Cracker Barrel Responds to Controversy Over Viral Employee Dining Policy

Cracker Barrel found itself back in the national spotlight after reports surfaced suggesting the restaurant chain was requiring employees to eat exclusively at its own locations while traveling for work. The claim spread quickly, fueled by an internal memo referenced in The Wall Street Journal and amplified across social media, where critics framed it as an example of corporate overreach.

Within days, the Southern-style restaurant brand moved to clarify what it says was a misunderstanding. In statements to news outlets, Cracker Barrel stressed that employees are not banned from eating elsewhere while on business trips and that the policy in question is neither new nor as rigid as headlines suggested .

Still, the episode struck a nerve, especially given the company’s recent struggles with public perception. Coming on the heels of a controversial logo rebrand and declining sales, the viral policy debate added another layer of scrutiny to how Cracker Barrel communicates with both its workforce and the public.

How the Employee Dining Policy Went Viral

The controversy began when reports highlighted an internal travel guideline stating that employees are “expected to dine at a Cracker Barrel store for all or the majority of meals while traveling, whenever practical based on location and schedule.” That language, first reported by The Wall Street Journal and echoed by NewsNation, quickly drew backlash online.

Many readers interpreted the wording as a strict mandate, questioning whether a company should influence where employees eat outside of working hours, even on business travel. The phrasing also raised logistical questions, as Cracker Barrel locations are not always close to hotels, offices, or airports, particularly in urban areas.

As the story spread, Cracker Barrel issued public clarifications. In a statement to The Independent, the company said the guidance had been mischaracterized, emphasizing that it “is not the only place that our employees may eat when on the road” and that the policy was meant to provide general direction, not an inflexible rule.

Why Cracker Barrel Says the Policy Exists

According to Fox Business, Cracker Barrel says the dining guidance was first introduced in June 2024, well before it went viral. The company explained that the recent update focused on tightening expense policies, particularly limiting reimbursement for alcoholic beverages during work travel, rather than controlling where employees eat.

Under the clarified rules, employees are encouraged, but not required, to dine at Cracker Barrel locations when it makes sense, while alcohol purchases generally must be paid out of pocket unless pre-approved by a senior “E-Team” executive. From the company’s perspective, the policy helps manage costs and standardize travel expenses.

The timing, however, made the clarification harder to land. Cracker Barrel has been navigating a difficult period marked by falling revenue and public backlash over its attempt to modernize its logo by removing its longtime mascot, Uncle Herschel. According to The Independent, that rebrand wiped an estimated $94 million off the company’s market value in a single day before it was reversed, and sales for the quarter ending October 31, 2025, were down 5.7% year over year.

What the Controversy Means for Workers and the Brand

For employees, the viral debate underscores how ambiguous corporate language can quickly escalate into public controversy. Even policies framed as “encouragement” can feel like pressure if expectations aren’t clearly defined, particularly during a time when companies are cutting costs and workers are sensitive to perceived limits on autonomy.

For Cracker Barrel, the situation highlights the challenge of rebuilding trust after a turbulent year. CEO Julie Masino acknowledged during a December earnings call that the company’s turnaround is “taking longer than expected,” telling investors that the past few months have been “difficult for Cracker Barrel and for our 70,000 team members around the country,” according to Fox Business

Whether the dining policy controversy fades or lingers will likely depend on how consistently it is applied in practice and how clearly the company communicates going forward. For now, Cracker Barrel is insisting that employees still have choices on the road, even as it works to reassure customers that the comforts they associate with the brand, from rocking chairs to familiar menus, remain firmly in place.