After one of the largest franchise operators filed for Chapter 11 bankruptcy protection, it has closed 10 restaurants in four states across the United States. With rising operating costs, declining customer traffic, and the leisure dining industry facing pressures, this chain restaurant is under increasing operational strain.

Cerca Trova Restaurant Group Holdings operated under the name of Out West Restaurant Group and filed for bankruptcy in Delaware on November 2, 2026. The company managed 61 Outback Steakhouse restaurants in California, Arizona, Colorado, Nevada, and New Mexico.

Which Outback Steakhouse stores are closing?

According to court documents, Out West closed 10 underperforming restaurants between October 11 and October 25. The affected stores were located in Arizona, California, Colorado, and Nevada.

Affected stores include those in Tucson and Mesa, Arizona; Buena Park, Valencia, and Foothill Ranch, California; Colorado Springs, Highlands Ranch, Aurora, and Littleton, Colorado; as well as restaurants in Reno, Nevada.

In addition, earlier in 2026, another 3 restaurants closed, bringing the total number of stores closed by this franchise to 13 this year.

Despite filing for bankruptcy, the company's remaining 61 restaurants are expected to continue operating during the reorganization process.

Outback Steakhouse Why Close the Restaurant

Due to rising operating expenses and declining passenger flow suppressing profitability, Out West has been facing financial difficulties for many years. Reports indicate that the franchise's revenue decreased by 35% during the COVID-19 pandemic and has not fully recovered since then.

Rising beef prices, increased wages, and higher food production costs have all exacerbated their financial pressures. The company also lists the California minimum wage requirement as a major financial burden.

Bloomin ' Brands proposes to acquire for $26.3 million

Outback Steakhouse's parent company, Bloomin, has proposed to acquire almost all of the assets of Out West for $26.3 million. This agreement was disclosed in a regulatory document on November 2nd. If approved by the bankruptcy court and there are no higher bids, Bloomin's Brands will be able to directly take over the remaining stores of that franchisee.

Bloomin ' Brands also promised to provide up to $5.5 million in financing during the bankruptcy process to support operations.

Outback Steakhouse will go bankrupt?

Outback Steakhouse itself has not applied for bankruptcy, nor has it announced any nationwide closure plans at this time. However, the closure of these stores indicates that the catering industry is under pressure, especially for those operators who find it difficult to cope with higher costs and changes in consumer spending habits.

The proposed acquisition may help to stabilize the remaining franchise stores, but it does not rule out the possibility of further closures.