Search Here

Cracker Barrel has addressed reports suggesting employees are required to eat only at its restaurants while traveling for work, emphasizing that the guidance is neither new nor mandatory.

The Southern-themed restaurant chain told FOX Business that the policy, first introduced in June 2024, encourages employees to dine at Cracker Barrel locations during business travel when practical, but does not restrict them from eating elsewhere.

"The policy for employees to dine at Cracker Barrel while traveling for business, whenever practical based on location and schedule, is not new," the company said.

"Also, it is not the only place that our employees may eat when on the road, as previously reported. The change was to further limit reimbursement of alcoholic beverages under the policy."

The clarification follows a Wall Street Journal report highlighting internal communications that encouraged employees to plan work trips carefully and, when travel is unavoidable, eat at Cracker Barrel locations whenever feasible.

According to the internal message, employees are expected to have "all or the majority of meals while traveling" at the chain, depending on location and schedule.

Cracker Barrel Tightens Alcohol Rules

Cracker Barrel is also tightening its travel expense policy regarding alcohol.

Employees are required to pay out of pocket for alcoholic beverages during business trips unless exceptions are pre-approved by a member of the company's executive team.

"Exceptions for special occasions must be pre-approved by an E-Team member," the company added.

The restaurant chain has faced challenges recently, including customer backlash over a 2025 logo redesign that removed its iconic "Old Timer" character—a decision it later reversed.

Sales fell 5.7% in the first quarter of fiscal 2026 compared to the same period last year, NY Post reported.

CEO Julie Felss Masino acknowledged the company's ongoing challenges, noting, "As you are all aware, the past few months have been difficult for Cracker Barrel and for our 70,000 team members around the country. And while many of our guests are enjoying our improved food and guest experience, we certainly have more work to do to regain the trust and confidence of others who have been slower to return."

Despite these hurdles, Cracker Barrel shares have risen more than 30% year-to-date, reflecting investor confidence in the brand's recovery efforts.