Attention Cracker Barrel Investors

Attention Cracker Barrel Investors

Cracker Barrel investors may want to research how at least one Cracker Barrel is managing their resources. Jelly and butter may seem like inconsequential commodities but if you add up the price of sealed whipped buttercups and individual jelly packs used over a year's time it could be quite a sum. Now this is calculating in that all Cracker Barrels will embrace this new jelly and butter policy which seems logical since Cracker Barrel strives for consistency in all their stores. So what is happening with jelly and butter? At least one Cracker Barrel, I will not say which one, is placing jelly on the tables and throwing away unused buttercups from tables. In the past, jellies were given out per request except for breakfast meals and unused buttercups were taken back and used for other guests.

So What is the Big Deal?

Why worry about this new practice? Well the big concern is if this is going to be a company wide policy, with all Cracker Barrels throughout the chain throwing away buttercups and making jellies easily accessible for the convenience of the guest. If this is a company wide policy it could add up to a pretty good chunk of change over a year's time. Now the buttercup policy may be about health codes so we will lay that aside but just the cost of jellies alone could possibly cost the company a lot.

Let's Do Some Math

If one jelly pack cost .06 and because of jellies were on the table it caused an additional 50 jelly packets per day to be used it would be an annual cost of $1092 per store. No big deal right, let's say this is a company wide policy and you take 600 stores using the same amount of additional jellies, 50 extra per day, then it would be $1800 per day and $655,200 per year.

I do not know of this is a company wide policy but if it is then I believe it warrants the scrutiny of all who on own a part of Cracker Barrel Old Country Store. Maybe there is a good reason for this jelly and butter policy or maybe it is an example of poor management of Cracker Barrel assets. Just my opinion.



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