9 Alleged Reasons Outback Steakhouse Is So Affordable

When you compare a McDonald's Quarter Pounder with Cheese Meal to a 6-ounce Sirloin Meal at Outback Steakhouse, the steak only costs about $4 to $5 more — which is surprisingly affordable.

Outback has some peculiarly cheap (and delicious) options that allow you to stretch your restaurant budget. But just how do they do it? According to several alleged former employees and reports, here are some of the ways Outback Steakhouse keeps prices so low.

Editor's note: An Outback Steakhouse representative contacted FinanceBuzz to dispel several alleged claims and the article was updated to reflect those changes. 

If your go-to dish at Outback is the Kingsland or Queensland pasta, you might be surprised to learn that the pasta may be pre-bagged and microwaved.

While the sauce used to be made on-site, according to an alleged employee, in 2016, the steakhouse chain switched to entirely pre-made options. Instead of freshly made pasta, customers apparently receive something the chef just pops in a microwave.

That makes the $17.99 base price seem a little outrageous. But according to an Outback Steakhouse representative, the chain's pasta is boiled and prepared to order. It is then tossed in their alfredo sauce and topped with a cooked-to-order protein.

Enjoying a well-done steak is a surprisingly controversial preference, but does it warrant a lower quality steak than those who choose medium-rare? According to an alleged former employee, Outback opts to reserve lower-quality cuts for well-done orders.

This could help the chain disguise the imperfections and inferior quality of the cut, ideally lowering the amount of food waste from being sent back. According to Outback Steakhouse, though, they don't alter the cut or specification based on the temperature ordered.

Although The Humane Society rated Outback's parent company, Bloomin' Brands, an "F" in 2020 for animal welfare conditions (including overbred chickens, caged hens, and crate-confined pigs), they have improved.

The company pledged to transition to more humane practices by 2025 and has implemented an animal welfare advisory council. According to a representative for the steakhouse, they achieved 100% cage-free eggs in the U.S. last year and aim to achieve cage-free eggs in Brazil in 2025. This is a goal they plan to implement globally by 2030.

If you've ever thought the Mac and Cheese Bites tasted like a ball of glue, it might be because the Asiago, Mozzarella, and Parmesan blend advertised on the menu is actually a processed cheese sauce rather than fresh cheese, according to alleged former employees. The steakhouse might opt for frozen convenience over freshness, although Outback says they do indeed use fresh asiago, parmesan, and mozzarella for this dish.

Cutting down payroll expenses can save money, but it comes at the sacrifice of quality. According to the most recent data from Statista, the average hourly wage in the U.S. is $19. While we see the average Outback line cook salary at $17 per hour on Indeed, Glassdoor, and ZipRecruiter, an Outback Steakhouse representative says the roles are competitively benchmarked based on the geographic area, and that their employee hourly rate is $19.

Steamed lobster tails strongly implies boiling water and a steaming rack, but Outback has been accused of zapping them in the microwave. A viral video from 2022 claimed that the chain microwaves them before serving, and Reddit users have alleged that some stores microwave the tails unless directly asked to grill them.

Outback Steakhouse says otherwise. According to a representative from the chain, the lobster tails are steamed across all restaurant locations using a specialized steaming appliance.

Outback might be using pre-made, frozen French onion soup that only requires adding water and heat, according to an alleged former employee.

Sure, it's a more affordable option than making the time-consuming dish on-site. But if customers wanted to microwave a meal, they could make this at home — and spend less money doing so. The chain counters this claim, saying the soup is an Outback recipe curated by the restaurant chefs.

High-end steakhouses opt for Prime quality meat, which is the highest grade of beef and has the most marbling, which makes it more tender and flavorful. Like other casual dining restaurants, Outback opts for USDA Choice beef, which has less marbling but is still a high-quality cut. Choice-grade beef is considered the second highest quality beef, according to the U.S. Department of Agriculture.

Outback Steakhouse is owned by Bloomin' Brands, which also operates Bonefish Grill, Carrabba's Italian Grill, and Fleming's Prime Steakhouse. That gives them more leverage for better bulk deals on base ingredients because they're buying for more than just Outback.

Outback Steakhouse is an affordable restaurant compared to other steak-centric options, but let's be real — if we wanted microwaved food, we would have stayed at home. The steaks and the Bloomin' Onions skip the lazy oven, though, which means the money you spend may be more justified.

To keep more cash in your wallet when eating at Outback, consider signing up for their rewards program. You can use Dine Rewards to earn five points for every dollar you spend and put those points toward future purchases.