2005 Consumers' Choice in Chains: Steakhouse
Outback Steakhouse

In an inviting Australian twang often accompanied by quirky-but-catchy jingles, the message rings loud and clear to legions of would-be customers on their daily commutes: Outback Steakhouse is the place for holiday dining.

Valentine’s Day, Easter, Mother’s Day, Father’s Day—each merits dedicated radio advertising that has long been a focus of Outback’s marketing and a staple of its success. The drive ramps up in November and December, when the company promotes holiday gift cards.

The game plan worked 17 years ago as Outback was building its dinner-only, casual-steakhouse brand, and it remains an important sales driver today for a chain that now spans the nation and countries around the world.

“Special-occasion dining for the casual-dining category is huge at the holidays,” says Fulton Smith-Sykes, vice president of marketing and advertising. “Radio has been a very good tool for us in allowing message flexibility and affordability at those times.”

On a broader level, the fact that consumers ranked Outback above its segment competitors in all but one attribute of R&I’s Consumers’ Choice in Chains scoring, from cleanliness and convenience to reputation and food quality, illustrates the enduring strength of the concept’s core philosophy: over-the-top hospitality and serious food.

Portioning Success
Restaurant-level examples of Outback’s drive to please customers are found in small details, such as escorting guests to their cars under umbrellas in the rain and giving employees latitude to do what they feel is right to best serve guests.

“The idea of [company mantra] ‘No Rules. Just Right.’ is about Outbackers having that entrepreneurial spirit,” Sykes says. “We don’t set up rules for our customers or workers when they need to have the flexibility to make decisions about taking care of guests.”

Management’s drive to meet the needs of an evolving market are more evident in larger initiatives such as curbside takeaway and the chain’s 2003 introduction of smaller steak portions, which now account for more than 50% of Outback’s steak sales.

In its 2004 Annual Report, co-founders Chris Sullivan and Bob Basham call the new portions “one of the most important changes we have ever made to the concept,” pointing out that while the lower-priced, smaller steaks may have slowed sales growth for the year, the items’ appeal to baby boomers and others desiring smaller portions broadens the brand’s reach among consumers over the long term.

New menu items that further extend offerings also are on the horizon. While the company would not provide specifics, Sykes says upcoming additions include nonmeat appetizer and entrée options meant to provide the variety that keeps guests coming back.

The latest element of Sullivan and Basham’s plans for the continued success of their concept emerged six months ago with their surprise resignations as chief executive officer and chief operating officer, respectively. The two founders, who remain on board as chairman and vice chairman, named Outback veterans Bill Allen, formerly president of West Coast Concepts, as CEO, and Paul Avery, previous president of Outback, as COO.

Gold Winner
With a little help from country music legend Willie Nelson, family- and wallet-friendly Texas Roadhouse is going on the road to reach loyal diners and potential customers nationwide.

Nelson, who owns an interest in its Austin, Texas, location, is helping spread the word about the 204-unit, Louisville, Ky.-based chain with promotions and in-store visits throughout his latest concert tour, which the company is sponsoring.

It’s all part of Texas Roadhouse’s grassroots marketing philosophy, which emphasizes local store marketing programs over mass media to achieve its goal of “hometown favorite” status in every community in which it operates.

“We look for ways to have customers and potential guests experience our food and fun culture,” says Vice President of Business Development Juli Hart.

Crystal Winner
The most successful menu introduction this year at 225-unit LongHorn Steakhouse is a testament to the past and future of the 24-year-old chain.

The 7-Pepper Sirloin Salad offers customers a healthful choice while maintaining the brand’s integrity, says David George, president of the Atlanta-based concept. Rubbed with zesty seasoning, tender beef is sliced and served over mixed field greens with diced Roma tomatoes and blue-cheese crumbles.

The popular addition debuted as part of the company’s quarterly menu rollouts that keep the concept fresh and relevant in a competitive segment. Each season sees three to four new entrées; appetizers; featured beers, wines and cocktails; and desserts. Guest favorites among these selections, such as the steak salad, earn permanent places on the menu.