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Outback's new menu poised to capitalize on nostalgia-fueled growth

Published: 24 Apr. 2024, 07:56

SEO JI-EUN
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Outback Steakhouse's newly launched Love Pairing campaign starting in April. It is the first-ever brand image overhaul in Korea. [OUTBACK STEAKHOUSE]

Outback Steakhouse in Korea is introducing more casual dining options like sandwiches to shake up its traditional image as a premium steak-focused restaurant franchise.

The U.S. Australian-themed franchise in Korea showcased its first-ever brand image overhaul in Korea since its inception in 1997, dubbed the "Love Pairing" campaign, including four new menu offerings, during a press briefing held on Thursday at Gwanghwamun, central Seoul.

Outback Steakhouse's new menus under the Love Pairing campaign includes black label king prawn steak; walkabout wellington steak; fresh cappellini pasta; and steak sandwich. [SEO JI-EUN]

Pil Jung, the direct management director at Outback Steakhouse Korea, stressed the importance of attracting younger consumers to sustain growth and continue its positive performance following the Covid-19 pandemic.

"Since Outback Steakhouse initially set foot in Korea, the once 20-something patrons who frequented the establishment have now entered their late 40s. And today, customers in their teens and in their 20s reminisce about outings to Outback with their parents," Jung said.

"Therefore, it has become critical for the brand to ensure that young consumers can autonomously choose to visit Outback.

Pil Jung, the direct management director at Outback Steakhouse Korea, speaks during a press briefing on the brand's new campaign on April 18 in Gwanghwamun, central Seoul. [SEO JI-EUN]

"We aspire to evolve beyond being merely a family dining destination. We aim to become a hub for social gatherings, including friends, couples and various lifestyle-oriented gatherings," Jung continued.

"The restaurant aims to gradually upgrade the overall operational framework, encompassing location, design and service, starting with the introduction of new menu items."

Kim Kwang-joong, a chef at Outback Steakhouse, who oversaw the Love Pairing campaign, highlighted that while Outback is typically positioned as a casual dining restaurant elsewhere, the Korean branch was perceived as more upscale due to its focus on steak.

"The Outback brand is generally considered 'fine casual' in Korea, whereas in its home country [of the United States], it actually holds a positioning below that level where patrons can enjoy food along with beverages like beer or cocktails," Kim said. "There was a suggestion to officially declare ourselves [as a 'casual dining' establishment] and expand our menu pie to accommodate a diverse customer base."

The four new menu offerings, tailored to fit the casual dining concept, are infused with various details aimed at enticing young consumers in their 20s.

Outback Steakhouse's black label king prawn steak is now served on the reintroduced hot sizzling plating, a hot plate that maintains warmth for an extended period. [SEO JI-EUN]

The steak sandwich was designed to cater to office employees seeking a quick yet satisfying meal option beyond the restaurant's heavy dishes. The fresh cappellini pasta highlights freshness and health with its thin noodles and warm temperature. The menu item sits in contrast to the signature, thick Toowoomba pasta. The walkabout wellington steak complements the tenderloin to cater to customers preferring quality over quantity. The franchise has also reintroduced the popular sizzling plating, offering its black label king prawn steak on a hot plate.

Looking ahead, the franchise plans to collaborate with global chefs and develop menus for Korea to experience the popularity of Outback's signature dishes enjoyed worldwide.

Outback Steakhouse's newly launched Love Pairing campaign starting in April [OUTBACK STEAKHOUSE]

The family restaurant industry in Korea, once on a decline, is experiencing a revival.

In the early 2000s, family restaurants like Outback were popular choices for various celebrations, offering a then-exotic Western atmosphere, menu and attentive staff. However, changing consumer trends, such as the rise of single-person households since the mid-2010s, further exacerbated by the Covid-19 pandemic, led to a decline in the popularity of family restaurants. This has resulted in closures and withdrawals from the market for many family restaurant chains like VIPS and TGIF.

BHC Group, best known for its fried chicken business, acquired the Korean operations for Outback Steakhouse in November 2021. The private equity fund MBK Partners is the largest shareholder of BHC Group.

Since its acquisition, Outback Korea implemented a relocation strategy, shifting existing standalone outlets into shopping malls or department stores. The number of Outback outlets has grown from 76 in 2020 to 93 nationwide, becoming the family restaurant chain with the largest number of outlets in Korea.

Outback reported a sales increase of 11.3 percent year-on-year to 457.6 billion won ($332 million) and an operating profit increase of 34.1 percent, or 79 billion won, in Korea last year.

Furthermore, it is rolling out a fresh Love Pairing campaign, aiming to redefine its brand identity.

"Given the increase in single-person customers, options for family gatherings have become limited," Jung said. "Diversifying the age range of customers is crucial, and rebranding at this juncture is important to avoid missing out on timing," added Jung.

He highlighted Korean consumers' fast-paced consumption patterns and their propensity to quickly explore new places, aspects which were focused on in the rebranding effort.

BY SEO JI-EUN [[email protected]]