Cracker Barrel CEO warns of price hike after closures – but chain hopes store changes & new menu items will save company
CRACKER Barrel suffered major loses recently even after raising it prices to try and combat it, causing another potential increase in cost.
The restaurant chain’s CEO Julie Masino said it saw a drop in customers which reduced sales for its food and shops – now it will follow a strict revamping plan.
GettyCracker Barrel has been struggling with its profits in 2024[/caption]
Yum! BrandsCracker Barrel CEO said the company will have to raise its prices for a second time[/caption]
GettyThe Southern-Country themed restaurant will be undergoing a $700 million remodeling to make it look more modern[/caption]
Cracker Barrel raised its prices by four percent and the company thought this would help, but sales continued to drop by 1.5 percent in the first three months of this year, according to a press release.
Masino announced the sales drop on Thursday along with Cracker Barrels’ dedication to staying afloat.
“Our third quarter results came in below expectations due to softer traffic than we originally anticipated, which underscores the importance of executing our strategic transformation,” Masino said in the release.
“Our teams are fully committed to bringing these plans to life while continuing to deliver an exceptional guest experience and managing our business every shift, every day.
“Cracker Barrel is an iconic brand with an exceptionally strong foundation, and I firmly believe our plans will allow us to capitalize on our strengths and deliver long-term success.”
Cracker Barrel lost an estimated hundreds of thousands of customers recently.
The chain was forced to shut down four locations in 2024 and there is concern this number will grow if profits don’t start to look up soon.
The closed locations include Medford, Oregon; Columbia, South Carolina; and two in Sacramento, California,
FRESH LOOK
A resurrection plan includes $700 million for remodeling its restaurants to give them a fresh look.
The remodeling will consist of a full makeover of the inside of the restaurants.
Cracker Barrel is going to incorporate more vibrant colors to give it a more modern look.
There will also be a brand-new logo and new food options on the menu.
Masino said the new menu comes as Cracker Barrel hasn’t added updates or “hasn’t evolved in decades,” per the release.
So far, new items that have been added to the menu include green chili cornbread and hashbrown casserole shepherd’s pie.
There have been two Cracker Barrel locations that have already received the remodeling.
Cracker Barrel decline
Cracker Barrel CEO Julie Masio admitted these struggles cause the resturaun chain to loose its relevancy
Customer Experience: Some customers have reported dissatisfaction with the quality of food and service at Cracker Barrel. Negative experiences can lead to a decline in repeat business and can tarnish the brand’s reputation over time.
Brand Perception: Cracker Barrel has a strong association with a specific, traditional American dining experience, which may not appeal to all demographics. As the population becomes more diverse and tastes evolve, this brand perception might limit its appeal.
Changing Consumer Preferences: The dining preferences of consumers have evolved over time. There is a growing demand for healthier, more diverse, and more contemporary dining options, which may not align with Cracker Barrel’s traditional Southern comfort food menu. Younger generations are also seeking more modern and health-conscious dining experiences.
Economic Factors: Inflation and economic uncertainty have affected consumer spending habits. Rising costs for food and other essentials mean that people have less disposable income to spend on dining out. This can lead to fewer visits to sit-down restaurants like Cracker Barrel, as consumers opt for cheaper or more convenient dining alternatives.
The full new menu is also currently being tested out at 10 locations.
However, the positive changes don’t change the fact that Cracker Barrel has to make up for its continued losses.
Masino explained Cracker Barrel will need to raise prices again to keep up.
She noted in the release how the Southern Country theme restaurant is “not as relevant as it once was.”
It is unclear what percentage Cracker Barrel would raises it prices by for the second time.
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