Outback shuts 9 Hong Kong steak houses, lays off 300 as diners head to mainland China
- The American restaurant will shut nine of the 19 stores it owns in the city, affecting more than 300 of its staff, Outback said in a statement
The Australia-themed, American restaurant chain Outback Steakhouse announced it will close nearly half its branches in Hong Kong, blaming high rents and weak sales, as the city’s consumers troop to mainland cities like Shenzhen for shopping and entertainment amid easier cross-border travel.
Outback will shut nine of the 19 branches it operates in the city, affecting more than 300 of its staff, it said. The chain has outlets located across the city, from Hong Kong Island to New Territories, and opened its newest branch, spread over 3,800 sq ft in Central, in April.
The global restaurant chain, founded in 1988, is known for its signature steaks which are priced from HK$288 to HK$518, with the average dining cost ranging between HK$201 and HK$400, according to online food and restaurant guide OpenRice.
“We have made the difficult business decision to cease operations of nine Outback Steakhouse restaurants in Hong Kong,” the company said in a statement. “This decision is the culmination of a meticulous review process that considered current market conditions, our operational costs, and the strategic direction of our company.”
Majority-owned by Bloomin’ Brands, a Florida-based casual dining company, the chain operates more than 1,000 restaurants globally, with 694 in the US alone.
The Hong Kong outlets that will be closed are located in Discovery Park, Causeway Bay, Wan Chai, Tsim Sha Tsui East, Tuen Mun, Whampoa, Telford, Silvercord Tsim Sha Tsui and Lohas Park.
“We remain committed to the Hong Kong market with our 10 branches and will continue to serve customers with the same commitment to quality and excellence that they have come to expect from the Outback brand,” the company said.
