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Outback Prices Go Down Under

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By JEFF HOUCK

jhouck@tampatrib.com

Published: March 19, 2009

TAMPA - Tim Gannon's goal when he created the first menu 21 years ago for Outback Steakhouse was to offer an affordable steak experience that fit somewhere between Bennigan's on the lower end of the casual dining scale and Morton's on the top end.

As the years passed and the chain grew to be an international brand, prices crept higher as costs increased.

In March, Gannon and Outback co-founder Chris Sullivan decided the menu needed to be reinvented to introduce dishes and bring prices on iconic offerings back to their original range. The result is a new slate of 15 menu items costing less than $15.

The revamp wasn't prompted by the recession, Gannon said Monday during a media tasting at Outback's research and development kitchen in Tampa's West Shore Business District. Still, the company is hoping it positions the chain as an affordable alternative for families who lack time to cook items such as slow-roasted pork tenderloin.

Parent company OSI Restaurant Partners is trying like many chains to reverse its financial fortunes during the recession. OSI reported a net loss of $739.4 million for fiscal year 2008.

"Our prices were edging us out of the casual dining sector and putting us into special occasion sector," Gannon said. "Through our research, we found we were more expensive than we wanted to be."

Some staples, such as the Outback Special, ($9.99), now are offered at lower prices with smaller portions (6 ounces instead of 9) and with side items such as a wedge salad with crumbled blue cheese dressing.

Others are reinventions of classic dishes. The Savory Pepper Mill Steak ($13.95) is the chain's interpretation of steak au poivre, with slices of New York strip steak served over potato wedges with brandy cream sauce. Shrimp En Fuego ($12.95) features butterfly shrimp with mushrooms and tomatoes in a spicy cream sauce over potato slices with green beans.

Outback tested the new dishes at its Carrollwood location in September and began rolling them out in November and February. A marketing campaign began Tuesday to get the message out. Gannon says overall sales in January and February have started to rebound.

Reporter Jeff Houck can be reached at (813) 259-7324.

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