Cracker Barrel Closes 16 Maple Street Biscuit Company Locations
The move is part of an effort to cut costs, reduce debt, and refocus on the core Cracker Barrel brand.
Cracker Barrel is closing 16 locations of its sister restaurant brand, Maple Street Biscuit Company, as part of a broader strategy to reduce debt and improve profitability. The Tennessee-based company announced it is selling certain assets of Maple Street, a fast-casual breakfast chain it acquired in 2019, to Kentucky-based Biscuit Belly LLC.
Under the agreement, Biscuit Belly will acquire the Maple Street brand, intellectual property, and assets tied to 35 restaurants, which will be converted to Biscuit Belly locations over the next 18 to 24 months. The remaining 16 Maple Street locations will permanently close. This decision marks the end of Cracker Barrel's approximately seven-year experiment with the upscale biscuit chain, which it purchased for about $36 million with plans to expand it beyond traditional roadside restaurants and tap into the growing fast-casual breakfast market.
Cracker Barrel CEO and President Julie Masino stated that the divestiture of Maple Street sharpens the focus on the core Cracker Barrel brand. "Our sale-leaseback transaction will allow us to opportunistically reduce debt while monetizing a portion of our owned real estate at an attractive valuation," Masino said in a statement. "Divesting Maple Street sharpens our focus on the core Cracker Barrel brand and is expected to improve profitability."
Separately, Cracker Barrel completed a sale-leaseback deal involving 26 company-owned locations, generating $77 million. These proceeds will also be used to reduce the company's debt, with the restaurants continuing operations under lease agreements with the new property owner. Cracker Barrel operates nearly 660 locations nationwide, while Maple Street Biscuit Company had approximately 35 restaurants at its peak.
The company has faced challenges in recent years, including a controversial rebranding attempt last year that introduced a modernized logo without the signature 'Old Timer' character. The backlash led Cracker Barrel to revert to its original logo. In December, the company announced corporate layoffs aimed at addressing a sales slump. Retail strategist Carol Spieckerman commented at the time that the layoffs alone would not fix underlying issues with brand clarity.
Cracker Barrel also faced customer frustration regarding changes in food quality and preparation methods, such as switching to batch-prepared, chilled biscuits instead of fresh dough. The company has since returned to its original practice of rolling and baking biscuits fresh. The restaurant chain has also recently introduced new food items and increased merchandise sales, including items commemorating America's 250th birthday.