Cracker Barrel CEO says chain is 'just not as relevant as we once were,' amid struggles
WKRC
3–4 minutes
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.”
Per the outlet, Cracker Barrel will remove underperforming items and add new items to its menu, with the company testing an overhauled menu with 20 new items. Some of those items will be added to all locations across the country this fall, including the green chile cornbread and hashbrown casserole, according to NRN.
The outlet added that another change will be strategic pricing initiatives, which will adjust pricing at Cracker Barrel locations that is aligned with the area and store demographics.
“We believe there's a large opportunity to improve the way we price both across the menu and across doors to hit the sweet spot where pricing at a store is optimized based on consumer willingness to pay competitor prices and store operating costs,” Masino told investors, per NRN. “We understand the lower-end consumer is challenged, and value is and will remain an important part of the brand. We will work vigorously to protect it.”
Cracker Barrel CEO asking the question of, "Why hasn't our loyal, old folks come back to our place? Where did they go."
foxbaltimore.com
www.reddit.com
These b*stards thought people just forgot?!
