Cracker Barrel to close 14 Maple Street Biscuit locations after failed rebrand
Company says Maple Street's expansion under Cracker Barrel's ownership failed to meet sales expectations as it trims the unit count and warns of lower profits next year.
Cracker Barrel Old Country Store said Friday it will shutter 14 Maple Street Biscuit Company restaurants, trimming back a brand it acquired in 2019 in a bid to accelerate growth. The closures leave 54 Maple Street locations still operating and come after a period of underwhelming performance for the once-promising concept.
Maple Street Biscuit Company, founded in Florida about 13 years ago, built its identity on high-end breakfast staples such as chicken biscuits, lattes and hash bowls with premium ingredients. Cracker Barrel bought the chain in 2019 for $36 million, and the parent company expanded it to 68 locations at its peak earlier this year. Filings show Maple Street lost an estimated $16.2 million in value over the past year as sales lagged expectations. The closures cap a difficult summer for Cracker Barrel, which has faced a broader pullback in expectations.
In its latest earnings update, Cracker Barrel warned investors that profits would fall next year. The rustic-themed restaurant company, which operates about 660 locations overall, reported a $30 million sales drop from June to August versus last year — roughly the equivalent of 2.3 million plates of country fried steak — and projected a 4% to 6% decline in next year’s sales.
The closures come after the company’s controversial rebrand efforts, including a logo redesign unveiled on August 19 that replaced the long-standing cross-legged old man on a rocking chair with a simple yellow backdrop and a more modern interior palette. Critics argued the changes stripped away the brand’s character, triggering a customer boycott sentiment in social media narratives and prompting Cracker Barrel to reverse both the logo and several design updates.
The company’s stock moved lower in after-hours trading as investors digested the earnings update and the news of Maple Street closures. While some observers cautioned that the publicity surrounding the rebrand could raise brand visibility, most expect the sales impact to be limited in the near term.
Neil Saunders, a retail analyst at GlobalData, noted that increased publicity may raise awareness but is unlikely to translate into immediate sales gains. A separate YouGov poll cited in industry commentary indicated that 65 percent of Americans were aware of the logo change, but just 29 percent said the changes made them less likely to dine at Cracker Barrel.
A Cracker Barrel spokesman expressed appreciation for Maple Street guests and team members as the company focuses on serving guests at the remaining Maple Street locations. "We appreciate the continued patronage of the many guests who have dined with Maple Street at these 14 locations over recent years and thank our team members for their passionate dedication to Maple Street and focus on delivering delivered fantastic guest experiences day in and day out. We hope our loyal guests will continue to dine with us at our many other Maple Street locations."