Cracker Barrel CEO says chain is 'just not as relevant as we once were,' amid struggles

[Vambram]

Cracker Barrel CEO says chain is 'just not as relevant as we once were,' amid struggles

'Some of our recipes and processes haven't evolved in decades.'

abc3340.com

LEBANON, Tenn. (WKRC) - Cracker Barrel CEO Julie Felss Masino said the chain, famous for its Old Country Store, is "just not as relevant as we once were," amid struggling sales.

According to The New York Post, the company's stock has been falling over the past week after Masino, who became the company's CEO nine months ago, claimed Cracker Barrel is "just not as relevant" as it used to be. Per The Post, Cracker Barrel has seen a decline in traffic over the last decade.

A portion of the chain's loyal senior clientele never returned after the end of the pandemic, with Truist analyst Jake Bartlett telling The Post that around 10% of seniors overall have not settled back into their pre-pandemic dining out habits. The publication added that Cracker Barrel has lost 16% of its customers over the past four years.

“We’re just not as relevant as we once were,” Masino said on a call with investors, per The Post. “Some of our recipes and processes haven’t evolved in decades.”


Bartlett told The Post that a major reason the company's stock was struggling was because there "wasn't much of a plan."

“They announced a plan for a plan but they didn’t give investors enough information to judge whether reinvesting in the stores was a credible plan to address the traffic losses,” Bartlett told the publication.

Nation's Restaurant News (NRN) reported that Masino detailed plans for a brand overhaul that involves these five pillars:

• A brand evolution
• Menu enhancement
• Store remodels
• Digital and off-premises investment
• Employee experience improvement

“Cracker Barrel is an iconic brand, but even iconic brands have to evolve,” Masino told investors, per NRN. “We know from our research that despite high levels of consumer affinity, we're just not as relevant as we once were. We need to address these dynamics by refreshing and refining the brand and reflecting this in all of the ways we interact with our guests. We will take what is known and be loved about our differentiated brand and build upon it so that it's more relevant to today's and tomorrow's guests.”

 

[Vambram]

Classic American Restaurant's Shares Plummet 20% After CEO's Painful Admission - 'We're Just Not As Relevant'

What's with Cracker Barrel? Declining quality? Results of pandemic? Seniors leaving? And what about that political stance?

www.westernjournal.com

 

[AlexB23]

Cracker Barrel CEO says chain is 'just not as relevant as we once were,' amid struggles

'Some of our recipes and processes haven't evolved in decades.'

abc3340.com

LEBANON, Tenn. (WKRC) - Cracker Barrel CEO Julie Felss Masino said the chain, famous for its Old Country Store, is "just not as relevant as we once were," amid struggling sales.

According to The New York Post, the company's stock has been falling over the past week after Masino, who became the company's CEO nine months ago, claimed Cracker Barrel is "just not as relevant" as it used to be. Per The Post, Cracker Barrel has seen a decline in traffic over the last decade.

A portion of the chain's loyal senior clientele never returned after the end of the pandemic, with Truist analyst Jake Bartlett telling The Post that around 10% of seniors overall have not settled back into their pre-pandemic dining out habits. The publication added that Cracker Barrel has lost 16% of its customers over the past four years.

“We’re just not as relevant as we once were,” Masino said on a call with investors, per The Post. “Some of our recipes and processes haven’t evolved in decades.”


Bartlett told The Post that a major reason the company's stock was struggling was because there "wasn't much of a plan."

“They announced a plan for a plan but they didn’t give investors enough information to judge whether reinvesting in the stores was a credible plan to address the traffic losses,” Bartlett told the publication.

Nation's Restaurant News (NRN) reported that Masino detailed plans for a brand overhaul that involves these five pillars:

• A brand evolution
• Menu enhancement
• Store remodels
• Digital and off-premises investment
• Employee experience improvement

“Cracker Barrel is an iconic brand, but even iconic brands have to evolve,” Masino told investors, per NRN. “We know from our research that despite high levels of consumer affinity, we're just not as relevant as we once were. We need to address these dynamics by refreshing and refining the brand and reflecting this in all of the ways we interact with our guests. We will take what is known and be loved about our differentiated brand and build upon it so that it's more relevant to today's and tomorrow's guests.”

Wow, 5 years ago the company was successful. A video below summarizes the success of Cracker Barrel back in 2019.

9News on Cracker Barrel Decline: Cracker Barrel plans changes after CEO says the brand isn't relevant

Cracker Barrel explained by Company Man (January 2019, duration = 11 minutes)

Summary of video:

The speaker, Company Man, is discussing Cracker Barrel, a Southern-style restaurant and store with over 650 locations across 46 states in the US. He explains that while the store section of Cracker Barrel only accounts for 20% of their sales, the majority of their business comes from the restaurant, which serves classic country meals like country fried steak and grits. The atmosphere of the restaurants is described as old-country, with features such as fireplaces, rocking chairs, and checkerboard tables. In 2018, the average check per guest was $10.48, and the largest category of items sold in the retail store was apparel and accessories.

None of the locations are franchised; instead, they are all owned by the company. Company Man notes that Cracker Barrel primarily attracts customers passing through towns rather than local residents. This is achieved through the use of billboards along highways, of which they have 1600. The company began in the late 1960s when Dan Evans, an oil jobber, noticed that gas stations located on lesser traveled roads were struggling due to the construction of new interstate and highway systems. To compete, Evans built a gas station, restaurant, and gift shop in Lebanon, Tennessee, which proved successful. After learning that the gas station aspect of the business was the least profitable, the company shifted their focus towards the restaurant and store and phased out gasoline entirely.

 

[Pommer]

Cracker Barrel CEO says chain is 'just not as relevant as we once were,' amid struggles

'Some of our recipes and processes haven't evolved in decades.'

abc3340.com

LEBANON, Tenn. (WKRC) - Cracker Barrel CEO Julie Felss Masino said the chain, famous for its Old Country Store, is "just not as relevant as we once were," amid struggling sales.

According to The New York Post, the company's stock has been falling over the past week after Masino, who became the company's CEO nine months ago, claimed Cracker Barrel is "just not as relevant" as it used to be. Per The Post, Cracker Barrel has seen a decline in traffic over the last decade.

A portion of the chain's loyal senior clientele never returned after the end of the pandemic, with Truist analyst Jake Bartlett telling The Post that around 10% of seniors overall have not settled back into their pre-pandemic dining out habits. The publication added that Cracker Barrel has lost 16% of its customers over the past four years.

“We’re just not as relevant as we once were,” Masino said on a call with investors, per The Post. “Some of our recipes and processes haven’t evolved in decades.”


Bartlett told The Post that a major reason the company's stock was struggling was because there "wasn't much of a plan."

“They announced a plan for a plan but they didn’t give investors enough information to judge whether reinvesting in the stores was a credible plan to address the traffic losses,” Bartlett told the publication.

Nation's Restaurant News (NRN) reported that Masino detailed plans for a brand overhaul that involves these five pillars:

• A brand evolution
• Menu enhancement
• Store remodels
• Digital and off-premises investment
• Employee experience improvement

“Cracker Barrel is an iconic brand, but even iconic brands have to evolve,” Masino told investors, per NRN. “We know from our research that despite high levels of consumer affinity, we're just not as relevant as we once were. We need to address these dynamics by refreshing and refining the brand and reflecting this in all of the ways we interact with our guests. We will take what is known and be loved about our differentiated brand and build upon it so that it's more relevant to today's and tomorrow's guests.”

“Our clientele didn’t fare so well in the pandemic”

 

[AlexB23]

“Our clientele didn’t fare so well in the pandemic”

Haha, replace "clientele" with "CEO salary". Whenever a company says their customers did not fare well, it is an excuse for them to say "we did not meet quarterly profits". But yes, a lot of food businesses did not fare as well during the pandemic.

 

[Chesterton]

The curse of Brad's wife.

 

[rambot]

“Our clientele didn’t fare so well in the pandemic”

That's what I noticed too.

ANY industry that has a large senior clientele would DEFINITELY have felt a post COVID pinch.

"Seniors are buying 10% less".
yyyyeah...i'm not sure the living ones are buying less.....

 

[Hans Blaster]

“Our clientele didn’t fare so well in the pandemic”

You'd think a large cohort of people who lost their sense of taste would boost their sales.

 

[Vambram]

I started eating at Cracker Barrel back in the 80s. My wife and I still enjoy eating at different Cracker Barrels even to this present day. Southern cooking has always appealed to me. My mother and father raised the family on her southern style meals. Sincerely, I hope that Cracker Barrel can become more relevant to more people once again. From my own personal experiences, I have seen military men and women like eating there as well here in Missouri and also in Texas. There is an upgrade to their restaurants which my wife and I do want Cracker Barrel to do, and that would be to get rid of those all wooden chairs to replace them with cushioned chairs that are far more comfortable than the wooden ones.

 

[comana]

A lot of restaurants have closed down over time. They don’t all age well, meaning younger generations are not drawn to them. i have never eaten at a Cracker Barrel. Perhaps it is good food but it screams senior demographic and that doesn’t appeal to me.

 

[wing2000]

A lot of restaurants have closed down over time. They don’t all age well, meaning younger generations are not drawn to them. i have never eaten at a Cracker Barrel. Perhaps it is good food but it screams senior demographic and that doesn’t appeal to me

I suspect that's part of it (clientle are older). A brand becomes stale after a while if it does not evolve (as the CEO hinted).
Other brands are getting stale as well -- Chiis, Olive Garden, etc.

Personally, I would no be sad if all the franchise brands went out of business. I prefer to give our business to non-frachise restaurants, run by the owners.

 

[AlexB23]

I started eating at Cracker Barrel back in the 80s. My wife and I still enjoy eating at different Cracker Barrels even to this present day. Southern cooking has always appealed to me. My mother and father raised the family on her southern style meals. Sincerely, I hope that Cracker Barrel can become more relevant to more people once again. From my own personal experiences, I have seen military men and women like eating there as well here in Missouri and also in Texas. There is an upgrade to their restaurants which my wife and I do want Cracker Barrel to do, and that would be to get rid of those all wooden chairs to replace them with cushioned chairs that are far more comfortable than the wooden ones.

I like southern food as well. You know what ties the north to the south? A nice, home made casserole with a side of chicken or turkey.

 

[Landon Caeli]

Cracker Barrel CEO says chain is 'just not as relevant as we once were,' amid struggles

'Some of our recipes and processes haven't evolved in decades.'

abc3340.com

LEBANON, Tenn. (WKRC) - Cracker Barrel CEO Julie Felss Masino said the chain, famous for its Old Country Store, is "just not as relevant as we once were," amid struggling sales.

According to The New York Post, the company's stock has been falling over the past week after Masino, who became the company's CEO nine months ago, claimed Cracker Barrel is "just not as relevant" as it used to be. Per The Post, Cracker Barrel has seen a decline in traffic over the last decade.

A portion of the chain's loyal senior clientele never returned after the end of the pandemic, with Truist analyst Jake Bartlett telling The Post that around 10% of seniors overall have not settled back into their pre-pandemic dining out habits. The publication added that Cracker Barrel has lost 16% of its customers over the past four years.

“We’re just not as relevant as we once were,” Masino said on a call with investors, per The Post. “Some of our recipes and processes haven’t evolved in decades.”


Bartlett told The Post that a major reason the company's stock was struggling was because there "wasn't much of a plan."

“They announced a plan for a plan but they didn’t give investors enough information to judge whether reinvesting in the stores was a credible plan to address the traffic losses,” Bartlett told the publication.

Nation's Restaurant News (NRN) reported that Masino detailed plans for a brand overhaul that involves these five pillars:

• A brand evolution
• Menu enhancement
• Store remodels
• Digital and off-premises investment
• Employee experience improvement

“Cracker Barrel is an iconic brand, but even iconic brands have to evolve,” Masino told investors, per NRN. “We know from our research that despite high levels of consumer affinity, we're just not as relevant as we once were. We need to address these dynamics by refreshing and refining the brand and reflecting this in all of the ways we interact with our guests. We will take what is known and be loved about our differentiated brand and build upon it so that it's more relevant to today's and tomorrow's guests.”

This is terrible news! The pancakes are crispy on the edges, and served with real maple syrup. The sausage patties are good, and the grits are excellent especially with butter and salt.

Here in California and Arizona, the restaurants are booming as usual.

 

[Pommer]

Personally, I would no be sad if all the franchise brands went out of business. I prefer to give our business to non-frachise restaurants, run by the owners.

But the systems are all set up to run on factory-farmed food?
Just think of how much more we’re going to have to pay for meals out, when instead of restaurants buying their wholesale merch from “corporate” or the three distributors that have their grade of “product”, they have to turn to “locally sourced” raw materials from a market that doesn’t yet exist (hardly, anymore).

I’m old enough to remember dairy farms on the very outskirts of my city (Pittsburgh).
After a particularly vivid “duck & cover” cartoon/lecture from the (RCC) deacon, I remember thinking, I live three miles from cows, so if we survived I could “get us milk”.

I think I’m still only a dozen miles from the nearest cow, so maybe a shift to “small is good” (too), is right around the corner?

 

[FireDragon76]

“Our clientele didn’t fare so well in the pandemic”

I wonder if they are sure if that percentage are even alive (and no, I'm not talking just about COVID).

Having a primarily senior demographic can lead to quick change of fortunes. I belong to a Mainline Protestant church which isn't the same as it was before the pandemic. Like many Mainline churches, it's made of mostly senior citizens. Some of the people that used to belong have just died or aged out of being able to go anywhere.

 

[iluvatar5150]

You'd think a large cohort of people who lost their sense of taste would boost their sales.

IME, their food didn't have much taste to begin with.

TBH, with an average per-diner tab under $11, I'm amazed they've hung on as long as they have. I haven't been in a few years since half the people in my extended family were diagnosed with celiacs, but my recollection is that the restaurants were generally clean and adequately staffed, even if the food was bland and obviously reheated.

My guess is that they can keep their prices low because (I assume) they own their real estate and because they don't have to kick expensive franchise fees back to corporate. They're going to have to do a lot of work on that menu, though - it's not hard to find good southern food, and canned vegetables aren't going to cut it.

 

[durangodawood]

Sounds like a lot of fried food. Might be healthier for America if they went away?

 

[iluvatar5150]

Sounds like a lot of fried food. Might be healthier for America if they went away?

It's a mix. TBH, as far as restaurant food goes, the calorie counts are fairly modest, even among the fried dishes. Any one-off restaurant with the same sort of food is going to have bigger portions with way more fat.

 

[durangodawood]

It's a mix. TBH, as far as restaurant food goes, the calorie counts are fairly modest, even among the fried dishes. Any one-off restaurant with the same sort of food is going to have bigger portions with way more fat.

Well no wonder Americans are losing interest!

 

[CRAZY_CAT_WOMAN]

Here in California and Arizona, the restaurants are booming as usual.

I've seen one Cracker Barrel in Fontana . But there's so many other restaurants that are more appealing. And closer to where I live.