Cracker Barrel Mandates Employee Dining at Own Restaurants Amid Cost-Cutting Drive
In a bid to control costs and drive internal sales, Cracker Barrel Old Country Store has issued a new directive requiring employees on business travel to dine at its own restaurants for most meals. The policy, detailed in an internal communication obtained by the Wall Street Journal, states that staff should eat at Cracker Barrel stores "whenever practical," based on location and schedule.
The guidelines also tighten expense rules, prohibiting alcohol reimbursements on trips without pre-approval from senior leadership or out-of-pocket payment. A company spokesperson did not immediately respond to a request for comment.
This move comes as the chain grapples with stalled revenue growth and the lingering fallout from a disastrous rebranding attempt last year. The company's efforts to modernize its image backfired spectacularly, erasing an estimated $94 million in market value in one day after it unveiled a minimalist logo that removed its longtime mascot, "Uncle Herschel." The redesign was branded as "woke" by some conservative commentators, drawing criticism from figures including former President Donald Trump and prompting a swift reversal.
Customer dissatisfaction has since shifted to the menu. Patrons have recently voiced complaints over changes like batch-made cookies instead of fresh dough and oven-prepared sides, with some even bringing their own maple syrup to protest the new offerings. The chain's attempt to update its nostalgic dining experience appears to have alienated a core segment of its clientele.
"The travel meal policy is a clear indicator of internal pressure," says Michael Torres, a retail analyst at Brandon Consulting. "When a company directs spending inward this explicitly, it's often a sign of trying to shore up revenue streams in a challenging environment."
Others were more critical. Sarah Jenkins, a former regional manager for the chain, reacted sharply: "Forcing employees to eat there while customers are complaining about the food is tone-deaf. It feels less like a perk and more like a desperate attempt to fake traffic numbers. Morale is already low—this won't help."
In contrast, David Lee, a small-business owner in Tennessee, offered a pragmatic view: "They're trying to cut costs where they can. If employees are on the road near a Cracker Barrel anyway, it makes business sense. But they've got to fix the food issues first, or this just looks like circling the wagons."
The chain's CEO, Julie Felss Masino, previously said the rebrand backlash made her feel "fired by America." Now, with this new internal policy, the company is signaling that financial discipline and internal consolidation are top priorities as it navigates a path to recovery.