Cracker Barrel has implemented a strict new travel policy requiring employees on business trips to dine at the chain’s own restaurants for most or all of their meals, according to an internal memo obtained by The Wall Street Journal.
The guidance, which comes as the Southern-themed restaurant chain struggles with declining sales and ongoing fallout from a disastrous rebranding attempt, directs workers to eat at Cracker Barrel locations “whenever practical, based on location and schedule.” The policy also prohibits alcohol reimbursements on business trips unless employees pay out of pocket or receive advance approval from senior leadership.
The move represents an aggressive cost-cutting measure as Cracker Barrel attempts to stabilize its finances. In December, the Lebanon, Tennessee-based company reported first-quarter revenue of $797.2 million, down 5.7% from the previous year and lower than Wall Street’s $800 million forecast. Same-store restaurant sales dropped 4.7%, while retail sales plummeted 8.5%.
The company has lowered its full-year revenue forecast to between $3.2 billion and $3.3 billion, down from an earlier projection of $3.35 billion to $3.45 billion. Cracker Barrel shares fell more than 10% in after-hours trading following the announcement.
The dining policy arrives at a turbulent time for the chain, which operates approximately 650 restaurants nationwide. In August, Cracker Barrel unveiled a controversial logo redesign that removed “The Old Timer,” the overall-clad man leaning on a barrel who had served as the company’s longtime mascot. The simplified design also dropped the words “Old Country Store” from the branding.
The reaction was swift and severe. Conservative commentators and online influencers called the changes “woke,” with some demanding the resignation of CEO Julie Felss Masino. President Trump urged the company on Truth Social to abandon the redesign and restore the original logo. Within days, Cracker Barrel reversed course, but the damage had been done.
Traffic data from Placer.ai showed a dramatic decline following the Aug.19 rebrand announcement. After relatively stable numbers in July and early August, store traffic plunged into negative territory, reaching declines of nearly 10% by September. The company lost an estimated $94 million in market value in a single day after unveiling the changes.
Ms. Masino survived a shareholder vote in November despite the logo debacle, though she received 25% opposition. Board member Gilbert Davila was not as fortunate, receiving only 40% support in his reelection bid and subsequently resigning. Mr. Davila, who joined Cracker Barrel’s board in 2020, is president and CEO of DMI Consulting, a multicultural marketing firm that reviewed the chain’s advertising.
The company has also faced criticism over recent menu changes, including batch-made cookies instead of freshly rolled dough and green beans prepared in ovens rather than on stovetops. Some customers have reportedly begun bringing their own maple syrup to restaurants in protest of the new offerings.
Cracker Barrel did not respond to requests for comment on the new travel dining policy.
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