Rising Costs Push Major Outback Franchisee Into Bankruptcy

WHO:

NY Post - Out West Restaurant Group is described as one of the biggest owners of Outback Steakhouse restaurants in the United States.

Fox Business - Out West Restaurant Group operates Outback Steakhouse locations across the western United States and is affiliated with Cerca Trova Restaurant Group.

Fox Business - Bloomin’ Brands is the parent company of Outback Steakhouse and owns Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar.

Fox Business - Bloomin’ Brands and Out West Restaurant Group are parties to a proposed asset purchase and debtor-in-possession financing agreement.

WHAT:

NY Post - Out West Restaurant Group filed for bankruptcy, citing rising food costs among the factors.

Fox Business - Out West Restaurant Group filed for Chapter 11 bankruptcy protection.

Fox Business - Bloomin’ Brands agreed to purchase Out West’s assets for approximately $26.3 million, subject to certain adjustments and the assumption of specified liabilities.

Fox Business - The proposed purchase covers 61 restaurants operated by Out West.

Fox Business - Bloomin’ Brands agreed to provide up to $5.5 million in interest-free debtor-in-possession financing to support Out West’s operations during the Chapter 11 proceedings.

Fox Business - Bloomin’ Brands said the bankruptcy filing would have no immediate impact on customers, restaurant employees or daily operations at the affected Outback locations.

Fox Business - The bankruptcy concerns franchisee-operated restaurants, not Bloomin’ Brands’ corporate-owned locations.

WHERE:

Fox Business - Out West filed for bankruptcy protection in Delaware.

Fox Business - Out West operates restaurants in western states including California, Arizona, Nevada, Colorado and New Mexico.

WHY:

NY Post - Rising food costs were among the factors Out West cited for filing for bankruptcy.

HOW:

Fox Business - Bloomin’ Brands is expected to serve as the “stalking-horse” bidder, setting an initial offer that other potential buyers can seek to exceed.

Fox Business - The proposed transaction is subject to bankruptcy court approval, as is the debtor-in-possession financing.

Fox Business - Out West intends to keep its restaurants operating throughout the bankruptcy process.

Fox Business - The proposed acquisition could place the franchisee-operated restaurants under Bloomin’ Brands’ control if it prevails in the court-supervised sale process.

(UPDATED November 4, 2026 00:02 UTC)

Out West Restaurant Group filed for Chapter 11 bankruptcy, citing rising food costs. Bloomin’ Brands offered about $26 million for 61 Outback restaurants. The proposed sale awaits court approval; restaurants plan to remain open.