Can you Buy a Cracker Barrel Franchise? – Cost, Financial, & Profit

Are you a food enthusiast and looking to partner with renowned brand that serves a variety of cuisine? Have you dreamt of starting your own food business that predominately offers a homestyle comfort food? Has your extensive research on Cracker Barrel led you here?

Congratulations! You have certainly arrived at the best place. We at FranchiseGoal warmly welcomes you to the another informative piece about the restaurant chain that holds a legacy of Southern comfort, nostalgic charm, and genuine hospitality.

Look no further! This comprehensive blog will be the ultimate guide on the Cracker Barrel Franchise, where we’ll explore its cost, fees, profit, financial growth, and address some frequently asked questions about the chain.

• Brand: Cracker Barrel
• Founded: 1969
• Key People: Dan Evins
• Industry: Restaurant
• No. of Franchise: 664+
• Area served: Nationwide
• Franchise Fee: NA
• Royalty Fee: NA
• Ad Royalty Fee: NA
• Model: Company-owned and operated
• Est. Initial Investment: $1.5 Million to $2 Million

Overview of Cracker Barrel Franchise

Cracker Barrel is one of America’s popular restaurant and retail chain, which is predominately known for serving its Southern-inspired comfort food and charming country store atmosphere.

It was founded in 1969 in Lebanon, Tennessee by a visionary founder, Dan Evins. Dan had a vision to provide a caring and friendly home-away-from-home experience while offering guests high-quality homestyle food to enjoy in-store or to-go and unique shopping at an affordable prices.

Since then, Cracker Barrel has certainly grown into the most favourite destinations for travelers and food enthusiasts. Over the period, with its diverse range of food offerings, including biscuits, fried chicken, country ham, and homemade pies, Cracker Barrel has garnered a million of fan following for its unique dining experience.

Currently, the chain boasts approximately 660 company-owned stores in 45 states. They also take pride in owning the fast-schedule Maple Street Biscuit Company, which manufactures a delicious range of biscuits.

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The Journey of Cracker Barrel

The humble beginning of Cracker Barrel began as a small roadside restaurant in 1969. With a vision to serve quality foods in a nostalgic country store atmosphere allowed the chain to earn an enormous customer base in no time.

At present, the company and its affiliates owns and operates over 660 stores spread over 45 states.

The year-wise growth layout has been stated below;

Apart of its foundation in 1969, the company always had a growth strategy and it is certainly visible in its operations as well.

1970s: The franchisee lays out the expansion plan with additional restaurant locations.

1981:Cracker Barrel opens its first interstate locations, marking the beginning of its presence across the major highways in the U.S. and attained the valuation of $1 billion by 1992.

2001: The first Cracker Barrel store opens outside the United States, expanding its reach to international markets.

2011: Cracker Barrel celebrates its 42nd anniversary with over 600 locations across the country.

2018: Cracker Barrel opens its 660th company-owned store, solidifying its position as a leading restaurant and retail chain in the United States.

2023: The company experienced an all-time high revenue figure, which reached approximately $3.268 Billion.

Key Facts on Cracker Barrel

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Why Consider Owning a Cracker Barrel Franchise?(If offered)

1. Proven business model and a public listed company:
   • Though the chain doesn’t offer its franchises, considering its consistent and proven track record of delivering success can help you, as a franchisee, tap into the restaurant industry without worrying about marketing and branding(if offered in future).
2. Proper Support Systems:
   • As a franchisee, you can leverage the brand’s extensive support systems, which include training program, marketing and promotional activities.
3. Unique business model and brand value:
   • Its restaurant-cum-retail stores provides multiple streams for the franchisees to generate a healthy profit margin.
     • As mentioned earlier, the chain has also positioned itself as a prominent leader in the industry for its iconic country store ambience. It may also help the franchisees to attract the customers of all-ages at their stores.
4. Delectable and diverse menu range:
   • As a franchisee, you’ll serve a delightful mix of classic Southern comfort food, catering to a wide range of palates – all at a competitive pricing. It is worth mentioning that their homestyle dishes are quite popular among the travelers and locals.
5. Company-owned entity:
   • Yes, you read it correctly. The chain is a completely company-owned entity that has single-handedly opened over 660 stores across the United States. Once they start their franchising program, they will be in a position to offer a franchise with a proven track record of successfully operating and expanding a restaurant-cum-retail chain.

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Does Cracker Barrel Have Franchises?

Unfortunately, Cracker Barrel doesn’t sell its franchises. The chain has been operational since 1969, and they have been owning and operating the complete Cracker Barrel as a company-owned entity.

Over the years, Cracker Barrel has acquired several businesses and some biscuit-making plants but has maintained a distance from offering its franchises.

While several experts may believe that Cracker Barrel may open the doors for franchise aspirants, we don’t share the same perspective.

How much will a Cracker Barrel Franchise Cost?

Despite the fact that the company doesn’t offer its franchises, but considering its business model and setup designs, we can put up an estimated figure.

The initial cost of setting up a Cracker Barrel location may vary depending on the outlet’s geographical location, available space, market potential, and more.

Nevertheless, To become an approved Cracker Barrel Franchise owner, one may at least require an initial investment of minimum of US 1.5 Million – $ 2 Million. This initial investment of Cracker Barrel does cover the franchise fee, marketing fee, and other necessary expenses.

Additional Cost for Cracker Barrel

Typically, To run and operate a Cracker Barrel location, one must adhere to their standards and are liable to pay a few additional costs such as Royalty fee, advertisement fee, maintenance fee, and a few other investments.

The Cracker Barrel may demand a royalty fee of 5% and ad royalty fee of 2-3%, which will be calculated based on the monthly gross sales.

Please note: The above mentioned figures are just for the understanding purpose. Cracker Barrel doesn’t embrace franchise model. To get the updated info, you can either follow our website by pressing the notification icon or directly connect the with company representative.

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How much is Cracker Barrel Profit Margin?

The profitability of a single Cracker Barrel outlet is dependent on multiple factors, which is primarily influenced by the outlet’s geographical locations, available floor space for setup, market condition, and customer footfall.

The Cracker Barrel chain generate revenues from multiple streams, which includes sales of foods at restaurants and retail sale from its country store.

Nevertheless, Considering its experience of over 40+ years, diversified off-premise channel mix, moderate year-on-year revenue growth(except the pandemic period), reasonable average check of $12.13, and healthy figures for average unit volume, a franchise owner may anticipate a net profit margin of 2-4%.

In addition to that, the company has also laid out its future expansion plans and is projected to reach a total count of 733 locations by the end of 2023. Out of these, 667 will be Cracker Barrel units, while the remaining will be Maple Street Biscuit Company locations.

Financial highlights of Cracker Barrel – Q3FY23

• The Company reported third quarter total revenue of $832.7 million. Compared to the prior year third quarter, total revenue increased 5.4%.
  • Comparable store restaurant sales increased 7.4%, while comparable store retail sales decreased 4.6%.
• GAAP operating income for the third quarter was $16.8 million, or 2.0% of total revenue, and adjusted operating income was $33.9 million, or 4.1% of total revenue.
• GAAP net income was $14.0 million, or 1.7% of total revenue. Adjusted EBITDA was $60.3 million, or 7.2% of total revenue.
• GAAP earnings per diluted share were $0.63, and adjusted earnings per diluted share were $1.21.
• The Company announced that its Board of Directors declared a regular quarterly dividend of $1.30 per share.

Note: The average check value of $12.13 seems pretty low as compared to the Cheesecake factory franchise, which posted a moderate average check of $29 in FY21.

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What will be the requirements to Own a Cracker Barrel Franchise?

1. Prospective investors should have strong financial qualifications and be prepared to invest a minimum of US $1.5 million – $2 million to effectively manage and operate a Cracker Barrel location.
2. Interested franchisees should have a passion to work in the restaurant industry and should possess an entrepreneurial spirit to grow the Cracker Barrel business with complete ownership.
3. Interested prospects are expected to have a strong background in restaurant and retail industry.
4. In order to become a franchisee, interested parties must complete the franchise’s training program and adhere to its standards set by the Cracker Barrel.
5. The franchisees are expect to secure a high footfall space of at least 8900 sq feet, which will include the retail space of 1900 sq feet.

See also: Dave & Buster’s Franchise Opportunity : Cost & Profit – Dave and Buster’s

How to own a Cracker Barrel Franchise?

Unfortunately, you can’t own a Cracker Barrel Location currently. The franchise neither embraces the franchise model nor offer sell of any of its locations.

However, if they starts its franchising program in future, one can certainly take up this below procedure;

1. Visit its official website and navigate to its contact us page.
   • You can place your franchise query by filling in the details like Name, Email ID, City, State, Phone number, and the business proposal.

Final Takeaway – Conclusion

Undoubtedly, Cracker Barrel is one of America’s most cherish restaurant chains, predominately known for its southern hospitality, comfort food, and nostalgic country store ambiance.

From its humble beginnings as a small roadside restaurant and country store to its extensive presence with over 660 company-owned stores, Cracker Barrel has stood the test of time.

The Bottom line – While the dream of owning a Cracker Barrel franchise may not be a current possibility, the brand’s legacy is certainly continues to inspire entrepreneurs seeking success in the restaurant and retail industry.

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