CRACKER Barrel has suffered huge losses recently, even after raising its prices to try and combat it, causing another potential increase in cost.
The restaurant chain’s CEO, Julie Masino, said it has seen a drop in the number of customers, which has reduced sales of its food and stores – it will now follow a strict renovation plan.
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Cracker Barrel raised its prices by four percent and the company thought that would help, but sales continued to fall 1.5 percent in the first three months of this year, according to a report. Press release.
Masino announced the drop in sales on Thursday, along with Cracker Barrels’ dedication to staying afloat.
“Our third quarter results were below expectations due to weaker than initially anticipated traffic, which underscores the importance of executing our strategic transformation,” Masino said in the statement.
“Our teams are fully committed to bringing these plans to life, while continuing to deliver an exceptional guest experience and managing our business every shift, every day.
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“Cracker Barrel is an iconic brand with an exceptionally strong foundation and I firmly believe our plans will allow us to capitalize on our strengths and achieve long-term success.”
Cracker Barrel has lost around hundreds of thousands of customers recently.
The chain has been forced to close four locations in 2024 and there is concern that number will grow if profits don’t start rising soon.
Locations closed include Medford, Oregon; Columbia, South Carolina; and two in Sacramento, California,
FRESH LOOK
A resurrection plan includes $700 million to remodel its restaurants and give them a fresh look.
The renovation will consist of a complete renovation of the interior of the restaurants.
Cracker Barrel will incorporate more vibrant colors to give it a more modern look.
There will also be a new logo and new food options on the menu.
Masino said the new menu comes because Cracker Barrel hasn’t added updates or “hasn’t evolved in decades,” according to the release.
So far, new items that have been added to the menu include Green Pepper Cornbread and Shepherd’s Pie with Hashbrown Casserole.
There were two Cracker Barrel locations that have already received renovations.
Decline of Cracker Barrel
Cracker Barrel CEO Julie Masio admitted that these struggles cause the restaurant chain to lose its relevance
- Customer experience: Some customers have reported dissatisfaction with the quality of food and service at Cracker Barrel. Negative experiences can lead to a decline in repeat business and tarnish a brand’s reputation over time.
- Brand perception: Cracker Barrel has a strong association with a specific traditional American dining experience, which may not appeal to all demographics. As the population becomes more diverse and tastes evolve, this brand perception can limit its appeal.
- Changing consumer preferences: Consumers’ gastronomic preferences have evolved over time. There is a growing demand for healthier, more diverse and contemporary dining options that may not align with Cracker Barrel’s traditional Southern comfort food menu. Younger generations are also looking for more modern and healthy gastronomic experiences.
- ECONOMIC FACTORS: Inflation and economic uncertainty have affected consumers’ spending habits. Rising costs of food and other essential goods mean people have less disposable income to spend on dining out. This could lead to fewer visits to sit-down restaurants like Cracker Barrel as consumers opt for cheaper or more convenient dining alternatives.
The new full menu is also being tested in 10 locations.
However, the positive changes do not change the fact that Cracker Barrel will have to make up for its ongoing losses.
Masino explained that Cracker Barrel will need to raise prices again to keep up.
She noted in the release how the Southern Country themed restaurant “is not as relevant as it once was.”
It’s unclear what percentage Cracker Barrel would raise its prices for a second time.
This story originally appeared on The-sun.com read the full story
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