Cracker Barrel doubles down on Southern heritage, adds kids’ meal toys amid sales slump

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Cracker Barrel is erstwhile again shifting strategies arsenic the family-dining institution tackles income and gross declines successful the aftermath of the rebranding controversy. The institution reported a 4.7% alteration successful same-store income and 5.7% diminution successful gross for the archetypal 4th ended Oct. 31 that CEO Julie Masino said were “below expectations.”

Prior to the media attraction astir the logo backlash this past summer, Cracker Barrel’s turnaround strategy had been moving arsenic the institution returned to profitability. However, present overmuch of that strategy — including the caller branding visuals and store redesigns — has been walked backmost arsenic the institution is present focused connected outgo savings and a program to triumph backmost the consumer’s trust.

“There's immoderate marque rebuilding and spot rebuilding that we request to do, arsenic good arsenic immoderate income opportunity, truthful we are doing some of those things,” Masino said during Tuesday’s net call. “We're leaning into our legacy, our practice focusing connected those affectional connections to punctual radical that we are the marque they've known and loved each of these years, that that hasn't changed.”

During Tuesday’s call, Masino pivoted to absorption connected the company’s Southern heritage, mentioning a committedness to “deeper storytelling” by “showing up successful the places and passions that substance astir to our guests, from NASCAR and assemblage shot to state music.” Cracker Barrel is besides emphasizing its “longstanding commitment” to the subject with a November discount for subject members successful grant of Veteran’s Day. 

As portion of this accent connected marque past and legacy, Cracker Barrel is besides revamping its paper by bringing backmost immoderate aged favorites, including state fried turkey and cinnamon swirl French toast for the limited-time vacation menu, arsenic good arsenic hamburger steak and eggs successful a basket, which are being added backmost to the regular paper successful effect to impermanent feedback.

In summation to pivoting connected marque messaging and paper mix, Cracker Barrel is besides focused connected worth positioning. 

One illustration is the caller limited-time promotion of a escaped artifact with the acquisition of a kids’ meal. Kids tin take a artifact from the retail conception of Cracker Barrel for up to $5, oregon tin take a much costly point with a $5-off coupon. This was announced successful tandem with different 4th of slumping retail income for the company. 

“We are being precise cautious to deploy these shorter-term initiatives successful a mode that preserves our longer-term committedness to mundane worth done abundant portions astatine a just price, and our beardown loyalty program,” Masino said. “We cognize these things stay incredibly important to our guests and our cardinal to our concern exemplary caller guest.”