Everyday PR

In 1969, Dan Evins had a brainstorm - to provide a reliable, convenient (as in right off the Interstate highways) place for travelers to buy gas, eat a home-cooked meal, get candy for the kids, and perhaps catch a few minutes of shut-eye. Evins and his contractor partner literally drew their building plans in the dirt on Highway 109 in Lebanon, TN, which eventually became the first Cracker Barrel Old Country Store location. 

This year, the company celebrates its 40th anniversary of sticking to its original goal.  As I’ve previously opined, the company strongly emphasizes customer service. When combined with reasonably priced comfort food, a fun retail shop and friendly staff, it’s no wonder that Cracker Barrel has survived this recession and others before it.  Plus, I believe its longevity is partly attributable to its consistent, authentic and downhome branding – the kind of branding that works in good times and bad, the kind of branding that epitomizes value, and the kind of branding that exhibits a likeable personality.

Geert de Lombaerde of South Comm Communications recently interviewed Cracker Barrel President and CEO Mike Woodhouse about the company’s beginnings and growth. A few highlights:

*  Cutting corners on the quality and quantity of food isn’t an option.  After 40 years of building a loyal following and gaining customer trust, the company says that cutting corners on the product or reducing its investment in customer service training are non-negotiable.

*  Under Woodhouse’s leadership, shares of Cracker Barrel have risen 130 percent – more than 150 percentage points more than the S&P 500 over that time.

*  Cracker Barrel’s main key to success?  Staying true to its brand.

To read the entire interview and learn more about Cracker Barrel’s branding, zigging and zagging, advertising, exclusive marketing partnerships and relentless repetition, read the complete story here. 

What do Chick-fil-A, Publix Supermarkets and Cracker Barrel have in common? Simple:   a good product, appropriate price points and excellent customer service.  At the end of the recession day and all other things being equal, these and other companies like them have a much greater chance of survival because of their attention to these common qualities.

Keys to survival: Right prices, good products, excellent customer service

 Chick-fil-A enjoyed unprecedented sales in 2008, its 41st consecutive year of system-wide sales gains.  Publix, a Southeastern chain founded in 1930, opened more stores last year – 79 – than ever before.  And for the 18th consecutive year, an independent poll by Restaurants & Institutions named Cracker Barrel “Best Family Dining Restaurant”.

Author Fred Reichheld of “The Ultimate Question: Driving Good Profits and True Growth” says an unhappy customer can hurt the company’s reputation by telling 6-10 people about the experience.  Today, that number can quickly reach hundreds of thousands, thanks to the Internet.  Per Reichheld, just a 5% increase in customer retention will yield a 25-100% improvement in profits.

I recently called our insurance company to check on two claims.  Once I reached a person named Patti, she said there was no record of the claims and to re-send via fax.  I tried unsuccessfully to send.  Two days later at 8:02 a.m., the phone rang.  It was Patti.  She wanted to know if anything was wrong as she hadn’t received the fax.  She also said further research on the claims showed that I should receive reimbursement by the end of the week.  I did.  If Patti and her co-workers provide that kind of customer service every day, the company will have a much better chance of survival and customer loyalty.