WEBVTT - Cracker Barrel’s Masino on Menu Enhancements

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<v Speaker 1>Welcome to Chopping it Up. I'm your host, Mike Hallon,

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<v Speaker 1>the senior restaurant and food Service analyst at Bloomberg Intelligence.

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<v Speaker 1>Our research and that of bi's five hundred analysts around

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<v Speaker 1>the globe can be found exclusively on the Bloomberg terminal. Today,

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<v Speaker 1>we're joined by Julie Messino, CEO of Cracker Barrel. Thanks

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<v Speaker 1>for doing this, Julie.

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<v Speaker 2>Thanks Mike. It's a pleasure to be here.

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<v Speaker 1>All right. So you don't know this about me, but

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<v Speaker 1>I have a legendary appetite. So I'm looking forward to

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<v Speaker 1>accepting the challenge you issued on the last earnings call

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<v Speaker 1>about finishing that ginormous quote un.

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<v Speaker 2>Cash broadcast or all Shepherds Pie, I love it. You

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<v Speaker 2>might be the first, Mike. Let's see if you can

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<v Speaker 2>do it.

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<v Speaker 1>Okay, Yeah, I'll have to. Maybe I'll come in after

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<v Speaker 1>a fast. It might call that cheating if you will,

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<v Speaker 1>but whatever I need to do to get it done.

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<v Speaker 1>But it's funny. I listened to the call and then

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<v Speaker 1>have you ever seen great outdoors with John Candy?

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<v Speaker 2>Yes?

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<v Speaker 1>Of course, Monny eats the old ninety six er. So yeah,

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<v Speaker 1>after listening to a call, I brought that I pulled

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<v Speaker 1>that scene up on YouTube and I watch, It's so.

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<v Speaker 2>Good, that's awesome. It's just such a delicious item, honestly,

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<v Speaker 2>Like I watched so many people. They get so excited

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<v Speaker 2>because it comes out and it's just it's gorgeous when

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<v Speaker 2>it comes out right, because it's in a skillet. It's

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<v Speaker 2>got this beautiful crusty hash brown casserole topping on it.

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<v Speaker 2>It's got dice tomatoes and like some stura cream, and

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<v Speaker 2>it just looks impressive and it's pretty exciting when it

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<v Speaker 2>comes down and people jump it and jump it with

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<v Speaker 2>gusto like they're gonna get it. They're gonna get the

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<v Speaker 2>very first star I saw somebody eating. And I was

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<v Speaker 2>at our Mel Juliet store that we had recently remodeled,

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<v Speaker 2>and I'm sitting next to this couple. It's an older couple.

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<v Speaker 2>They're very very sweet, and she was the one who

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<v Speaker 2>ordered it, and she like went in like hard, she

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<v Speaker 2>went in ham on it right, like she was gonna

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<v Speaker 2>do it's gonna do it. It's just like, oh, I

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<v Speaker 2>just can't. I mean, it was it's just cute because

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<v Speaker 2>it's so delicious, and you keep you keep going because

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<v Speaker 2>it's delicious right, Yeah, okay, I look for it. I

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<v Speaker 2>look forward to you doing it, Mike.

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<v Speaker 1>I look, yeah, yeah, I'll let you know how it goes.

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<v Speaker 1>It sounds dangerous but at.

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<v Speaker 2>The same time but delicious. Yeah, delicious, very cool.

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<v Speaker 1>Please tell me a little bit about your career journey

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<v Speaker 1>and what attracted you to Cracker Barrell.

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<v Speaker 2>Oh gosh, I mean, I'm one of those people. I've

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<v Speaker 2>just I've been so fortunate. I've been so grateful that

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<v Speaker 2>people have taken chances on me, and I've just you know,

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<v Speaker 2>worked for brands that I love. That's really always been

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<v Speaker 2>my guidepost, you know, from early on in my career,

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<v Speaker 2>you know, working at Coach, working at Jay Crew, they

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<v Speaker 2>were just brands that I loved. And then when I

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<v Speaker 2>had the opportunity to go to Starbucks and Taco Bell,

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<v Speaker 2>it was like, you know, it's like an absolute no brainer.

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<v Speaker 2>And then when crackerber called same kind of thing, it

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<v Speaker 2>was like, yeah, I mean it's always been like, is

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<v Speaker 2>it a brand that I love? Where are they in

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<v Speaker 2>their journey? Do I think that I can help them?

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<v Speaker 2>Do I have like a point of view on it?

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<v Speaker 2>And yeah, So it's I've just been I've been really

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<v Speaker 2>fortunate that people have taken chances on me, worked with

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<v Speaker 2>great people, and again brand.

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<v Speaker 1>Said, I love so good stuff. How are you changing

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<v Speaker 1>the culture there?

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<v Speaker 2>That's a better question to ask other people versus me.

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<v Speaker 2>I mean, I'm sure that my team would have a

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<v Speaker 2>lot to say about that. I think one, I really

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<v Speaker 2>believe in the art of the possible, and so I

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<v Speaker 2>really learned from some people that I've had the opportunity

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<v Speaker 2>to work for, to swing for the fences, to aim high,

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<v Speaker 2>to really approach problems with optimism because there were there

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<v Speaker 2>to solve situations for consumers and for your team, right,

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<v Speaker 2>how do you make their lives better? How do you

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<v Speaker 2>meet their needs, whether it's coffee or hush prodcast rule,

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<v Speaker 2>Chipherd's buy or a handbag. Like in my career, it's

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<v Speaker 2>like all of those things, and you're really just saying,

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<v Speaker 2>what is that problem or what is that opportunity that

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<v Speaker 2>I'm trying to solve, and how do we get after it?

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<v Speaker 2>So I am a pretty optimistic person. I believe most

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<v Speaker 2>things in life can be done, they can be fixed,

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<v Speaker 2>they can you know, and they're doing. And so I

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<v Speaker 2>also really believe in collaboration. I believe in people bringing

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<v Speaker 2>their best self every day. I believe in learning from

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<v Speaker 2>where you find yourself and constantly improving. So that's probably

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<v Speaker 2>the biggest thing I talk with the teams about is

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<v Speaker 2>like athlete I call it athlete mentality. Right, you know,

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<v Speaker 2>somebody wins the Super Bowl, they're back in the I mean,

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<v Speaker 2>they go on the party and they get drunk. But

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<v Speaker 2>then the next day they're back and they're watching the

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<v Speaker 2>tapes like, where did we lose inches? Where did we

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<v Speaker 2>you know, where could we have done a little bit better?

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<v Speaker 2>And I think, especially in the restaurant industry, like every

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<v Speaker 2>guest in front of you is an opportunity to be better,

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<v Speaker 2>you know, to do better than you did the last time.

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<v Speaker 2>And it's just such a great It's That's what I

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<v Speaker 2>love about it. That just the frequency that, like you know,

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<v Speaker 2>some people would argue I'm a little masochistic in that,

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<v Speaker 2>but like you just you always have the opportunity to

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<v Speaker 2>be better and to do more, and that to me

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<v Speaker 2>is really really exciting.

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<v Speaker 1>Cool. So as you're you've made a lot of new

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<v Speaker 1>hires recently, as you're executive team finally in place.

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<v Speaker 2>Yeah, yeah, I mean I had said I wouldn't say

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<v Speaker 2>a lot really just too I mean, Chris, our new

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<v Speaker 2>head of strategy, started I think in like March, and

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<v Speaker 2>then Sarah joined us in July. Both are just amazing executives.

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<v Speaker 2>But we've got a great team. We've got a team

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<v Speaker 2>that really has a lot of industry experience, and I

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<v Speaker 2>think that balance of kind of old and new but

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<v Speaker 2>fresh thinking from the outside and really just people who

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<v Speaker 2>kind of question. I mean, I think probably another thing

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<v Speaker 2>I'm doing to the culture is I question everything. If

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<v Speaker 2>you find somebody who's like worked for me before, they'll

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<v Speaker 2>be like, oh, yeah, she could be exhausting. She asked

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<v Speaker 2>a lot of questions. But really with the intent of

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<v Speaker 2>being better right and learning and moving things forward, I

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<v Speaker 2>have a lot of curiosity about how to improve, how

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<v Speaker 2>to just constantly be our best. And so I think

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<v Speaker 2>that's where building a team. You know, when you're building

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<v Speaker 2>an executive team or just teams in general, whether you're

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<v Speaker 2>the GM at a restaurant, you know you're trying to

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<v Speaker 2>put together an assemblage of talents and skill set and

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<v Speaker 2>people who don't always approach things the same way. Because

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<v Speaker 2>I find that when you bring diverse thinking and perspectives together,

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<v Speaker 2>that's where you end up with the best answers, So

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<v Speaker 2>for me, that's what I'm always trying to orchestrate as well.

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<v Speaker 1>Great, you spent a lot a lot of time talking

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<v Speaker 1>about the company's food enhancements on the last earnings call,

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<v Speaker 1>So it seems like a the innovation team has been

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<v Speaker 1>busy and the new items are resonating better than they.

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<v Speaker 2>Have for the last several years.

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<v Speaker 1>How has the R and D process been improved?

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<v Speaker 2>Well, so today that's now reporting up through Sarah, and

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<v Speaker 2>Sarah's brought in a great guy from the industry. His

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<v Speaker 2>name is Matt Banton. We're super excited to have both

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<v Speaker 2>of them there because they bring fresh perspectives to kracobral

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<v Speaker 2>And then we've got some people who've been with Crocobell

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<v Speaker 2>for a really long time. Chef Bill Joe really the

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<v Speaker 2>team there, They really Tina. They know the brand, they

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<v Speaker 2>know our vendors, they know kind of our standards and

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<v Speaker 2>all of that. And so again it's that mix up

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<v Speaker 2>of old and new, fresh perspective, people who really loved

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<v Speaker 2>the brand for a long time. We're working on an

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<v Speaker 2>innovation right now that is going to pool. Oh your mind.

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<v Speaker 2>It's like it is one of those things where similar

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<v Speaker 2>to hashbron cast role shepherds Pie. The team took an

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<v Speaker 2>icon an icon of cracker barrel and just said, how

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<v Speaker 2>do we think about it differently, which is kind of

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<v Speaker 2>what happened with hashbron cast role shepherds Pie. Like, what

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<v Speaker 2>else can we do with this hashbron cast role? Can

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<v Speaker 2>we want like a pancake? Make it a topic on something.

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<v Speaker 2>We've turned them intoitator tots, like We've done all kinds

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<v Speaker 2>of fun stuff and so this new one, I'm just

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<v Speaker 2>I can't wait to actually talk about it publicly. But

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<v Speaker 2>they're just always innovating and Matt is such a driver.

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<v Speaker 2>I'm so excited to have him on the team. He's

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<v Speaker 2>got energy probably similar to mine, and that he's he's

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<v Speaker 2>really pushing to fill the pipeline, to think about the

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<v Speaker 2>stage game process a little bit differently, to make sure

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<v Speaker 2>that we have plenty of room for testing and learning.

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<v Speaker 2>We're also pulling out the archives. We're looking at things

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<v Speaker 2>that we've done in the past that might need to

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<v Speaker 2>come back in a new and different way, or it

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<v Speaker 2>might be time to revisit some of those things. So

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<v Speaker 2>the team is just really energized, I would say, under

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<v Speaker 2>their leadership, and I think look like anything when you

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<v Speaker 2>have momentum. Momentum is so contagious, it's so precious. I'm

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<v Speaker 2>always telling the leadership team, like our job as leaders

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<v Speaker 2>is to create momentum, because when you have it, it's

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<v Speaker 2>just the flywheels starts spinning and that's when things get

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<v Speaker 2>really really good. And I would say an innovation pipeline

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<v Speaker 2>is the exact same way when you are at it

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<v Speaker 2>and you're filling it, and like innovation begets innovation, and

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<v Speaker 2>that creative mindset starts spinning. Like it's just it's a

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<v Speaker 2>really rich and wonderful place to be. And that team

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<v Speaker 2>is on fire right now, really thinking about a lot

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<v Speaker 2>of good stuff. So I we tell you hash Broncast, Roll,

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<v Speaker 2>Shepherd's Pie, the pot Roast, the new chicken and rice,

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<v Speaker 2>the ribs. That's this is just the beginning. We've got

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<v Speaker 2>a few things if you kind of get out there

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<v Speaker 2>a little bit. We've got a few things in tests

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<v Speaker 2>around the country, and we've got a big test that's

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<v Speaker 2>getting ready to launch, similar to the last kind of

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<v Speaker 2>twenty item tests that we did in Texas. We're doing

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<v Speaker 2>another really big one in December where some I know

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<v Speaker 2>some things in there are going to be like absolute

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<v Speaker 2>rock stars and going to hit the menu. So team

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<v Speaker 2>has been real busy. I'm real proud of them.

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<v Speaker 1>Exciting hourly turnover improved the impressive seventeen percentage points in

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<v Speaker 1>the first quarter. What's driving that?

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<v Speaker 2>Gosh, that's really I can't take any credit for that.

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<v Speaker 2>That's the field, right, That is great leadership. We've made

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<v Speaker 2>some changes. We've really talked to the field leaders about

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<v Speaker 2>owning development, about owning ninety day turnover, about literally onboarding

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<v Speaker 2>everybody onto their teams and making sure that they feel

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<v Speaker 2>like they're building the right teams and that they are

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<v Speaker 2>really personally in that. We've we had some other positions

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<v Speaker 2>in the past a cracker barrel that were sort of

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<v Speaker 2>in between the GM and you know, a server, or

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<v Speaker 2>the GM and the girl cook. And what we said was, no,

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<v Speaker 2>you're the leader, this is your team. We want you

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<v Speaker 2>to build it, we want you to own it. Now

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<v Speaker 2>they've got a lot on their plates, so not exactly

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<v Speaker 2>an easy conversation, but they get it right. And what

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<v Speaker 2>I think that does is it just builds accountability, of

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<v Speaker 2>build trust, It builds that sort of I'm in it

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<v Speaker 2>with you mentality. I'd say that's The biggest part, frankly

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<v Speaker 2>is just really leaders focused on and focused on building

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<v Speaker 2>their teams, developing their talent. But then I would say, secondly,

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<v Speaker 2>we are really trying to focus and prioritize better as

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<v Speaker 2>an organization and not keep changing the plan, not keep

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<v Speaker 2>changing what we ask the field to do. Tell you

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<v Speaker 2>one thing on one day and change it a couple

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<v Speaker 2>days later. That's chaos. If you've ever operated in an

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<v Speaker 2>environment like that, it's really hard. And we had been

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<v Speaker 2>doing a little bit of that in the past, and

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<v Speaker 2>so really keeping them focused, keeping them on the right things,

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<v Speaker 2>taking care of guests, the metrics that matter. You know,

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<v Speaker 2>We've spent a lot of time getting them, getting them

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<v Speaker 2>really focused on executing with excellence every guest, every day,

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<v Speaker 2>every shift. And I really believe that's what's paying off

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<v Speaker 2>because then as a team member, you know what to do,

0:10:53.480 --> 0:10:55.520
<v Speaker 2>you know what's expected of you, you know how you're

0:10:55.520 --> 0:10:57.760
<v Speaker 2>going to be judged and what you're going to be

0:10:57.760 --> 0:11:01.679
<v Speaker 2>held accountable to, and that's exciting, right. I think one

0:11:01.679 --> 0:11:05.120
<v Speaker 2>of my management philosophies is that people don't wake up

0:11:05.200 --> 0:11:07.720
<v Speaker 2>wanting to screw up, Like they don't come into work

0:11:07.800 --> 0:11:09.959
<v Speaker 2>wanting to do a bad job. They really don't. They

0:11:10.000 --> 0:11:12.920
<v Speaker 2>come in wanting to be recognized for the work that

0:11:12.960 --> 0:11:15.240
<v Speaker 2>they're doing. They've made a choice. They could do many

0:11:15.320 --> 0:11:18.840
<v Speaker 2>other things, work many other places, but they're there, and

0:11:18.880 --> 0:11:22.720
<v Speaker 2>so recognizing that contribution, helping them be their best, giving

0:11:22.720 --> 0:11:25.240
<v Speaker 2>them the tools to make their jobs easier, to make

0:11:25.280 --> 0:11:29.199
<v Speaker 2>them enjoyable, to recognize their contributions to me is really

0:11:29.440 --> 0:11:31.520
<v Speaker 2>what being a great leader is all about, and building

0:11:31.559 --> 0:11:34.200
<v Speaker 2>those teams is all about because people want to do good,

0:11:34.360 --> 0:11:37.280
<v Speaker 2>they really do, especially in the hospitality business. You want

0:11:37.280 --> 0:11:38.600
<v Speaker 2>to take care of people. You want to have the

0:11:38.600 --> 0:11:41.160
<v Speaker 2>time to smile and chat with them and create their

0:11:41.240 --> 0:11:43.720
<v Speaker 2>day and work together as a team. That's what this

0:11:43.800 --> 0:11:44.720
<v Speaker 2>industry is all about.

0:11:46.280 --> 0:11:50.400
<v Speaker 1>Yeah, well, it sounds like transparency is part of the

0:11:50.440 --> 0:11:53.160
<v Speaker 1>culture shift, right, Like that's as.

0:11:53.040 --> 0:11:55.319
<v Speaker 2>An employee, that's yeah, for sure.

0:11:55.320 --> 0:11:57.680
<v Speaker 1>That's a wonderful thing. Yeah, you want to look to

0:11:57.720 --> 0:11:59.720
<v Speaker 1>your point so great good stuff.

0:12:00.080 --> 0:12:02.800
<v Speaker 2>In trouble Sometimes sometimes I say things I really shouldn't say,

0:12:02.960 --> 0:12:05.560
<v Speaker 2>you know, Yeah, the team or the finance.

0:12:05.240 --> 0:12:12.960
<v Speaker 1>Team is like, yeah, they can be a stick in

0:12:12.960 --> 0:12:13.319
<v Speaker 1>the muddle.

0:12:13.640 --> 0:12:16.719
<v Speaker 2>So yeah, every so often, No, but again, people you

0:12:16.840 --> 0:12:18.400
<v Speaker 2>got to lean into the fact that people want to

0:12:18.440 --> 0:12:19.880
<v Speaker 2>do the right thing. And when you give them the

0:12:19.920 --> 0:12:23.240
<v Speaker 2>information and make better decisions about where you're going and

0:12:23.280 --> 0:12:27.040
<v Speaker 2>why and what's important, I believe that people rise to

0:12:27.080 --> 0:12:27.600
<v Speaker 2>the occasion.

0:12:27.880 --> 0:12:31.400
<v Speaker 1>Yeah, you mentioned on the call that value scores improved

0:12:31.440 --> 0:12:33.840
<v Speaker 1>even though pricing was up four point seven percent in

0:12:33.880 --> 0:12:36.360
<v Speaker 1>the quarter. How are you delivering value to your customers?

0:12:36.960 --> 0:12:40.240
<v Speaker 2>Gosh, it's one of the things that Cracker Barrel has

0:12:40.280 --> 0:12:45.560
<v Speaker 2>done so well for so long, Mike. I I was

0:12:45.640 --> 0:12:48.079
<v Speaker 2>shocked when I got here, truly, Like I hadn't actually

0:12:48.080 --> 0:12:49.600
<v Speaker 2>eaten at a Cracker Barrel in a while. I grew

0:12:49.640 --> 0:12:52.440
<v Speaker 2>up going to it. But I came in and my husband,

0:12:52.480 --> 0:12:55.840
<v Speaker 2>who's like good Jersey boy East Coaster, he had never

0:12:55.840 --> 0:12:57.679
<v Speaker 2>actually been to a Cracker Barrel when I was interviewing

0:12:57.760 --> 0:12:59.320
<v Speaker 2>for this job. When we went and we sat down

0:12:59.320 --> 0:13:02.839
<v Speaker 2>and he was like, my god, you get so much

0:13:02.920 --> 0:13:05.880
<v Speaker 2>food for a such a great price. Like he's like,

0:13:05.960 --> 0:13:08.800
<v Speaker 2>this is incredible, you know, And it's I think it's

0:13:08.840 --> 0:13:12.320
<v Speaker 2>one of those little I want to say, like hidden

0:13:12.400 --> 0:13:15.720
<v Speaker 2>gems or like untold you know, we don't shout it

0:13:15.760 --> 0:13:19.040
<v Speaker 2>from the rooftops, but it's the thing that in all

0:13:19.080 --> 0:13:21.640
<v Speaker 2>the research as we were building the transformation plan, that

0:13:21.760 --> 0:13:24.440
<v Speaker 2>came back time and time and time again from our guests.

0:13:24.440 --> 0:13:27.040
<v Speaker 2>It wasn't that you have the cheapest price. It was

0:13:27.080 --> 0:13:31.120
<v Speaker 2>that you give us a fair price, a reasonable price,

0:13:31.200 --> 0:13:36.120
<v Speaker 2>but really delicious, abundant quality food. And that is the

0:13:36.240 --> 0:13:39.520
<v Speaker 2>magic of cracker Barrel. It's not about being the cheapest

0:13:39.640 --> 0:13:43.040
<v Speaker 2>or whatever. But I mean, that's sort of the other

0:13:43.120 --> 0:13:45.160
<v Speaker 2>interesting thing. I don't know if you heard Craig talk

0:13:45.160 --> 0:13:49.240
<v Speaker 2>about it yesterday, but our average check for the quarter

0:13:49.440 --> 0:13:52.959
<v Speaker 2>is like fifteen dollars, and the average casual dining check

0:13:53.000 --> 0:13:55.600
<v Speaker 2>in the same quarter as twenty seven dollars, right, So

0:13:56.120 --> 0:14:01.040
<v Speaker 2>it just we're a screaming deal for the home cook nature,

0:14:01.120 --> 0:14:03.760
<v Speaker 2>the handcrafted nature of our food, how delicious it is,

0:14:03.800 --> 0:14:06.920
<v Speaker 2>how abundant it is. So I think that's that guess

0:14:06.920 --> 0:14:08.920
<v Speaker 2>really recognize that. So while we've had to take a

0:14:08.960 --> 0:14:12.040
<v Speaker 2>little bit of price to offset inflation to do some

0:14:12.080 --> 0:14:13.800
<v Speaker 2>of the things that we're doing, and frankly we were

0:14:13.840 --> 0:14:16.559
<v Speaker 2>behind on price. We hadn't taken a lot of price

0:14:16.600 --> 0:14:19.200
<v Speaker 2>over the last several years. There was some opportunity as

0:14:19.200 --> 0:14:21.960
<v Speaker 2>we were looking because people weren't playing back that we

0:14:21.960 --> 0:14:24.360
<v Speaker 2>were the lowest even though we were, so we knew

0:14:24.360 --> 0:14:26.240
<v Speaker 2>we had a little bit of opportunity to sort of

0:14:26.280 --> 0:14:29.640
<v Speaker 2>right size some of those like item prices, but really

0:14:29.640 --> 0:14:32.720
<v Speaker 2>make sure that we're focusing on creating a great experience,

0:14:32.760 --> 0:14:35.960
<v Speaker 2>delivering high quality food, making sure that people felt like

0:14:36.000 --> 0:14:38.760
<v Speaker 2>it was still abundant because we haven't changed portion sizes

0:14:38.800 --> 0:14:42.560
<v Speaker 2>in years either. So really just all of those things

0:14:42.600 --> 0:14:45.760
<v Speaker 2>continuing to come together. I think people are really recognizing

0:14:45.760 --> 0:14:48.400
<v Speaker 2>it and it's resonating with them when value is so

0:14:48.480 --> 0:14:51.320
<v Speaker 2>important because so many people are screaming and dealing and

0:14:52.160 --> 0:14:53.640
<v Speaker 2>you know, it's just not kind of how we play

0:14:53.640 --> 0:14:54.040
<v Speaker 2>our game.

0:14:55.280 --> 0:14:57.720
<v Speaker 1>Yeah, some of the companies you know that we cover

0:14:57.840 --> 0:15:01.040
<v Speaker 1>that are outperforming, actually most of them are have higher

0:15:01.160 --> 0:15:03.840
<v Speaker 1>cost of goods sold than their competitors, right, so they're

0:15:04.200 --> 0:15:08.000
<v Speaker 1>giving more, you know, on that plate than their competitors,

0:15:08.000 --> 0:15:10.360
<v Speaker 1>and its showing up in the sales and traffic.

0:15:10.960 --> 0:15:14.120
<v Speaker 2>Yeah, for sure. I mean people people eat what there is.

0:15:14.160 --> 0:15:15.800
<v Speaker 2>They always have, they always will, right Like when that

0:15:15.840 --> 0:15:17.960
<v Speaker 2>plate comes out, it's it's got to beautiful, it's going

0:15:18.000 --> 0:15:19.680
<v Speaker 2>to be full, it's going to be what you're expecting.

0:15:20.240 --> 0:15:22.200
<v Speaker 2>And then you're doing the math the whole time, like

0:15:22.240 --> 0:15:24.160
<v Speaker 2>from when you order to when you actually pay the bill.

0:15:24.320 --> 0:15:25.960
<v Speaker 2>Is that is that value equation right?

0:15:26.560 --> 0:15:30.960
<v Speaker 1>You know, so, I'd imagine the remodels will help, But

0:15:31.000 --> 0:15:32.720
<v Speaker 1>how else do you plan to get gen Z to

0:15:32.760 --> 0:15:35.360
<v Speaker 1>put Cracker Barrel in its consideration set?

0:15:35.800 --> 0:15:39.560
<v Speaker 2>Mike, Clearly your TikTok account is not up to date.

0:15:39.680 --> 0:15:42.320
<v Speaker 2>I mean we are, we are all over that with

0:15:42.400 --> 0:15:45.680
<v Speaker 2>some really fun ways. I mean one of the beauties

0:15:45.720 --> 0:15:49.600
<v Speaker 2>of Cracker Barrel is that we really do connect across generations. Right,

0:15:49.640 --> 0:15:52.760
<v Speaker 2>It's not just about the boomers or X or Z

0:15:53.080 --> 0:15:55.880
<v Speaker 2>or Alpha. Like. Literally, it's a place where you walk in.

0:15:56.320 --> 0:15:58.720
<v Speaker 2>It's why I love being out in our restaurants. It

0:15:58.720 --> 0:16:02.280
<v Speaker 2>feels like you're in America. You look around and everybody

0:16:02.280 --> 0:16:05.000
<v Speaker 2>looks different. They're different ages, they're different ethnicities. You see families,

0:16:05.000 --> 0:16:08.120
<v Speaker 2>you see singles, you see friends together. It's literally a

0:16:08.120 --> 0:16:11.080
<v Speaker 2>slice of America, which I really really love. Everyone's welcome

0:16:11.160 --> 0:16:15.800
<v Speaker 2>and everybody enjoys Craco Barrel. But specifically that younger generation,

0:16:16.200 --> 0:16:20.000
<v Speaker 2>they're really finding us. They're finding us in some interesting ways. One,

0:16:20.200 --> 0:16:23.560
<v Speaker 2>they probably already experienced us with their family, either their

0:16:23.600 --> 0:16:28.080
<v Speaker 2>parents or their grandparents or something like that. But truly,

0:16:28.680 --> 0:16:31.120
<v Speaker 2>we've had quite a few things go viral on TikTok lately,

0:16:31.400 --> 0:16:34.000
<v Speaker 2>more so in the merch category. So I don't know.

0:16:34.120 --> 0:16:36.400
<v Speaker 2>I actually this was not planned, but I do have

0:16:36.440 --> 0:16:38.760
<v Speaker 2>these sitting here on my desk. Have you seen these?

0:16:38.760 --> 0:16:42.000
<v Speaker 2>These are these Altoid retro sours. This is like a

0:16:42.120 --> 0:16:45.480
<v Speaker 2>huge item from like I want to say, the nineties,

0:16:45.520 --> 0:16:48.560
<v Speaker 2>maybe it's the two thousands. I'm not honestly not even sure.

0:16:49.000 --> 0:16:52.720
<v Speaker 2>But we are an exclusive carrier of these. These cannot

0:16:52.840 --> 0:16:55.040
<v Speaker 2>keep in stock, Like I literally had to beg a

0:16:55.040 --> 0:16:57.720
<v Speaker 2>favor to get them because I really love them. But

0:16:58.160 --> 0:17:01.200
<v Speaker 2>those so those have blown up all over the socials,

0:17:01.200 --> 0:17:04.760
<v Speaker 2>all over TikTok. But the other crazy fun thing is

0:17:04.800 --> 0:17:07.919
<v Speaker 2>we have these sweaters that we call toofers because it

0:17:07.960 --> 0:17:10.879
<v Speaker 2>looks like it looks like you're wearing a sweater or

0:17:10.880 --> 0:17:14.040
<v Speaker 2>a sweatshirt with a T shirt underneath it, and but

0:17:14.119 --> 0:17:17.320
<v Speaker 2>of course you're not. And they're embroidered and they have

0:17:17.359 --> 0:17:19.239
<v Speaker 2>all kinds of fun things on it, everything from like

0:17:19.480 --> 0:17:23.160
<v Speaker 2>Christmas things to the latest collection that the merch team

0:17:23.240 --> 0:17:26.760
<v Speaker 2>did is actually a hunting and fishing collection, so it's

0:17:26.800 --> 0:17:29.720
<v Speaker 2>like deer and like a bass, and like all kinds

0:17:29.760 --> 0:17:33.679
<v Speaker 2>of those blew up on TikTok. We had all these

0:17:33.840 --> 0:17:37.720
<v Speaker 2>like gen A gen Z girls like filming themselves running

0:17:37.720 --> 0:17:39.920
<v Speaker 2>into Cracker Girl to get these things. They of course

0:17:39.920 --> 0:17:41.960
<v Speaker 2>they all buy like an extra large and like, you know,

0:17:42.000 --> 0:17:45.640
<v Speaker 2>because big sweaters are in again and we literally sold

0:17:45.640 --> 0:17:47.159
<v Speaker 2>out of them in like a week. So it's like

0:17:47.200 --> 0:17:49.280
<v Speaker 2>one of the hottest, hottest things we've had. And so

0:17:49.320 --> 0:17:51.760
<v Speaker 2>we've got Christmas ones right now that are all the rage.

0:17:52.240 --> 0:17:55.040
<v Speaker 2>But you know, we are, we are doing it so

0:17:55.240 --> 0:17:57.479
<v Speaker 2>lots of ways. And then you know, as we were

0:17:57.480 --> 0:17:59.760
<v Speaker 2>talking about earlier, there's so many items on the menu

0:18:00.320 --> 0:18:03.840
<v Speaker 2>that really are for everybody, you know, whether whether you

0:18:03.880 --> 0:18:06.719
<v Speaker 2>want to have something as indulgent as the Ashbroncast Rule

0:18:06.760 --> 0:18:09.800
<v Speaker 2>Shepherd's By or something might a like our girled chicken tenderloine,

0:18:09.800 --> 0:18:14.200
<v Speaker 2>which is like a perennial favorite, low calorie, delicious marinated

0:18:14.280 --> 0:18:16.520
<v Speaker 2>chicken brass. Like, you know, we've got something for everybody

0:18:16.560 --> 0:18:17.040
<v Speaker 2>on the menu.

0:18:18.200 --> 0:18:21.880
<v Speaker 1>Great, And yeah, I gotta I've been neglecting my TikTok feed.

0:18:21.880 --> 0:18:22.800
<v Speaker 1>I'm not gonna lie.

0:18:24.160 --> 0:18:26.040
<v Speaker 2>I was like, you clearly have not seen Cracker all

0:18:26.240 --> 0:18:29.320
<v Speaker 2>because we are. We are. It's fun, It's super fun.

0:18:29.320 --> 0:18:32.160
<v Speaker 2>It's just such a fun way to communicate with your guests.

0:18:32.240 --> 0:18:35.320
<v Speaker 2>You know, that's really pillar one of our transformation is

0:18:35.359 --> 0:18:39.679
<v Speaker 2>about making sure that we are relevantly out there communicating

0:18:39.680 --> 0:18:41.399
<v Speaker 2>with people the way they want to be communicated with,

0:18:41.560 --> 0:18:44.159
<v Speaker 2>right and so, and that's a little different generationally, Right,

0:18:44.200 --> 0:18:46.800
<v Speaker 2>it's a little different based on your need state in

0:18:46.840 --> 0:18:48.840
<v Speaker 2>your life. If you have children or you don't, or

0:18:48.920 --> 0:18:51.919
<v Speaker 2>you know, you're going from work, you want delivery, you know.

0:18:51.960 --> 0:18:53.600
<v Speaker 2>So we just have to make sure that we're in

0:18:53.680 --> 0:18:56.280
<v Speaker 2>all of those spaces in ways that are right for

0:18:56.359 --> 0:18:58.760
<v Speaker 2>the brand and right for our guests, so that we're

0:18:58.760 --> 0:19:01.720
<v Speaker 2>there to make sure that again we're solving problems for people.

0:19:01.800 --> 0:19:04.120
<v Speaker 2>So letting people know that we got you, We've got

0:19:04.119 --> 0:19:06.439
<v Speaker 2>all these great items in these great solutions in cracker

0:19:06.440 --> 0:19:09.120
<v Speaker 2>Barrel can be a solution for them across many dimensions

0:19:09.160 --> 0:19:09.960
<v Speaker 2>of their life.

0:19:10.200 --> 0:19:13.679
<v Speaker 1>Yeah, it's great, and it's really paid dividends TikTok for

0:19:13.960 --> 0:19:15.040
<v Speaker 1>you know, Chili's this year.

0:19:15.640 --> 0:19:18.320
<v Speaker 2>They absolutely hundred percent. George and Kevin have done a

0:19:18.320 --> 0:19:18.960
<v Speaker 2>great job on that.

0:19:19.320 --> 0:19:24.199
<v Speaker 1>Yeah, all right, So you communicate that remodels are an

0:19:24.200 --> 0:19:29.359
<v Speaker 1>important piece of the turnaround with restaurants saintst Our sales

0:19:29.359 --> 0:19:32.040
<v Speaker 1>outperforming retail. Could there be an opportunity to maybe shrink

0:19:32.080 --> 0:19:35.119
<v Speaker 1>the size of the retail store. Yeah.

0:19:35.240 --> 0:19:37.600
<v Speaker 2>I mean, look, you never say never to anything because

0:19:37.680 --> 0:19:39.320
<v Speaker 2>as I already told you, I look at everything, I

0:19:39.400 --> 0:19:42.680
<v Speaker 2>question everything all the time. But no, right now we're

0:19:42.680 --> 0:19:45.960
<v Speaker 2>thinking quite the opposite. Retail is such a differentiator for us.

0:19:46.600 --> 0:19:49.400
<v Speaker 2>It is, I truly believe, part of the special sauce

0:19:49.440 --> 0:19:52.879
<v Speaker 2>of Cracker Barrel. You know, it is so unique. I

0:19:52.880 --> 0:19:55.880
<v Speaker 2>mean I challenge you to wander around the Cracker Barrel

0:19:55.920 --> 0:19:59.240
<v Speaker 2>retail store and not find something like there's something for

0:19:59.320 --> 0:20:04.679
<v Speaker 2>everybody in from food to cord, apparel to games and toys.

0:20:04.720 --> 0:20:08.320
<v Speaker 2>I mean literally we've got everything. I mean cards, I mean,

0:20:08.640 --> 0:20:12.200
<v Speaker 2>it's crazy the amount of stuff we have. But that's

0:20:12.200 --> 0:20:15.560
<v Speaker 2>just part of the charm, right there's something for everybody.

0:20:15.640 --> 0:20:18.480
<v Speaker 2>And what we're doing right now though with retail is

0:20:18.600 --> 0:20:21.679
<v Speaker 2>really saying kind of like we did on restaurant, what

0:20:21.720 --> 0:20:24.160
<v Speaker 2>are the metrics that matter? How do we actually really

0:20:24.200 --> 0:20:26.480
<v Speaker 2>think about the ways to win and what's important in

0:20:26.520 --> 0:20:28.600
<v Speaker 2>this business? Right on the restaurant side, it was like

0:20:28.920 --> 0:20:31.000
<v Speaker 2>food made recipe, right, it's got to be to people

0:20:31.000 --> 0:20:32.320
<v Speaker 2>in a quick and timely manner.

0:20:32.520 --> 0:20:32.760
<v Speaker 1>You know.

0:20:33.000 --> 0:20:35.800
<v Speaker 2>The skill level of some of the different positions was

0:20:35.840 --> 0:20:38.080
<v Speaker 2>important and making sure that things are made to recipe.

0:20:38.119 --> 0:20:40.720
<v Speaker 2>And you know, we're doing the same thing on retail,

0:20:40.800 --> 0:20:44.000
<v Speaker 2>so what should the layout be, right, I don't think

0:20:44.000 --> 0:20:46.680
<v Speaker 2>we actually have an optimized layout over on that side

0:20:46.680 --> 0:20:49.399
<v Speaker 2>of the business today. We in a lot of the

0:20:49.400 --> 0:20:53.240
<v Speaker 2>work on the strategic transformation. People said, I love that

0:20:53.320 --> 0:20:55.680
<v Speaker 2>side of the business, but like gosh, I feel like

0:20:55.680 --> 0:20:58.439
<v Speaker 2>I'm always standing in the wrong place. Sometimes I'm bumping

0:20:58.480 --> 0:21:00.480
<v Speaker 2>into something. I'm trying to get into the restaurant and

0:21:00.520 --> 0:21:03.320
<v Speaker 2>other people are trying to come out. And so it's

0:21:03.359 --> 0:21:05.359
<v Speaker 2>a little bit of a pain point today in terms

0:21:05.400 --> 0:21:09.440
<v Speaker 2>of customer flow, not that they don't like being there,

0:21:09.520 --> 0:21:12.879
<v Speaker 2>but we can improve and optimize the customer flow. So

0:21:12.920 --> 0:21:15.200
<v Speaker 2>we've just done a lot of customer journey work, kind

0:21:15.200 --> 0:21:17.240
<v Speaker 2>of first time in the history of the company, to

0:21:17.320 --> 0:21:20.520
<v Speaker 2>really understand journeys and what you know, if you're coming

0:21:20.520 --> 0:21:22.320
<v Speaker 2>in for a to go order, what that journey looks like,

0:21:22.400 --> 0:21:24.399
<v Speaker 2>versus if you're coming in for breakfast with your family,

0:21:24.520 --> 0:21:26.280
<v Speaker 2>versus if you're coming in for a quick lunch, like,

0:21:26.640 --> 0:21:28.879
<v Speaker 2>those journeys are all really really different. And so how

0:21:28.920 --> 0:21:31.520
<v Speaker 2>do we optimize the layout of the retail space and

0:21:31.560 --> 0:21:34.280
<v Speaker 2>the items and where they are and how people want

0:21:34.320 --> 0:21:37.160
<v Speaker 2>to shop for them in a way that really again

0:21:37.200 --> 0:21:41.440
<v Speaker 2>meets their needs and provides a great experience. So if

0:21:41.440 --> 0:21:44.119
<v Speaker 2>you come back to kind of the three imperatives that

0:21:44.160 --> 0:21:47.640
<v Speaker 2>I've talked about that underpin the transformation, right, the first

0:21:47.640 --> 0:21:49.919
<v Speaker 2>one is that relevancy piece, Right, do we have all

0:21:49.960 --> 0:21:52.760
<v Speaker 2>the right things relevancies about gaining market share? You know,

0:21:52.760 --> 0:21:54.679
<v Speaker 2>how do we make sure that when you're thinking about

0:21:54.760 --> 0:21:57.200
<v Speaker 2>the decisions whether it's to eat or shop, preper brels

0:21:57.240 --> 0:21:59.840
<v Speaker 2>top of mind. The second one is food and experiences

0:21:59.840 --> 0:22:02.639
<v Speaker 2>that people love and crave, and so that all comes together.

0:22:02.680 --> 0:22:05.120
<v Speaker 2>And then the last one is driving profitability. So as

0:22:05.119 --> 0:22:09.000
<v Speaker 2>we have those underpin everything we're doing. Thinking about the

0:22:09.080 --> 0:22:11.600
<v Speaker 2>layout of the retail items, where they are, how you

0:22:11.680 --> 0:22:14.360
<v Speaker 2>journey through that is really really important to driving all

0:22:14.359 --> 0:22:16.600
<v Speaker 2>of those, especially that second experiential pillar.

0:22:18.840 --> 0:22:21.960
<v Speaker 1>And advertising during NASCAR and college football as well as

0:22:22.200 --> 0:22:24.760
<v Speaker 1>Bravo have been some of the changes that have been

0:22:24.800 --> 0:22:26.879
<v Speaker 1>made to Cracker Barrows marketing. Right, what else can you

0:22:26.920 --> 0:22:29.120
<v Speaker 1>share about your plans for the rest of the fiscal year.

0:22:29.720 --> 0:22:32.040
<v Speaker 2>Yeah, maybe you should have Sarah come on and talk

0:22:32.080 --> 0:22:33.639
<v Speaker 2>to you about all the great work that she and

0:22:33.680 --> 0:22:38.840
<v Speaker 2>the team are taking on Right now, I would point

0:22:38.840 --> 0:22:41.040
<v Speaker 2>you towards our homemark promotion. This is really the first

0:22:41.040 --> 0:22:43.200
<v Speaker 2>time we've done something like this over the holidays. It's

0:22:43.200 --> 0:22:47.240
<v Speaker 2>super exciting. You got to go in through our loyalty program,

0:22:47.280 --> 0:22:50.879
<v Speaker 2>so it was sort of highlighting that. But somebody is

0:22:50.920 --> 0:22:54.359
<v Speaker 2>going to win a walk on role in a Hallmark

0:22:54.400 --> 0:22:58.959
<v Speaker 2>holiday movie, which I mean talk about cross generational appeal.

0:22:59.000 --> 0:23:01.240
<v Speaker 2>That's one of those things too that like young and old,

0:23:01.280 --> 0:23:05.159
<v Speaker 2>everybody like finds himself watching a holiday Hallmark movie and

0:23:05.960 --> 0:23:09.880
<v Speaker 2>in a weird way enjoying it. I think. So it is.

0:23:09.960 --> 0:23:12.199
<v Speaker 2>It's an exciting promotion. So we've got a lot of

0:23:12.600 --> 0:23:15.000
<v Speaker 2>cool things going on there. And frankly, the other nice

0:23:15.000 --> 0:23:17.160
<v Speaker 2>thing about it is our team members can win too

0:23:17.760 --> 0:23:20.119
<v Speaker 2>because we allow them to participate in the loyalty program.

0:23:20.160 --> 0:23:22.280
<v Speaker 2>So I'm really curious, like if a guest is going

0:23:22.280 --> 0:23:23.640
<v Speaker 2>to win, if a team member is going to win.

0:23:24.200 --> 0:23:27.280
<v Speaker 2>I've got the guy who leads all the field operations.

0:23:27.280 --> 0:23:29.880
<v Speaker 2>He's like gunning away, you know. So it's it's it's

0:23:29.880 --> 0:23:32.639
<v Speaker 2>super it's a super fun thing. But that's showing up

0:23:32.680 --> 0:23:34.560
<v Speaker 2>in lots of different ways. I get. We talked about

0:23:34.600 --> 0:23:37.880
<v Speaker 2>TikTok already that's a great place where we're really driving

0:23:38.000 --> 0:23:41.320
<v Speaker 2>a different type of content and a different type of engagement.

0:23:41.720 --> 0:23:43.880
<v Speaker 2>I think you'll see some real changes in the way

0:23:43.920 --> 0:23:47.280
<v Speaker 2>we approach Instagram that's looking and feeling really different under

0:23:47.280 --> 0:23:52.040
<v Speaker 2>Sarah's leadership, and really just trying to match up the

0:23:52.160 --> 0:23:55.800
<v Speaker 2>message with the guest with the channel, right. And then

0:23:55.920 --> 0:23:59.480
<v Speaker 2>that's what great modern marketing is all about, is reaching

0:23:59.520 --> 0:24:01.200
<v Speaker 2>you the way you want to be reached, with a

0:24:01.240 --> 0:24:05.040
<v Speaker 2>message that resonates. And so it's not kind of you know,

0:24:05.119 --> 0:24:07.360
<v Speaker 2>I've worked for people before who've said like spray and pray,

0:24:07.520 --> 0:24:09.080
<v Speaker 2>like where you just like put it out there and

0:24:09.400 --> 0:24:10.960
<v Speaker 2>you know, you buy a lot of mass media and

0:24:11.000 --> 0:24:14.679
<v Speaker 2>you try to like get everybody. It's it's targeted now, right.

0:24:14.720 --> 0:24:18.720
<v Speaker 2>Good marketers are really data driven. They understand need states,

0:24:18.720 --> 0:24:21.560
<v Speaker 2>they understand their audience segmentation, They know who they're talking

0:24:21.600 --> 0:24:23.879
<v Speaker 2>to and what's going to really resonate with them and

0:24:23.920 --> 0:24:27.800
<v Speaker 2>really drive that relevancy and what they need and want

0:24:27.880 --> 0:24:30.560
<v Speaker 2>from a relationship with the brand, right, which is ultimately

0:24:30.560 --> 0:24:32.840
<v Speaker 2>what you're doing. The last thing I'd say in all

0:24:32.880 --> 0:24:36.080
<v Speaker 2>of that is our loyalty program is another really important

0:24:36.080 --> 0:24:39.080
<v Speaker 2>way in because with six million people in that program,

0:24:39.400 --> 0:24:44.760
<v Speaker 2>it is it is a such an important marketing vehicle,

0:24:44.840 --> 0:24:48.320
<v Speaker 2>but also just way for us to reward those really

0:24:48.400 --> 0:24:50.679
<v Speaker 2>valuable guests. I mean, it's a great way also for

0:24:50.760 --> 0:24:53.320
<v Speaker 2>us to deliver value because you can earn and redeem

0:24:53.359 --> 0:24:55.840
<v Speaker 2>on both sides of the business. And so it's got

0:24:55.840 --> 0:24:59.440
<v Speaker 2>a marketing role, but it's also got obviously a loyalty role.

0:24:59.560 --> 0:25:02.399
<v Speaker 2>It's got you know, kind of frequency business driving roles.

0:25:02.440 --> 0:25:05.320
<v Speaker 2>So I think Sarah and the team are really onto

0:25:05.359 --> 0:25:10.520
<v Speaker 2>some exciting things, really driving that kind of stickiness and

0:25:10.640 --> 0:25:15.200
<v Speaker 2>emotional connection that Krackerrel's always Crackerrel's always had an emotional

0:25:15.240 --> 0:25:17.840
<v Speaker 2>place of people's heart, but really just making it feel

0:25:17.880 --> 0:25:20.720
<v Speaker 2>more modern and relevant for today through the marketing.

0:25:21.160 --> 0:25:22.639
<v Speaker 1>Yeah. Yeah, and a lot of you know, a lot

0:25:22.720 --> 0:25:25.119
<v Speaker 1>of the chains that we've covered have revamped or loyalty

0:25:25.400 --> 0:25:28.040
<v Speaker 1>programs this year at a lot of the big reason

0:25:28.160 --> 0:25:31.439
<v Speaker 1>is they just weren't really working. So I guess you know,

0:25:31.480 --> 0:25:35.280
<v Speaker 1>how confident are you that loyalty is incremental and kind

0:25:35.280 --> 0:25:36.960
<v Speaker 1>of if you could talk a little bit about how you're.

0:25:36.840 --> 0:25:40.320
<v Speaker 2>Measuring it, Yeah, sure, I'm confident now. I wasn't in

0:25:40.359 --> 0:25:43.520
<v Speaker 2>the beginning, but we've spent We spent a few months

0:25:43.880 --> 0:25:46.879
<v Speaker 2>over the summer really digging in. Part of it was

0:25:46.880 --> 0:25:48.439
<v Speaker 2>hard because it was a brand new program, right, We

0:25:48.480 --> 0:25:51.760
<v Speaker 2>only launched it last September or October, right, and so

0:25:52.440 --> 0:25:54.600
<v Speaker 2>kind of just even before it was a year old,

0:25:54.640 --> 0:25:58.520
<v Speaker 2>we had such such uptake from our guests, such love

0:25:58.640 --> 0:26:00.800
<v Speaker 2>out of the gate for wanting to be loyalty program

0:26:00.800 --> 0:26:03.880
<v Speaker 2>for Cracker Barrel. Like literally all of our activations still

0:26:03.880 --> 0:26:07.400
<v Speaker 2>are way ahead above our projections. You know, we're sitting

0:26:07.400 --> 0:26:09.560
<v Speaker 2>at over six million people at the end of Q one,

0:26:09.720 --> 0:26:12.719
<v Speaker 2>and it's just tremendous in one year. They're spending more,

0:26:12.760 --> 0:26:16.320
<v Speaker 2>they're coming more often, and so really our challenge the

0:26:16.400 --> 0:26:19.760
<v Speaker 2>summer was is it incremental? How incremental is it? We

0:26:19.800 --> 0:26:22.040
<v Speaker 2>saw that they were about twenty six percent of traffic.

0:26:22.040 --> 0:26:27.359
<v Speaker 2>I think I've shared that publicly, and so we weren't

0:26:27.359 --> 0:26:29.640
<v Speaker 2>sure in the beginning. I wasn't really sure at all,

0:26:29.720 --> 0:26:32.919
<v Speaker 2>but we are very confident now we've really dissected that.

0:26:33.440 --> 0:26:37.640
<v Speaker 2>We're really now starting to segment them, understand what motivates

0:26:37.680 --> 0:26:40.840
<v Speaker 2>their behavior, what they want in a loyalty program too. Right,

0:26:40.880 --> 0:26:42.280
<v Speaker 2>You kind of don't want to just feel like you're

0:26:42.280 --> 0:26:45.560
<v Speaker 2>being marketed to or that it's turning into a transaction

0:26:45.680 --> 0:26:47.760
<v Speaker 2>or somebody's just trying to get you in. You wanted

0:26:47.800 --> 0:26:50.520
<v Speaker 2>to feel like genuine and in a way that adds

0:26:50.600 --> 0:26:52.800
<v Speaker 2>value again to your life or solves a problem. So

0:26:53.359 --> 0:26:56.720
<v Speaker 2>we're doing a ton of testing right now on offers,

0:26:57.040 --> 0:27:01.640
<v Speaker 2>on constructs, on you know, ways to even think about

0:27:01.680 --> 0:27:04.000
<v Speaker 2>the two sides of the business. So in Q one

0:27:04.080 --> 0:27:06.800
<v Speaker 2>we did a lot of testing on retail plus restaurant

0:27:07.040 --> 0:27:10.080
<v Speaker 2>and how does that resonate with different sub segments of

0:27:10.119 --> 0:27:14.440
<v Speaker 2>the six million. So lots to continue to learn there.

0:27:14.480 --> 0:27:16.480
<v Speaker 2>But what I love about it is it can be

0:27:16.600 --> 0:27:19.960
<v Speaker 2>very hint driven, right, It's very factual, and then you

0:27:20.000 --> 0:27:24.240
<v Speaker 2>can apply that across other populations and really get to

0:27:24.280 --> 0:27:27.640
<v Speaker 2>some interesting business driving and more than anything like, yeah,

0:27:27.680 --> 0:27:31.280
<v Speaker 2>it drives the business, but it drives that satisfaction and

0:27:31.280 --> 0:27:34.879
<v Speaker 2>that emotional connection, which is really really what you're after

0:27:34.960 --> 0:27:37.040
<v Speaker 2>as a brand. You know, you want people who genuinely

0:27:37.080 --> 0:27:38.359
<v Speaker 2>love you, who want to be a part of what

0:27:38.400 --> 0:27:40.600
<v Speaker 2>you're doing, and that to me is the big exciting

0:27:40.640 --> 0:27:42.520
<v Speaker 2>part of it for sure.

0:27:43.160 --> 0:27:45.200
<v Speaker 1>Can you share anything about the back of the house

0:27:45.400 --> 0:27:46.640
<v Speaker 1>optimization tests that.

0:27:46.600 --> 0:27:50.199
<v Speaker 2>You're doing, it's still early. I did talk about it

0:27:50.240 --> 0:27:52.040
<v Speaker 2>a little bit, or Craig did a can remember which

0:27:52.040 --> 0:27:55.960
<v Speaker 2>one of us got the question yesterday. But it's exciting

0:27:56.160 --> 0:28:00.840
<v Speaker 2>because I really believe, as we talked earlier about, people

0:28:00.840 --> 0:28:02.480
<v Speaker 2>want to do good work. They want to feel good

0:28:02.480 --> 0:28:04.320
<v Speaker 2>about the work that they do, and when you can

0:28:04.359 --> 0:28:08.199
<v Speaker 2>make it easier for them to do their jobs well, like, gosh,

0:28:08.240 --> 0:28:11.199
<v Speaker 2>that's just nirvana for everybody. And a lot of our

0:28:11.240 --> 0:28:14.040
<v Speaker 2>processes at Cracker Barrel have not changed in a very

0:28:14.119 --> 0:28:18.040
<v Speaker 2>very long time. So what we sort of realized as

0:28:18.040 --> 0:28:20.600
<v Speaker 2>we were going through the transformation is, gosh, we really

0:28:20.640 --> 0:28:22.520
<v Speaker 2>need to look at the back of house and say,

0:28:22.640 --> 0:28:26.040
<v Speaker 2>there's newer technology, there's newer ways to do things. Yeah,

0:28:26.080 --> 0:28:27.439
<v Speaker 2>we know how to do it. We've been doing it

0:28:27.480 --> 0:28:29.880
<v Speaker 2>this way for a while. And there's some real pros

0:28:29.920 --> 0:28:32.040
<v Speaker 2>to that. There's some real things that you want to keep,

0:28:32.280 --> 0:28:34.680
<v Speaker 2>but then there's also a lot of opportunity for improvement.

0:28:34.720 --> 0:28:36.960
<v Speaker 2>And that's what this process is about. It's a multi

0:28:37.040 --> 0:28:40.240
<v Speaker 2>year project, it's a big one, but it's really saying

0:28:41.120 --> 0:28:43.040
<v Speaker 2>are there new processes we should look at? Are there

0:28:43.080 --> 0:28:45.760
<v Speaker 2>new ways to make the food? Where really we start

0:28:45.800 --> 0:28:49.360
<v Speaker 2>with quality as the number one metric and all of this, like,

0:28:49.400 --> 0:28:53.280
<v Speaker 2>how do we improve quality and just think about other

0:28:53.320 --> 0:28:55.880
<v Speaker 2>ways to drive efficiency and make the jobs more enjoyable.

0:28:55.920 --> 0:28:58.640
<v Speaker 2>There's so much handwork and what we do at Cracker Barrel.

0:29:00.200 --> 0:29:02.080
<v Speaker 2>We're not taking that away because that's the other thing

0:29:02.120 --> 0:29:04.640
<v Speaker 2>people love, and our teams have such pride in what

0:29:04.720 --> 0:29:06.640
<v Speaker 2>they do and the food that they create and that

0:29:06.680 --> 0:29:09.280
<v Speaker 2>we share with people. But there are ways to do

0:29:09.320 --> 0:29:14.000
<v Speaker 2>it easier, I or more easily. Sort that was bad grammar.

0:29:14.880 --> 0:29:16.800
<v Speaker 2>I was talking to a group a couple of weeks

0:29:16.840 --> 0:29:18.960
<v Speaker 2>ago that there were to do probably four five hundred

0:29:19.000 --> 0:29:21.640
<v Speaker 2>people in the audience, and I said, okay, who literally

0:29:21.640 --> 0:29:24.719
<v Speaker 2>goes and buys ahead of lettuce and chops it up

0:29:24.720 --> 0:29:28.680
<v Speaker 2>to make a salad? Still today? Right, like two people

0:29:28.760 --> 0:29:31.000
<v Speaker 2>raise their hand out of like five hundred. I was like, okay,

0:29:31.040 --> 0:29:34.760
<v Speaker 2>you guys are absolute. You know, rock Star over achieves

0:29:35.000 --> 0:29:37.160
<v Speaker 2>everybody else goes and buys pre bag lettuce right, pre

0:29:37.480 --> 0:29:40.160
<v Speaker 2>washed and like and it's those kind of things that

0:29:40.200 --> 0:29:42.720
<v Speaker 2>we are still hand doing all of that at Cracker Barrel.

0:29:42.760 --> 0:29:45.400
<v Speaker 2>And it's like, gosh, we could buy pre chopped onions.

0:29:45.600 --> 0:29:47.880
<v Speaker 2>They taste just the same as the onions that you cut.

0:29:49.040 --> 0:29:51.240
<v Speaker 2>And those are the things that can make people's lives

0:29:51.240 --> 0:29:52.960
<v Speaker 2>a lot easier in the back of the house, right,

0:29:53.040 --> 0:29:55.920
<v Speaker 2>and you know, there's just there's just a lot to

0:29:55.960 --> 0:29:57.400
<v Speaker 2>be said for things like that. So those are the

0:29:57.440 --> 0:29:59.440
<v Speaker 2>kind of things that we're looking at. And then we'll

0:29:59.440 --> 0:30:02.120
<v Speaker 2>attack a QUI, then we'll attack layout and the whole

0:30:02.200 --> 0:30:05.080
<v Speaker 2>nine yards. That's why it's multi year, multi phases. First

0:30:05.120 --> 0:30:07.800
<v Speaker 2>phase has been in test in a couple of stores,

0:30:07.800 --> 0:30:09.360
<v Speaker 2>and I think, as I said on the announcer or

0:30:09.360 --> 0:30:12.520
<v Speaker 2>on the call yesterday, we will roll it system wide

0:30:12.520 --> 0:30:15.320
<v Speaker 2>the first phase in Q three and then we'll get

0:30:15.360 --> 0:30:18.080
<v Speaker 2>after equipment, we'll get after layout and things like that.

0:30:18.320 --> 0:30:22.080
<v Speaker 2>So it's exciting, yeah, for sure.

0:30:22.240 --> 0:30:23.880
<v Speaker 1>All right, So what's your go to order?

0:30:24.840 --> 0:30:28.240
<v Speaker 2>Mine? Well, gosh, it's it depends on the time of day.

0:30:28.360 --> 0:30:32.200
<v Speaker 2>Breakfast pancakes. I love our Mama's pancakes. I'm a blueberry

0:30:32.200 --> 0:30:35.440
<v Speaker 2>pancake fiend, and Cracker Rarel has the best pancakes in

0:30:35.440 --> 0:30:37.960
<v Speaker 2>the world. Like, show me somebody who wants to challenge

0:30:38.040 --> 0:30:39.920
<v Speaker 2>us on that, like we should do like the old

0:30:39.960 --> 0:30:43.240
<v Speaker 2>school kind of taste off. But our pancakes are the best.

0:30:43.280 --> 0:30:46.320
<v Speaker 2>So it's hard for me to know. I love it.

0:30:46.320 --> 0:30:47.480
<v Speaker 2>I love it to see get the one with the

0:30:47.560 --> 0:30:50.680
<v Speaker 2>like the fruity pebble things in it, or blueberries, or

0:30:50.760 --> 0:30:51.880
<v Speaker 2>because we do all kinds of fun things.

0:30:52.000 --> 0:30:54.240
<v Speaker 1>He does that. He's like a chocolate chip guy.

0:30:54.240 --> 0:30:58.120
<v Speaker 2>He likes I love our blueberry pancakes, So that's probably

0:30:58.160 --> 0:31:02.240
<v Speaker 2>my go to for the morning. What sh'all kind of

0:31:02.280 --> 0:31:04.280
<v Speaker 2>bop around a lot of times. I'll really get our

0:31:04.320 --> 0:31:07.520
<v Speaker 2>girl chicken tenderloins. I love those. They're so delicious. They're

0:31:07.520 --> 0:31:09.960
<v Speaker 2>marinated and so yummy and a little bit more on

0:31:09.960 --> 0:31:12.920
<v Speaker 2>the healthy side. For you dinner, I'm all over. If

0:31:12.960 --> 0:31:14.440
<v Speaker 2>I'm in a restaurant that has some of the new

0:31:14.480 --> 0:31:17.560
<v Speaker 2>test items. There's a new item coming out for Spring

0:31:17.600 --> 0:31:19.720
<v Speaker 2>that I don't want to ruin for you that is amazing.

0:31:19.800 --> 0:31:24.120
<v Speaker 2>I will definitely order that. I really I like to

0:31:24.200 --> 0:31:26.360
<v Speaker 2>let the server guide me, you know, and see what

0:31:26.400 --> 0:31:29.040
<v Speaker 2>they love and what they want me to try. Some

0:31:29.120 --> 0:31:31.520
<v Speaker 2>stores are real proud of like the different things that

0:31:31.560 --> 0:31:34.959
<v Speaker 2>they make, but I'll, you know, pretty much anything. I

0:31:35.080 --> 0:31:38.280
<v Speaker 2>literally had the fish fry last Friday because somebody was

0:31:38.320 --> 0:31:42.040
<v Speaker 2>in a restaurant the day after Thanksgiving and a guest

0:31:42.040 --> 0:31:45.800
<v Speaker 2>had come in to talk to me and we were

0:31:45.840 --> 0:31:47.880
<v Speaker 2>just talking and he's like, gosh, you know, I really

0:31:47.960 --> 0:31:50.280
<v Speaker 2>love the fish fries, Like, you know, it used to

0:31:50.360 --> 0:31:53.160
<v Speaker 2>be like twelve ninety nine, now it's fourteen ninety nine.

0:31:53.200 --> 0:31:55.240
<v Speaker 2>He's like, I understand that you have to raise prices.

0:31:55.280 --> 0:31:57.280
<v Speaker 2>He's like, it's still an amazing value. He's like, I

0:31:57.360 --> 0:31:59.760
<v Speaker 2>get it. I get it, and I love the quality

0:32:00.080 --> 0:32:03.280
<v Speaker 2>fish is better than this other person's fish. And he's like,

0:32:03.360 --> 0:32:05.360
<v Speaker 2>you know. It was a really nice conversation. So he

0:32:05.440 --> 0:32:06.920
<v Speaker 2>and I sat and had a fish fry together. So

0:32:06.960 --> 0:32:10.760
<v Speaker 2>that was fun. I mean, I will literally go all

0:32:10.760 --> 0:32:13.680
<v Speaker 2>over everything. I am also a big hashbron caster a girl,

0:32:13.840 --> 0:32:16.600
<v Speaker 2>so I loved that from when I was a kid

0:32:16.800 --> 0:32:19.640
<v Speaker 2>coming to Cracker Barrel and it's hard for me to

0:32:19.680 --> 0:32:22.800
<v Speaker 2>not get that. Very cool. What's your go to?

0:32:23.520 --> 0:32:27.600
<v Speaker 1>Oh? I'm a breakfast guy, so I intermitt it fast.

0:32:28.320 --> 0:32:30.160
<v Speaker 2>Oh do you that's why you were talking about fasting

0:32:30.200 --> 0:32:31.200
<v Speaker 2>before the hashbroncaster.

0:32:31.520 --> 0:32:33.720
<v Speaker 1>Yeah, so you know a lot of times I like

0:32:33.800 --> 0:32:37.640
<v Speaker 1>to do breakfast for lunch or dinner. So I'll lean

0:32:37.640 --> 0:32:40.960
<v Speaker 1>in pretty heavily to the Crackbow breakfast at any time.

0:32:41.040 --> 0:32:43.840
<v Speaker 2>Yeah. I did that Thursday night. So we had worked

0:32:43.840 --> 0:32:46.200
<v Speaker 2>all day on Thanksgiving and I was with one of

0:32:46.200 --> 0:32:48.920
<v Speaker 2>the leaders. And finally, I think at about eight o'clock

0:32:48.960 --> 0:32:53.760
<v Speaker 2>we sat down to have Thanksgiving dinner and I had

0:32:53.760 --> 0:32:56.280
<v Speaker 2>had the Country fried turkey the day before, and I've

0:32:56.280 --> 0:32:58.680
<v Speaker 2>been eaten so much turkey because it's Thanksgiving. I was like,

0:32:59.080 --> 0:33:01.720
<v Speaker 2>I think I'm gonna have Grandma's that I had a

0:33:01.840 --> 0:33:05.600
<v Speaker 2>French toast and eggs Thanksgiving for better. So yeah, that's

0:33:05.680 --> 0:33:07.400
<v Speaker 2>one of the great things about Crockerrell too. You your

0:33:07.440 --> 0:33:10.240
<v Speaker 2>breakfast all day long, which is super fun.

0:33:10.280 --> 0:33:13.680
<v Speaker 1>So yeah, well, good stuff, Thanks for doing this. I

0:33:13.720 --> 0:33:16.840
<v Speaker 1>love your passion. You know, I'm looking forward to seeing

0:33:16.840 --> 0:33:18.560
<v Speaker 1>all the things you accomplished with the team there.

0:33:19.200 --> 0:33:21.720
<v Speaker 2>We're can a team. It's not man one person. We're

0:33:21.760 --> 0:33:24.240
<v Speaker 2>seventy thousand strong out there taking care of our guests

0:33:24.280 --> 0:33:26.160
<v Speaker 2>every single day and really just trying to make them happy.

0:33:26.240 --> 0:33:27.240
<v Speaker 2>That's what it's all about.

0:33:27.520 --> 0:33:29.680
<v Speaker 1>That's awesome. So where can the audience go to find

0:33:29.680 --> 0:33:33.000
<v Speaker 1>the nearest cracker barrel? And other than TikTok and Instagram

0:33:33.080 --> 0:33:35.480
<v Speaker 1>or any other social media platforms they should follow the.

0:33:35.720 --> 0:33:37.920
<v Speaker 2>Those are probably the big ones. We're on Facebook too,

0:33:37.960 --> 0:33:39.880
<v Speaker 2>because I know a lot of people are still on Facebook,

0:33:39.920 --> 0:33:41.640
<v Speaker 2>even though I haven't been on in years. So I

0:33:41.640 --> 0:33:43.360
<v Speaker 2>can't even tell you what the Crackerbil stuff looks like

0:33:43.360 --> 0:33:46.600
<v Speaker 2>on Facebook. Shame on me. But I would say go

0:33:46.640 --> 0:33:49.280
<v Speaker 2>to our website. It's a great place to find a store.

0:33:49.400 --> 0:33:52.520
<v Speaker 2>The other thing is we do a great app and

0:33:52.680 --> 0:33:55.120
<v Speaker 2>so in that as a store locator, you can also

0:33:55.200 --> 0:33:58.040
<v Speaker 2>auto join the wait list. So if you are, you know,

0:33:58.200 --> 0:34:00.360
<v Speaker 2>coming in on Sunday morning, when a lot of our

0:34:00.400 --> 0:34:02.520
<v Speaker 2>guests like to join us, or Saturday morning for brunch

0:34:02.600 --> 0:34:05.000
<v Speaker 2>or on the way to a you know, kids sports

0:34:05.000 --> 0:34:08.080
<v Speaker 2>sporting event, you can join the waitlist from the app,

0:34:08.120 --> 0:34:11.560
<v Speaker 2>which is kind of a hashtag pro tip, and then

0:34:11.600 --> 0:34:13.080
<v Speaker 2>you just kind of walk in and sit down when

0:34:13.080 --> 0:34:14.919
<v Speaker 2>you're ready, which is really exciting, so.

0:34:15.440 --> 0:34:17.799
<v Speaker 1>Great, and I also want to thank the audience for

0:34:17.840 --> 0:34:20.719
<v Speaker 1>tuning in. If you liked the episode, please subscribe and

0:34:20.800 --> 0:34:23.799
<v Speaker 1>leave a review. Check back soon for another discussion on

0:34:23.960 --> 0:34:24.640
<v Speaker 1>chopping it up.