In the face of a challenging economic climate and evolving consumer habits, Cracker Barrel Old Country Store, a beloved Southern-style dining and retail establishment, is confronting significant downturns in customer traffic.
Despite its widespread popularity on social media platforms such as TikTok and Instagram, the Tennessee-based chain reported a huge 7.1% decline in restaurant visitors by the end of October.
This trend is not new for Cracker Barrel.
The company has been grappling with a steady decrease in patronage throughout 2023, with a 1.7% drop by January’s end and a 3.2% decrease by April.
These figures were highlighted in the company’s recent earnings calls, with the latest data revealed in a November 30 call.
Cracker Barrel’s leadership, including then-president and CEO Sandy Cochran and chief marketing officer Jennifer Tate, attributes this downturn to broader economic pressures such as rising food prices and inflation.
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These factors have led consumers to cut back on restaurant spending, a trend reflected across the industry.
In support of this view, data from Black Box Intelligence shows a 3.3% decrease in overall industry traffic in September, marking the weakest sales rates in over two years.
In response to these challenges, Cracker Barrel has embarked on a strategic shift under new leadership.
In July, Julie Felss Masino, a seasoned industry figure with a successful track record at Taco Bell, took the helm as president and CEO.
Under Masino’s guidance, the company is increasing its marketing and advertising spend by 20%, focusing on its core customer base.
Despite having to raise menu prices by 8.8% year-over-year due to economic demands, Cracker Barrel is emphasizing its value meals to attract budget-conscious diners.
One aspect of Cracker Barrel’s strategy is its new rewards program, featuring country music icon Dolly Parton.
This program aims to enhance customer loyalty and encourage repeat visits by offering points redeemable for meals or retail items. Such initiatives reflect the company’s proactive approach to reversing the declining traffic trend.
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