THE MORNING RANT: Cracker Barrel Went Woke and Now It’s Going Broke

In June of 2023 Cracker Barrel went woke, deciding that it could bring in new customers and investors by sexualizing the front porch with rainbow-striped rocking chairs. As it turned out, that was not a good marketing strategy, and it had the effect of repulsing existing customers who don’t want country cooking to be sexualized, be it gay, straight, or otherwise.

The fallout was immediate, with consumers announcing boycotts and the stock price taking an initial hit. Despite a lack of headlines or buzz since then, the boycott has continued and has been devastating to Cracker Barrel. The restaurant chain permanently ran off a great many loyal customers, and the persistently “unexpected” decline in traffic is taking a serious financial toll on the company.

It was just announced this week that Cracker barrel is slashing its dividend by 81%. Cracker Barrel stock has fallen from $102 per share at the start of “Pride Month” 2023 to $49 per share now, a 52% decline.

“Cracker Barrel (CBRL) Stock Down on Dividend Cut, Dismal View” [Yahoo Finance – 5/17/2024]

Cracker Barrel Old Country Store, Inc. CBRL recently announced an update on its third and fourth quarter of fiscal 2024 financial results. The company expects lower-than-anticipated traffic to negatively impact its performance. Additionally, it announced plans to accelerate investments in organic growth by reallocating capital and reducing its quarterly dividend to $0.25 per share from $1.30. Following the announcements, the stock declined 10.3% in after-hours trading on May 16.

I first wrote about this in June 2023

When I want a catfish dinner and some old time candy, I could not possibly care less about the sexual behaviors of the restaurant’s staff or patrons. I’d be grossed out if Cracker Barrel was devoting a month to celebrating heterosexual sex.

It may not just be ESG pressure, there is every possibility that Cracker Barrel hired an Ivy League MBA to work some magic on its brand image, just like Bud Light did.

Oh well, even if heartland American stop going to Cracker Barrel, maybe those lost customers can be replaced by coastal leftists who are all wrapped up in sexual identities. So long as Cracker Barrel pivots to serving sustainable, organic, locally sourced, GMO-free fare in hip, urban settings, there should be no problem replacing the customer base that is being run off.

The customer backlash was immediate and devastating, as business in June and July 2023 plummeted.

“Cracker Barrel admits it worsened Q4 traffic with marketing misfires” [Restaurant Business – 9/14/2023]

“Marketing misfires.” That’s one way of putting it.

In a rare downbeat financial accounting, Cracker Barrel Old Country Stores acknowledged that its marketing and media efforts likely worsened a traffic drop-off during the quarter ended July 28.

We had expected the traffic would improve in June and July with the onset of the summer travel season,” said [CEO] Cochran. “Unfortunately, this didn't materialize, and our restaurants and retail sales performance came in below our expectations.

It kept getting worse, and Cracker Barrel’s CEO Sandy Cochran stepped down from her position before year’s end.

“Cracker Barrel Sees 7.1% Dip In Traffic Amid Ongoing Decline” [Tasting Table – 12/02/2023]

I have been to Cracker Barrel with gay relatives. They did not feel unwelcome. Sexualizing the place does not make it any more welcoming. I’m straight, but I don’t need cleavage or tight outfits on waitresses to make me feel welcome. I would be just as disgusted if Cracker Barrel had decided to become a Hee Haw Hooters in order to attract more straight men.

In a Wall Street Journal article last week, it states that the new CEO, Julie Masino, is seeking “to update its image, menu and retail selection to be able to grow in an increasingly tough environment for restaurants.”

No, the first thing Cracker Barrel needs to do is apologize for insulting its loyal customers by sexualizing the restaurant and for effectively smearing its loyal customers as being “unwelcoming” people.

If it doesn’t, Cracker Barrel might as well go full woke. Perhaps it could hire Dylan Mulvaney away from Bud Light and have him cross-dress in Daisy Dukes while drinking an old-time pop from a rainbow-colored rocking chair. Alissa Heinersheid has experience using for Mr. Mulvaney for such promotions, and I believe she is available. Or maybe Cracker Barrel could run a Gillette-style ad accusing its legacy customers of being loathsome bigots and sexual predators.

There is also plenty of opportunity to refresh the merchandise at Cracker Barrel. Instead of folksy wall art stating “Live, Laugh, Love” perhaps Cracker Barrel can sell signs stating “Hate has no home here” or a variety of “In this house we believe…” type wall art. Target can serve as a model for selling “alternative” products to children.

If Cracker Barrel will not apologize for its “marketing misfires” it will never rebound. Get woke, go broke.

[buck.throckmorton at protonmail dot com]

posted by Buck Throckmorton at 11:00 AM

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