Tampa-based Outback Steakhouse has done extraordinarily well in Brazil. According to CNBC, in the first half of 2023, Brazilian sales rose by 61 percent, foot traffic increased by 42 percent and the average check increased by 19.2 percent compared with the same period in 2022. By the end of Q2–2023, Brazil had 148 Outback Steakhouse restaurants (a net of eight store debuts during the period) and Bloomin’ Brands (Outback’s parent company) expects that figure to reach 300 by 2028, according to FSR Magazine. Outback’s Brazil portfolio makes up almost half of its international stores (148 out of 322), according to CNBC. Brazil now accounts for 83 percent of Outback’s international revenue, according to The Washington Post, which also reports that the chain’s entry into Brazil’s shopping malls has brought it into direct competition with the country’s traditional restaurants. Outback’s Brazil stores are concentrated in shopping malls, downtowns and city centers and predominantly in São Paulo and Rio, according to CNBC, which assesses that there is opportunity for further growth in underpenetrated areas within the country.

Brazil’s growing middle class is a crucial factor in Outback’s success, according to CNBC, which cites a study by the Harvard Review of Latin America stating that 47 percent of Brazil’s more than 213 million people are considered middle class. The study, using IBGE definitions, identifies people with a per capita income between $188.12 and $727.86 per month as being middle class. Modernization and the rise of the middle class have led to changes in the Brazilian diet. According to the National Association of Restaurants (reported in The Post), in the past two decades, food consumption at fast food restaurants rose 70 percent and it is estimated that by 2025, the typical Brazilian will no longer eat rice and beans as often as five days per week. Outback has also responded to rising vegetarianism in Brazil. According to The New York Times (citing a poll by the research firm Ibope), the number of self-declared vegetarians in Brazil has nearly doubled over a six-year period. In response, Outback’s Brazil menu has been adapted to include “meatballs” made with smoked eggplant and a burger made with broccoli and cauliflower.

Last Updated on September 28, 2023 by Ramin Seddiq