Cracker Barrel CEO says brand isn’t relevant and needs new strategy. Here are 3 changes coming soon.

Cracker Barrel has long been known for its combination of rustic charm and country dishes like biscuits and gravy. But its new CEO says the old approach no longer works – and she’s planning some major changes.

“We’re just not as relevant as we once were,” Cracker Barrel CEO Julie Felss Masino said on a May 16 conference call to discuss its plans to update the restaurants.

Masino, a former Taco Bell executive who took over as Cracker Barrel CEO in August, said the company has “lost some of its luster” and needs a “transformation” to continue to attract its current customer base and attract new customers. Cracker Barrel’s sales have stagnated, with its most recent quarter’s revenue unchanged at $935.4 compared to a year ago, while its shares are down 40% so far in 2024.

Their challenges range from pricing to menu options, she added, citing a recent internal study that compares Cracker Barrel to its competitors based on food, experience, value and convenience. To be sure, Cracker Barrel isn’t alone in fighting to keep customers coming back, as other food chains have done recently. reported problems with convincing inflation-weary consumers to return. But the company notes other concerns.

“[W]We are not leading in any area,” Masino said.[T]The reality is that we lost some market share, especially at dinner.”

The company now plans to make several changes to help refresh the brand and bring back its customers. Cracker Barrel did not immediately respond to a request for comment.

Here are three changes that Masino said could soon be implemented at all or many of Cracker Barrel’s 660 locations.

Green Pepper Cornbread

To become “more relevant to guests,” Masino said, the chain has been experimenting with new menu items.

At more than 10 locations, Cracker Barrel tested 20 new items, including green chili cornbread and banana pudding, she noted.

Based on customer feedback, Cracker Barrel plans to roll out several new dishes across all of its restaurants this fall. They include:

• Premium savory chicken and rice
• Slow Braised Pot Roast
• Shepherd’s Pie with Hashbrown Casserole

Adjusting prices

The chain also plans to adjust its pricing tiers, with Masino noting that prices at about 60% of its restaurants are at the lowest cost tier. But she suggested some restaurants could charge more.

“For example, we have stores in metropolitan areas with an average annual household income of $55,000 at the same price point as others with $90,000,” she told investors on the conference call.

In some cases, however, menu prices could be reduced, Masino added.

“I want to emphasize that optimizing our prices across the entire menu doesn’t just mean raising prices,” she said. “In many places, this may actually mean taking the opposite approach. We understand that the budget consumer is challenged and that value is and will continue to be an important part of the brand and we will work vigorously to protect it.”

Visibly different, but still Cracker Barrel

The chain is testing a remodel of its restaurants, which Masino said involves using “a different color palette, updating lighting, offering more comfortable seating and simplifying decor and accessories.”

“The goal, quite simply, was to revamp things so that they were noticeable and attractive, but still felt like Cracker Barrel,” she said, adding that customer feedback has been positive.

Cracker Barrel plans to remodel up to 30 stores in its next fiscal year, she added.

Additionally, the chain is planning to debut some new locations in fall 2025 that are about 15% smaller than its current restaurant footprint, Masino noted.

“Historically, Cracker Barrel has made limited changes to our design aesthetic and we probably relied too much on what was perceived as the timeless nature of our concept,” she said.