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    Case Study - Life Cycle

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    Shubhekchha Neupane Panday
    Outback Steakhouse was founded in 1988 and went public in 1991. It owns and operates Outback Steakhouse, Carrabba's Italian Grill, and other restaurants throughout the US and internationally. Outback Steakhouse is known for its Australian theme and menu of steaks, seafood, and pasta. Since 1994, Outback Steakhouse's annual sales have grown from $549 million to over $2.4 billion in 2002 as it has increased the number of company-owned, franchised, and international locations. Over time, Outback Steakhouse has transitioned more locations to franchises and joint ventures while continuing sales growth each year.

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    Case Study - Life Cycle

    Uploaded by

    Shubhekchha Neupane Panday
    48 views2 pages
    Outback Steakhouse was founded in 1988 and went public in 1991. It owns and operates Outback Steakhouse, Carrabba's Italian Grill, and other restaurants throughout the US and internationally. Outback Steakhouse is known for its Australian theme and menu of steaks, seafood, and pasta. Since 1994, Outback Steakhouse's annual sales have grown from $549 million to over $2.4 billion in 2002 as it has increased the number of company-owned, franchised, and international locations. Over time, Outback Steakhouse has transitioned more locations to franchises and joint ventures while continuing sales growth each year.

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    Case Study - life cycle

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    Outback Steakhouse was founded in 1988 and went public in 1991. It owns and operates Outback Steakhouse, Carrabba's Italian Grill, and other restaurants throughout the US and internationally. Outback Steakhouse is known for its Australian theme and menu of steaks, seafood, and pasta. Since 1994, Outback Steakhouse's annual sales have grown from $549 million to over $2.4 billion in 2002 as it has increased the number of company-owned, franchised, and international locations. Over time, Outback Steakhouse has transitioned more locations to franchises and joint ventures while continuing sales growth each year.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    48 views2 pages

    Case Study - Life Cycle

    Uploaded by

    Shubhekchha Neupane Panday
    Outback Steakhouse was founded in 1988 and went public in 1991. It owns and operates Outback Steakhouse, Carrabba's Italian Grill, and other restaurants throughout the US and internationally. Outback Steakhouse is known for its Australian theme and menu of steaks, seafood, and pasta. Since 1994, Outback Steakhouse's annual sales have grown from $549 million to over $2.4 billion in 2002 as it has increased the number of company-owned, franchised, and international locations. Over time, Outback Steakhouse has transitioned more locations to franchises and joint ventures while continuing sales growth each year.

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    © All Rights Reserved
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    Case Study

    Outback Steakhouse

    Outback Steakhouse, Inc., headquartered in Tampa, Florida, was founded in 1988 and
    completed its initial public offering in June 1991. Outback Steakhouse, Inc. is a company of
    restaurants that owns and operates Outback Steakhouse units throughout the United States as
    well as Carrabba’s Italian Grills and Lee Roy Selmon’s restaurants. The company also operates
    through joint venture agreements and existing franchise agreements for additional Outback
    restaurants (including international locations), Carrabba’s Italian Grills, and Fleming’s Prime
    Steakhouse & Wine Bar. Outback Steakhouse, Inc. has a joint venture development relationship
    with Roy Yamaguchi, the chef and creator of Roy’s restaurants, located in the United States and
    Japan.

    Outback Steakhouse is an Australian steakhouse concept open for dinner only. Although beef
    and steak items make up a good portion of the menu, the concept offers a variety of chicken,
    ribs, seafood, and pasta dishes. The company’s strategy is to differentiate its restaurant by
    emphasizing consistently high-quality food and service, generous portions at moderate prices,
    and a casual atmosphere suggestive of the Australian outback.

    Outback Steakhouse has enjoyed considerable success over the years, as evidenced by its sales
    figures in the table below. Since 1994, sales have grown from $549 million to over $2.4 billion
    by the year 2002.

    Annual Sales ($000,000)

      1994 1995 1996 1997 1998 1999 2000 2001 2002


    Company Owned $516 $716 $892 $1,045 $1,227 $1,492 $1,698 $1,848 $1,978
    Franchised 33 82 124 181 247 267 318 358 377
    International 0 0 1 20 48 60 75 81 88
    Total $549 $798 $1,017 $1,246 $1,522 $1,819 $2,091 $2,287 $2,443

    As you can see, the restaurant chain opened its first international unit in 1996. All of the
    international units are either franchises or joint ventures. Initially, the units were company-
    owned, but over time, the number of franchises and joint ventures has increased from 21 units
    in 1994 to 172 units in 2002.
    Number of units

      1994 1995 1996 1997 1998 1999 2000 2001 2002


    Company Owned 193  258  318  375  422  478  521 575  612 
    Franchised 21  39  54  70  95  96   103 114  118 
    International  0 0  1  14  23  37   40 50  54 
    Total 214  297 373 459 540  611   664 739  784 

    The information in the tables pertains to the Outback Steakhouses only, not the other brands
    that are part of Outback Steakhouse, Inc. It is interesting to see the evolution of the brand over
    time. Since the initial public offering in 1991, the brand has increased its number of franchised
    operations both in the United States and abroad. Sales have increased every year regardless of
    the economy or events such as the September 11 terrorist attacks.

    Case Study Questions and Issues


    1. What stage of the product life cycle is the Outback Steakhouse brand in as of 2002?
    2. What strategies would you suggest for the managers of the Outback Steakhouse brand?

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