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Cracker Barrel sparks fear of more closures as customer numbers slump again
Troubled Cracker Barrel saw its sales fall again in the first three months of 2024.
Takings at its restaurants fell 1.5 percent - despite it raising prices by 4 per cent. Normally higher prices help boost sales, since customers are paying more per meal.
It means the company lost hundreds of thousands or even millions of customers at its 600-plus outlets.
The chain also saw sales from its shops fall 3.8 percent. As well as its restaurants, it has small grocery sections in its restuarants.
Cracker Barrel has vowed to revamp its stores and menus in a $700million overhaul. But it has closed four store this year, and there are fears falling sales will lead to more.
Announcing its earnings for January to March, Cracker Barrel CEO Julie Masino said on Thursday morning: 'Our third quarter results came in below expectations due to softer traffic than we originally anticipated, which underscores the importance of executing our strategic transformation.
Cracker Barrel is revaming its stores
'Our teams are fully committed to bringing these plans to life while continuing to deliver an exceptional guest experience and managing our business every shift, every day.'
Its takings fell to $817.1 million for the quarter. It made a loss of $9.2 million.
The share price fell in the morning but recovered and was up three percent at 11am ET.
Cracker Barrel hopes splashing out $700 million on refurbishing its restaurants can save the dying chain.
The six-point plan includes a makeover for stores with brighter colors to make them less dated, a new logo and new menus.
New items on the simplified menu include green chilli cornbread and hashbrown casserole shepherd's pie. Two stores have already been refurbished and ten others are testing a refreshed menu.
But CEO Julie Masino said prices in many outlets will rise.
The Southern country-themed restaurants, with 662 locations across the nation, has lost more than a sixth of its customers in just four years - and the trend is ongoing.
Falling customers has led to stores shutting and bosses developing a plan to turn things around.
But when Masino was outling those plans last week, she told investors the chian was 'not as relevant as it once was' - which tanked the company's stock.