The American restaurant chain Cracker Barrel announced lower profit and sales for the remainder of this year “due to weaker-than-anticipated traffic.”
The company cut its dividends as they said a few customers were coming into its stores.
There are 687 Cracker Barrel restaurants in the U.S., with Florida having more 63, more than any other state. Foot traffic for Cracker Barrel has been on the decline since 2023. In January of this year, the company reported customers coming into their stores had dropped by almost 5%.
Food sales are seeing a drop, as are Cracker Barrel gift shops. Cracker Barrel gift shops make up around 25% of the company’s revenue. Some individual stores in Florida have reported that their gift shops can contribute anywhere from 30-40% of a store’s profit.
The food chains say they are witnessing what other restaurants are seeing, and that is a more significant trend of consumers dining out less due to inflation.
Since the actual food is such a key part of what draws customers to restaurants, Cracker Barrel is also testing a major revamp of its core menu in select stores. It is also as adding new decor, lighting, and paint.
