Cracker Barrel Essay

Cracker Barrel is part of the restaurant and food industry. The restaurant industry consists of so many different restaurants, bars, fast food, and any other service that provides food to consumers. To be part of the restaurant industry, the firm must allow the consumers to enter the restaurant, choose their choice of food, and eat at the location. Usually any service that provides food is considered part of the restaurant industry . The restaurant industry is divided into four different sections which is based on the level of customer service the consumers receive. The sections are: Full Service, Quick Service, Eating and Drinking Place, and Retail Host. Cracker Barrel is considered “full service” because they provide menus with many choices and prepare meals for customers . Cracker Barrel not only provides food to their

These firms are continuously competing with Cracker Barrel because they offer the similar types of food and services; although they have different strategies and distinctiveness. Not only are some of the food options similar, but their prices are close in range. There are so many factors that make the competition in the restaurant extremely high. Some of these factors include: prices, quality, value, reputation, location, and accessibility. Chart below compares the competitors’ gross profit margins. Most casual dining restaurants have a gross profit margin of around 20 to 80 percent . The gross profit margin shows how profitable a company really is and shows the percentage of a company’s sales. Denny’s and Panera Bread have a higher gross profit margin than Cracker Barrel. This assessment indicates that these competitors have better products and services compared to Cracker Barrel. Also, the competitors may even have a better pricing strategy. This indicates that the competitors are finding a way to reduce the cost of goods sold or even increasing their prices