12 Reasons Outback Is Cheaper Than Other Steakhouses

If you grew up in the U.S., then chances are good that you have at least a few fond memories of Outback Steakhouse. This restaurant chain has been around since 1988, providing a wide variety of Australian-inspired dishes in a casual setting. It's the perfect place to go when you don't want fast food but don't want to get dressed up for a fancy establishment, either. So, it's no wonder why American families dine out at Outback so much.

Another reason for the restaurant's popularity is that despite being around for decades, its menu still has jaw-droppingly low prices. As of this writing, some locations offer the tasty Bloomin' Onion for as low as $12.59, and an entire center-cut sirloin steak is available for just over $20. This has enabled families to keep dining out, but how has Outback been able to continuously entice customers with low prices, even as the years pass and inflation increases? Here are 12 reasons why the chain is cheaper than other steakhouses.

Do you always order the Kingsland Pasta when you visit Outback? Every bite of fettuccine noodles is filled with warm, gooey Alfredo sauce, and it's made even better when you pair it with a little grilled steak here and a little shrimp there. With how hearty this pasta is, it's incredible that it costs under $30, and yet it does, as do other Outback pasta dishes.

Those who've been eating at this chain for decades may have sensed a difference in quality over the years, though, and there's a reason for that. Writing on Quora, a self-proclaimed former employee said that when they first started working at Outback, the pasta sauce was made on-site and mixed with pre-cooked portions of pasta, as well as the customer's choice of protein. In 2016, however, the chain allegedly decided to go completely pre-made. According to the former employee, Outback apparently orders sauce and noodles, and all the chefs have to do is microwave the mixture before serving. As you can see, this massively cuts down on both costs and labor. That said, it also puts the Queensland and Kingsland plates on our list of dishes you should never order at Outback Steakhouse.

Whatever steakhouse you go to, the server will always ask how well-done you want your steak. Our steak doneness temperature guide says that medium-rare is the best choice for most cuts, as you'll get a nice sear on the outside while retaining most of the pink in the middle; however, according to a 2019 YouGov survey, 24% of Americans prefer their steaks well-done, meaning there's no pink or red in the middle at all. We can certainly understand if you're squeamish about raw meat, but be aware that Outback will give you a lower-quality cut if you want your steak completely cooked through.

On Reddit, an alleged former Outback Steakhouse employee explained that in their time at the chain, the employees would sort the steaks by how well-done the customers wanted their meals. The lower-quality cuts would then be cooked at the same time and at the same temperature. So, if you want the better steaks, stick to medium-rare if you can.

Unfortunately, chain restaurants have a reputation for paying their employees low wages, and Outback Steakhouse is no exception. At the time of this writing, data from Indeed indicates that on average, Outback's line cooks get paid $16.71 per hour, whereas hosts and hostesses get paid $15.03 per hour. Servers are paid slightly more at $18.61 per hour, but this still isn't a very high wage in most parts of the country. Glassdoor also shares similar numbers, with line cooks earning between $33-39,000 per year and hosts earning $25-35,000 per year.

To make matters worse, some Outback locations have been accused of underpaying their staff. In particular, the Penrith, Australia location was accused of underpaying its junior staff back in 2022. Not only were they paid less than the government-mandated minimum wage, but they didn't receive pay slips or even copies of their work contracts. Hopefully, this isn't the case at every location and most staff are being paid acceptable wages.

As a result of the pandemic, there's been an undeniable spotlight on delivery and takeout orders for pretty much all restaurants. As such, it makes sense that Outback wants to keep boosting these sales — this enables the chain to leave dine-in prices relatively unchanged. To accommodate these off-premise demands, Outback Steakhouse is reducing restaurant sizes by 17%, making them around 5,000 square feet in size (via CNN). With smaller spaces to look after, the restaurant will have fewer expenses, as factors like utility costs will decrease. In addition, this makes expansion easier since Outback doesn't have to pay as much for real estate. With more expansion comes lower prices.

Not only are Outback restaurants getting smaller, but their layouts are, too. According to CNN, "New locations have a dedicated space for pickup orders." The chain's bars also have 30% less seating, and a number of four-top tables have been switched out for two-tops. By adapting to customer demands, Outback is able to beat its competition's prices.

As previously mentioned, Outback Steakhouse sells over 8 million Bloomin' Onions per year. It already keeps prices low by ordering its colossal onions in bulk, but these bulbs don't come pre-cut, and the workers also have to dredge them. As you can imagine, slicing these onions, preparing the batter, and deep-frying them is no easy feat; it's a labor-intensive process, so how can customers still order these apps for under $15?

Outback's secret weapon is an ingenious device: the Gloria onion cutter. For a few years after Outback introduced the Bloomin' Onion in 1988, the chain's poor employees had to cut each onion by hand. But the onion cutter changed everything. Now, all employees have to do is place the peeled onion and push down on the device. Not only does the Gloria cutter immediately slice the onion into multiple pieces, but it also cores the middle. The employee can then pick it up with tongs to dip it in the batter, and into the deep fryer it goes. This efficient process means more Bloomin' Onions can be churned out in a given amount of time.

Outback Steakhouse doesn't shy away from changing times. The chain is constantly looking for ways to improve service, and one way to do so is to say goodbye to old methods and hello to new ones, usually with the assistance of new tech. It's not all bells and whistles, either, as Outback makes easy adoptions that still result in a huge difference.

For one, servers now have handheld tablets instead of pens and paper. This allows them to take down numerous orders with a smaller margin of error, which results in less food waste. Plus, they can send these orders to the kitchen immediately, which significantly boosts efficiency. Outback has also invested in completely new kitchen equipment to accommodate both on- and off-premise orders. One such instrumental piece of equipment is the clamshell grill, which cooks steaks 50% faster. Better efficiency means happier customers, and this means repeat business and lower prices.