Outback shuts 9 stores in HK, marketing team not impacted

Outback Steakhouse is closing nine out of its 19 outlets in Hong Kong, with the last day of operation scheduled for next Sunday (4 August).

The headquarters has made this decision on short notice to cut some of the less profitable outlets, said a spokesperson from Outback Steakhouse when MARKETING-INTERACTIVE reached out. Meanwhile, the marketing team is not significantly affected as the Hong Kong office operates with a lean structure.

According to a separate statement by Outback Steakhouse, the decision to shut nine of its stores is the culmination of a meticulous review process that considers current market conditions, operational costs, and its strategic direction. “This is not a reflection of the hard work and dedication of our managers and employees.”

“Approximately 300 of our staff members will be affected by this transition and we will ensure that they are treated with the utmost respect and sensitivity,” the statement reads.

Meanwhile, Outback Steakhouse said it remains committed to the Hong Kong market with its 10 branches and will continue to serve customers with the same commitment to quality that they have come to expect from the brand.

The remaining stores include Central Entertainment Building, Causeway Bay Plaza One, MOKO, Olympian City 2, Tseung Kwan O Park Central, Shatin New Town Plaza III, Tai Po Mega Mall, Tsuen Wan Plaza, Yuen Long YOHO MALL, and Tung Chung Citygate Outlets. 

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Speaking in an interview on NowTV's "News Magazine" (時事全方位) programme yesterday (30 July), Simon Wong, president of the Hong Kong Federation of Restaurants and Related Trades, said the impact of Hong Kong citizens spending money in mainland China has led to around 300 eateries closing down in Hong Kong each month, while less than 200 new restaurants are opening during the same period.

In fact, there has been an uptick in the number of retail chains and restaurant groups shutting down operations this year. In June, local restaurant chain Yue Mic Ka (魚米家) closed down its final remaining store in Tai Kok Tsui, marking the end of the brand's 24-year run. In the same month, local restaurant Café De JarGor (大渣哥茶記) announced on its social media channels that it would be shutting down its remaining two store locations.

In April, Hong Kong-based conglomerate Dah Chong Hong (大昌行) (DCH) ceased operations of its 28 DCH Foods’ (大昌行食品) retail stores. Earlier this year, local bakery Dang Wen Li by Dominique Ansel also shut its operations in Hong Kong, including its flagship store at H Queen's in Central and boutique store at Admiralty's Pacific Place. 

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