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Roy's Restaurants to Be Sold as Part of Restructuring of Bloomin' Brands

The restaurant group will also shutter 34 locations of Outback Steakhouse in South Korea.

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Restaurant group Bloomin' Brands — which owns chains like Outback Steakhouse and Carrabba's Italian Grill — has decided to sell off Roy's, its upscale "Pacific Rim' chain. According to the Tampa Bay Times, the restaurant group reported a third quarter loss of $11.4 million and is hoping to turn things around.

Roy's — which was founded in 1988 by chef Roy Yamaguchi — currently has over 20 locations across the country, but the restaurant group does not consider it to be one of its "core concepts." Nation's Restaurant News writes that CEO Elizabeth Smith said during a earnings call that Roy's was a "small part" of the group's portfolio and was "not a priority for investment."

Bloomin' Brands also announced plans to shutter 34 South Korean locations of Outback Steakhouse as part of a "restructuring initiative to right-size the business and position it for future growth." According to Businessweek, the Australia-themed chain has been in South Korea since the mid-1990s and has expanded to 110 restaurants throughout the country. However, things took a "turn for the worse this year" and sales in Korean's casual dining market went down "more than 20 percent in the second quarter."

Darden — the parent company of chains like Olive Garden and LongHorn Steakhouse — also faced heavy financial trouble this year, which inspired the company to sell off their cheddar bay biscuit-slinging chain Red Lobster earlier this year.

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