What happened to dining out? Taking your family out for a lovely dinner?
Inflation hit people’s wallets; that’s what happened. So they turned to a more affordable eating option — at home.
Sales among the 500 biggest U.S. restaurant chains grew 3.1% in 2024. However, that is the lowest annual increase in a decade (not counting the Covid-pandemic lockdowns in 2020), according to Technomic’s 2025 Top 500 Chain Restaurant Report.
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While a growing number of struggling restaurants are closing locations, it is hard to imagine that restaurants and diners will completely vanish.
After all, enjoying a delicious meal in an elegant setting, being kindly served by professional staff, and not having to worry about your dinner burning or ending up too salty is worth the money.
You also don’t have to clean up afterwards. You get dressed (which is a perk on its own), and change your everyday setting by leaving the house.
These are the reasons people continue to eat at restaurants, despite the expense.
The most resilient restaurants are investing in technology, social media marketing, and service charges in an effort to survive harsh competition and even worse economic conditions.
But sometimes such innovations may not resonate with every longtime customer.
Image source: 4kclips/Shutterstock
Cracker Barrel modernizes some of its stores as part of a bigger plan
When you think about Southern comfort food, Cracker Barrel (CBRL) may come to mind. The restaurant chain has a long history, building its legacy since 1969, when Dan Evins came up with the concept of a comfortable, country-themed stop for travelers.
The first location was built close to Interstate 40, and the chain’s name came from barrels of soda crackers that were commonly found in such stores. Cracker Barrel developed and expanded across the nation, and it went public in the 1990s.
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Commonly praised for tasty pancakes and homestyle cooking, Cracker Barrel is the place many Americans would take visitors from other countries who want to experience a uniquely American establishment.
At least that used to be the case.
Nowadays, after remodeling changes the chain made across 20 stores, it faces mixed reactions. The ongoing store modernization remodels are part of the eatery’s brand revitalization strategy.
It all started with a viral post on X that showed a video of the brand’s new modern interiors with the message “A remodeled Cracker Barrel. I hate it.” The post resonated with the crowd, gaining more than 8.3 likes and many comments echoing the post’s sentiment.
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“I honestly don’t like it. Cracker Barrel’s original design has such a unique atmosphere and homey feel. The new design is boring and corporate,” reads one comment on Reddit.
Of course, loyal customers defended the chain, arguing that remodeling “*thing* is blown waaay out of proportion,” that the changes are minor, making the place brigher and cleaner, and that what mostly matters is the quality of food.
Cracker Barrel responds to criticism
Cracker Barrel issued a statement on the backlash saying that the majority of feedback was actually positive.
“We are very pleased with the trajectory of our remodeled stores. Feedback from both guests and team members has been overwhelmingly positive and enthusiastic about the refreshed dining and shopping experience,” Cracker Barrel states, as reported by NRN.
“All of the elements of our remodels were informed by direct input from our guests and team members alike – these changes are for them.”
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Cracker Barrel has remodeled about 20 restaurants and refreshed about 20 since it started the brand’s revitalization in April.
According to the company’s latest earnings report from June, it is pleased with the remodeling decision and has seen many positive reactions from both employees and customers.
“We continue to be really pleased with what we’re learning there, the impact that it’s having on the system,” CEO Julie Masino said during the earnings call. “Employees have given us great feedback about working in those newly remodeled and refreshed stores, and guests continue to tell us that they’re lighter, brighter, more welcoming.”
Previous controversies around the restaurant include its troubling stances on diversity, equity, and inclusion, as the company faced a class action lawsuit alleging racial discrimination against Black customers and employees, writes Sanford Heisler.
The lawsuit led to a federal investigation by the U.S. Department of Justice (DOJ), which confirmed racial discrimination across 50 restaurants in seven states. The investigation led to a consent order demanding Cracker Barrel adopt and publicize nondiscrimination policies.
While the consent order did not lead to any compensation to employees and customers impacted by the company’s practices, the class actions lawsuit did, resulting in a confidential settlement of $8.7 million.
Related: California grocer closes store after 24 years due to US tariffs
