Cracker Barrel CEO Julie Felss Masino recently admitted that the brand is not as relevant as it once was. She outlined potential remedies during a presentation to analysts, suggesting changes such as updated restaurant designs, new menu items, and brighter interiors. Despite these changes still being in the testing phase, one current change is offering discounted dinner from 4 to 6 p.m. as a way to attract more customers, especially during earlier dining hours.
Established in 1969 as a roadside stop for travelers, Cracker Barrel has seen a decline in revenue and foot traffic over the past year, largely due to its older clientele remaining cautious during the pandemic. This decline in both retail and restaurant sales has led to a decrease in total revenue and a significant drop in the company’s stock value. In response, Cracker Barrel has introduced early bird dinner specials as part of its pricing strategy, appealing to budget-conscious seniors and younger consumers who prefer earlier dining times.
As dining habits shift towards earlier hours, Cracker Barrel’s early bird specials aim to attract customers during the typically less busy 4 to 6 p.m. time slot. Data from Placer.ai shows a decrease in visits before 9 a.m. and after 6 p.m., prompting the chain to focus on attracting more customers during late morning and lunch visits. However, breaking the association between early dining and senior customers may prove challenging, as the concept of early bird specials is deeply ingrained in American culture.
While Cracker Barrel acknowledges the need for long-term brand revitalization, it also recognizes the immediate need to improve sales through appealing offers. In a highly competitive market where fast-food and casual dining restaurants are offering value deals, Cracker Barrel’s decision to introduce early bird dinner specials reflects a strategy to stay competitive. However, there is a risk of overwhelming demand for the specials impacting the company’s margins and profitability, similar to what happened with popular offerings at Red Lobster.
Cracker Barrel’s CEO Masino emphasized the importance of rushing out the promotion and advertising the special to entice customers. The company anticipates a multi-year process of revamping its brand and operations while still needing to generate immediate sales growth. With consumer preferences shifting towards earlier dining times and a preference for deals, Cracker Barrel’s early bird specials aim to attract both older and younger diners. However, overcoming the stereotypes associated with early bird dining and ensuring the sustainability of the offering will be crucial for the company’s success in the competitive restaurant industry.
