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To: marginmike who wrote (141312)	1/2/2002 2:24:24 PM
From: GraceZ	Read Replies (1) \| Respond to of 436258

I don't like their food either, but somebody does. I think restaurants run in fads and have a limited life for some of the reasons you cited. The thing people like about those damned chains is that they know exactly what to expect. The prices are cheap so you can go out with the whole family (compared to prices in a non-chain) and its a cut above fast food.

To: marginmike who wrote (141312)	1/2/2002 2:27:12 PM
From: reaper	Respond to of 436258

Yes, anyone can open a steakhouse right down the street and many have tried, but where are they? LoneStar? Ryan's? Couldn't it be true that Outback operates a better steakhouse, and has better inherent returns due to superior management? And since Outback is the guy generating $200mm of cash flow a year, its going to be THEM opening the unit down the street, not somebody else. With capital availability limited in a post-bubble world, the Outback franchise is only MORE valuable precisely BECAUSE you don't have enough money to open Mike's Discount Steaks. And Domino's NEVER dominated the pizza biz. Plus, they have been ruined by bad management and an in-appropriate over-leveraged capital structure since they got bought out by Bain Capital several years ago. Cheers

To: marginmike who wrote (141312)	1/2/2002 2:41:53 PM
From: JRI	Read Replies (3) \| Respond to of 436258

Mike- My next door neighbor runs the Outback here-g RE: Growth. She says that Outback is sponsoring a concept (thought of by 2 ex employees) of a low-cost seafood place (don't ask me details, cause I don't know 'em)..apparently these guys looked at everything about a restaurant (her example: bathrooms...and how you can save money....apparently since its a seafood place, they use cheap particle board instead of walls in some parts of the building- bathroom? to save money...I guess they figure people won't mind..the whole "we are on a ship" thing). I think they are going to a very simple, volume concept...apparently, after working for Outback for 10 years, they came up with dozens of ways to cost cut...(likely food will be abysmal, but whatever).. I mention it, because I think it is one big way Outback intends to grow biz...(instead of opening more Outbacks)... Her biz has remained good.....she has a poor location IMO (and I don't like the decor...agree with your comments food quality/price)...but they consistently do well..place has always been packed whenever we go in, and it is only open 4PM-12PM (and I think she grosses 4-5m a year...but don't quote me) Maybe steaks, eh? You could serve my buddy's desserts (a little CAKE touch)..

To: marginmike who wrote (141312)	1/2/2002 3:00:02 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 436258

<<The steak biz is no diferent. If Micheal Jordan or Ruth chriss decided to go after that mkt Outback would have big problem's>> I'm not so sure the Ruth's Chris type high end concept can be transferred to the lower price/quality market. To me, their main selling point (ditto Morton's, the Palm, etc) is the Prime, aged beef they sell. Outbacks food is nothing more than typical grocery store, "choice" level mass-produced dreck.