Business model of Bloomin’ Brands

Customer Segments

Bloomin Brands serves a large customers base across its brand portfolio.  The Company’s customers typically fall into one the following categories:

• General Consumers, comprising members of the general consumer population, notably small groups and families; and
• Events Organisers, comprising consumers organising events for private occasions or businesses who require specific requirements for large groups of people.

Bloomin Brands serves a broad spectrum of consumer demographics across its brand portfolio.

While the Company’s flagship Outback Steakhouse brand, as well as its Carrabba’s Italian Grill and Bonefish Grill brands, are targeted at middle income consumers, the Company’s Fleming’s Prime Steakhouse and Wine Bar brand aims to attract more affluent or discerning clientele.

Bloomin Brands remains headquartered in the US, where it serves customers across 48 states, as well as in the territories of Puerto Rico and Guam.

It also serves customers across a number of markets across Latin America, Asia Pacific, Europe, and the Middle East.

Value Propositions

Bloomin Brands provides value to its customers in the following ways:

• Reputation – Since its establishment in 1988, Bloomin Brands has garnered a reputation for operating efficient and reliable restaurant chains that provide customers with good food and an enjoyable dining experience;
• Brand Strength and Portfolio – Bloomin Brands controls a strong portfolio of restaurant brands that offer a wide range of dining options to consumers; Outback Steakhouse in particular has established itself as a popular restaurant chain across the US, upon which much of the Company’s success is founded;
• Sales and Service Reach – Bloomin Brands operates an extensive network of both owned and franchised restaurants across 48 US states, the territories of Puerto Rico and Guam, and around 20 markets across Latin America, Asia Pacific, Europe, and the Middle East;
• Ethical and sustainable sourcing – Bloomin Brands is committed to ensuring that all of its ingredients and produce are sourced ethically and sustainably, supporting social and environmental sustainability across the US; and
• Customer Service and Atmosphere – Bloomin Brands seeks to provide customers with excellent customer service, ensuring a comfortable, relaxing, and enjoyable dining experience for customers across its brands.

Channels

Bloomin Brands serves its customers directly through its network of restaurants.

The Company currently operates close to 1,500 outlets across the Americas, Asia Pacific, Europe, and the Middle East under the Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse and Wine Bar brands.

The Company’s restaurants are staffed by dedicated wait staff who interact directly with customers.

In addition to its in-restaurant services, Bloomin Brands also operates online ordering services via its restaurant websites.  Customers are able to place orders for delivery or for pick-up from select locations around the world.

Customer Relationships

Bloomin Brands seeks to secure recurring business from its customers by providing high quality products and a relaxed, comfortable, and enjoyable dining experience.

The Company’s principal point of contact for its customers is its in-restaurant personnel, who are on hand to take orders, respond to queries and complaints, and offer advice on menu items.

Bloomin Brands’ various brands offer membership and rewards programs, through which regular guests can access discounts, deals, and rewards in return for repeat business.

The Company also offers gift cards and deals via its websites, including www.outback.com, www.bonefishgrill.com, www.carrabbas.com, and www.flemingssteakhouse.com, as well as providing customers with menus and location information on a self-service basis.

Bloomin Brands is additionally able to communicate directly with its customers through its various social media accounts, and the social media accounts of its brands, including with  Facebook, Twitter, Instagram, and YouTube.

Key Activities

Bloomin Brands functions as a holding company.

The Company owns and operates a portfolio of casual, upscale casual, and fine dining restaurants. Bloomin Brands organises its operations into segments: US, comprising its restaurant and franchise operations in its core domestic market; and International, comprising the activities of its brands operating outside the US.

The Company currently operates four restaurant chains under the Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse and Wine Bar brands.

Bloomin Brands operates a network of close to 1,500 restaurants across 48 US states, the US territories of Guam and Puerto Rico, and across around 20 markets in Latin America, Asia Pacific, Europe, and the Middle East.

Key Partners

Bloomin Brands works solely with a wide network of partner companies and organisations around the world.

These partners can be organised broadly into the following categories:

• Supplier and Vendor Partners, comprising suppliers of produce, ingredients, and equipment that are used in the Company’s core restaurant operations, as well as third party service providers that support the Company’s corporate activities more broadly;
• Franchise Partners, comprising restaurant operators, food service companies, and business people who operate Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, or Fleming’s Prime Steakhouse and Wine Bar on behalf of Bloomin Brands;
• Community and Social Responsibility Partners, comprising various charitable organisations, non-profits, and other organisations with which the Bloomin Brands collaborates on social and community projects around the world, particularly in the US;
• Sustainability Partners, comprising various food producers, activist groups, and environmental organisations that help to ensure that Bloom Brands is able to source its ingredients sustainably and ethically; and
• Strategic Partners, comprising other commercial enterprises with which the Company collaborates on other projects, including business development and marketing projects.

Bloomin Brands has a number of partnerships in place.  This includes an educational partnership with Johnson and Wales University.

Key Resources

Bloomin Brands’ business model depends on its ability to operate multiple restaurant chains efficiently and to offer high quality, innovative dishes.

As such, the Company’s key resources are its intellectual properties – including its signature dishes and brand names, its network of restaurants across the world, its network of franchisees, its suppliers and supply chain infrastructure, its partners, and its personnel.

Cost Structure

Bloomin Brands incurs costs in relation to the operation of its restaurants – including utility and occupancy costs, the procurement of third party services, the acquisition of produce and equipment, the operation of its distribution infrastructure, the management of its franchisees, the management of its partnerships, the implementation of marketing and advertising campaigns, and the payment of salaries and benefits to its personnel.

In 2018, Bloomin Brands recorded total general and administrative costs – including employee compensation and benefits – in the amount of USD 282.7 million.

The Company recorded total cost of sales for the year of USD 1.30 billion, and labour and related costs of USD 1.97 billion.

Revenue Streams

Bloomin Brands generates revenue through the operation of several restaurant chains in the US and abroad.

The Company derives the bulk of its revenue in the form of sales fees collected from customers at point of sale.  It also derives a small portion of its revenue in the form of franchise fee collected from its franchise partners.

In 2018, Bloomin Brands recorded total annual revenue of USD 4.13 billion, down slightly on the USD 4.22 billion recorded by the Company in 2017.

The Company’s restaurant sales accounted for around USD 4.06 billion in revenue, with franchise and other revenues accounting for the remainder.