Dive Brief:
- Michael Spanos, a former Delta Airlines executive, will join Bloomin’ Brands as CEO starting Sept. 3, the company announced Monday. Spanos will also sit on the company’s board.
- David Deno, whose retirement was announced in May, will remain with the company until the end of the year.
- Spanos is leaving his role as executive vice president and chief operating officer at Delta Air Lines to take the top position at Bloomin’. Outback, the company’s flagship brand, has been working to turn its operations around after stagnant same-store sales growth.
Dive Insight:
In addition to Outback’s struggles, Bloomin’s smaller brands have also seen traffic troubles. Earlier this year, in an effort to fortify the brand, Bloomin’ closed several dozen underperforming locations.
In Q2, both Bonefish Grill and Fleming’s Prime Steakhouse and Wine Bar saw comparable restaurant sales decline. Only Carrabba’s Italian Grill, comprising about 14% of Bloomin’s global store system, experienced same-store sales growth in the last quarter, according to the company’s earnings release.
Spanos’ is joining one operationally troubled company from another. Delta recently saw thousands of flights canceled between July 19 and 28 as a result of July’s Crowdstrike bug. Delta’s operational problems lasted longer than some other U.S. Airlines, and have prompted a class action lawsuit from consumers over refunds.
But Spanos does have considerable experience in hospitality and food and beverage businesses. Prior to his stint at Delta, he served as CEO and president at Six Flags Entertainment and held a variety of leadership roles at PepsiCo during his more than 25 years there, including president of Greater China, CEO of Asia Middle East and North Africa, and chief customer officer of North American beverages.
Michael Mohan, Bloomin’s board chairman, said Spanos’ experience operating complex, multi-unit businesses would be a boon to the company.
“He has a customer-first mindset for leading established organizations through challenging environments,” Mohan said.
