It’s been a rough year for restaurants of all stripes, including those that fall under the casual-dining umbrella, such as Red Lobster and Cracker Barrel Old Country Store.
This has forced casual-dining chains to make some tough decisions, including:
- How can we update our menus, branding, and dining rooms without veering too far away from our original concept and alienating our audience?
- How can we appeal to new guest demographics while retaining our current fanbase?
This is especially true in Cracker Barrel’s case, given the old-timey, country-fried flair that’s been as integral to its brand as the plate of warm biscuits and apple butter served with every meal.
Cracker Barrel was my first waitressing job in 2007, so I ate a lot of those biscuits as a broke college freshman – and I can still recall the time I had to sit through an hours-long training video about Uncle Herschel, Cracker Barrel founder Dan Evins’ real uncle who “helped shape not only Cracker Barrel’s image but also its values,” according to the Cracker Barrel website.
However, that image and those values appear to be evolving as we speak.
“Cracker Barrel is facing a delicate balancing act. Historically, its appeal has rested on nostalgic Americana – a roadside refuge offering generous portions, low prices, and a retail experience that reinforces its old-country charm. But that legacy is under pressure,” said Ryan Gaylor, VP of restaurant sales at Upside.
Let’s explore some of the updates that are underway at Cracker Barrel – and their potential impacts.
Out with the Old, in with the New?
For starters, Cracker Barrel has added more lighting, as well as booth seating, to its dining rooms – two changes that seem relatively benign.
However, the chain has also opted to either remove or reorganize the mishmash of decorative items that once lined its walls, including vintage signs, antique bottles, and rusty tools, which made you feel like you’d just walked into your favorite grandpa’s house (who just so happens to be a bit of a pack rat).
And in an age where nostalgia reigns supreme, not every guest is happy about these particular updates.
“Cracker Barrel has been investing heavily in revamping stores and retooling its leadership, all while navigating cost pressures from tariffs that affect everything from kitchen equipment to retail merchandise,” Gaylor told FI.
Speaking of retail, Cracker Barrel has also opted to narrow down the number of retail goods sold in the “Old Country Store” side of its business under the direction of new CEO and president Julie Felss Masino, who came on board from Taco Bell in July of 2023.
“Cracker Barrel’s retail side, which once served as a strategic differentiator, is also vulnerable to tariff-related headwinds. Many of its signature retail items are imported (seasonal home décor, toys, and novelty gifts, etcetera). Tariff hikes, particularly on goods from China, could compress margins or force price hikes that make in-store shopping less compelling to guests already cutting back,” added Gaylor.
The chain has also updated its menu – especially on the beverage side, as it now sells beer and wine for the first time in its 56-year history. However, Masino stressed that it will not be turning into a bar anytime soon at The Wall Street Journal Global Food Forum recently, clarifying that “no one is getting drunk at Cracker Barrel.”
So, how will these modernization efforts fare for a chain that has been stuck in the past for five-plus decades by design? Time will tell.
