Cracker Barrel Old Country Store

For the last thirty years, Cracker Barrel Old Country Store, Inc. has been offering people on the highways of America an alternative to the fast food pit stop. Their restaurants serves home-style food, has quality gift shops and, most of all, a friendly and accommodating environment all go in to create a welcoming atmosphere. Making the guest comfortable is what makes them different. The waiters and waitresses let you take your time. You are seated and promptly drink orders are taken. They give the customer sufficient time to gaze over the menu. There are peg games on the table to occupy you or your young ones. If it is a game of checkers you wish, there is always a table in the corner ready to play.

The main consumer characteristic that Cracker Barrel Old Country Store sets their standards on is “Pleasing people”. (Etzel, Walker, Stanton. 2001 pg. 204) A review of the Cracker Barrel Old Country store states, “This restaurant has a combo of good food, good service, and atmosphere. The gift shop is trendy, and affords one a place to browse. Do your browsing after the meal, for service is fast and efficient. One dines among country antiques that serve as decor. The country plates are a delight, and one must try the daily specials. Don't order dessert if you're not hungry. The blackberry cobbler and lemon icebox pie are superb. This is home cooking with affordable prices and great atmosphere.” (http://stlouis.citysearch.com/profile/3855636) Cracker Barrel stores appeal to both the traveler and the local customer and have consistently been a consumer favorite. Cracker Barrel was ranked as the top family dining chain for the eleventh consecutive year in the 2000 Restaurants & Institutions magazine "Choice in Chains" annual customer survey. It was also named “Best Family Dining” restaurant by Restaurant & Institutions magazine for the tenth consecutive year. The R&I award is based on a national consumer survey that evaluates chains on seven separate attributes: food quality, menu variety, value, service, atmosphere, cleanliness, and convenience. For 2000, Cracker Barrel scored highest among family dining establishments on every one of the attributes.

Cracker Barrel Old Country Store has accomplished the pleasing of people by capturing a bit of the past...back when time seemed to move a bit more slowly, and folks had more time. They have captured a time gone by through their atmosphere, country store, and most of all, through their country cookin'. They would like to think that their country cookin' is reminiscent of those old southern dishes that grandma used to serve. (http://www.crackerbarrelocs.com/)

Cracker Barrel prides themselves on using recipes and ingredients that are authentic, genuine, and of the highest quality available. They strive to prepare and present these food items to consumers in a way that upholds those authentic traditions of days gone by. The menu offers so many choices.
Cracker Barrel tries also to cater to health-conscious concerns that some of their guests have. They have menu items that may help in a selection of lower fat/calorie foods.
They also have reasonable prices 5-10 dollars a meal. Credit cards and checks are accepted. The restaurant is wheelchair and handicap accessible.

Cracker Barrel’s growth had come close to a stand still. They were not reaching all of their possible target markets. A change was needed and made. Marketing of Cracker Barrel Old Country Store has been done for many years mainly by billboards and radio advertising. This was great for the impulsive meal consumer and loyal customers. Although select TV spots had appeared over the years, the Lebanon, Tenn.-based chain stopped its regional TV spending in 1997. But now, the 381-unit chain has resolved that the no frills, down-home approach it takes to its menu no longer works for its advertising. Three spots debuted on both network and cable channels including The Weather Channel, TNN and some premium movie channels.

Why The Weather Channel? "We looked across the board at our demographic, and many of our guests are travelers. A lot of folks do check the weather when they are getting ready to pack," says Judy Donovan-Cantrell, vice president of marketing for Cracker Barrel. "For an almost 30-year-old company, our awareness is not as strong as it should be," she says. "We have a wonderful brand story to tell, but we can’t tell it through outdoors. You can’t tell a story about your brand on a billboard which says, ‘Here’s where to find us.’ TV lets the consumer see us, taste us, touch us."
The commercials emphasize Cracker Barrel’s country-style menu and allude to value, Donovan-Cantrell says. "The foods we serve are reminiscent of the foods we grew up on. We tried to create that ambiance, the comfort of that memory. We want to recreate that nostalgia," says Donovan-Cantrell.

The customers represented in the spots are significantly older than those in most television advertising—the 18-to-34 demographic this isn’t. Donovan-Cantrell says older actors were needed to convey memories of home-cooking. "It’s hard for a younger person to convey that kind of message about Mom’s and Grandma’s home-cooking. But we hope to create some of those memories for some of our younger target," she says.

Other constraints eventually effected Cracker Barrel’s growth. There are the effects of increased competition at company locations on sales. Cracker Barrel is still faced with the challenge of finding and retaining good employees. They seem to have a problem with labor recruiting, cost, and retention. The capability of CBRL to supply new lines of retail merchandise, especially during seasonal sales periods such as the Christmas holiday season. Cracker Barrel’s sales growth has been constrained by the limits on its physical growth. The availability and costs of acceptable sites for development; new markets and geographic regions. The company having to overcome adverse general economic conditions and adverse weather conditions. There is also the government that changes rules and regulations affecting wage and hour matters, health and safety, taxes, pensions and insurance. Cracker Barrel having to deal with the results of pending and threatened litigation. Cracker Barrel has also had to deal with negative press releases and other communications in regard to racism and homosexuality lawsuits.

I have eaten at three Cracker Barrel Old Country Store Restaurants and have not found them to be that great. Their service was really no better than the average restaurant of this caliber.

The demographics of Lebanon, Tennessee is that it is located just 25 miles east of bustling Music City (Nashville) is Antique City. More than 8 million tourists visit the Nashville region annually, drawn to attractions including Opryland, the Grand Old Opry, and Music Row, and is home to many national recording studios. Lebanon itself has developed as a one-day destination for Nashville residents and tourists with its downtown ''Antique District'' acting as a major draw. Lebanon's strong merchant mix and distinctive amenities are certain to make a strong attraction for tourists and for the region' 2.8 million residents.

Lebanon, Tennessee is a flourishing community and county seat located in the heart of Wilson County. With a population near 20,000, Lebanon has successfully maintained its small town charm. Located on I-40 and just minutes from Nashville, its convenient location has contributed to a strong industrial base and a thriving economy. Lebanon is well known as home of the headquarters of Cracker Barrel Old Country Stores and home to Hartmann Luggage. It is also home to many other manufactures including Dell Computer Corp. and Toshiba America.

1999 County Business Patterns for Wilson, TN Contact: cbp@census.gov or 301-457-2580

NAICS/ Number Of Annual Establishments
Industry Employees Payroll Total

722 Foodservices & drinking places 2,004 22,033 116
7222 Limited-service eating places 1,090 10,578 56
722212 Cafeterias (A) (D) 2
722211 Limited-service restaurants 1,057 10,375 50
45322 Gift, novelty & souvenir stores(B) (D) 6

NAICS -- North American Industry Classification System n.e.c. -- Not elsewhere classified (D) -- Withheld to avoid disclosing data for individual companies; data are included in broader industry totals (A)-(C), (E)-(M) -- Employment-size classes are indicated as follows A--0 to 19 B--20 to 99 C--100 to 249 E--250 to 499 F--500 to 999 G--1,000 to 2,499 H--2,500 to 4,999 I--5,000 to 9,999 J--10,000 to 24,999 K--25,000 to 49,999 L--50,000 to 99,999 M--100,000 or more

People QuickFacts http://quickfacts.census.gov/qfd/states/47/47189.html

Wilson County Tennessee
Population, 2000 88,809 5,689,283
Population, percent change, 1990 to 2000 31.2% 16.7%
Persons under 5 years old, percent, 2000 6.8% 6.6%
Persons under 18 years old, percent, 2000 26.2% 24.6%
Persons 65 years old and over, percent, 2000 9.7% 12.4%
White persons, percent, 2000 (a) 91.5% 80.2%
Black or African American persons, percent, 2000 (a) 6.3% 16.4%
American Indian and Alaska Native persons, percent, 2000 (a) 0.3% 0.3%
Asian persons, percent, 2000 (a) 0.5% 1.0%
Native Hawaiian and Other Pacific Islander, percent, 2000 (a) Z Z
Persons reporting some other race, percent, 2000 (a) 0.5% 1.0%
Persons reporting two or more races, percent, 2000 0.9% 1.1%
Female persons, percent, 2000 50.6% 51.3%
Persons of Hispanic or Latino origin, percent, 2000 (b) 1.3% 2.2%
White persons, not of Hispanic/Latino origin, percent, 2000 90.8% 79.2%
High school graduates, persons 25 years and over, 1990 30,917 2,105,152
College graduates, persons 25 years and over, 1990 6,741 500,991
Housing units, 2000 34,921 2,439,443
Homeownership rate, 2000 81.4% 69.9%
Households, 2000 32,798 2,232,905
Persons per household, 2000 2.67 2.48
Households with persons under 18, percent, 2000 40.7% 5.2%
Median household money income, 1997 model-based estimate $45,250 $32,047
Persons below poverty, percent, 1997 model-based estimate 7.8% 13.6%
Children below poverty, percent, 1997 model-based estimate 10.7% 18.9%

Business QuickFacts Wilson County Tennessee
Private nonfarm establishments, 1999 1,926 131,116
Private nonfarm employment, 1999 22,922 2,338,780
Private nonfarm employment, percent change 1990-1999 41.8% 25.1%
Nonemployer establishments, 1998 7,232 325,676
Manufacturers shipments, 1997 ($1000) 1,122,914 98,503,080
Retail sales, 1997 ($1000) 566,457 50,813,221
Retail sales per capita, 1997 $6,956 $9,448
Minority-owned firms, percent of total, 1997 6.6% 7.8%
Women-owned firms, percent of total, 1997 27.2% 24.0%
Housing units authorized by building permits, 2000 824 32,203
Federal funds and grants, 2000 ($1000) 271,248 33,560,057
Local government employment - full-time equivalent, 1997 2,152 194,274
Geography QuickFacts Wilson County Tennessee
Land area, 2000 (square miles) 571 41,217
Persons per square mile, 2000 155.5 138.0
Metropolitan Area Nashville, TN MSA

(a) Includes persons reporting only one race.
(b) Hispanics may be of any race, so also are included in applicable race categories.
FN: Footnote on this item for this area in place of data
NA: Not available
D: Suppressed to avoid disclosure of confidential information
X: Not applicable
S: Suppressed; does not meet publication standards
Z: Value greater than zero but less than half unit of measure shown
F: Fewer than 100 firms.

The demographics of Palm Beach Gardens, Florida is that they pride the area on great weather and beaches. They have a booming economy, and there is a lot of development. Palm Beach Gardens has many golf courses and shopping centers. They’re located close to Fort Lauderdale and Miami airports. Their area has many cultural venues, theaters, and museums. They are a friendly people that welcome the numerous visitors that they have from January--March.





1999 County Business Patterns for Florida Contact: cbp@census.gov or 301-457-2580 http://quickfacts.census.gov/cgi-bin/state_QuickLinks?12000


NAICS Industry Number of Employees Annual Payroll Establishment Total

7221 Full-service restaurants 21,424 267,710 976
7222 Limited-service eating places 10,415 100,283 752
722211 Limited-service restaurants 8,836 85,275 573
722212 Cafeterias C D 9
722 Food services & drinking places 33,805 391,191 1,926
45322 Gift, novelty, & souvenir stores 152 8,874 961

NAICS -- North American Industry Classification System n.e.c. -- Not elsewhere classified (D) -- Withheld to avoid disclosing data for individual companies; data are included in broader industry totals (A)-(C), (E)-(M) -- Employment-size classes are indicated as follows A--0 to 19 B--20 to 99 C--100 to 249 E--250 to 499 F--500 to 999 G--1,000 to 2,499 H--2,500 to 4,999 I--5,000 to 9,999 J--10,000 to 24,999 K--25,000 to 49,999 L--50,000 to 99,999 M--100,000 or more

People QuickFacts http://quickfacts.census.gov/qfd/states/12/12099.html
Palm Beach County Florida USA
Population, 2000 15,982,378 281,421,906
Population, percent change, 1990 to 2000 23.5% 13.1%
Persons under 5 years old, percent, 2000 5.9% 6.8% Persons under 18 years old, percent, 2000 22.8% 25.7%
Persons 65 years old and over, percent, 2000 17.6% 12.4%
White persons, percent, 2000 (a) 78.0% 75.1%
Black or African American persons, percent, 2000 (a) 14.6% 12.3%
American Indian and Alaska Native persons, percent, 2000 (a) 0.3% 0.9%
Asian persons, percent, 2000 (a) 1.7% 3.6%
Native Hawaiian and Other Pacific Islander, percent, 2000 (a) 0.1% 0.1%
Persons reporting some other race, percent, 2000 (a) 3.0% 5.5%
Persons reporting two or more races, percent, 2000 2.4% 2.4%
Female persons, percent, 2000 51.2% 50.9%
Persons of Hispanic or Latino origin, percent, 2000 (b) 16.8% 12.5%
White persons, not of Hispanic/Latino origin, percent, 2000 65.4% 69.1%
High school graduates, persons 25 years and over, 1990 6,616,094 19,524,718
College graduates, persons 25 years and over, 1990 1,624,405 32,310,253
Housing units, 2000 7,302,947 115,904,641
Homeownership rate, 2000 70.1% 66.2%
Households, 2000 6,337,929 105,480,101
Persons per household, 2000 2.46 2.59
Households with persons under 18, percent, 2000 31.3% 36.0%
Median household money income, 1997 model-based estimate $32,877 $37,005
Persons below poverty, percent, 1997 model-based estimate 14.4% 13.3%
Children below poverty, percent, 1997 model-based estimate 21.8% 19.9%
Business QuickFacts Florida USA
Private nonfarm establishments, 1999 424,089 7,008,444
Private nonfarm employment, 1999 5,954,982 110,705,661
Private nonfarm employment, percent change 1990-1999 29.3% 18.4%
Nonemployer establishments, 1998 987,458 15,708,727
Manufacturers shipments, 1997 ($1000) 77,477,510 3,842,061,405
Retail sales, 1997 ($1000) 151,191,241 2,460,886,012
Retail sales per capita, 1997 $10,297 $9,190
Minority-owned firms, percent of total, 1997 22.0% 14.6%
Women-owned firms, percent of total, 1997 25.9% 26.0%
Housing units authorized by building permits, 2000 155,269 1,592,267
Federal funds and grants, 2000 ($1000) 92,776,372 1,623,475,453
Local government employment - full-time equivalent, 1997 543,525 10,227,429

Geography QuickFacts Florida USA
Land area, 2000 (square miles) 53,927 3,537,441
Persons per square mile, 2000 296.4 79.6

(a) Includes persons reporting only one race.
(b) Hispanics may be of any race, so also are included in applicable race categories.
FN: Footnote on this item for this area in place of data
NA: Not available
D: Suppressed to avoid disclosure of confidential information
X: Not applicable
S: Suppressed; does not meet publication standards
Z: Value greater than zero but less than half unit of measure shown
F: Fewer than 100 firms

According to the Census, the statistics show that while Lebanon, Tennessee has a smaller population than Palm Beach Gardens, Florida the average household income is greater in Lebanon, Tennessee. Thereforepeople have more money to spend on the luxury of dining out. However, the statistics also prove that Carmine’s Giardini’s Gourmet Market has more competition located in their area of Palm Beach Gardens, Florida.

Both areas are located near many tourist attractions, which would lead one to think that they both would be profitable. While both provide the services and products that are appropriate for the locations, Carmine’s is not meeting the profit expectations that they should be. The possible reason for this is because that Carmine’s seem to be over extending themselves. Carmine Giardini’s Gourmet Market features world-class cuisine, including its own signature food items, as well as a mind-boggling assortment of freshly prepared foods of all varieties by its award-winning chefs. It offers full-service meat, seafood, produce, deli, and bakery departments, in addition to wine and cheese departments. The company also prepares custom gift baskets, and features a vast selection of imported specialty items, as well as a full-service floral department, a coffee bean selection, a complete catering service, and a spectacular assortment of exotic and traditional prepared foods. Customers can enjoy its delectable selections at 2 Florida locations.

CBRL Group announced in July plans to divest itself of the gourmet stores so it could concentrate on its restaurant business. In 2001, the company sold its gourmet food unit, Carmine Giardini's Gourmet Market. According to Barry Stouffer, analyst at BB&T Capital Markets, ''I think they hit the nail on the head when they said the (Carmine Giardini) concept was better for an entrepreneurial style than for a big company,'' he said.
(http://www.tennessean.com/business/archives/01/04/06758527.shtml?Element_ID=6758527)

Dan Evins, chairman of CBRL Group, said at the time of the sale that the gourmet market business didn't have meaningful growth potential for the company and that the company needed to concentrate on the main restaurant chain, The Cracker Barrel Old Country Stores. (http://nashville.bcentral.com/nashville/stories/2001/12/10/story8.html)

Segmentation is a necessary first step to effective and efficient marketing. Segmentation organizes a marketplace containing mixed (heterogeneous) needs, wants, and values into targeted customer segments that have similar (homogenous) characteristics.
The benefits of segmentation are substantial and include providing opportunities for the following advantageous payoffs:
•     Market Expansion – Effectively focus efforts on prospects that value your particular offerings.
•     Greater Profits – More efficient marketing to segments creates a stronger demand for "valued" products. Marketing efforts are more targeted and more efficient.
•     Filling Market Voids – A greater understanding of customer segments offers an opportunity to discover and fill unmet needs.
•     Safeguarding Customers – By filling in voids, you immunize customers against competitors and create barriers to entry.
•     Managing Customer Shifting – Customer’s needs change over time. Segmentation helps you proactively fill the changing needs of customers.

There has become a greater need for effective segmentation, as a result of several factors:
•     Greater choice of products and services, allowing customer purchasing patterns to fragment.
•     Media proliferation and specialization, requiring more careful selection.
•     Consumer sophistication and the attendant desire to be treated as valued individuals.
•     The rate of product and service innovation, and the speed of competitor response, both of which are increasing.

Segmenting a market typically involves six stages: collection of customer data, data analysis, development of segmentation hypotheses, segment selection, development of targeted strategies, and testing of segments and strategies.

Collection of customer data is potentially a large task given the need to acquire purchasing history, demographic and attitudinal data, some of which may require original research. The less customer data that is currently captured, the more difficult the activity will be to accomplish. Even if data is already held, it is important to understand its accuracy, completeness and currency.


Data analysis is the next step. It is used to profile the customer base and establish relationships that could form the basis for segmentation. Such analysis ideally involves the use of statistical techniques such as regression and clustering. An additional or alternative approach, where data is limited or greater insight is required, may be to apply overlays such as Mosaic, FRuitS or Social Values, adding them to your customer records.

Development of segmentation hypotheses are detailed analysis and intuition that will ultimately result in hypothetical segments which appear to best explain customer purchasing behavior. Depending on the data available, these hypothetical segments may relate to a company’s existing customer base and/or the market as a whole.

Segment selection will typically make a company have to make choices regarding which segments to focus on. Even if it wishes to pursue all market segments, it must still decide how it wishes to allocate resources. Selection can be made on a range of criteria - size, level of competition, risk and so on - but current and potential customer value will, of course, be crucial factors.

Development of targeted strategies segmentation is of limited value if marketing strategies are not themselves ‘segmented’, and therefore relevant. Some or all elements of the marketing mix must be tailored to the particular characteristics of the segment.

Testing of segments and strategies is an important final step is to establish whether the expected response supports the segmentation and is therefore reliable for future decision-making. Both segments and strategies will require monitoring and evaluation. It is highly likely that iteration will be required, resulting in continuous refinement of the segment definitions or descriptions, as more data becomes available. Of course, the future collection of customer data has also to be planned.

Cbrl Group learned first handed the need to research it’s market areas. This is proven in the article, Rolling out the Barrel by Jennifer Waters, Senior Editor of R & I. Ms. Waters writes, “Cracker Barrel Old Country Store Inc. learned the hard way how to make new friends. The Lebanon, Tenn.-based chain began an aggressive expansion two years ago with intentions of feeding the United States its "good country cookin.’ "But it came as a surprise that Northerners, Easterners and even Floridians were not warming up to the staples of the Deep South.
The solution: Give them potato pancakes in Wisconsin. In New York, serve Reuben sandwiches and bagels. Dish up salmon patties and cod fillets in Florida. In Texas, it’s salsa and chips.
"As we expanded, we probably stubbed our toes in a few spots," admits James Fisher, vice president of marketing and new development for the 314-store chain. "But we learned a lot." Ditto for décor and adjunct gift shops, which supply about 22% of sales. Up north, colors are darker, creating a woodsy ambience. The gift shops market carved loons or ceramic wolves. In Florida, there’s a lighter feel where the beach trinkets and a line of seashell mosaic ceramics are popular. And in the Southwest, terra cotta is the dominant theme where a chili-pepper line of housewares sell well.
"The important thing for us is to do country food and the standard Cracker Barrel menu," says Fisher. "But we needed to understand what ‘country’ food meant to different people in different parts of the country," he says.” (http://www.rimag.com/803/bus_jw.htm)