Cracker Barrel Introduces New Dinning Rule: How Rebranding Decision Cost The Chain USD 100 Million?

Cracker Barrel Old Country Store, Incorporated, known as 'Cracker Barrel', is a well-known American chain of restaurants and gift stores with a Southern country theme. The business was founded by Dan Evins and Tommy Lowe in 1969, with early locations positioned near Interstate Highway exists in the Southeastern and Midwestern United States. Over the years, the franchise expanded across the country, opening over 600 stores in 45 states. 

However, things changed for the much-loved franchise when it got into trouble last year after deciding to rebrand. The project led to severe backlash, which immensely impacted the business. And now, Cracker Barrel has come up with some new dining rules. So, without any further ado, let's take a look at what changes the old restaurant chain has made and why.

Cracker Barrel introduces new policies amid mass layoffs

Cracker Barrel seems to have introduced some new rules and policies to tackle the rebranding fiasco. According to reports, an internal memo has been issued, prompting intense scrutiny both inside and outside the company. Employees have been given a set of bizarre rules with conditions that have left everyone stunned. The policy surfaced months into the brand's ongoing recovery from a bruising backlash against its rebrand and to tighten cost controls, prompting questions about how corporate travel is being reshaped.

What does the leaked memo say?

According to a Wall Street Journal report, Cracker Barrel issued a memo outlining very strict policies for employees. The new set of rules instructs employees to dine at a Cracker Barrel store for most or all meals during business trips, whenever practical, depending on location and schedule. This has come in exchange for the traditional company card that covered employees' meals and travel expenses when travelling for work. Under the new guidance, they will be required to narrow their dining options and choose one of the company's locations.

Cracker Barrel's new memo also tightens the rope around alcohol expenses

Another major change in the new policies is that the company will also tighten its hold on alcohol reimbursement. According to the reports, purchases of alcoholic drinks are no longer covered as a standard corporate expense. The memo clearly states that any reimbursement moving forward will require special approvals. The change marks an attempt by Cracker Barrel to control cost discipline while moving further away from more permissive travel expense policies common across corporate America.

What changes for the employees travelling for business?

For the staff at Cracker Barrel, the impact is as clear as the day. The policy narrows the meal choices available to the employees during travel. However, this could lead to higher out-of-pocket costs for employees who choose to eat elsewhere or purchase alcohol without approval. The memo signals closer oversight of company card usage and suggests that further adjustments to travel and expense policies could follow as Cracker Barrel restructures internally.

What's in the future for the Cracker Barrel?

The new dining rules have arrived ahead of Cracker Barrel's preparation for a wider internal overhaul and a menu revamp planned for 2026. While the company has called the policy "a practical request rather than a strict mandate", its release via a leaked memo has sharpened attention on how corporate culture and cost control are evolving at the restaurant chain.

What is the rebranding fiasco behind Cracker Barrel?

As the new policies leave the internet stunned and employees in a tough situation, many are wondering what the reason behind such strict changes is. Well, the new memo comes following the incident of August 2025, when Cracker Barrel unveiled a new logo and removed its iconic mascot, 'Uncle Herschel', the man leaning on a barrel, as part of a minimalist redesign. The decades-old logo's change sparked immediate backlash, with MAGA influencers branding the update "woke". The scrutiny became so intense that even US President, Donald Trump publicly urged the restaurant chain to return to its classic branding.

Cracker Barrel's new dining rule comes at a time when the company is facing layoffs, shrinking sales, and fallout from its rebranding push, which erased nearly USD 100 million in market value. Back in 2025, Cracker Barrel's CEO, Julie Masino, became the face of the backlash, as critics blamed her for turning the company "woke". Julie Masino claimed that one reason Cracker Barrel wanted to change its logo was to make it easier to see on the highway. However, the decades-long customer of the franchise sternly disagreed. 

Following the backlash, Cracker Barrel immediately ditched its rebranding plans and has since announced plans to restructure internally and revamp its menu, rather than messing with the OG aesthetics of the company. However, many saw this as the new leadership's attempt to erase the decade-old Southern American essence that makes Cracker Barrel what it is. In an interview, Julie Masino spoke about the changes and said:

"We have already taken steps to get back on track. That’s why our team pivoted quickly to switch back to our old-timer logo, and has already begun executing new marketing, advertising, and social media initiatives, leaning into Uncle Herschel, and the nostalgia around the brand with more to come."

What are your thoughts on Cracker Barrel's new policy? Let us know.

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