HomeBusinessIs Cracker Barrel Going Out of Business: A Deep Dive

Is Cracker Barrel Going Out of Business: A Deep Dive

Recently, rumours have been circulating about the fate of the beloved restaurant chain Cracker Barrel. Speculations and concerns have left many patrons wondering, “Is Cracker Barrel going out of business?” 

In this article, we will explore the current state of Cracker Barrel, debunk any myths, and provide insights into the challenges it faces. So, let’s dive right in!

What is Cracker Barrel?

Cracker Barrel’s Vision for a Unique Rest Stop

Cracker Barrel was founded in 1969 by Danny Evins to provide a welcoming rest stop for travellers, offering a departure from traditional fast food options and the convenience of refuelling. To enhance the experience, he introduced a gift shop where travellers could explore and purchase unique trinkets and items. 

The inaugural Cracker Barrel location opened its doors in Lebanon, Tennessee, featuring a menu that showcased Southern classics such as Country Ham, grits, biscuits, and other regional specialities.

Number of Stores: 600

A Diverse and Evolving Menu

Today, Cracker Barrel’s menu has evolved to encompass diverse offerings, including all-day breakfast items, delectable choices like chicken tenders and shrimp platters, comfort foods like meatloaf and country fried steak, and the beloved chicken and dumplings.

Consistent Charm Across the Nation

With a presence in 45 states and territories, Cracker Barrel boasts over 660 stores, all adhering to a uniform design. These establishments feature charming front porches adorned with inviting wooden rocking chairs, cosy stone fireplaces, and a nostalgic vintage interior.

A Publicly Traded Culinary Haven

Since 1981, Cracker Barrel has been a publicly traded company, continuing to serve as a cherished haven for travellers and enthusiasts of Southern cuisine.

So, you have learned what Cracker Barrel is, and now let’s find out if Cracker Barrel is going out of Business.

Is Cracker Barrel Going Out of Business?

Is Cracker Barrel Going Out of Business
Is Cracker Barrel Going Out of Business

While the COVID-19 outbreak impacted numerous restaurants, Cracker Barrel fared well. It’s just as robust—possibly even healthier—than one of their homemade vegetable meals.

The Cracker Barrel Old Country Store had a successful year financially, with revenue increasing by more than 11% annually to $862.26 million. CBRL, the company’s stock, has been rated as a “hold” by Wall Street analysts.

This doesn’t mean that the restaurant is about to close. There are 665 Cracker Barrel restaurants in the United States, claims Cracker Barrel.

With 664 sites spread across 45 states in the United States, Cracker Barrel has kept up with the trends by introducing ghost kitchen operations. Through food delivery services such as GrubHub and DoorDash, these ghost kitchens produce and serve customers’ favourite Cracker Barrel dishes.

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Origins of Cracker Barrel Closure Rumors

Online spectacular clickbait content was the seed for the allegations about Cracker Barrel collapsing. The headline, “Saying Goodbye: Stores Closing in 2021 Across the Nation (See Full List),” caught the reader’s attention along with a picture of a Cracker Barrel restaurant. When I clicked on the story, I learned Cracker Barrel wouldn’t be closing, but the headline and suggestive image started the rumour.

Cracker Barrel’s Controversial History

Cracker Barrel’s past includes controversies and legal disputes, which may have contributed to the rumours. They were accused of racism and prejudice in the early 2000s, which prompted the NAACP to file a complaint and the U.S. Justice Department to launch an inquiry. Although they were not fined, they were required to implement diversity programs and settle racial discrimination lawsuits for $8.7 million.

Recent Progress and Challenges

After obtaining a low ranking on the Human Rights Campaign’s rating in 2022, Cracker Barrel decided to include sexual orientation in its non-discrimination policy. In 2017, they were also the target of a social media uproar and allegations of sexual harassment and discrimination based on age, gender, disability, and other factors. They are committed to promoting diversity online but still need to improve.

The Uncertain Road Ahead

While Cracker Barrel hasn’t announced plans to close, the combination of rumours, controversies, and ongoing challenges underscores the uncertainty businesses can face in an ever-changing landscape.

Cracker Barrel’s Recent Closures: Where Are They?

As of 2023, Cracker Barrel has decided to close specific locations. These closures have affected several places, including:

  • Bend, Oregon
  • Tualatin, Oregon
  • Beaverton, Oregon

However, it’s important to note that Cracker Barrel has also shuttered some of its establishments outside of Oregon in the past few years. This process includes closing at least 10 locations, with 2 in Mississippi and one in South Carolina, Tennessee, Missouri, and Texas.

Cracker Barrel’s Closures During the Pandemic

Cracker Barrel has taken the difficult step of closing some of its locations, primarily due to the ongoing impact of the COVID-19 pandemic. In an official statement, they explained their decision: “As a standard course of business, we continually evaluate the performance of our stores, using various criteria to ensure we are meeting the needs of our guests and our business. 

With that, we are saddened that we have been unable to overcome the pandemic’s impact on our business and have made the difficult decision to close the Beaverton, Tualatin, and Bend locations.” The business thanked its devoted customers and staff and reaffirmed its commitment to helping individuals impacted by the retail closings.

It’s worth noting that Cracker Barrel is not alone in facing closures within the restaurant industry. Several other chains recently announced closures, including Applebee’s, Hardee’s, and IHOP. Here are a few examples of these closures and some contributing factors:

  • Hardee’s: A major franchisee declared bankruptcy, leading to the closure of 39 restaurants in 2023. The franchisee encountered challenges such as declining foot traffic during the pandemic and increased food and labour costs.
  • Steak ‘n Shake: The chain faced service and quality complaints, coming close to bankruptcy in 2021. Since 2018, it has closed over 200 units.
  • Applebee’s: Due to underperformance and higher development costs, Applebee’s has been downsizing and plans to close more locations in 2023.

The past year has presented numerous challenges for many well-established chain restaurants. A combination of factors, including labour shortages, rising food costs, and other financial pressures, has created significant obstacles for this sector.

Businesses Leaving the Portland Area

If you’ve been watching the list of recently closed restaurants mentioned earlier, you’ll notice that a significant portion of them are in Oregon. Portland, a major city in Oregon with a population of more than 650,000, according to the 2020 Census, has been witnessing the departure of numerous businesses. Some notable examples include:

  • Walmart 
  • Nike Store
  • Rains PDX
  • REI (located in the Pearl District)

These closures reflect a broader trend of businesses reassessing their presence in the Portland area.

Where to Find Open Cracker Barrel Locations

While the news of specific Cracker Barrel closures in Oregon may raise concerns, options are still available beyond the state’s borders. For example, the Cracker Barrel in Medford remains open, although it may require a few hours’ drive from Portland to reach.

To discover which Cracker Barrel locations are currently open and operating, you can conveniently visit their website and use their locator tool to find the nearest one.

It can be disheartening when a beloved, time-honoured restaurant in your area decides to close its doors. However, Cracker Barrel is expanding its presence in other areas, indicating that the entire business is far from down and out. For instance, they plan to open a new restaurant in a Fort Worth outlet mall, with another slated to open in Myrtle Beach in 2023.

Moreover, there’s good news for those who crave Cracker Barrel’s signature pancakes and other delights. Cracker Barrel intends to expand its Pancake Kitchen concept through delivery services like DoorDash or Uber Eats, allowing you to enjoy their dishes without physically visiting a Cracker Barrel location (unless, of course, you enjoy the experience of dining in person).

The pandemic brought challenges to many businesses, but some are resurging. Cracker Barrel can successfully navigate the inflation challenges and continue to provide classic American fare for generations to come.

Discontinued Delights: Cracker Barrel’s Menu Changes

In restaurants, it’s not uncommon for beloved menu items to bid farewell to make space for new culinary creations. Cracker Barrel is no exception, and here are nine menu items from their past that have left diners longing for a comeback:

  • Strawberry and Cream French Toast
  • Fried chicken liver
  • Shepherd’s Pie
  • Red-Eye Gravy
  • Chicken Salad Sandwich
  • Frozen Mugs
  • Baked Apple Dumplin’
  • Campfire Meals
  • Sweet Potato Pancakes

Even though these items have disappeared from the menu, the cravings persist. Fans have been vocal about their desire to see these classics return. In 2021, one devoted patron asked on the chain’s official Facebook page, “Any possibility this will ever come back?” Unfortunately, they are still waiting for these beloved items to be served at Cracker Barrel.

Cracker Barrel’s Future: Will They Close Down?

In the ever-evolving landscape of business, no one can guarantee that a company won’t encounter accusations of discrimination or other challenges in the future. Likewise, the road to sustained growth is never a certainty for any restaurant.

However, it’s important to note that while various factors such as business conditions, negative publicity, and shifting trends can contribute to restaurant closures, there’s currently no compelling reason to anticipate Cracker Barrel locations shutting down shortly.

The restaurant is actively addressing and improving its reputation, and it remains a comfortable destination for those seeking hearty, home-style cuisine.

Conclusion

In conclusion, while there have been rumours and controversies surrounding Cracker Barrel, the restaurant chain does not appear to be going out of business anytime soon. Despite some recent closures, Cracker Barrel has shown strong financial performance and has adapted to the changing times by offering ghost kitchen operations and expanding its delivery services. 

While challenges persist, there must be a compelling reason to anticipate the widespread closure of Cracker Barrel locations. The restaurant continues to provide its signature home-style cuisine, and its future appears relatively stable in the ever-evolving business landscape.

FAQs

Who Founded Cracker Barrel? 

Danny Evins founded Cracker Barrel in 1969 to create a unique dining experience for travellers.

What are Some of the Classic Dishes at Cracker Barrel? 

Cracker Barrel is known for classics like Country Ham, grits, and biscuits and has since expanded its menu to include a variety of Southern specialties.

How Many Cracker Barrel Locations are There, and Where are They Located? 

Cracker Barrel has over 660 stores in 45 states and territories, ensuring its presence across the United States.

What Makes the Cracker Barrel Dining Experience Unique? 

Cracker Barrel offers a distinctive ambience with wooden rocking chairs on the front porch, stone fireplaces, and vintage interiors, creating a nostalgic and inviting atmosphere.

When Did Cracker Barrel Become a Publicly Traded Company? 

Cracker Barrel became a publicly traded company in 1981, further solidifying its status as an enduring American institution.

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