The family-dining chain’s new CEO David Deno is all about “doing fewer things better”

Cracker Barrel is more than a year past its rebranding controversy and several quarters into a new turnaround strategy, but Wall Street is still watching closely to see if the company can move beyond the missteps of the recent past.

When new CEO David Deno took the reins six weeks ago, the family-dining brand had been slowly climbing out of a rocking chair-shaped hole and on a path toward a better tomorrow (though traffic and same-store sales are still negative). During his first quarterly earnings as CEO, Deno made it clear how he differed from his predecessor, Julie Masino.

While Masino envisioned bold changes for Cracker Barrel, including the ill-fated logo change and store remodels, Deno’s theme is caution. Cracker Barrel will not be opening any new units this year, and will be focused on smaller, less flashy goals, like improving food quality, raising guest satisfaction scores, and simplifying the retail shopping experience.

With this “less is more” strategy in mind, one of the bigger changes Deno has in mind is focusing on the dinner daypart.

“Dinner is our biggest opportunity, and we plan to upgrade our chicken, hamburger and steak offerings,” he said during Wednesday’s earnings call for the fourth quarter. “We also want to ensure our great food meets guest expectations for taste, temperature and quality on every visit.”

Deno is not trying to tear down what Masino built, nor is he trying to sway the company in an entirely new direction. For example, when asked what still needs fixing in the company today, Deno said Cracker Barrel needs to build upon the improvements it already made, by continuing to focus on food quality and addressing customer needs.

“To make sure that we continue to keep our trends going and improve our trends, our priority is going to be on food, experience and people and what matter most in regardless of the backdrop,” Deno said. “That’s how restaurant companies win.”

While Deno insisted that the brand is “on the right track now,” Cracker Barrel playing it safe and leaning into its status as a traditional legacy brand is what prompted the Board to hire such an aggressive innovator like Julie Masino in the first place. In 2024, Masino cited slumping sales and an aging prime demographic as reasons behind the Cracker Barrel evolution as the brand strove to “gain relevance again.”

Now, after scrapping those plans, Cracker Barrel is back at stage one, hoping that small tweaks — like improvements to the dinner menu and retail experience — will be enough to boost the brand in the long run.

“We will accomplish our objectives by relentlessly executing against the priorities we have identified and doing fewer things much better,” Deno said.

Contact Joanna at joanna.fantozzi@informa.com

Source https://www.restaurantbusinessonline.com/topics/cracker-barrels-new-ceo-plays-it-safe-turnaround-20-continues-take-shape