Cracker Barrel Old Country Store, long regarded as an off-the-highway stop for travelers, is looking to boost visit frequency as it continues to see traffic declines.
Traffic dropped 1.8% at the Nashville-based casual-dining chain for the quarter ended May 3.
Same-store sales grew 1.3% during the period, with revenue up 2.5% to $739.6 million year over year. Menu prices rose an average of 1.8%, while retail sales at the restaurant-country store hybrid fell 2.6%.
Cracker Barrel is hoping its new platform of fried chicken offerings, which includes bone-in Southern fried chicken on summer menus, will drive repeat business.
“Many of our guests visit us infrequently,” CEO Sandra Cochran told analysts during a call Tuesday. “They might only visit us when they’re on their summer vacation to the beach.”
Bone-in fried chicken is currently available at 650 Cracker Barrel units, and a media push began for the product last month. This fall, the chain will introduce boneless homestyle chicken, followed by hand-breaded tenders.
“Our objective was to drive frequency and trial with craveable food innovation,” Cochran said. “I’m encouraged by the initial response to this initiative.”
The chain is also rolling out a family-sized fried chicken pack, available in a picnic-themed box for to-go and third-party delivery, that includes 12 pieces of chicken and large-format side dishes.
Cracker Barrel executives provided little insight into the future of the chain’s Holler & Dash fast-casual spinoff concept, which opened in 2016 and currently has seven locations.
Activist investor Sardar Biglari, whose company owns Steak ‘n Shake, sent a letter to Cochran in March urging her to shut down the startup concept. Biglari has significantly reduced his stake in Cracker Barrel in recent months.
“We are in the process of now understanding the demand, profitability and viability in different real estate locations,” Cochran said of Holler & Dash. “We’ll give you an update on what we plan to do going forward.”
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