Cracker Barrel has moved to clarify its employee dining policy after reports that staff were required to eat at the chain's own restaurants while travelling for business went viral. The Southern-themed restaurant group issued a statement saying the policy is not new, and that employees are not restricted to dining only at Cracker Barrel outlets.
The clarification came after The Wall Street Journal reported that the company had implemented a rule pushing staff to eat at Cracker Barrel for 'all or the majority of meals while travelling'. In response, Cracker Barrel said it had recently updated its guidelines only to limit reimbursement for alcoholic beverages under the policy.
The controversy adds to a difficult period for the chain, which saw its sales decline late last year following a backlash over a rebranding of its logo. The removal of its long-standing mascot, known as Uncle Herschel, prompted widespread criticism and even drew attention from President Donald Trump, with the company losing an estimated $94 million in market value in a single day.
Within days, Cracker Barrel reverted to its original logo, but the damage had been done. For the financial quarter ending 31 October 2025, the chain reported revenue down 5.7 per cent compared to the same period the previous year. The company also faced criticism after announcing plans to modernise over 650 locations, which were later scrapped following a public backlash.
In a statement at the time, Cracker Barrel said: 'If the last few days have shown us anything, it's how deeply people care about Cracker Barrel.' The company reassured customers that cherished features such as rocking chairs, fireplaces, peg games, and vintage Americana would remain unchanged.
