Cracker Barrel has earned its place as a beloved stop along American highways, offering a unique blend of traditional Southern dining and nostalgic retail experiences under one roof.
But in 2025, growing concerns about its business stability have surfaced leading many to ask, is Cracker Barrel going out of business?
With changing consumer habits, economic pressures, and shifts in the restaurant industry, this blog explores the current state of Cracker Barrel, its financial health, recent store closures, and what the future might hold for the brand.
Why Are There Rumours About Cracker Barrel Going Out of Business in 2025?
The speculation started when Cracker Barrel began experiencing a decline in customer visits, accompanied by underwhelming quarterly reports. As the brand struggled to keep pace with modern dining trends, rumours spread across social media and discussion forums, creating an exaggerated picture of the company’s situation.
A few closures in rural locations added fuel to the fire, prompting some to believe the entire chain was shutting down. However, these assumptions are often based on partial facts and lack a full view of the company’s strategic actions.
What Do Cracker Barrel’s Recent Financial Reports Reveal?
Recent financial disclosures from Cracker Barrel indicate the company is under pressure, but far from facing a total downturn. In the third quarter of fiscal year 2025, total revenue fell by 6.2% compared to the previous year. The net income also declined, largely due to increased operational costs and lower customer traffic.
Despite these setbacks, the brand still operates over 660 locations across the US, suggesting a more nuanced situation than the extreme headlines imply. The data shows a company navigating a tough economy not one on the brink of shutdown.
Is Cracker Barrel Closing Locations in the US or Internationally?
Yes, the company has closed a small number of underperforming locations in 2025. These closures are part of a broader cost-saving strategy rather than signs of mass liquidation.
Cracker Barrel has never operated locations outside the United States, including the UK, so any closures are restricted to its domestic market. The brand continues to operate in most of its key regions and has not announced a large-scale exit from any specific state.
How Has the Economic Climate Affected Cracker Barrel’s Business Model?
The broader economic situation has put substantial pressure on traditional restaurants like Cracker Barrel. The company’s profit margins have been squeezed by increasing costs across food supplies, employee wages, and essential utilities. With consumers becoming more cautious in their spending, especially on discretionary dining, full-service restaurants are feeling the impact.
While economic policies such as those around fuel assistance in the UK like the Winter Fuel Payment offer some insight into cost of living concerns, the challenges Cracker Barrel faces are mainly linked to operational expenses and changing consumer expectations in the US.
What Role Did the Pandemic and Post-Pandemic Shifts Play in Their Decline?
The COVID-19 pandemic forced Cracker Barrel, like many others, to pivot rapidly. It launched delivery and takeout services and leaned on its retail section to stay afloat. However, post-pandemic, many of the consumer habits that emerged like favouring fast-casual and mobile ordering persisted.
Cracker Barrel’s sit-down format and country-store model, while nostalgic, don’t always align with fast-paced, tech-savvy consumer lifestyles. This shift has required the brand to reevaluate how it engages customers and where it invests resources.
Has Cracker Barrel Announced Any Future Business Strategies or Turnaround Plans?
Yes, Cracker Barrel has been proactive in addressing its issues. The company is exploring modernisation efforts, including menu updates, enhanced digital ordering, and the introduction of smaller-format stores known as “Cracker Barrel Kitchens.” These locations focus primarily on takeaway and delivery, helping the brand adapt to changing dining preferences.
Leadership has also expressed commitment to improving operational efficiency and selectively closing locations that no longer serve strategic purposes. This forward-thinking approach suggests a company that is evolving rather than exiting.
Is There a Cracker Barrel Presence or Interest in the UK Market?
At this time, Cracker Barrel does not operate in the UK and has not made any official announcements regarding international expansion. While there is growing interest from UK consumers who have experienced the brand while travelling in the US, several barriers such as regulatory differences and operational costs make overseas expansion unlikely in the near future.
How Does Cracker Barrel Compare to Its Competitors in 2025?
Cracker Barrel is far from alone in its struggles.Other major restaurant chains, including Denny’s, Red Lobster, and Applebee’s, are experiencing similar challenges with falling customer numbers and sales.
What sets Cracker Barrel apart is its hybrid business model, which includes retail sales and a strong brand identity rooted in tradition.
While competitors focus heavily on discounts and promotions, Cracker Barrel is trying to maintain a balance between preserving its unique character and meeting modern expectations. It’s a delicate line to walk, but it gives the company a distinctive space in the market.
What Are Experts Saying About Cracker Barrel’s Long-Term Viability?
Industry analysts remain cautiously optimistic. While acknowledging that the restaurant industry is undergoing significant transformation, many believe Cracker Barrel still holds long-term potential due to its loyal customer base, valuable real estate, and recognisable brand.
Financial firms tracking Cracker Barrel’s stock performance do not foresee bankruptcy, but rather a period of strategic restructuring and gradual recovery.
Should Investors and Customers Be Worried About Cracker Barrel’s Future?
While concern is understandable, there is currently no evidence to suggest that Cracker Barrel is going out of business entirely. The company is clearly facing challenges, but it is responding with a realistic and strategic plan.
For customers, the dining experience may evolve, and some locations may close but the overall brand remains active. For investors, it’s a matter of monitoring how well the company executes its turnaround plans over the coming quarters.
What Are the Key Performance Metrics of Cracker Barrel in 2025?
To understand the trajectory of Cracker Barrel’s business, it’s important to examine the key performance indicators (KPIs) that reflect the company’s financial and operational health. These metrics help clarify whether the brand is in decline or simply adapting to a changing marketplace.
Below is a table showing Cracker Barrel’s most recent data from fiscal year 2025, compared to 2024:
Cracker Barrel Key Performance Metrics (FY2024 vs FY2025)
| Metric | FY2024 | FY2025 | Change | Insight |
| Total Revenue | $3.27 billion | $3.07 billion | ▼ -6.1% | A moderate decline due to reduced foot traffic |
| Net Income | $93 million | $58 million | ▼ -37.6% | A significant dip reflecting rising costs |
| Store Count | 670 locations | 661 locations | ▼ -9 locations | Strategic closures of underperforming units |
| Same-Store Sales Growth | +1.3% | -2.7% | ▼ Shift | Negative shift signals consumer behaviour change |
| Digital Order Volume | 18% of total | 26% of total | ▲ +8% | A positive shift towards modern ordering methods |
| Customer Satisfaction Index | 84/100 | 80/100 | ▼ Slight dip | Minor decline as expectations evolve |
These figures highlight that while Cracker Barrel is facing a downturn, it is also making gains in digital transformation—a critical factor for long-term sustainability.
Conclusion
Cracker Barrel is not going out of business. Though the company has experienced financial pressure and has closed some locations, it is far from shutting down entirely. Instead, it’s navigating a difficult economy by streamlining operations, adapting its business model, and focusing on long-term sustainability.
In a rapidly evolving restaurant industry, adaptability is key and Cracker Barrel appears committed to transformation rather than retreat.
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FAQs
Is Cracker Barrel permanently shutting down all locations?
No. The company is only closing underperforming outlets as part of its restructuring plan.
What states have seen Cracker Barrel closures recently?
Closures have mainly occurred in rural or low-performing markets where profits were not sustainable.
How is Cracker Barrel adapting to changes in the restaurant industry?
The brand is embracing digital ordering, delivery-focused stores, and a modernised menu.
Are Cracker Barrel franchises at risk of closing too?
Cracker Barrel owns the majority of its stores, so franchise risk is minimal compared to other chains.
What do investors think about Cracker Barrel’s recent performance?
While concerned about short-term earnings, investors believe in the brand’s long-term viability.
Has Cracker Barrel shared a formal restructuring plan?
Yes, the company has laid out strategies including selective closures, operational improvements, and brand modernisation.
Are similar US restaurant chains also closing down?
Yes, competitors like Red Lobster and Applebee’s are also reducing locations due to similar economic pressures.
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