Cracker Barrel has introduced a new internal policy that mandates employees to dine exclusively at its establishments while travelling for work. This directive comes at a time when the iconic Southern restaurant chain grapples with declining customer traffic and the repercussions of a poorly received rebranding initiative. The recent changes underscore a broader strategy aimed at cost-cutting and responding to customer dissatisfaction with menu alterations.
Employee Dining Directive
In an internal communication disclosed by the Wall Street Journal, Cracker Barrel has made it clear that staff members are expected to choose their own restaurants during business trips primarily from its own locations. The company stated, “employees are expected to dine at a Cracker Barrel store for all or the majority of meals while travelling, whenever practical, based on location and schedule.” Additionally, any alcohol purchased during these trips will not be reimbursed, unless prior approval is granted by senior management for special occasions.
This new policy is part of Cracker Barrel’s ongoing efforts to manage expenses as it faces challenges from both external and internal pressures. The chain has been navigating a difficult landscape since its rebranding efforts in 2025, which alienated a segment of its customer base and triggered a significant drop in market value.
Rebranding Backlash
The chain’s troubles began in August 2025 when it unveiled a new logo and branding strategy that removed its longstanding mascot, Uncle Herschel. This abrupt change was met with immediate backlash from loyal customers, who felt the rebranding was too “woke” and disconnected from the restaurant’s traditional image. The fallout was severe, leading to an estimated loss of $94 million in market value in just one day. Influential figures, including former President Donald Trump, publicly condemned the redesign, urging the company to revert to its classic branding.
In a bid to modernise its image, Cracker Barrel also announced plans to update the interiors of its more than 650 locations. However, this move was met with criticism for stripping away the nostalgic charm that many patrons cherished. Following the public outcry, the company issued a statement acknowledging the missteps and expressing gratitude for the feedback, assuring customers that beloved features like rocking chairs and vintage memorabilia would remain intact.
Menu Changes Draw Criticism
Compounding the dissatisfaction, recent alterations to the restaurant’s menu have further alienated customers. Diners have complained about the switch from freshly rolled dough to batch-made cookies, and the preparation of sides in ovens rather than on stovetops. In a show of discontent, some patrons have even resorted to bringing their own maple syrup to Cracker Barrel, expressing frustration with the new offerings.
Cracker Barrel’s CEO, Julie Felss Masino, has described the intense backlash as a personal experience, stating that it made her feel “fired by America.” The company has since committed to listening more closely to its customer base as it navigates these tumultuous waters.
Why it Matters
The new dining policy and the ongoing backlash against Cracker Barrel’s rebranding and menu changes highlight the delicate balance restaurant chains must maintain between modernisation and tradition. As consumer preferences evolve, companies face increasing pressure to adapt. However, Cracker Barrel’s experience serves as a cautionary tale about the potential pitfalls of alienating loyal customers in the pursuit of a contemporary image. The restaurant’s future will depend on its ability to reconcile its roots with the demands of a changing market while restoring the trust of its customer base.
