Cracker Barrel Is Struggling & It’s Clear Why

From The Blog

Remember those warm feelings of walking into Cracker Barrel, seeing the rocking chairs on the front porch, and smelling that familiar aroma of breakfast all day long? Well, things aren’t looking so sunny for this American restaurant favorite anymore. The numbers paint a clear picture – customer visits have dropped by nearly 20% since 2019. What’s going on with this beloved chain, and why are so many regular customers choosing to eat elsewhere? The answers might surprise you.

Higher prices are pushing regular customers away

Rising costs have hit everyone hard, and Cracker Barrel is no exception. The restaurant chain has had to raise its menu prices by a whopping 8.8% compared to last year. That means the simple country breakfast that used to cost $8.99 might now set you back almost $10. For many families watching their budgets, these price increases are making them think twice about stopping in.

This price jump has been especially tough on Cracker Barrel’s core customers – people earning under $60,000 a year. Many of these loyal patrons used to visit regularly, seeing the restaurant as a reliable option for a good meal at a fair price. But with inflation affecting everything from gas to groceries, they’re having to cut back on eating out, and Cracker Barrel’s higher prices aren’t helping.

The numbers tell a concerning story – customer traffic has dropped for five straight quarters, with a 7% decrease in visitors. That’s a lot of empty seats in restaurants that used to be bustling with activity. Regular customers who might have stopped in twice a month are now making it a once-a-month treat, or saving it for special occasions only.

While the company hasn’t seen major pushback about the increased prices, the silent response of customers voting with their feet speaks volumes. When families are looking at their monthly budgets and trying to decide where to cut back, restaurant meals are often the first to go, especially when prices keep creeping up.

Food quality isn’t what it used to be

One of the biggest complaints from long-time customers is that the food just doesn’t taste the same anymore. Many regulars have noticed changes in their favorite dishes, and not for the better. Changes to beloved recipes have left many wondering if they’re even getting the same meals they used to love.

The portions seem smaller to many customers, while prices have gone up. This double hit of paying more for less has not gone unnoticed. Regular items that used to be made from scratch are now showing signs of cost-cutting measures. The biscuits might not be as fluffy, the gravy might be a bit thinner, and the overall quality seems to have slipped.

Behind the scenes, supply chain issues and rising food costs have forced many restaurants to make tough choices about ingredients. But for a chain built on the promise of home-style cooking, any compromise in food quality hits especially hard. Customers remember how things used to taste and notice when their favorites aren’t quite right.

This decline in food quality has created a ripple effect. When regular customers have a disappointing meal, they’re less likely to return. They’re also more likely to share their experiences with friends and family, leading to fewer new customers walking through the doors.

Service standards have dropped since covid

The warm, friendly service that was once a Cracker Barrel trademark has taken a hit in recent years. Since the COVID-19 pandemic, many customers have noticed longer wait times, less attentive service, and an overall decline in the dining experience.

Staffing issues have played a big part in this problem. Many experienced servers left during the pandemic and haven’t returned. New staff members often lack the training and experience that helped create the friendly, efficient service the chain was known for. Simple things like keeping coffee cups filled or bringing extra napkins now sometimes fall through the cracks.

The restaurant industry as a whole has struggled with staffing, but Cracker Barrel’s reputation was built on more than just serving food – it was about creating a welcoming, homey atmosphere. When that special touch is missing, the whole experience suffers. Customers who used to feel like family now sometimes feel like they’re just another table to turn over.

Wait times have become a particular pain point. What used to be a reasonable 15-20 minute wait during peak hours can now stretch to 45 minutes or more. For families with hungry kids or seniors who can’t stand for long periods, these extended waits can be deal-breakers.

Younger customers aren’t interested

While Cracker Barrel has long been a favorite among older generations, it’s struggling to attract younger customers. The country store atmosphere and traditional menu items that appealed to parents and grandparents aren’t drawing in millennials and Gen Z diners. The chain’s image is seen as outdated by many younger potential customers.

The decor, which hasn’t changed much since the 1970s, feels more old-fashioned than charming to younger generations. While older customers might appreciate the nostalgia of checkerboards and wooden rocking chairs, younger diners are often looking for more modern, Instagram-worthy settings. The dark wood interiors and walls covered in antiques don’t create the kind of atmosphere that makes young people want to hang out.

Menu preferences also play a big role. Younger diners often prefer more diverse, globally-inspired options or healthier alternatives. The heavy, traditional American comfort food that Cracker Barrel is known for doesn’t always align with current food trends or dietary preferences. While there are some healthier options on the menu, they’re not what the restaurant is known for.

The lack of strong social media presence and modern marketing also makes it harder to connect with younger customers. While competitors are creating buzz on TikTok and Instagram, Cracker Barrel’s marketing efforts have remained relatively traditional, missing opportunities to engage with younger audiences where they spend their time.

Core customers are staying home more

Cracker Barrel’s most loyal customers have traditionally been older adults and seniors, but these groups have changed their dining habits significantly in recent years. Many older customers became more cautious about dining out during the pandemic, and some of these changes have stuck.

Health concerns continue to influence dining choices for many seniors. Even as restrictions have lifted, some older customers remain hesitant about sitting in crowded restaurants. They might choose takeout instead of dining in, or simply cook more meals at home. This shift has hit Cracker Barrel particularly hard since older diners make up such a big part of their regular customer base.

Fixed incomes and rising prices are also keeping many seniors away. Social Security checks might not stretch as far as they used to, making restaurant meals more of a luxury than a regular occurrence. When every dollar counts, even small price increases can make a big difference in dining decisions.

The early bird specials that once drew regular crowds of seniors haven’t been as effective lately. While Cracker Barrel still offers these deals, changing schedules and habits mean they’re not bringing in customers like they used to. Many older adults are eating earlier dinners at home instead of going out.

Store closures signal deeper problems

In a concerning development, four Cracker Barrel locations have already closed in 2024. While this might not seem like a huge number for a large chain, it’s unusual for Cracker Barrel, which has historically been very stable. These closures are raising red flags about the company’s overall health.

Each store closure affects more than just the building – it impacts employees who lose their jobs and communities that lose a familiar gathering place. When a Cracker Barrel closes, it often means that location has been struggling for a while. Low sales, rising costs, and declining customer traffic all play a part in these difficult decisions.

The locations that have closed were often in areas where competition from other restaurants has increased significantly. When newer restaurants open nearby with fresh concepts and modern appeal, it becomes harder for established chains to maintain their customer base. Some closed stores were also in areas where the local economy has changed, with fewer people dining out regularly.

These closures can create a snowball effect. When customers hear about stores closing, they might worry about the chain’s future and change their dining habits. This can lead to even more reduced traffic at other locations, potentially setting up more stores for closure.

Store designs feel dated and tired

The rustic country store look that made Cracker Barrel famous isn’t aging well in 2025. Many locations haven’t been updated in years, and it shows. The worn wooden floors, aging decorations, and faded photos on the walls that once created a cozy atmosphere now make some restaurants feel old and neglected.

Regular customers have noticed maintenance issues that weren’t common in the past. Simple things like squeaky doors, wobbly tables, or scuffed walls might seem minor, but they add up to create an impression of decline. The retail areas in many stores also look unchanged from years ago, with the same types of products that have been sold for decades.

The lighting in many locations remains dim and dated, making it hard for some customers to read menus or see their food clearly. This might have seemed cozy years ago, but today’s customers often prefer brighter, more welcoming spaces. The traditional brown color scheme and dark wood paneling can make restaurants feel smaller and more cramped than they actually are.

Even the outdoor spaces need attention. Those iconic rocking chairs on the front porch – a symbol of the Cracker Barrel experience – often show signs of wear and tear. Some locations have cracked concrete, faded signage, or outdated exterior lighting that doesn’t create an inviting first impression.

Competition offers more appealing choices

The restaurant landscape has changed dramatically, and Cracker Barrel is facing more competition than ever. Modern breakfast spots offer fresh takes on morning classics, while other restaurants provide similar comfort food with updated twists. Many of these competitors have newer buildings, modern decor, and menus that mix traditional favorites with current trends.

Price is a major factor in this competition. While Cracker Barrel has raised prices, many competitors are focusing on value deals and special offers. Some offer reward programs that give customers better perks, while others have mastered the art of quick service without sacrificing quality.

Newer restaurants often provide more convenient options for today’s busy customers. Modern ordering systems, better takeout packaging, and efficient curbside pickup make it easier for people to get their food quickly. Many competitors also have stronger online presence and better mobile apps.

The competition isn’t just coming from other sit-down restaurants. Fast-casual chains, food trucks, and even grocery stores with prepared foods are all fighting for the same customers. Many of these alternatives offer similar food with more convenience or better prices.

Recovery plans face uncertain future

Cracker Barrel isn’t taking these challenges lying down. The company has announced a major transformation plan that will cost between $600-700 million. This includes updating restaurant designs, improving the menu, and launching a new loyalty program. But the big question is whether these changes will come soon enough to make a difference.

Early results from remodeled locations show some promise, with slight increases in customer visits. However, these improvements are happening slowly, and many regular customers aren’t willing to wait. The company expects it will take until 2027 for all their planned changes to take effect – a long time in the fast-moving restaurant world.

The new loyalty program might help bring some customers back, but it faces stiff competition from well-established programs at other restaurants. Menu updates are tricky too – they need to appeal to new customers while not alienating loyal fans who love traditional favorites.

Training new staff and improving service standards takes time and money. While the company is investing in these areas, rebuilding the reputation for friendly, efficient service won’t happen overnight. Each disappointing experience makes it harder to win customers back.

As Cracker Barrel works to fix these problems, the challenges keep mounting. Rising food costs, changing customer preferences, and strong competition create new hurdles every day. While the restaurant chain still has loyal fans who appreciate its traditional appeal, winning back lost customers and attracting new ones will take more than just minor tweaks. The coming months will show whether this American restaurant icon can adapt and thrive in today’s changing world, or if these struggles signal the end of an era in American dining.

Jamie Anderson
Jamie Anderson
Hey there! I'm Jamie Anderson. Born and raised in the heart of New York City, I've always had this crazy love for food and the stories behind it. I like to share everything from those "Aha!" cooking moments to deeper dives into what's really happening in the food world. Whether you're here for a trip down culinary memory lane, some kitchen hacks, or just curious about your favorite eateries, I hope you find something delightful!

Latest Articles

More Articles Like This