Reference no: EM131234767

Chapter 3 CASE: Cracker Barrel Moves Forward Rustic exteriors.

Rocking chairs on a covered porch. Country music from the 1950s beckoning customers in. Home cooking that would make anyone’s grandmother proud. Such are the iconic sights and sounds that embody the Cracker Barrel restaurant. Based in Lebanon, Tennessee, the chain is a staple along highways, featuring pancakes, biscuits, chicken fried steak, blackberry cobbler, and apple butter. Along with its Southern.style menu is general store that offers games, candies, and country kitsh-all with a welcoming, country feel.

The first Cracker Barrel restaurant opened in 1969, and by 1996, there were 257 stores across the South. Today, there are well over 600 locations in 42 states (crackerbarrel.com). The company prides itself on being an alternative to fast food for travelers on the interstate highways system.

Although Cracker Barrel displays wholesomeness today, that image was tarnished a few years ago. However, the restaurant has shown a determination to move forward with a strong sense of diversity.

In 2004, after ongoing legal action, Cracker Barrel agreed to pay $8.7 million as a settlement for charges of discrimination against black customers and employees (Richardson & Singleton, 2004). The allegations were the black patrons were denied service, were seated exclusively in smoking sections, and were called racist names. The case alleged that managers either ignored these situations when they were brought to their attention or may have condoned this behavior. Similarly, black employees claimed that they were mistreated by store managers as well. They alleged that they had to work in the kitchen area and not in the more lucrative serving positions.

Unfortunately, this was not the first time Cracker Barrel had been in the press for charges of discrimination. A memo (later denounced by Cracker Barrel) included a statement ordering managers to terminate those employees who didn’t “demonstrate normal heterosexual values” (Ruggless, 2008).

Other restaurants have faced similar charges recently. For example, an African American claimed that Landmark Steakhouse in California put the “n-word” on his receipt to identify him. A Korean American woman claimed Papa John’s in the New York labeled her “lady chinky eyes” on her receipt. And, two Asian students at the University of California alleged that Chick-fil-A described them as “Ching” and “Chong” (Glazer, 2012).

So what actions has Cracker Barrel taken since these incidents?

In addition to diversity training for its employees, all stores have posted signs that ask customers to report any behavior that they deem inappropriate. In other words, if customers feel mistreated or that they are being denied service due to their race, sexual orientation, or other factor, they can call a toll-free number and immediately file a grievance with the corporate office. To handle these kinds if complaints and to conduct investigations of its own, Cracker Barrel created a special department of employees. This team looks into any improprieties as well as ensures compliance at the store level.

Though some of these steps were court ordered or agreed upon through legal statements, other programs have been initiated entirely by the company. For example, Cracker Barrel has sponsored a number of groups and events that are minority focused and is working with its Spanish-speaking employees to teach them English (Rugglets, 2008). These actions show an earnest dedication to treating all of the company’s customers and employees with respect and equality.

Furthermore, on the company’s website, several statements illustrate Cracker Barrel’s commitment to turning around its image. For example one page is devoted to equal opportunity for employees. In part, it reads, “Qualified applicants are considered for all open positions for which they apply and for advancement without regard to race, color, religion, sex, sexual orientation, national origin, age, and marital status, the presence of a medical condition or disability, or genetic information” (crackerbarrel.com). Also, the company has developed the Pleasing People program, which is a set of values that each employee is trained in and drives home the importance of treating others with respects. Dan Evins, the founder of Cracker Burrel, described this program as “showing the same face to everyone” (crackerbarrel.com). Another example on the company’s website is its commitment to diversity. The firm emphatically states that “Cracker Barrel welcomes and appreciates diversity- in our customers, our vendors, and in our employees” (crackerbarrel.com).

Clearly, Cracker Barrel has initiated several steps in the right direction to help overcome the stigma it once had. But it must continue to demonstrate an ongoing commitment to embracing diversity in order to fully move forward.

1. Assess Cracker Barrel’s issues with diversity from 10 years ago versus today. What did it do wrong and what it done right?

2. Where does diversity awareness and commitment start? In Cracker Barrel’s case, should it come from the store level or the corporate office? Why?

3. Why is it important for Cracker Barrel to embrace diversity? What impact can an indifference to diversity have on customers and employees?