Cracker Barrel CEO Julie Fels Masino announced a new three-year plan to revive the struggling Southern-themed chain after acknowledging the brand is “not as relevant as it once was.”
The country chain, which features dishes like country fried steak and kitschy old country stores, plans to renovate its restaurants, offer new menu options and improve its loyalty program and technology for its take-out business.
“FY25, which starts in a week or two, is truly a year of investment,” said Ferus Masino. He told CNBC’s Jim Cramer on Thursday..
“There are five pillars to our plan. We’re really starting to integrate them and get on track and you’ll start to see the results in the second half of FY26 and into FY27.”
Cracker Barrel is testing four versions of store renovations in Tennessee at different costs to determine “what level of investment will produce the appropriate return,” Ferus-Masino added.
The major shake-up comes after the CEO in May cut the annual dividend to 25 cents a share from $1.30, acknowledging that the chain is “not as relevant as it used to be.”
The challenge is to attract a new, younger consumer base without alienating its older customers.
The 54-year-old biscuits and gravy chain has struggled as older people, who make up a large portion of its customer base, stayed away from restaurants during the pandemic and have never fully returned.
Truist analyst Jake Bartlett previously told The Washington Post that about 10% of all seniors have not returned to their pre-pandemic dining out habits.
Ferus Masino said the new restaurant’s renovation is “lighter,” “brighter” and “fresher,” but will retain the “warm hospitality,” classic menu items and trademark wall decor that keep customers coming back.
Cracker Barrel will maintain traditional Southern menu items like hash brown casserole and grits, but the company is also launching “the largest menu test in the brand’s history,” the CEO said.
Cracker Barrel locations will begin offering more than 20 new items starting in August, she said.
Ferus Masino said all four test stores have seen an increase in sales and traffic.
“We have received positive feedback from staff and customers about both the renovations and menu improvements,” a Cracker Barrel spokesperson told The Post.
“Our goal is to take what people love about Cracker Barrel and broaden it a little bit so more people love Cracker Barrel,” the CEO said. “So we want to appeal to all generations.”
Ferus Masino said in May that he planned to spend up to $700 million over the next three years to revamp the chain’s image.
The sweeping turnaround plan was announced months after the company’s shares plummeted.
The Tennessee-based company’s shares plummeted 20% after an investor call in May.
The stock then fell to $45.35, a 52-week low and the lowest price in more than a decade.
The company’s shares are still falling steadily, down 44% so far this year from $77.33 per share in January to $43.13 per share on Friday.
Over the past four years, Cracker Barrel has lost 16% of its customers.
The chain faced backlash last year after lining its store porches with rainbow-colored chairs during Pride Month and struggling to please both older and younger customers, some of whom threatened to boycott Cracker Barrel.
