Cracker Barrel plans changes after CEO says the brand isn't relevant
Is Cracker Barrel's Overhaul Too Late?
Cracker Barrel, under CEO Julie Masino, announced a "strategic transformation plan" to regain market relevance and customer interest, particularly post-pandemic. The plan includes innovating the menu, especially dinner options, adjusting pricing strategies, and refreshing restaurant aesthetics. These changes aim to enhance guest experience, maintain value, and boost profitability.
How does Cracker Barrel plan to innovate its menu, particularly for dinner, according to Julie Masino?
Cracker Barrel is set to innovate its menu with a focus on dinner offerings to make them more appealing and relevant to current tastes while retaining an authentic Cracker Barrel feel. CEO Julie Masino highlighted that the company began testing new menu items in February, which included both modified existing items and entirely new additions4. Among the new items, green chili cornbread and banana pudding have been particularly popular2. Masino emphasized that while Cracker Barrel will continue to offer scratch-made food, the menu will be streamlined by removing some items4. This initiative is part of a broader strategic transformation plan aimed at enhancing customer experience and boosting profitability by updating the menu to better align with contemporary dining preferences1.
How will Cracker Barrel adjust its pricing strategy across different locations according to household income levels?
Cracker Barrel is refining its pricing strategy to better align with the varying economic profiles of the locations where its stores operate. CEO Julie Masino highlighted that the company currently has stores in metro areas with significantly different average annual household incomes — some as low as $55,000 and others as high as $90,000 — yet these stores were previously grouped into the same pricing tier235. To address this discrepancy, Cracker Barrel plans to adjust its pricing structure so that it more accurately reflects the local economic conditions6. This means that in some areas, particularly where average incomes are lower, prices might be reduced to maintain affordability and value for consumers. Conversely, in areas with higher average incomes, prices may increase. This strategic adjustment aims to optimize revenue while ensuring that the brand remains accessible to a broad customer base, without alienating those in less affluent areas5. The initial results of these price adjustments have shown a positive impact, with a reported 3% lift in sales in stores where changes have already been implemented, without negatively affecting store traffic56.