Last Updated on July 22, 2025 by Bertrand Clarke
Cracker Barrel Old Country Store, a beloved American restaurant chain known for its Southern comfort food and nostalgic decor, finds itself at the center of a heated controversy in 2025. The company’s diversity, equity, and inclusion (DEI) initiatives, rebranded as “Culture and Belonging,” have drawn scrutiny from advocacy groups, employees, and legal experts alike. On July 22, 2025, America First Legal, a law group aligned with former President Donald Trump, filed complaints with the Equal Employment Opportunity Commission (EEOC) and the Tennessee Attorney General’s office, alleging that Cracker Barrel’s DEI practices discriminate against certain employee groups. This development has ignited a broader conversation about the role of DEI programs in corporate America, workplace fairness, and the balance between fostering inclusion and adhering to civil rights laws.
The Complaints Against Cracker Barrel
The complaints filed by America First Legal argue that Cracker Barrel’s DEI programs, which prioritize hiring and promoting individuals from underrepresented groups, may violate federal and state civil rights laws, including Title VII of the Civil Rights Act of 1964. Title VII prohibits workplace discrimination based on race, color, religion, sex, or national origin. The group contends that Cracker Barrel’s initiatives, which include race-based hiring pipelines and leadership development programs, unfairly disadvantage white, male, and heterosexual employees by prioritizing diversity metrics over merit. Posts on X from July 22, 2025, amplify this sentiment, with users like @dogeai_gov stating that such programs “openly prioritize identity over merit,” potentially breaching legal standards.
Cracker Barrel, headquartered in Lebanon, Tennessee, operates over 660 locations across 44 states, employing approximately 77,000 people as of 2025. The company’s DEI efforts, launched in recent years, aim to create a more inclusive workplace by increasing representation of women, people of color, and other marginalized groups in leadership and frontline roles. According to Cracker Barrel’s 2024 Corporate Social Responsibility report, the company achieved a 10% increase in diverse hires since 2020 and allocated $2 million annually to training programs focused on cultural competency. However, critics argue that these efforts may inadvertently create reverse discrimination, a claim that has fueled legal and public relations challenges for the chain.
A Broader Context: DEI in Corporate America
The controversy at Cracker Barrel reflects a growing national debate over DEI programs in corporate settings. Since the 2020 racial justice movements sparked by George Floyd’s death, many companies have adopted DEI initiatives to address systemic inequalities. A 2024 McKinsey & Company study found that 95% of Fortune 500 companies now have formal DEI programs, with 70% tying executive compensation to diversity goals. Yet, backlash has emerged, particularly from groups who argue that such programs can overstep legal boundaries or alienate certain employees.
In 2023, the U.S. Supreme Court’s decision to strike down affirmative action in college admissions (Students for Fair Admissions v. Harvard) set a precedent that has emboldened critics of DEI policies. Legal experts note that while Title VII allows for voluntary affirmative action plans, they must be narrowly tailored to address specific, documented disparities and avoid harming non-minority groups. America First Legal’s complaint cites Cracker Barrel’s leadership programs, which reserve spots for “diverse” candidates, as potentially violating this principle. The group’s filing with the EEOC requests an investigation into whether these practices constitute unlawful discrimination.
Cracker Barrel’s Response and Corporate Perspective
Cracker Barrel has not publicly commented on the July 2025 complaints, but its website emphasizes a commitment to fostering an inclusive environment where “everyone feels they belong.” The company’s “Culture and Belonging” initiative includes employee resource groups, diversity training, and partnerships with organizations like the National Urban League to support minority talent pipelines. In a 2024 earnings call, CEO Julie Felss Masino stated that these efforts have boosted employee retention by 8% and improved customer satisfaction scores in diverse markets.
Supporters of Cracker Barrel’s DEI programs argue that they address historical imbalances in the restaurant industry, where leadership roles have traditionally been dominated by white men. According to the Bureau of Labor Statistics, only 12% of restaurant managers in the U.S. are people of color, despite the industry’s workforce being 40% non-white. Proponents say that targeted hiring and promotion programs are essential for creating equitable opportunities and reflecting the chain’s diverse customer base, which includes 25% non-white patrons based on 2024 demographic surveys.
Employee and Public Reactions
The controversy has elicited mixed reactions from Cracker Barrel employees and the public. Some employees, speaking anonymously on platforms like Glassdoor, express frustration with the company’s DEI focus, claiming it creates an uneven playing field for promotions. A 2025 Glassdoor review from a Tennessee-based server stated, “The push for diversity feels forced, and it’s hard to know if you’re being judged on your work or your identity.” Others, however, praise the company’s efforts to create a welcoming environment, particularly for women and minorities in rural locations.
On X, the issue has sparked polarized discussions. Posts from July 22, 2025, highlight the divide, with some users, like @FoxBusiness, framing the complaints as a stand against discriminatory practices, while others argue that DEI programs are essential for correcting systemic inequities. The hashtag #CrackerBarrelDEI trended briefly, with users debating whether the company’s policies are progressive or problematic. Notably, these posts reflect sentiment rather than conclusive evidence, as X discussions often amplify unverified claims.
Legal and Cultural Implications
The legal battle over Cracker Barrel’s DEI programs could have far-reaching implications for corporate America. If the EEOC or Tennessee authorities find merit in America First Legal’s complaints, Cracker Barrel may face fines, mandated policy changes, or even class-action lawsuits. Legal scholars point to similar cases, such as a 2024 settlement where a major retailer paid $10 million to resolve claims of reverse discrimination, as a potential precedent.
Culturally, the controversy underscores the challenges of implementing DEI in a polarized climate. A 2025 Pew Research Center survey found that 60% of Americans support workplace diversity initiatives, but 45% believe they can sometimes disadvantage non-minority groups. This tension is particularly pronounced in industries like hospitality, where customer-facing roles amplify public scrutiny. For Cracker Barrel, whose brand is rooted in traditional American values, navigating this divide is a delicate balancing act.
Economic and Market Considerations
From a business perspective, the controversy could impact Cracker Barrel’s bottom line. The company reported $3.4 billion in revenue for fiscal year 2024, with a 3% year-over-year increase driven by menu innovations and expanded catering services. However, boycotts or negative publicity could erode customer loyalty, particularly in conservative-leaning regions where the chain has a strong presence. A 2025 Nielsen study suggests that 30% of consumers are more likely to support brands with inclusive practices, but 25% say they avoid companies perceived as “too woke.”
Competitors like IHOP and Denny’s, which have also faced scrutiny over DEI policies, have responded by emphasizing transparency and merit-based hiring. Cracker Barrel may need to adopt similar strategies to mitigate backlash while maintaining its commitment to inclusion. Analysts predict that the company’s stock, trading at $45 per share as of July 2025, could face volatility if the legal complaints gain traction.
Looking Ahead
As Cracker Barrel awaits the outcome of the EEOC and Tennessee investigations, the company faces a pivotal moment. The debate over its DEI programs highlights broader questions about how businesses can foster inclusion without alienating employees or customers. For now, Cracker Barrel must navigate a complex landscape of legal, cultural, and economic pressures while staying true to its brand identity.
The controversy also serves as a case study for other corporations grappling with DEI implementation. As America First Legal and similar groups continue to challenge such programs, companies may need to reassess their policies to ensure compliance with civil rights laws while advancing diversity goals. For Cracker Barrel, the path forward will require careful communication, legal diligence, and a commitment to fostering a workplace where all employees feel valued.
Conclusion
Cracker Barrel’s DEI controversy is more than a legal dispute; it’s a reflection of America’s evolving conversation about fairness, inclusion, and corporate responsibility. As the company responds to allegations of discrimination, it must balance its commitment to diversity with the need to uphold equitable practices. The outcome of this case could shape the future of DEI initiatives across industries, making Cracker Barrel a bellwether for how businesses navigate these complex issues in 2025 and beyond.
