Cracker Barrel’s new CEO has a warning about restaurant prices

Restaurants have a pricing problem.

In late 2025, more than 80% of Americans believed that restaurant prices had climbed over the previous 12 months, according to a YouGov report. However, only 28% of diners believed that those prices were fair for the quality of the meal.

This perceived “value gap” affects how diners are spending.

More than half (54%) say they spend less at restaurants overall, employing strategies like ordering fewer items and skipping drinks to ensure their bills stay small.

“Americans still enjoy dining out, but value has become the deciding factor shaping where and how they choose to eat,” Nora Hao, YouGov America’s Sr. Sales Director, said in a statement accompanying the report. 

For chains like Cracker Barrel, where low prices are the bedrock of the menu, this value-seeking behavior among consumers created an opportunity. 

With some 60% of diners saying that they actively seek out restaurants with lower prices when deciding where to eat out, Cracker Barrel has been able to leverage its wallet-friendly pricing into steady foot traffic and revenues.

But that may be coming to an end. 

During the chain’s fourth-quarter fiscal year 2026 earnings call, CEO Dave Deno warned that some major price jumps are coming in the near future.

Cracker Barrel plans to raise prices again

During the call, Cracker Barrel executives confirmed that menu prices would be rising by 3% or more in 2027.

The move, they say, is to offset the cost of inflation.

However, the chain says it’s not taking an all-or-nothing approach to the price increases, and says it’s committed to maintaining its affordability status for all income cohorts.

“When it comes to us specifically, yes, we do see some pressure with our low-income guests,” Deno told investors. 

That pressure, he continued, is what makes it so essential that the chain’s price jumps are strategic and not universal. 

“We have some special pricing constructs with really sharp, stark new price points,” CFO Craig Pommells told investors. 

“For example, we have our Sunrise Pancake Special that’s every day at $7.99. It’s a great deal,” he continued. “We have early dine Monday through Friday that starts at $8.99. We also have, again, the loyalty program, and we have lunch specials.”

“There are a lot of ways that if you’re feeling pressured from a discretionary income perspective, there are a lot of ways you can still have a great experience at Cracker Barrel,” he continued.”

Overall, the chain maintains that, even with the menu price jumps, its value proposition remains strong.

“We believe the Cracker Barrel value equation is really outstanding,” Pommells said. “We’ve got a check average that’s in the $16 range, and that compares to casual dining [in the industry in general] that’s $27… I think that positions us well in that regard.”

The chain is focusing on more than price

But Cracker Barrel knows value isn’t just about price.

If the chain wants customers to accept higher menu prices, it needs to convince them that the food they’re getting is worth the extra money.

So Cracker Barrel is also focusing on improving that half of the value equation, as well.

“Our first priority is food, more specifically, enhancing our quality while making it more craveable,” Deno said.

“We are making investments to improve food quality,” he continued. “Dinner is our biggest opportunity, and we plan to upgrade our chicken, hamburger, and steak offerings. We also want to ensure our great food meets guests’ expectations for taste, temperature, and quality on every visit.

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Some of these updates have been in the works for a while.

In 2025, the chain told the Wall Street Journal it was changing its cooking processes for some items like green beans and bacon to make them fresher when they hit the table.

It’s also been adding lighter fare, like grilled shrimp, and bringing back old favorites like the ‘90s campfire meals, in an effort to ensure there are options for diners of all types.

“I think they are trying to broaden it out so there’s more of a selection, so you’re not pigeonholing yourself to, ‘I want to go eat hearty,’” Benchmark analyst Todd Brooks told the Wall Street Journal. “But it’ll still be within the Cracker Barrel ethos.”

If Cracker Barrel can nail the balance of both halves of this value equation — raising costs just enough to keep it profitable without shutting out a portion of its consumer base and keeping food quality high — it could land right in that “value gap” sweet spot.