,” said Elizabeth Smith, Bloomin’ Brands CEO and chairman, in an earnings call with analysts. “We will be patient and deliberate as we build this capability to meet expectations of customers in this all-important occasion.”
Smith said 70 percent of customers at first four Outback/Carrabba’s express units order items from both brands — which met the company’s hope that customers would “mix and match.”
Bloomin’ Brands under Elizabeth Smith’s CEO tenure expanded its digital strategies.
In 2014, the company set out to double its digital staff and helped lay the foundation for the popular Dine Rewards Loyalty program and other consumer-data initiatives.
Ramin Eivaz, senior vice president of digital marketing, analytics and customer loyalty at Tampa, Fla.-based Bloomin’ Brands Inc., told a Restaurant Innovation Summit audience in Dallas last fall that technology helps companies understand their consumers better.
“As I looked at all the key business priorities we had — off-premise, delivery, online sales, personalization, loyalty, and I can go down the list — the one thing that connected all the dots went back to the customer strategy,” Eivaz said. “What is it you are trying to do to sell more?”
Part of the technology officer’s job is to help restaurant companies move from a mass approach with one solution toward a one-to-one relationship — “where one day I recognize you, have a relevant conversation, direct content and specific promotions only for you,” Eivaz added.
That comes with leveraging data and technology to get closer to that one-to-one approach, he said. “Ultimately, we’re here to provide a true omnichannel experience.”
Eivaz said that digital strategies have been proven in the retail space and consumer expectations have grown as to what technological offerings are available.
“The consumer has been exposed to the experiences of Uber and Amazon and other places,” he said. “That surprises and delights them. They come to expect that from everywhere.”
