FSR August 2022

FSR 50

9 The Bloomin’ Brands all-star entered 2021 with a major leg-up in the unfolding labor crisis. The company’s early decision to not furlough workers accelerated its recovery. By the second quarter, Outback Steakhouse and all sister concepts were besting pre- %18+& EQORU 6Q QHHUGV KPƃCVKQPCT[ RTGUUWTGU VJG DTCPF KU TGFK recting resources once focused on LTOs and discounting toward digital initiatives, new technology, and streamlined operations. In CFFKVKQP VQ NCWPEJKPI ECVGTKPI HQT VJG ƂTUV VKOG 1WVDCEM WPXGKNGF C PGY RTQVQV[RG HGCVWTKPI C HTGUJ CODKCPEG CPF OQTG GHƂEKGPV NC[QWV VJCV EWVU square footage by 16 percent without trimming seating. RED ROBIN

OUTBACK STEAKHOUSE

11 Full service’s largest burger chain posted vation amid the labor crisis. Red Robin’s plan to activate Donatos in 200 locations this year was cut down to only 50; it also incurred $3.2 million in transitory labor and other expenses, such as hiring and training costs in the fourth quarter. In November, the company hired EJKGH RGQRNG QHƂEGT 9C[PG &CXKU in a bid to boost applications. 4GF 4QDKP KU CNUQ TGƂPKPI KVU NCDQT management structure and boost ing hourly wages. At the highest level, CEO Paul Murphy is set to retire at the end of this year when his contract expires. strong growth last year (up by a third in system wide sales) but had to take a more conservative approach with menu inno

SIRLOIN AND CEDAR GRILLED SHRIMP WITH FIRE-GRILLED CORN AT LONGHORN STEAKHOUSE

LONGHORN STEAKHOUSE LONGHORN STEAKHOUSE

10

There’s little doubt Darden’s second largest brand outper HQTOGF DKI UKUVGT 1NKXG )CTFGP KP VJG ƂUECN [GCT +P HCEV it was the only bright spot in the company’s holdings with its “Fine Dining” and “Other Business” concepts backsliding (read more about Darden’s other segments on page 38 ). The brand’s momentum is continuing, and LongHorn Steakhouse could soon eclipse $2 billion in annual sales for

VJG ƂTUV VKOG KP KVU HQWT FGECFG TWP #U QH URTKPI KV YCU VWTP ing out average weekly sales 25 percent higher than pre-COVID numbers, as opposed to Olive Garden, whose sales were only up 5 percent. Newly minted CEO Cardenas credited this strong performance to improvements, like larger portion sizes and higher quality proteins, which began before 2020 and continued throughout the pandemic.

RED ROBIN

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AUGUST 2022