Here's what Cracker Barrel's CEO is doing to help the chain become 'relevant' again
Cracker Barrel
- Cracker Barrel is considering changes to its old-timey restaurants.
- The chain is testing new menu items and restaurant remodels, CEO Julie Masino has said.
- Cracker Barrel has struggled with lower foot traffic and sales over the last few quarters.
Cracker Barrel's CEO is overseeing some big changes at the restaurant chain.
Foot traffic at the restaurant chain has worsened over the last few quarters. The latest example came in May when Cracker Barrel reported a net loss and declining comparable sales for its third quarter.
CEO Julie Masino, who is in her first year as the chain's top executive, said fewer people visited Cracker Barrel's stores during the quarter.
"We're just not as relevant as we once were," she told investors on a call at the time.
Longtime patrons and an employee told Business Insider earlier this month that service and food quality have declined at Cracker Barrel in recent years. Many called for changes, ranging from bringing back discontinued menu items to overhauling the largely pre-World War II decor common at many restaurants.
Given the challenges, Masino this year outlined a three-year plan to turn Cracker Barrel around. It includes some changes that could be coming to a Cracker Barrel near you soon.
For example, Cracker Barrel is testing four new layouts for its stores, Masino told CNBC on Thursday.
"Not only are sales and traffic up in all four of them, but people are loving them," Masino said. She did not describe what the four layouts look like.
Cracker Barrel still has to decide which new format it will roll out more broadly based on the cost of each, Masino added.
Masino said earlier this year that a new format could bring Cracker Barrel's restaurants a "lighter, brighter, fresher and cleaner" look. Bookcases could replace the antique-covered lattice dividers common at Cracker Barrel locations today, and booth seating could become an option, she has said.
The company said in May that it plans to test new layouts in up to 30 stores during its 2025 fiscal year, which starts this summer. From there, the company could roll out its preferred formats over the next two years, backed up by up to $700 million in investment.
Cracker Barrel is also testing about 20 new menu items at some locations in Texas, including a Hashbrown Casserole Shepherd's Pie and Green Chile Cornbread, a company spokesperson told BI earlier this month.
The test's goal is to add "food offerings that speak to current tastes, but doing so in a way that is authentic to Cracker Barrel and true to our roots," the spokesperson said.
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