The newest CEO of Cracker Barrel has admitted that their brand is facing a crisis.
In order to stay in business, the company has had to construct a new strategy.
And Cracker Barrel just announced a slate of major controversial changes that has fans responding with outrage.
Cracker Barrel CEO promises to turns things around
The pandemic, also known as the Fauci Apocalypse, absolutely steamrolled the restaurant industry.
When indoor dining was restricted, and for some time even shut down completely, restaurants had to find new, creative ways to keep their shops open.
And some years later, Cracker Barrel has shown that they are still struggling to rebuild their foot traffic that existed prior to the lockdowns.
The famous food chain barely stayed afloat, even when it meant adopting take-out style food service and delivering food orders through third-parties such as Uber Eats and DoorDash.
Their newest CEO Julie Felss Masino has even had to come out to admit that the restaurant company “has lost some of its shine.”
“We’re just not as relevant as we once were,” Masino noted back in May.
But the chain has announced a new, $700 million initiative that will be implemented over the next three years that will completely restructure how they operate.
While Cracker Barrel did announce that they planned on keeping many of their most popular and notable menu items, they did announce that there will be some replacements and removals in order to simplify their menu and organization.
They even announced that they would be rolling out some new, never before seen items for testing before including them nationwide.
‘Bee Sting Chicken Tenders’ and a ‘Bee Sting Chicken Sandwich’ are included on the debut list, which feature their newest honey glaze to put the “sweet heat” into their list of options.
“Innovation will continue to fuel relevancy in our menu for our guests,” Masino told listeners during their February earnings phone conference.
The most controversial element of their plans, however, is the fact that they announced the need to raise prices in order to combat inflation.
“We believe there is a large opportunity to improve the way we price,” added Masino.
As a way to try to appease disappointment in their price change announcement, Cracker Barrel noted that they plan to adjust price increases based on location and individual markets.
That means higher-income areas will see a majority of the price increases.
According to CFO Craig Pommells, menu prices should only go up roughly 5% for the remainder of 2024.
Masino did note that the price hikes would put the chain into a balancing act, where the company must balance profitability and value for their 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,” explained Masino.
“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,” she added.
Back to the interior drawing board
The interior design of Cracker Barrel has remained mostly unchanged for many decades.
But Masino argued that the chain must adjust their appearance in order to accommodate a modern society and culture.
That is why Cracker Barrel has already initiated a pilot program to test new appearances and renovations as select locations throughout the United States.
The changes at these test locations will include more lighting, new seating arrangements, and opening up space on the walls for a more refined look.
“The guests and employee feedback has been highly encouraging,” Masino celebrated. “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 has long been a family restaurant staple, most known for their southern-style menu and classic interior decor.
Only time will be able to tell if their new plans can keep the famous chain in business.