This is an English adaptation of a FoodBud historical article originally published on September 25, 2022.
Cracker Barrel Old Country Store is not a typical restaurant-chain model. Its core format combines full-service dining with an in-store gift and retail shop.
When FoodBud previously reviewed the top 20 listed restaurant companies in the U.S. market by market value, Cracker Barrel was one of the remaining names not yet covered, alongside Dave & Buster's. At that time, Cracker Barrel’s market capitalization was about US$2.8 billion. More recently, it had fallen to about US$2.24 billion, or roughly RMB 16 billion.
That valuation was not high relative to its revenue base: in fiscal 2021, Cracker Barrel generated US$2.8 billion in annual revenue, about RMB 20 billion.
Cracker Barrel’s defining feature is the combination of restaurant sales and gift retail:
The company traces its roots to founder Dan Evins, who previously worked at Shell. The original idea behind the restaurant-and-gift-store format was to help improve fuel sales. The first store opened in September 1969. Evins wanted to recreate the traditional country store he remembered from childhood, and the brand name carries a Southern U.S. rural flavor.
Early Cracker Barrel stores sold fuel, though the company later exited that business. Some current locations provide electric-vehicle charging stations. Dan Evins formally established Cracker Barrel in 1970.
The stores are known for retail gift products and distinctive interior decoration. Typical elements include items such as deer heads and traffic signals near restrooms. Five signature decorative elements are used across every store.
Cracker Barrel also works with the Singleton family on vintage-store decor. The Singleton family manages Cracker Barrel’s 2.6-square-foot warehouse, which stores about 90,000 pieces of American vintage items.
By 1977, seven years after establishment, Cracker Barrel had reached 13 stores.
In 1981, 11 years after establishment, the company went public and raised US$4.6 million. After listing, it expanded at an annual growth rate of about 20%. By 1987, Cracker Barrel had 50 stores and annual sales close to US$81 million.
In 2019, Cracker Barrel acquired casual-dining chain Maple Street in an all-cash deal worth US$36 million.
Also in 2019, Cracker Barrel bought a US$140 million non-controlling equity stake in Punch Bowl Social from L Catterton. At the time, Punch Bowl Social had 17 stores. In 2018, its sales were US$46.5 million, up 34% year on year. After the pandemic, Punch Bowl Social went bankrupt, and Cracker Barrel recorded a US$130 million impairment provision.
As of April 29, 2022, Cracker Barrel and Maple Street together had 712 stores:
For Cracker Barrel’s fiscal 2022 third quarter, the three months ended April 29, 2022, total revenue was US$790 million, up 10.8% year on year.
In that quarter:
The latest complete fiscal-year data cited was fiscal 2021, ended July 30, 2021. In fiscal 2021, Cracker Barrel generated US$2.8 billion in total revenue, up 11.8% year on year, and net profit of US$250 million.
For fiscal 2021:
Cracker Barrel serves breakfast, lunch, and dinner.
Breakfast prices ranged from US$4.99 to US$14.99. Lunch and dinner prices ranged from US$5.19 to US$17.99.
In fiscal 2021, revenue by daypart was:
In 2020, Cracker Barrel began selling beer and wine in selected stores. By the end of 2021, the company expected 480 stores to offer beer and wine.
In fiscal 2021, Cracker Barrel’s average guest spend was US$11.40, and each store served about 5,500 guests per week on average.
A typical Cracker Barrel gift-store format carries about 3,400 SKUs.
In fiscal 2021, the largest retail category was apparel and accessories, representing 29% of retail sales. Food ranked second at 18%.
Retail sales per square foot were US$426 in fiscal 2021.
Nearly 80% of Cracker Barrel’s retail products came from direct imports, with more than one-third sourced from China. Since 2014, Cracker Barrel has also sourced from India, Thailand, the Philippines, Vietnam, and other Southeast Asian countries.
As of September 15, 2021, 81% of Cracker Barrel’s 664 stores were located along highways or near tourist destinations.
The company owned the property and building for 306 stores.
A typical Cracker Barrel store measured about 827 square meters, including around 158 square meters of retail display space, and could seat 170 dining guests.
Note: market capitalization, IPO, acquisition, equity, impairment, and forward-looking beer-and-wine rollout figures are historical figures from the original 2022 article.