Outback's PAC house - Behind the tasty food and smart marketing, a political heavyweight plays to win

The former Elks headquarters in Jonesboro, Ark., seemed like a fine place to open an Outback Steakhouse, except for one problem: a 1944 county law that forbids businesses from serving alcohol.

Outback didn't let local custom stand in its way. It applied for a liquor license as a nonprofit called North Hills Hillbillies, hoping to use a loophole meant for private clubs. When the alcohol board and an appellate court struck down that gambit, the Tampa company's political action committee turned to state legislators for relief, and today the fight goes on.

While much of America fixates on the drama of Election Day, Outback's 2,700 steakhouse managers and joint-venture partners are breaking bread with local government officials, tracking legislation and quietly donating $1.6-million of their own pay to build one of the country's biggest corporate PACs. Bigger than Boeing's, according to FECinfo.com. Bigger than Halliburton's.

This is the politics of business. At Outback, it's more than just giving money to pro-business candidates or Republican Party committees, though that's where most of the PAC money goes. Whether the target is Arkansas liquor laws from World War II, or minimum wage proposals like the one on Florida's ballot Tuesday, what sets Outback apart from the typical corporate player is its battle-ready militia at the local level.

Many Outback managers are happy to help. Unlike most chains, Outback pays them 10 percent of local profits rather than a flat salary. An extra $10 in profit means another $1 in their pocket, which helps personalize the importance of wage laws and health care requirements.

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Date Listed: 2004-11-04

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