Cerca Trova Restaurant Group Holdings, one of Outback Steakhouse’s largest franchises, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware on Monday, November 2.
At the time of filing, Out West Restaurant Group (also referred to as Cerca Trova Restaurant Group Holdings) operated 61 Outback Steakhouse restaurants across Arizona, California, Colorado, Nevada and New Mexico. According to Fox Business, these 61 locations remain open and continue to operate.
Cerca Trova Restaurant Group Holdings, which operates as Out West Restaurant Group, cited rising food costs, soaring labor costs and minimum-wage pressures as reasons for the bankruptcy.
Separately, Outback Steakhouse reportedly has more than 600 restaurants across the U.S. According to the Los Angeles Times, as of June, the number of Outback Steakhouse restaurants reached 659, out of which 544 are owned and operated by the brand owner, Bloomin’ Brands.
Bloomin’ Brands also owns and operates other dining chains, including Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar.
Outback Steakhouse’s largest franchise files bankruptcy: List of closing store locations
Outback Steakhouse’s major franchisee, Cerca Trova Restaurant Group Holdings, Inc., currently operates 61 Outback Steakhouse restaurants on the West Coast, including Arizona, California, Nevada and Colorado.
Although most Outback Steakhouse stores are fully operational, at least 10 stores were closed abruptly between October 11 and October 25 as they were operating at a loss.
Two of Arizona’s Outback Steakhouse locations were recently shut down permanently as part of the 10 abrupt closures in October. These include: 4871 E. Grant Road, Tucson and 1860 E. McKellips Road, Mesa.
In Nevada, one Outback Steakhouse location in Reno, 3645 S. Virginia St., closed permanently. Colorado lost multiple locations during the abrupt October wave of closures. Four locations closed their doors permanently in Colorado, including 7065 Commerce Center Drive, Colorado Springs; 15 W. Springer Drive, Highlands Ranch; 2066 S. Abilene St., Aurora; and 8601 W. Cross Drive, Littleton.
In California, three locations were closed, including 7575 Beach Blvd., Buena Park, 25261 N. The Old Road, Valencia and 26652 Portola Parkway, Foothill Ranch.
Additionally, an Outback Steakhouse in North Scottsdale closed down earlier this year, leading up to a bankruptcy filing.
In its court documents, the company noted it has faced a downturn since 2018 due to reduced foot traffic and rising labor costs.
Bloomin’ Brands spokesperson Elizabeth Daly said in an email that Outback Steakhouse itself is not bankrupt, but that the issue is isolated to one franchisee. According to the Los Angeles Times, she said:
“This is an isolated situation involving the franchisee and does not affect Bloomin’ Brands’ corporate operations, financing, or liquidity. Bloomin’ Brands is participating in the process as a stalking‑horse bidder to acquire Out West’s assets and seeking to support operational continuity and protect the brand while the court‑supervised process moves forward.”
Outback Steakhouse’s largest franchise, Cerca Trova Restaurant Group Holdings, Inc., was founded in 1994 as T-Bird Restaurant Group. It was backed by H.I.G. Capital and later rebranded as Cerca Trova following a major expansion in 2017.
