An insulated picnic cooler having thermally isolated internal compartments separated by a dividing wall. A removable and adjustable shelf assembly can divide an internal compartment into thermally isolated storage pockets. The shelf assembly is spring loaded to remain in place and flush mounting “T”-shaped handles can retract the springs to enable the shelf to be removed or adjusted. Hot and cold food items as well as ice and beverages can be stored. A drain can be used to drain liquids from a storage compartment.