4 Reasons Cracker Barrel Is Losing Customers

Consumers are more worried about money

Cracker Barrel raised pricing this year like many other restaurants. Prices rose 8.8% and 8.7% over the previous year in the chain's third and fourth quarters.

Consumers are more worried about money

Cracker Barrel officials denied that their pricing increases caused traffic decreases in their third and fourth-quarter conference calls. However, they suggested that increasing restaurant pricing may be driving budget-conscious diners away.

Marketing was lacking

Cracker Barrel's latest traffic dip may have been caused by poor marketing. In last week's results call, Cochran said Cracker Barrel didn't spend as much on advertising in the fourth quarter since it wasn't as effective as in previous years.

Marketing was lacking

Some advertising was done, but "volume and substance of our marketing messages in the fourth quarter were not as effective as we'd wanted," Cochran said.

Advertising competition has been fierce

Cracker Barrel claims strong marketing from other restaurants and its own mediocre promotion hurt them. Cochran briefly mentioned the "highly competitive and promotional marketplace" for restaurant chains in the fourth quarter during last week's results conference.

Advertising competition has been fierce

The firm tried to promote its bargain menu, but "our message did not break through against the highly promotional advertising we saw from our competitors."

Guest experience can be improved.

Chains that desire repeat customers must provide a wonderful dining experience in addition to delicious cuisine. During last week's earnings call, Cochran said "we still have opportunities with regard to the guest experience."

Guest experience can be improved.

Cracker Barrel is investing extra front-of-house hours to hire, retain, and improve hospitality. Cochran said the corporation is improving these areas after its "historically strong" visitor experience dropped during the COVID-19 outbreak.

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