Dive Brief:
- Bloomin’ Brands laid off approximately 100 employees at its restaurant support center in Tampa, Florida, on Thursday, the company said in a Securities and Exchange Commission filing. The roles spanned various units that supported corporate administration and restaurant operations.
- The reduction followed a comprehensive analysis of team size and structure and marked a 17% cut to restaurant support center roles, the company said.
- The Outback Steakhouse parent linked the layoffs to the strategic refranchising of its Brazil operations in December, ongoing industry challenges and an “increased focus on high priority growth opportunities and operational efficiency.”
Dive Insight:
While the move will better align Bloomin’s cost structure with the current size of the business, it will also support its long-term strategy toward sustainable traffic, same-store sales and profitability growth, the company claimed. The first three quarters of 2024 were marked by same-store sales declines at Bloomin’s combined U.S. business.
The holding company expects the reductions, which include severance and other termination benefits, will cost about $7.5 million. Bloomin’ predicts this charge to be primarily incurred during Q1, and anticipates it will result in annualized cost savings of about $22 million.
Bloomin’ also made changes to its executive leadership team alongside the layoffs. The company appointed Lissette Gonzalez, who has been executive vice president and chief supply chain and operations excellence officer since October 2023, to the role of executive vice president and chief commercial officer.
This week, the company promoted Kelia Bazile, former vice president of operations for Bonefish Grill, to president of Carrabba’s Italian Grill. She has been with Bloomin’ since 2012, when she became a joint venture partner at Carrabba’s. Prior to Bloomin’ she worked for almost 30 years at Taco Bell, working her way from hourly team member to market leader.
Bazile succeeds Pat Hafner, who was promoted to executive vice president and president of Outback Steakhouse last month.
The layoffs come about a year after the chain closed over 40 locations across its system and made subsequent leadership appointments. Bloomin’ hired Michael Spanos, a former Delta Air Lines executive, to CEO following David Deno’s retirement. The company promoted Micheal Healy to the CFO position.
Bloomin’ isn’t the only restaurant company facing layoffs after several quarters of stagnant sales and traffic. Dine Brands cut 9% of its corporate workforce earlier this month, while Denny’s hinted at staff reductions during its February earnings call. Starbucks said corporate layoffs were coming in March as part of a new corporate structure under CEO Brian Niccol.
