Bloomin' Brands, Inc. (BLMN): Business Model Canvas [Dec-2025 Updated]

You're looking for a clear-eyed view of Bloomin' Brands, Inc.'s operating model as they execute their 2025 turnaround, and after two decades analyzing companies, I can tell you this strategy hinges on sharp, disciplined execution. We're looking past the quarterly noise to see how they are managing a $928.8 million revenue quarter while simultaneously cutting menu complexity by up to 20% and investing $190 million into restaurant refreshes. This Business Model Canvas distills their entire playbook-from navigating COGS pressure to driving that 24% off-premises mix-so you can see exactly where the next dollar of value is coming from. Dive in below for the full, unvarnished breakdown of their nine building blocks.

Bloomin' Brands, Inc. (BLMN) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships Bloomin' Brands, Inc. (BLMN) relies on to keep the lights on and the steaks sizzling, especially as they push through that Outback Steakhouse turnaround. These aren't just vendors; they're integral to their current financial performance and strategic direction as of late 2025.

The company's international footprint is maintained through a network of established agreements. Bloomin' Brands owns, operates, and franchises restaurants across 12 countries. As of the third quarter of 2025, the International Franchise segment included 351 franchised restaurants. To give you a sense of the financial scale, the Income from operations for the International Franchise Segment in the second quarter of 2025 was $6,838 thousand.

The shift toward convenience is heavily reliant on external logistics. Off-premises sales are a major component of the U.S. business, consistently hitting 24% of total U.S. sales in Q2 2025. This mix is heavily supported by third-party delivery providers, though the specific breakdown of that 24% isn't fully detailed in the latest reports.

Quality control, particularly for the core steak offering, ties directly to supplier relationships. Management has explicitly called out addressing a gap in steak quality as a focus of the Outback turnaround. While the company is managing inflation, the Cost of Goods Sold (COGS) inflation stood at 3.3% in Q2 2025 and 1.5% in Q1 2025, meaning these commodity partners are key to stabilizing input costs.

Technology integration is driving efficiency inside the dining rooms. The partnership with Ziosk is a clear win for operations; CEO Mike Spanos noted that over 85% of guests use Ziosk to pay, which is improving table turns by about five to seven minutes. That's real time savings translating directly to potential covers.

The complex structure following the Brazil divestiture also defines a key partnership. Bloomin' Brands, Inc. completed the sale of 67% of its Brazil operations on December 30, 2024, retaining a 33% minority interest. This remaining stake is treated as an unconsolidated franchise arrangement, and for the third quarter of 2025, the estimated negative impact from this 33% ownership was projected to be approximately $1 to $2 million.

Here's a quick look at the numbers associated with these key external relationships:

The focus on operational consistency is also reflected in the strategic investments planned, which are directly tied to partner performance and quality control:

• Total strategic investment planned over three years is approximately $75 million.
• The largest portion of this investment, $25 million, is allocated to food quality improvements.
• Productivity initiatives expected to offset most of these investments total approximately $80 million.
• The company plans to refresh approximately 100% of Outbacks by 2028.

Finance: draft 13-week cash view by Friday.

Bloomin' Brands, Inc. (BLMN) - Canvas Business Model: Key Activities

You're looking at the core actions Bloomin' Brands, Inc. is taking right now to stabilize and grow its business, especially with that big Outback Steakhouse turnaround underway. It's all about disciplined execution, so let's look at the hard numbers driving these activities as of late 2025.

Executing the comprehensive Outback Steakhouse turnaround strategy.

The focus is definitely on Outback Steakhouse to drive sustainable, profitable growth. This required some tough calls, like suspending the dividend in October 2025 to reallocate free cash flow toward strategic investments and debt paydown. The operational momentum is showing, though, as all four brands-Outback, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar-posted positive comparable store sales growth in Q3 2025 for the first time since Q1 2023. Still, Outback's growth was the softest of the group.

• Outback comparable store sales were up 40 basis points in Q3 2025, with traffic flat.
• Carrabba's Italian Grill led the portfolio with a 4.1% increase in comparable restaurant sales for Q3 2025.
• The total number of locations across the portfolio reached 1,483 at the end of Q3 2025, up from 1,463 a year prior.
• As part of the strategy, Bloomin' Brands recognized asset impairments and net closure charges of $33.2 million during Q3 2025 from closing 21 U.S. restaurants and not renewing leases for 22 others.

Managing restaurant operations and ensuring consistency of execution.

Consistency in food quality and guest experience is the foundation they keep mentioning. You see this in the focus on operational excellence and the shift in capital allocation. They're moving away from opening many new units toward fixing the existing ones. For instance, they are testing new service models, like a revised server-to-table ratio at Outback, and leveraging technology; over 85% of guests use Ziosk technology to pay, which helps improve table turns by about 5 to 7 minutes.

Strategic menu simplification (reducing SKUs by 10-20%).

Addressing overly complex menus was a stated challenge, so they acted decisively to streamline offerings across all brands. This wasn't just a suggestion; it was an implemented action to reduce prep labor complexity and improve execution. Outback Steakhouse saw the most aggressive cuts.

Investing capital for restaurant refreshes (tracking to $190 million in 2025).

The capital plan for 2025 is set at approximately $190 million for capital expenditures, with a key shift in focus toward refreshing the existing asset base. This investment is crucial for the turnaround, especially for Outback. They plan to get started in Q1 of the following year on remodels that cost about $400,000 per restaurant, aiming to refresh nearly 100% of the Outback system by the end of 2028. Looking further out, they have identified approximately $75 million in investments for Outback across 2026 through 2028.

Cost-saving and productivity initiatives in non-guest-facing areas.

To help fund these investments and offset inflationary pressures, Bloomin' Brands is heavily focused on productivity savings where the guest doesn't see the change. These initiatives are already helping to partially offset margin decreases caused by higher commodity and labor costs. They are looking for savings in areas like indirect spend and contract negotiations. For example, an organizational redesign delivered higher-than-expected savings, with G&A expenses forecasted at approximately $215 million for 2025, which was $10 million lower than initial projections.

• Estimated productivity savings for the next year (2026) are approximately $30 million, spread relatively evenly.
• Cost-saving and productivity initiatives partially offset the restaurant-level operating margin decrease in Q3 2025.

Bloomin' Brands, Inc. (BLMN) - Canvas Business Model: Key Resources

You're looking at the core assets that drive Bloomin' Brands, Inc.'s operations as of late 2025. These aren't just buildings; they are established, revenue-generating engines, even while navigating some near-term headwinds.

The foundation of the business is its portfolio of four iconic brands: Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar. These concepts represent significant brand equity built over decades in the casual dining space, particularly in the steak segment where Outback is a household name.

This portfolio is supported by a substantial physical footprint. Bloomin' Brands operates and franchises a global network of over 1,450 restaurants across 46 states, Guam, and 12 countries, as reported in their Q1 and Q3 2025 filings. This scale is a massive barrier to entry for competitors.

Brand equity is a key intangible resource, currently being actively managed through a turnaround strategy focused heavily on the Outback Steakhouse brand following a period of market share underperformance. The company is using this resource by streamlining menus, targeting a 15% total reduction by year-end 2025 to enhance quality and execution.

The centralized supply chain and distribution system is critical for maintaining food quality across such a large system, though it is currently under pressure. For instance, management noted guidance for commodity inflation around 3-3.5% and labor wage inflation near 4% for the full year 2025, which directly impacts the cost structure managed by this resource.

Technology is another vital resource supporting the business model, especially as consumer behavior shifts. The digital ordering platforms are clearly gaining traction, evidenced by off-premises sales accounting for 23% of U.S. revenue in Q1 2025. This channel, which includes 11% from third-party delivery, is crucial for future growth, and in-restaurant technology like Ziosk helps manage the dine-in experience.

The company also holds significant financial assets derived from strategic moves, such as the partial divestiture of its Brazil operations, where 67% was sold for approximately $225 million USD (R$1.4 billion). This cash flow is being reallocated toward strategic investments and debt reduction, which strengthens the balance sheet resource.

You can see the scale of the operation reflected in the recent operational metrics:

• Q3 2025 U.S. Comparable Sales Growth: Positive across all four brands.
• Q2 2025 Adjusted Diluted EPS: $0.32.
• Q3 2025 Diluted EPS: A loss of $0.54 per share.
• Full-Year 2025 Adjusted Diluted EPS Guidance: Lowered to $1.00 to $1.10.

Bloomin' Brands, Inc. (BLMN) - Canvas Business Model: Value Propositions

Affordable luxury in the casual dining sector.

The average check per person in U.S. continuing operations increased by 1.9% in Q2 2025 compared to 2024, driven primarily by pricing actions.

Multi-concept choice from casual steakhouse to fine dining.

Bloomin' Brands, Inc. operates four concepts: Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar. For the first time since Q1 2023, all four brands achieved positive U.S. comparable restaurant sales growth in Q3 2025.

Everyday value offers, like the Aussie Three Course.

Value-driven offers, such as the Aussie 3-Course at Outback Steakhouse and Dinner and Dolce at Carrabba's, were cited as key drivers in stabilizing same-store sales trends in Q3 2025. The Outback Steakhouse Aussie 3-Course Meal starts at $14.99. In Q2 2025, approximately 2/3 of Outback guests trading up to the higher-priced tiers of the value offerings (the $17.99 and $2.99 options). Also, about 20% of guests traded up on desserts within the value platform.

Enhanced dine-in experience through improved service and food quality.

The turnaround strategy includes investments targeting steak excellence and service model adjustments, such as a target service ratio of 4 tables/server. At Outback Steakhouse in Q3 2025, over 85% of guests used the Ziosk platform to pay, which aided in improving table turns.

Convenience of off-premises options (takeout and delivery).

Off-premises sales accounted for 23% of U.S. revenue in Q1 2025. This figure remained at 24% of total U.S. sales in Q2 2025. Third-party delivery represented 11% of U.S. revenue in Q1 2025.

• Off-premises sales as a percentage of U.S. revenue: 23% (Q1 2025).
• Off-premises sales as a percentage of U.S. revenue: 24% (Q2 2025).
• Carrabba's Italian Grill off-premises sales percentage: 35% (Q2 2025).

Bloomin' Brands, Inc. (BLMN) - Canvas Business Model: Customer Relationships

Bloomin' Brands, Inc. focuses on several key relationship strategies to maintain and grow its customer base across its restaurant portfolio.

Loyalty programs to drive visit frequency.

The Dine Rewards program is designed to encourage repeat visits across all four casual dining chains. The structure rewards frequent patronage with a tiered benefit system. Industry data suggests this focus is critical, as 50% of consumers prioritize loyalty programs when choosing restaurants in 2025. The company is also leaning into value-driven offers to attract price-sensitive diners.

Enhanced in-restaurant service model and hospitality focus.

A core part of the turnaround strategy involves improving the dine-in experience through service enhancements. This includes adjusting staffing ratios to improve speed and consistency. The company is focused on operational excellence to deliver an exceptional guest experience, which management believes will drive in-restaurant traffic growth. For Outback Steakhouse, the revised server-to-table ratio is a key metric in this effort.

• Server-to-table ratio experiment at Outback: 1:4 versus the previous 1:6.
• Q3 2025 Combined U.S. Comparable Restaurant Sales: 1.2 %.
• Q3 2025 U.S. Traffic Change: approximately flat (-0.1%).
• Q2 2025 U.S. Traffic Change: down 200 basis points.

Technology-enabled feedback and payment via Ziosk.

Technology integration, specifically through Ziosk tablets, is used to streamline the payment process and gather immediate guest insights. This efficiency gain directly impacts table turnover rates, a critical operational metric. The adoption rate for using this technology for payment is high across the system.

• Percentage of guests using Ziosk to pay: Over 85%.
• Table turnover time reduction attributed to Ziosk: 5 to 7 minutes.
• Average table turn increase reported from Ziosk use: approximately 5 minutes.

Direct marketing and digital engagement with guests.

Bloomin' Brands, Inc. is shifting its marketing spend to digital channels to better recruit new guests and increase visit frequency. This is part of a broader strategy to drive brand relevancy. The company has set a specific goal for its marketing mix allocation to reflect this digital focus.

• Targeted digital marketing mix shift: 60% digital.
• Off-premises sales as a percentage of U.S. revenue in Q4 2024: 24%.
• Outback Steakhouse off-premises sales percentage in Q2 2025: 26%.

Focus on operational excellence to build long-term trust.

Building long-term trust is tied to consistent execution, which is reflected in the sequential improvement of key traffic and sales metrics through 2025. The company noted that all four brands posted positive U.S. comparable sales growth in Q3 2025 for the first time since Q1 2023. This operational consistency is foundational to the turnaround.

Bloomin' Brands, Inc. (BLMN) - Canvas Business Model: Channels

You're looking at how Bloomin' Brands, Inc. gets its food and experience to the customer in late 2025. The core of the distribution strategy remains heavily focused on the physical footprint, but digital integration is a clear, measurable component of the sales mix.

The primary channel is the network of company-owned restaurant locations. As of 2025, Bloomin' Brands, Inc. operates more than 1,450 restaurants globally across 46 U.S. states and 12 countries. Honestly, the vast majority of the business-generating about 95% of revenue-comes through these company-owned U.S. sites.

Off-premises dining has solidified its role. For the first quarter of 2025, off-premises sales accounted for 23% of total U.S. sales. This 23% is split between digital ordering and traditional takeout/curbside. The proprietary websites and apps are central to driving this volume, which includes the takeout and curbside pickup options you see at the restaurants.

The reliance on external platforms is quantified. Specifically, the third-party delivery business represented 11% of Q1 U.S. revenue. That's a significant slice of the pie coming through channels you don't directly control.

Internationally, the channel shifts slightly toward franchising. Bloomin' Brands, Inc. supports its international presence with a platform designed to manage its franchise locations. As of the third quarter of 2025, the International Franchise segment totaled 354 locations, building on a global platform that supports more than 340 franchise locations internationally.

Here's a quick look at how the key sales channels stacked up based on the most recent quarterly data available:

The digital push is clearly integrated into the overall off-premises strategy, which is a blend of:

• - Digital ordering via proprietary websites and apps.
• - Third-party delivery services (representing 11% of Q1 U.S. revenue).
• - Takeout and curbside pickup (the remaining portion of the 23% off-premises sales).

The company is actively managing its physical footprint, too. As part of its turnaround strategy announced in Q3 2025, Bloomin' Brands, Inc. made the decision to close 21 U.S. restaurants and not renew leases for another 22 U.S. restaurants.

Bloomin' Brands, Inc. (BLMN) - Canvas Business Model: Customer Segments

You're looking at the specific groups of people Bloomin' Brands, Inc. targets across its portfolio of casual and fine dining concepts as of late 2025. This segmentation is key to their turnaround strategy, especially with the focus shifting heavily to Outback Steakhouse.

The core customer base is anchored by families and couples frequenting the casual dining brands. Outback Steakhouse and Carrabba's Italian Grill serve this segment, which is highly responsive to value propositions. Management is leaning into 'abundant everyday value offerings' to capture this group, evidenced by the promotion of the Aussie 3 Course value offering, which management anticipated would drive stronger sales in the second half of 2025. For Q3 2025, the combined U.S. comparable sales growth was +1.2%, with traffic being nearly flat at -0.1%.

For the more affluent diner seeking a premium experience, Fleming's Prime Steakhouse & Wine Bar is the primary focus. This concept has shown resilience; it ended 2024 strong with a 3.3% year-over-year increase in visits per location for Q4 2024. This suggests a segment less impacted by the broader macroeconomic caution management noted in Q2 2025 guidance.

Value-conscious consumers are a critical target, especially given the inflationary environment. Bloomin' Brands, Inc. is actively using targeted promotions to appeal to this group. The company is navigating a choppy macro environment by emphasizing these value offerings. The success of these value plays is reflected in the Q3 2025 average check increase of +1.3%.

The digital-first customer segment is growing, driven by off-premises channels. In Q1 2025, off-premises sales represented 23% of U.S. revenue, with third-party delivery making up 11% of that. By Q3 2025, this figure was 24% of U.S. sales overall, with Outback at 26% and Carrabba's at 34% of their respective U.S. sales. The long-term strategy includes a marketing mix shift targeting 60% digital usage between 2026 and 2028.

International consumers form a distinct segment served through the International Franchise Segment. Bloomin' Brands, Inc. operates and franchises restaurants in 12 countries. For Q1 2025, the Income from continuing operations for the International Franchise Segment was $9,004K. Key international development markets include Brazil, China, Mexico, and South Korea. Note that in December 2024, the company divested a 67% majority stake in its Brazil operations.

Here is a quick look at the brand portfolio and some relevant operational metrics:

Finance: draft 13-week cash view by Friday.

Bloomin' Brands, Inc. (BLMN) - Canvas Business Model: Cost Structure

You're looking at the expenses that eat into Bloomin' Brands, Inc.'s revenue, which is key for understanding their path to profitability. The cost structure is heavily influenced by external pressures, especially inflation across key inputs.

The Cost of Goods Sold (COGS) remains a major pressure point. For the third quarter of 2025, commodity inflation hit hard, showing a 4.9% increase. This is what management is battling with their turnaround strategy, as they expect full-year COGS inflation to settle between 3% to 3.5%.

Labor is another significant line item. While Q3 2025 saw labor inflation at 3.3%, the expectation for the full fiscal year 2025 is approximately 3.5% in wage inflation. To manage this, the company announced workforce reductions earlier in 2025, aiming for annualized cost savings of about $22 million from those administrative changes.

Restaurant operating expenses, beyond just food and labor, are also rising. This includes higher insurance expense, which contributed 60 basis points to the margin decline in Q3 2025. These pressures collectively compressed the restaurant-level operating margin to 9.2% in Q3 2025, down from 11.1% in the prior year period.

One-time, significant charges hit the bottom line in the third quarter. Bloomin' Brands recorded asset impairments and net closure charges totaling $33.2 million in Q3 2025, directly related to closing 21 U.S. restaurants and not renewing leases for 22 others as part of the turnaround strategy. This charge is why the GAAP operating income margin fell to (3.9)% in Q3 2025.

Here's a quick look at how key cost metrics impacted margins in Q3 2025:

General and administrative expenses cover corporate support, but the focus has been on right-sizing this area. The workforce reduction announced in February 2025, impacting about 17% of the Restaurant Support Center team, was designed to align the cost structure and deliver those annualized savings of approximately $22 million.

The overall cost structure challenges are summarized by the margin compression seen across the board:

• - COGS inflation of 4.9% in Q3 2025.
• - Labor inflation of 3.3% in Q3 2025.
• - Higher insurance expense impacting margins by 60 basis points.
• - Significant non-recurring $33.2 million charge for closures.
• - Expected full-year labor inflation of 3.5%.

Finance: draft 13-week cash view by Friday.

Bloomin' Brands, Inc. (BLMN) - Canvas Business Model: Revenue Streams

You're looking at how Bloomin' Brands, Inc. actually brings in the money, which is pretty straightforward for a restaurant operator. The vast majority of the cash comes directly from people eating their food, either in the dining room or taking it to go. Honestly, it's all about getting those covers and checks.

For the third quarter of fiscal 2025, the total revenue hit $928.8 million. That's the top-line number we're working with for that period. The core of that figure, the restaurant sales, accounted for approximately 98.2% of that total revenue. That concentration shows you just how reliant Bloomin' Brands, Inc. is on the day-to-day operations of its physical locations.

To give you a clearer picture of the key financial markers around this revenue generation, here's a quick snapshot:

Still, there are other, smaller pieces to the revenue puzzle. You have franchise and other revenue, which covers royalties and fees from international operations and franchised locations. For Q3 2025, these streams actually saw a decline year-over-year, partially offsetting the gains from company-owned restaurants. That's something to watch as they push their turnaround strategy.

The way people eat has shifted, so off-premises sales are a key component now, too. Takeout and delivery made up 24% of U.S. sales in Q3 2025, with Outback hitting 26% and Carrabba's at 34% of their respective U.S. sales. This channel is definitely part of the revenue mix, even if it's bundled into the larger restaurant sales category.

Here's how the revenue sources break down conceptually:

• - Restaurant Sales (Company-Owned Locations)
• - Franchise and other revenue (Royalties and fees)
• - Off-premises sales (Takeout and delivery contributions)

Management is definitely focused on driving that core restaurant revenue, which is why they raised the full-year 2025 Adjusted Diluted EPS guidance to a range of $1.10 to $1.15. That guidance increase shows confidence in their ability to convert sales momentum into bottom-line results, despite the margin pressures we're seeing from inflation.

Finance: draft 13-week cash view by Friday.