LEBANON Tenn. As Cracker Barrel Old Country Store celebrates its 40th anniversary, Michael Woodhouse attributes the brand’s longevity to its unwavering consistency and great homestyle food and service.
The 588-unit family-dining chain last year had foodservice revenues of more than $1.87 billion, according to Nation’s Restaurant News’ most recent Top 100 survey. And Woodhouse, president, chief executive and chairman of the Lebanon, Tenn.-based concept, says it’s his intention to raise the bar on such performance by continuing to deliver the value and quality guests expect.
Why is this anniversary particularly memorable?
What’s really important is that although 40 years is a long time, we’ve been working really hard over the last few years to take the brand and figure out not how to just keep it alive, but keep it alive for the next 40 years. Right now we want to celebrate our achievements and the power of the brand.
To what to you attribute that success?
Consistency. We deliver what the guest expects. We did some research about two or three years ago and found that Starbucks was the only other company besides us that over-delivered against customer expectation.
What do you think is the reason for that?
We understand what they’re looking for. We don’t create something and then tell them why they should like it. And then there’s honest value. Obviously, it has to be affordable, but we also want to create great quality at both the restaurant and retail ends. It centers around trust; what you see is what you get from us. We’re never going to surprise our guests in a negative way, never going to have anything but an open, honest presentation of ourselves.
What do you think is the reason for this brand’s success, particularly when others are having so many troubles during this recession?
What happens in a recession is that the customer has less money to spend so he or she is more careful when they do spend it, more careful at getting the best deal. Now that’s not necessarily the cheapest or a buy-one-get-one, but it’s the best deal in terms of great food, great quality and great service. They know we’re not going to change things on them. We haven’t downgraded anything we serve on the plate. In 40 years we’ve never had to discount [our prices]. And during this recession, we’re running better guest traffic than most of the rest of the industry.
Speaking of discounting and the recession, what do you think about all the giveaway promotions that are popping up?
Frankly, when all of that started this year I was concerned about what it meant to the industry as a whole and to us. But it proved to us we were on the right track [not to discount or reduce prices]. We’re not going to follow the others.
Of course, I can only really focus on what we are doing. I think what we’re doing is right for us and that we will come out on the right side of this. That’s only thing I’m focused on.
How is Cracker Barrel different today than it was in the beginning?
Well, in 1969 I was sitting in England, watching the landing on the moon, so I can’t really say what it was like then. Dan Evins had the vision of providing a place where people who were traveling could come and stop to rest and eat. The travel hospitality [theme] went with that.
The customer is going to get what he or she wants: a feeling of comfort and security, a home away from home. Today we’re up to 588 stores, but the essence of what we do and how we do it is the same.
How does the brand stay relevant, especially after so many years?
For example, with the 40th anniversary we’re trying to extend the brand. With our new menu promotion we’re looking back at some of our traditional offerings, but at the same time we’re also going to a little bit of a different place. We’re offering some healthier items — yogurt, granola and fruit — and working on salads that taste great. We want to be relevant, but also stay true to what our guests expect from us. We have to be cognizant of what our guests want and have a variety of desires. We’re trying to pay attention to what everyone is looking for.
Lately there’s been a lot of talk about the sodium levels in some restaurant foods. Do you think that is the next nutritional frontier?
It’s important to the industry to pay attention, certainly. And I can tell you we do have a number of items on the menu that address sodium issues; [they] are lower in salt. The information is not on the menu, but it is available to our guests. Rather than try to forecast what will happen, we’re trying to make certain we’re responding appropriately.
What is the growth plan this year for the chain?
Like most, we’ve pulled back on growth. We’re only going to open seven stores this year. But generally, as we go forward, we’d like to see a growth rate of 5 to 10 percent.
When do you think business will start returning to normal?
Iwish I knew. I’d probably make a lot of money guessing that one right. But I do know we want to be ready when it does come back. We’re doing the right things in order to be ready when the economy does expand.
Have you done anything differently as a result of the recession?
Our basic strategy hasn’t changed. We’ve stayed true to the brand and our guests. We’re not being pushed around by short-term reactions. We have done well and have a really solid foundation. We don’t have to rebuild our brand.
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