Outback Steakhouse Announces Closure of Hong Kong Locations Due to Economic Pressures

Monday, 29 July 2024, 05:30

Outback Steakhouse has decided to shut down nine of its restaurant locations in Hong Kong, resulting in the layoff of approximately 300 employees. This move comes as the company faces significant challenges, including escalating rents and a downturn in customer traffic, with many patrons opting to dine in mainland China instead. As the restaurant industry grapples with these economic factors, Outback's decision highlights the ongoing struggles within the sector.

South China Morning Post — Outback Steakhouse Announces Closure of Hong Kong Locations Due to Economic Pressures

Outback Steakhouse's Closure in Hong Kong

American restaurant Outback Steakhouse is set to close nearly half of its branches in Hong Kong.

Reasons for the Closures

High rents in the region
Weak sales impacting profitability
Shift of diners towards Mainland China

Impact on Employees

The closure will lead to the layoff of approximately 300 employees, marking a significant workforce reduction.

Conclusion

This decision by Outback underscores the broader challenges faced by the restaurant industry in high-rent markets.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

Outback Steakhouse's Closure in Hong Kong

Reasons for the Closures

Impact on Employees

Conclusion

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