Cracker Barrel has been facing a challenging period as it implements various changes aimed at attracting a larger customer base. However, these changes have raised concerns among existing patrons, who feel alienated by the new approaches. Following this turmoil, the company’s stock slipped nearly 1.5% in trading on Monday.
Long-time customer Sharon Triana expressed her apprehension about the modifications, wishing that her local restaurant would maintain its traditional charm. Cracker Barrel is well-known for its nostalgic décor, featuring an array of vintage items such as old bottles and advertising signs. Nonetheless, some locations have begun to simplify this atmosphere, hoping to create a dining space that feels less cluttered and more like a traditional restaurant.
While many appreciate the fresh paint and reduced clutter, sentiments among customers vary, with some longing for the original aesthetic. Additionally, customers have expressed interest in purchasing antiques removed during renovations.
Moreover, Cracker Barrel has introduced alcohol service in select locations, a strategy initially adopted during the pandemic to boost business. This expansion follows a successful introduction of wine, beer, and pre-made cocktails starting in June 2020, catering to customers’ desires for beverages to accompany their meals. However, there are restrictions in place, as only alcohol ordered with food is permitted, and hard liquor remains absent from the menu.
On the financial side, analysts on Wall Street have issued a Hold consensus rating for Cracker Barrel’s stock, reflecting a mix of one Buy, three Holds, and two Sell ratings. Despite a notable increase of 48.28% in share price over the past year, the average target price suggests a potential downside of approximately 10.7%.
In this time of transformation, Cracker Barrel must balance modernization efforts with its traditional roots in order to retain loyal customers while appealing to newcomers. The outcome of these changes will be crucial for the chain’s future success.