Food - News

We Finally Know Why Outback Steakhouse Is So Cheap

According to Beef Magazine, Outback Steakhouse is one of the top purchasers and retailers of Choice beef in the country. Choice beef has less marbling than Prime beef, but it is still a high-quality, tender cut of beef, and Outback saves money by purchasing it in bulk.

Bulk Buying

Per a former Outback employee on Quora, Outback’s Queensland Chicken and Shrimp Pasta sauce, once made from scratch, is now outsourced and microwaved in the restaurant. While this move saved Outback time and money, it also led to lower quality food.

Microwaved Pasta

Outback’s new menu with lower prices, introduced during a time of economic uncertainty in the beginning of the pandemic, was a smart move that increased sales. By temporarily lowering costs at the right time, Outback was able to advertise, boost revenue, and ultimately maintain affordability.

Low Prices, More Sales

According to a former Outback Steakhouse employee on Reddit, inferior cuts are used for customers who request well done steaks. Presumably, a longer cooking and grilling time hides any imperfections in the cut, which wouldn’t be possible with a rarer steak.

Worse Cuts for Well Done

With an average restaurant size of 6,000 square feet, an island bar, and room for around 200 guests, Outback’s restaurants are massive. According to Lightspeed, a business consultant company, when a restaurant has more space for customers, it translates to more sales.

Massive Restaurants