The Restaurant Success Podcast

How To Learn from the Massive Cracker Barrel Debacle

• Matthew Mabel • Season 1 • Episode 41

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Episode Summary

In this episode of the Restaurant Success Podcast, Matthew Mabel examines Cracker Barrel's recent brand modernization struggles and what independent restaurant owners can learn from their missteps. Discover why their attempted menu updates, dining room renovations, and logo changes backfired, and explore the key differences between reactive corporate decisions and proactive entrepreneurship strategies that actually drive restaurant business growth. Matthew shares actionable insights on increasing guest counts, improving service experience, and building restaurant profit in today's competitive dining landscape. Learn how successful independent multi-unit restaurant operators are taking smart steps to strengthen their brands while Cracker Barrel's challenges highlight the importance of understanding your guests and maintaining control over your business direction.

Key Topics Covered

  • Cracker Barrel's failed brand modernization attempt and the resulting guest backlash
  • The underlying problem of declining guest counts that remains unsolved
  • Why independent restaurant owners have a competitive advantage over corporate chains
  • Four common strategies that drive revenue increases for successful restaurants
  • The importance of training and education to enhance service experience
  • Developing exciting menu items that give guests reasons to return
  • Creating perfected marketing messages to stand out from competition
  • Strategic spending: saving money behind the scenes while investing where guests notice

Links Mentioned

Resources Mentioned

Connect with Matthew Mabel

Matthew works with owners of successful, independent, multi-unit restaurants to improve:

  • Profit growth
  • Sales optimization
  • Guest count increase
  • Unit expansion
  • Employee engagement
  • Brand loyalty

How to Support the Show

  • Subscribe to the Restaurant Success Podcast and Newsletter
  • Rate and review the show
  • Visit www.surrender.biz for additional resources

Hello, and welcome to the Restaurant Success Podcast. I'm Matthew Mabel, veteran restaurant advisor, coach, consultant, and speaker devoted to multi-unit independent restaurant unit, profit and revenue growth, internal harmony and ownership freedom and flexibility.

This is your weekly entree of the advice, strategy and tactics that I currently provide to my best clients.

Today we're going to talk about what we can learn from Cracker Barrel's recent struggles with brand modernization and why their story matters to you as an independent restaurant owner.

We'll explore what happened when they tried to update their brand, why their attempted solution didn't fix the underlying problem, and most importantly, what successful independent operators are doing differently to actually increase their revenue and guest counts.

So, let's imagine you're on the leadership team at Cracker Barrel.

I know that right now, even the idea is giving you a headache.

But, picture this: you had a great plan. You'll update your menu with items like the Hashbrown Casserole Shepherd's Pie that seemed positive in testing. And, you'll modernize your dining rooms to appeal to younger guests, because all your data showed your guests were aging out, and a significant decline in guest count had led to a stock price that plummeted and never bounced back. 

Oh yeah, and you're going to update the logo too.

Well, that did not go well.

The resulting firestorm of public opinion, or manufactured outrage driven by bots, pick one, made them reinstate their classic logo and back off on the décor and logo changes. Then they restructured executive positions and fired the company that came up with the whole brand refresh.

So, now what?

Why am I bringing Cracker Barrel up in the first place in a forum devoted to successful owners of independent multi-unit restaurant companies?

Because Cracker Barrel still has not solved their withering guest count problem or raised their low stock price. Now all they've done is eliminate a way to possibly make things better.

The narrative says that Cracker Barrel changed things and paid the price. On the flip side, though, they were already paying a price for doing things the old way. Now all they have is some new menu items and other than that, the old way.

Does that sound familiar?

Now, here's where this gets really important for you.

Be thankful you have control over your brands. When you pay attention to what your guests want and how they evolve, you can actually take smart steps to increase guest count and your net worth, unlike Cracker Barrel.

In today's environment, where every dining-out choice constitutes a decision to spend money on a valuable experience, guests actually give you the key to future success.

Action remains up to you.

So, here are some common threads between the companies that have revenue increases.

First, they're increasing training and education to boost service experience. Second, they're developing new and exciting menu items, making sure their guests know what is being given to them, not just what's being taken away.

Third, they're creating perfected marketing messages to give people a reason to choose you over your competition.

And finally, they're honing their ability to save money behind the scenes where they can and spending money where the guests see it.

I see independent restaurant companies proud that sales went up this year, and many others in the doldrums of flat or down sales. In a flat market, everyone has to be in action.

What action moves you closer to your guest, lapsed user, or non-user?

What makes them choose you, and identify you as one of those operators who increases results?

If you enjoyed today's episode, I've two articles which connect with what we've talked about.

I mentioned the importance of taking action in a flat market and, a while back, I put together an article called "How To Increase Your Restaurant-Profit with No Excuses During This Flat Market". I shared the story of a long-time client who reached out because even though their business was still very successful, something seemed off on guest experience and, therefore, profit.

We took specific steps like re-emphasizing true hospitality, going back to basics on food cost systems, creating fantastic new menu items, and utilizing the financial literacy of managers. That article really breaks down the no-excuses approach that separates successful operators from those who let a flat market bring them down.

And, we were talking about training and education as one of those key action items which reminded me of a piece called "Reinvigorate Restaurant Training and Education to Create Amazing Success" that goes deep on this topic.

In that article, I break down my five key training and education concepts, from expecting measurable results to using technology effectively to selling your team on why training matters.

You can find links to both of those articles, in the show notes.

Let me tell you about how we might work together. I work with owners of successful, independent, multi-unit restaurants to grow their profit, sales, guest count, and unit count. My unique approach bonds employees and guests to restaurant brands and allows owners to enjoy the freedom and flexibility they have earned.

To schedule a call with me to discuss how to achieve your biggest goals, follow the link in the show notes. The initial consultation is complimentary, and we can discuss which big moves might be right for your operation.

Thanks for listening. If you haven't already subscribed to the Restaurant Success Podcast and Newsletter podcast, please do so, and rate and review the show. Find more information in the show notes at Restaurant Success Podcast dot com.

Also find tons of information you can use in print, audio and video form at my website, www dot surrender dot biz. Thanks again and see you next time.