Customers Demand Service Improvements as Cracker Barrel Announces Major Changes

A Cracker Barrel customer has requested better service as the restaurant plans significant multi-million dollar changes.

The popular dining spot recently announced it will spend $700 million to regain relevance.

Cracker Barrel Plans $700 Million Makeover

According to Restaurant Business Online, Cracker Barrel expects to spend up to $700 million over the next three years to rejuvenate its 54-year-old operations, menu, and image among loyal fans and new customers.

According to executives, the comprehensive update aims to reverse a 16% year-to-date drop in guest counts, particularly severe at dinner.

They admitted the brand is losing market share to competitors, outperforming Cracker Barrel in menu appeal, value, convenience, and overall guest experience.

"We typically rank in the middle among our competitors and do not excel in any specific area," CEO Julie Masino told Wall Street analysts and the media.

She said the main problem is that "we're not as relevant as we used to be."

Masino explained that the rejuvenation effort will impact nearly every part of the brand. The goal is to modernize the brand while retaining its nostalgic charm, involving about 20 initiatives.

Cracker Barrel Revamps Menu, Pricing, and Stores

According to The U.S. Sun, Cracker Barrel will make four major changes to its menu: pricing, physical appearance, and off-premise options.

Cracker Barrel is testing a new menu with dishes like shepherd's pie casserole and slow-braised pot roast. CEO Julie Masino noted that pricing will be tailored to local markets, increasing average checks by 3%.

Stores will undergo updates for a fresher look, and a smaller prototype will be tested. The chain also aims to grow its delivery and to-go services and enhance its loyalty program, which now boasts five million members.

While the results may vary due to ongoing low traffic, there are hopes for improvement by the second half of fiscal 2026 and into the following year.

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Customers Demand Better Service First

As Cracker Barrel's big 'transformative' plan comes together, customers have their demands.

One food enthusiast shared their opinion on what Cracker Barrel should focus on first.

"All Cracker Barrel needs to do is improve service and bring your food to the table hot and not microwaved," a customer posted on X, formerly Twitter.

Cracker Barrel plans to invest $700 million in a massive transformation, but another customer responded to the post, calling the transformation "a waste of money."

"I ate there while on the road in the United States. The transformation is a waste of money. Fresh, hot food and better service are where they need to focus," they commented.

The initial user responded "exactly" to the comment.

Masino said the transformation program aims to be a fix "for the next ten years and beyond."

Cracker Barrel's board voted to cut the next quarterly dividend from $1.30 per share to about 25 cents to fund part of its rejuvenation effort.

The plan involves spending $160 million to $180 million in the upcoming fiscal year, $180 million to $220 million in fiscal 2026, and $260 million to $300 million in fiscal 2027.

Masino noted that due to ongoing traffic issues, Cracker Barrel's results for the third and fourth quarters of fiscal 2024 are expected to fall short of expectations.

CFO Craig Pommells said results should improve significantly in the second half of fiscal 2026 and continue into the following year.

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