CNN — Cracker Barrel CEO Julie Felss Masino recently gave a devastatingly frank assessment of the brand: “We’re just not as relevant as we once were.”
Masino, who became CEO in July, laid out the diagnosis — and the remedies — in a May presentation to analysts.
And it raises questions for those accustomed to the brand’s biscuits and gravy, wooden tables and chairs, brain puzzler games and front porch rocking chairs.
“The way we communicate, the things on the menu, the way the stores look and feel … all of these things came up time and time again in our research as opportunities for us to really regain relevancy,” she said.
The revamped Cracker Barrel Old Country Store (the brand’s full name) could include remodeled restaurants with bookcases instead of lattice dividers and brand new banquette seating.
New Cracker Barrels might be smaller restaurants altogether, with menus that include new items like green chili cornbread and banana pudding.
Customers may see brighter interiors with simpler decor, a move away from the typical cozy clutter.
Those changes are still just being tested. One new thing happening now? Discounted dinner from 4 to 6 p.m.
Why would Cracker Barrel, so desperate for relevancy, lean into a tactic typically used to attract senior citizens?
Partially because many people are eating early these days. And partially because it’s looking for a quick fix.
Cracker Barrel, which first opened in 1969, has long billed itself as a roadside place where weary travelers can stop for a hearty meal in a homey dining room, and also pick from a large selection of knick knacks at its country store.
That pitch, which has in the past largely appealed to Baby Boomers, hasn’t resonated very well since the pandemic.
Last year, when other diners returned to restaurants after the early pandemic years, Cracker Barrel’s older clientele remained cautious, visiting the chain less often.
Now, its retail stores are taking a hit as consumers pull back on spending. Those same dynamics are playing out in its restaurants.
In the three months ended on April 26, Cracker Barrel’s total revenue fell 1.9% compared to the year before, the company reported Thursday. Retail sales at stores open at least 18 months fell 3.8%, while restaurant sales fell 1.5%.
Wall Street has not been impressed: The company’s stock has declined nearly 37% this year, and has plunged about 70% over the past five years. The Tennessee-based chain owns its roughly 660 locations, which can be found throughout the country.
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