Cracker Barrel responded to reports that it requires employees to eat exclusively at its restaurants while traveling for work, noting that the guidance is not new.
The Southern-themed restaurant chain told FOX Business that its dining policy was first introduced in June 2024 and emphasized that employees traveling for business are encouraged — but not required — to eat at Cracker Barrel locations.
“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 told FOX Business.
“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.”
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The clarification follows a recent report highlighting Cracker Barrel’s internal employee policies.
According to an internal message reviewed by The Wall Street Journal, employees are encouraged to delay work-related travel when possible and, when travel is unavoidable, are expected to dine at Cracker Barrel locations when practical.
“Employees are expected to dine at a Cracker Barrel store for all or the majority of meals while traveling, whenever practical based on location and schedule,” the company wrote.
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Cracker Barrel is also reportedly tightening its travel expense policy relating to alcohol, requiring employees pay out of pocket for alcoholic beverages. Any exceptions must receive prior approval, The Wall Street Journal reported.
“Exceptions for special occasions must be pre-approved by an E-Team member,” Cracker Barrel said.
Cracker Barrel has struggled in recent months, including facing customer outrage last summer over a logo redesign that removed its iconic “Old Timer” character, a decision the company later reversed.
During its fiscal first-quarter 2026 earnings call in December, CEO Julie Masino said the company’s turnaround is taking longer than expected.
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Sales fell 5.7% compared with the same period last year.
“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,” Masino said. “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.”
Cracker Barrel shares are up more than 30% year to date.
FOX Business’ Greg Wehner and Eric Revell contributed to this report.
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