NASHVILLE, Tenn. - Cracker Barrel Old Country Store Inc. is spicing up its highway billboards in hopes of fattening up the restaurant chain's sales.
The company's simple brown-and-gold graphic of a man seated next to a barrel will be replaced with color photos of food items like pancakes and biscuits on nearly 1,500 billboards primarily along U.S. interstate highways.
"Our research shows these images are highly motivating when a person decides where to eat," Simon Turner, chief marketing officer at Cracker Barrel, said in statement released Wednesday.
"Seeing our homestyle food and unique gifts prominently displayed on our billboards will motivate people to come and eat at our family dinner table."
The new advertising campaign, which begins this month, comes amid steady decline in sales in the restaurant and retail sides of Cracker Barrel's stores over the past few years.
Several key officers were replaced in July, including Cracker Barrel's president and chief operating officer and vice president of marketing. The company said the reshuffling was part of a planned reorganization that would focus on initiatives aimed at improving sales, margins and brand innovation.
Analysts say sales have gradually started to improve, with Cracker Barrel's parent company CBRL Group Inc. reporting restaurant sales increased 1.4 percent and retail sales were up 4.4 percent for the first quarter ended Oct. 27 over the same period last year. Revenue was up 4.3 percent to $558 million for the same period.
"They've gone through several years of difficulty and have changed a number of activities and brought some people into key positions and are working hard at trying to improve their results," said Bryan Elliott, a restaurant analyst at Raymond James & Associates in Atlanta.
"Certainly the billboards have been a primary marketing tool for pretty much the history of the company," he said. "Upgrading and modernizing ... makes some sense. They haven't really modified their approach."
Elliott said the company has recently conducted consumer research that showed a significant percentage of people who believe Cracker Barrel locations are just retail stores and not restaurants as well.
Cracker Barrel, which is a subsidiary of CBRL Group Inc. based in the Nashville suburb of Lebanon, has grown from one restaurant in Lebanon in 1969 into 550 full-service restaurants and gift shops in 41 states, mostly in the Southeast, Midwest, Mid-Atlantic and Southwest.
Cracker Barrel officials have said they're considering running ads on radio and television in early 2007 but have not said how much they plan to spend.
Elliott said the company has advertised on the radio off and on throughout its existence and ran a few television commercials nearly a decade ago.
Many drivers have grown accustomed to seeing Cracker Barrel's trademark billboards - which simply feature the company's brown-and-gold logo and directions to Cracker Barrel locations - and changing the ads will likely make them stand out more, Elliott said.
The new advertising campaign will keep the company's logo and directions to Cracker Barrel locations but will feature images of peppermint sticks, checkerboards and the compact discs sold in the company's retail stores. They'll also show food items like whole kernel corn, sweet baby carrots and green beans.
"Although this is a new look for Cracker Barrel, the campaign stays true to our authentic country heritage," said Turner. "People think of Cracker Barrel when they want good country cooking and friendly service."
Cracker Barrel previously faced numerous lawsuits and a federal inquiry over complaints of refusing to serve black customers, discriminating against minority workers and firing gay employees. The company has taken steps to rebuild its folksy image and reach out to minorities.
Rose Rock, the mother of comedian Chris Rock, last month claimed she was racially discriminated against when she was seated but ignored for a half hour at a Cracker Barrel restaurant along the South Carolina coast.
Analysts say Cracker Barrel's new advertising campaign likely has little if anything to do with the complaints but more to do with improving the bottom line.
CBRL shares fell 25 cents to close at $44.88 Wednesday on the Nasdaq Stock Market.
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On the Net:
Cracker Barrel: http://www.cbrlgroup.com/
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