In a determined effort to revive its struggling Southern-themed chain, Cracker Barrel CEO Julie Felss Masino has unveiled an ambitious three-year plan aimed at making the brand more relevant in today's market. Admitting that the company was "just not as relevant" as it used to be, Felss Masino shared details of the comprehensive strategy, which includes restaurant remodels, new menu options, and technological enhancements for the loyalty program and to-go business.

The CEO stated that fiscal year 2025 will serve as an investment year, with the company focusing on five key pillars outlined in the plan. The implementation of these pillars is expected to yield significant benefits in the latter half of fiscal year 2026 and into 2027. Cracker Barrel is currently testing four different versions of location remodels in Tennessee to assess their effectiveness and return on investment.

The decision to embark on this massive revamp comes after Cracker Barrel experienced a dip in relevance and slashed its yearly dividend from $1.30 per share to 25 cents. One of the challenges the company faces is attracting a new, younger consumer base while still catering to its traditional senior customers. The pandemic has posed additional obstacles, as many seniors abandoned dining locations and have yet to fully return. Approximately 10% of seniors have not resumed their pre-pandemic dining habits, according to analyst Jake Bartlett.

The restaurant remodels will have a "lighter," "brighter," and "fresher" look, while still exuding the warm hospitality and featuring the classic menu items and signature wall decor that have kept customers loyal over the years, Felss Masino confirmed. While preserving its iconic Southern dishes such as hash brown casserole and grits, Cracker Barrel will also launch its largest menu test ever in August, introducing more than 20 new items. The CEO expressed satisfaction with sales and traffic at the four test locations, highlighting positive feedback from both team members and guests.

A spokesperson for Cracker Barrel expressed the company's goal of retaining what customers love about the brand while appealing to a wider audience. Felss Masino previously shared plans to invest up to $700 million over the next three years to revamp Cracker Barrel's image.

This ambitious turnaround plan follows a tumultuous period for the company's stock. Following an investor call in May, Cracker Barrel's shares plummeted by 20%, reaching a 52-week low of $45.35, the lowest in over a decade. As of Friday, the shares were valued at $43.13, representing a decline of 44% from January. Over the past four years, Cracker Barrel has experienced a loss of 16% of its diners.

Notably, Cracker Barrel faced backlash last year for decorating its porches with rainbow-colored chairs during Pride Month, as it struggled to cater to both senior and younger customers. Some individuals even threatened to boycott the chain. However, with this comprehensive three-year plan, Cracker Barrel aims to regain its position as a beloved dining destination for all generations.