The new woke CEO of Cracker Barrel has admitted the classic brand is struggling to handle demographic changes.
Now the once-beloved family “Southern-Style” dining chain is undergoing a dramatic transformation.
But when the Cracker Barrel CEO announced these big changes customers started spittin’ up their grits.
Cracker Barrel’s young rookie CEO vows big changes to try and “save” the chain
The COVID pandemic and subsequent government lockdowns and restrictions battered the restaurant industry.
Indoor dining was shut down and then, even when it reopened, it was restricted.
Some smaller restaurant chains and many mom-and-pop eateries never recovered and shut their doors forever.
But some of the larger chains suffered as well.
Cracker Barrel still hasn’t regained the foot traffic that it had before the pandemic.
The chain was simply not prepared for the trend of take-out orders and delivery through third-party apps like DoorDash that became so popular (and necessary) during COVID.
Cracker Barrel’s new CEO Julie Felss Masino admitted earlier this year that the chain “has lost some of its shine.”
“We’re just not as relevant as we once were,” Masino said in May.
In some articles that discuss her proposed changes, she was trying to change the restaurant to appeal to younger patrons who don’t want old-fashioned stuff like the golf tee games.
In other words, she is ignoring her key demographic in order to appeal to a younger, hipper crowd.
Now, under Masino’s guidance, Cracker Barrel is undergoing a $700 million update over the next three years.
Included in this facelift are changes in how the chain operates.
And changes to its wildly popular menu are coming soon.
While the chain is planning on keeping many of its staples, some items are going to be removed in a bid to simplify the menu and operations.
And new menu items are being tested for a potential nationwide rollout.
Bee Sting Chicken Tenders and a Bee Sting Chicken Sandwich – topped with honey glaze to give it a sweet heat – are debuting for a limited time run this summer.
“Innovation will continue to fuel relevancy in our menu for our guests,” Masino said during a February earnings call.
Cracker Barrel is also going to raise prices as the chain deals with rising inflation.
“We believe there is a large opportunity to improve the way we price,” Masino said.
Prices will be based on a restaurant’s location and the market it’s in.
Higher-income areas will have higher menu prices.
Cracker Barrel CFO Craig Pommells predicted that menu prices would climb by 5% for the remainder of 2024.
Masino said that the chain has to walk a tightrope between raising prices and losing its value for customers.
“Price is a powerful lever, but it’s also something that’s really recognizable for consumers and comparable to other experiences that they’re having out there,” Masino said. “So as we talked, we’ve been really maniacal about thinking about how we protect value while making sure that we take price in a way that better sets us up for success and better flows through.”
Cracker Barrel interiors are getting a refresh
The iconic interior of Cracker Barrel restaurants has stayed the same for decades.
Many argue it is what draws customers back to the chain time and time again.
But Masino says the chain needs to change with the times.
Cracker Barrel has begun a pilot program to test renovations at select locations.
Test locations will see more lighting, new seating, and fewer items on the wall, all to try and give the restaurant’s interior a simplified look.
“The guests and employee feedback has been highly encouraging,” Masino explained. “Guests have commented that the new design feels lighter, brighter, fresher, and cleaner and that they are especially excited in one of our remodels about having booths and banquettes as seating options.”
Cracker Barrel became a fan favorite for its southern-style comfort food and classic décor.
Only time will tell if changing the chain’s winning formula will lead to a turnaround, or a further slump.
Informed American will keep you up-to-date on any developments to this ongoing story.
