Steak 'n Shake CEO's criticism of Cracker Barrel's leadership under fire, prompting retaliation from the latter following public outburst
In the dynamic world of business, the ongoing saga between Sardar Biglari, the head of Steak 'n Shake, and Cracker Barrel has been a source of intrigue.
Sardar Biglari, a significant shareholder of Cracker Barrel, has been a vocal critic of the restaurant chain's recent decisions. In October 2024, he was re-elected to Cracker Barrel's shareholder meeting, thanks to shareholder support for his leadership and strategic vision. However, his relationship with Cracker Barrel has not always been smooth.
One of the most contentious issues between Sardar Biglari and Cracker Barrel was the botched rebranding attempt. In 2022, the restaurant chain announced plans to change its decor and logo, but the move was met with criticism from Biglari. He suggested that the new CEO focus on the quality of food and service rather than changing the brand.
The rebranding attempt proved costly for Cracker Barrel. The stock dropped 7% after the move, wiping out $90 million in market value. In response, Cracker Barrel fired back at Biglari, accusing him of having outdated views and being stuck in the past.
However, Biglari's advice seemed to resonate with some. In a June 2024 meeting with Cracker Barrel's new CEO, Biglari did not express concerns about the strategic transformation or disagreement with the reduction in the company's quarterly dividend.
Steak 'n Shake, on the other hand, has seen mixed results under Biglari's leadership. The company has closed 200 locations and revamped into a "quick service" fast food restaurant. However, Steak 'n Shake recently posted impressive same-store sales figures, with a 11% increase, the highest in the Quick Service Restaurant (QSR) category.
The conflict between the two companies escalated further when Steak 'n Shake attacked Cracker Barrel on social media, criticizing the restaurant's rebrand and new logo. Steak 'n Shake even posted images of red MAGA-style hats calling for Cracker Barrel CEO Masino to be fired.
Cracker Barrel, in turn, criticized Biglari publicly. The restaurant chain accused him of personal attacks and stated that changing the furniture and altering the decor would not change the company's trajectory or solve the problem of declining traffic.
Despite the public spat, Cracker Barrel's stock recovered somewhat after the company vowed to keep its current logo. Steak 'n Shake COO Dan Edwards, however, accused Cracker Barrel of attempting to distract from its recent PR disaster by attacking Biglari personally.
The saga between Sardar Biglari and Cracker Barrel continues, with both parties showing no signs of backing down. The future of Cracker Barrel remains uncertain, but one thing is clear: Biglari's advice to focus on the quality of food and service continues to echo in the restaurant industry.
