Cracker Barrel Faces DEI Probe After Pro-Trump Law Group Complaint

Newsweek

2 days ago

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Cracker Barrel has been targeted by a law firm seeking to defend President Donald Trump's policies amid allegations that the restaurant's diversity drives are "discriminatory."
America First Legal (AFL) has called for an official probe into the Southern restaurant chain "for potential violations of federal and state civil rights laws stemming from its discriminatory diversity, equity, and inclusion (DEI) policies."
Some of Cracker Barrel's initiatives to develop employees are focused specifically on supporting workers who are women, Black, LGBTQ+, or Latino, according to AFL. This means they "appear to offer employment benefits that are only available based on an employees' race or sex," the Washington D.C.-based law group said in a press release on Monday.
The firm has formally requested that the U.S. Equal Employment Opportunity Commission (EEOC) and Tennessee Attorney General Jonathan Skrmetti investigate Cracker Barrel Old Country Store, Inc. for alleged violations.
Newsweek reached out to Cracker Barrel via email for comment outside of regular working hours.
A Cracker Barrel Old Country Store restaurant in Naperville, Illinois, as seen on April 12, 2002.
A Cracker Barrel Old Country Store restaurant in Naperville, Illinois, as seen on April 12, 2002.
Tim Boyle/Getty Image
Why It Matters
The case comes amid a wider cultural debate about inclusion and diversity practices.
Trump has been highly critical of DEI policies. Since his return to office earlier this year, federal agencies have rolled back the initiatives across military and government platforms and attempted to scrap them in schools and universities.
Claims that DEI in general is discriminatory have been subject to pushback in the spheres of education, politics, and business.
Most U.S. business leaders think dropping DEI is a bad idea, according to a national survey, whose findings were reported by Forbes earlier this month. Some 77 percent of executives believe that DEI initiatives are positively correlated with improved financial performance, while 81 percent said that DEI policies have bolstered customer loyalty.
What To Know
America First Legal describes itself on its website as a "nonprofit law firm founded to unapologetically and boldly defend the rights of everyday Americans." The organization, which has been described as pro-Trump by the press and whose name pays homage to the "America First" movement, stated: "We are at the forefront of the battle for our nation."
In a press release issued by AFL law firm on Monday, AFL Senior Counsel Nicholas Barry called Cracker Barrel "almost as American as apple pie," but said it may also be "discriminating against its employees," which, they say, must not go unchallenged under civil rights laws.
The dining chain, founded in Tennessee in 1969, has nearly 660 restaurants across 44 states, serving around 230 million guests each year, according to Cracker Barrel's website.
The press release said the law firm "has formally requested that the U.S. Equal Employment Opportunity Commission (EEOC) and Tennessee Attorney General Jonathan Skrmetti investigate Cracker Barrel Old Country Store, Inc. (Cracker Barrel) for potential violations of federal and state civil rights laws stemming from its discriminatory diversity, equity, and inclusion (DEI) policies."
The law group claims the restaurant "rebranded its dedicated DEI website last year from 'Diversity and Inclusion' to 'Culture and Inclusion,' yet continues to promote the company's apparently unlawful commitments to provide unique employment benefits to certain races and sexes."
It says that Cracker Barrel "promises to 'attract, select, develop, and retain high-performing talent with diverse backgrounds, experiences and perspectives.'"
Specifically, AFL referenced the chain's Business Resource Groups (BRG), claiming its Be Bold BRG aims to "cultivate and develop Black Leaders," while its HOLA BRG is designed to "promote Hispanic and Latino culture through hiring, developing, and retaining talent."
Its LGBTQ+ Alliance BRG aims to foster awareness and support within that community, and its Women's Connect BRG is focused on "empowering, educating and engaging" female members of staff to help them "grow their careers."
"Even if any employee may technically join a BRG, certain associated benefits appear to be restricted to specific identity groups," AFL alleges.
What People Are Saying
America First Legal Senior Counsel Nicholas Barry, in a press release: "Cracker Barrel is almost as American as apple pie. Their store is full of classic Americana items, and it brands itself as a bastion of southern hospitality. If Cracker Barrel is discriminating against its employees and trying to hide it, it is failing to live up to its own brand and internal standards. The government should vigorously enforce its civil rights laws and ensure any such discrimination is rooted out and destroyed."
America First Legal Counsel Will Scolinos, in a press release: "Americans are fed up with major American corporations serving up DEI as if it is entirely okay. Treating people differently because of the color of their skin or their sex is not only wrong, it is illegal. AFL has fought DEI since the Biden Administration spent four years celebrating and encouraging its wholesale implementation across the country. Now, companies are retreating from the term 'DEI' but retaining their discriminatory policies. Cracker Barrel and other American corporations must take discrimination by any name off the menu once and for all."
Elise Smith, the CEO and co-founder of the tech startup Praxis Labs, told Time magazine in February: "Regardless of what you think about the term DEI, this work will continue, because fundamentally it does drive better business outcomes. Fortune 500 companies are trying to figure out: How do we serve our clients and customers, knowing that there's a ton of diversity within them? How do we bring our teams together to do their best work?"
Jennifer McCollum, president and CEO of nonprofit gender-equity organization Catalyst, told Forbes this month: "Inclusion has never been a liability — it's a competitive advantage and a business imperative." She added that "organizations committed to the principles of opportunity and fairness behind DEI will be the ones that outperform their peers, retain talent, and build lasting trust."
What Happens Next
The legal process is now underway after America First Legal filed its complaints with the Tennessee attorney general and the Equal Employment Opportunity Commission on Monday.
Cracker Barrel has yet to respond publicly as the case shapes up to be another battle in the wider war against DEI.