Photo via Fast Company
The battle between two restaurant titans has Nashville business leaders watching closely as activist investor Sardar Biglari deploys unconventional tactics against Cracker Barrel, the iconic Nashville-based casual dining chain. Last year, Biglari's Steak 'n Shake used its social media platform to attack Cracker Barrel's leadership decisions, even placing a billboard near the company's headquarters demanding the CEO be fired. The aggressive campaign represents a shift in Biglari's strategy—leveraging a major consumer brand to wage corporate battles rather than operating behind the scenes through holding companies.
Biglari, 48, has built a reputation as the restaurant industry's most polarizing figure. According to industry analysts, he has orchestrated multiple proxy fights against Cracker Barrel since 2011, prompting the company to deploy defensive "poison pill" measures four separate times. Cracker Barrel's shareholders have spent $31 million defending against Biglari's campaigns. The investor's approach differs markedly from traditional activist investors; he uses cash from Steak 'n Shake to purchase stakes in competitor restaurants, then demands operational changes from within their shareholder base.
Biglari's tenure running Steak 'n Shake itself has been marked by dramatic transformations and controversy. After taking control in 2008, he initially revived the struggling Midwest chain through menu simplification, earning Forbes recognition as one of America's most powerful young CEOs by 2012. However, subsequent rebranding efforts—eliminating table service, installing kiosks, and removing signature menu items—have alienated longtime customers and contributed to a 35 percent store closure rate since 2019. Industry observers and podcast hosts have criticized these changes as stripping away the brand's historical appeal in pursuit of cost reduction.
Today, Biglari's unconventional corporate structure and compensation methods have drawn scrutiny from governance firms, though his Biglari Holdings attracts major institutional investors including BlackRock and Vanguard. His recent efforts to rebrand Steak 'n Shake around beef tallow fries, Bitcoin payments, and political alignment showcase his willingness to pursue high-profile publicity tactics. For Nashville business observers, the Cracker Barrel campaign illustrates how activist investors can leverage public pressure and strategic positioning to challenge established regional companies, regardless of traditional corporate governance norms.
