TinyChan

Cracker Barrel's stock takes a dive as critics deride 'soulless' new logo

BY JULIAN MARK

Cracker Barrel's stock tumbled Thursday as the restaurant chain faced backlash over a new logo that critics derided as "woke".

"WTF is wrong with @CrackerBarrel??!" Donald Trump Jr wrote on the social media site X on Wednesday evening, quoting another account that accused the company of scrapping a "beloved American aesthetic and replaced it with sterile, soulless branding."

When the national restaurant chain unveiled the streamlined on Tuesday, it said the new look was "rooted even more closely to the iconic barrel shape and word mark that started it."

Notably missing was the image of a man in overalls leaning against a wooden barrel that had been its been part of the company' motif since 1977.

But within 48 hours, the re-design backlash was raging online, with commenters on both sides using it as a cudgel.

"WHAT IS WRONG WITH CRACKER BARREL?? KEEP YOUR BEAUTIFUL LOGO !!! THE NEW ONE LOOKS LIKE CHEAP VELVEETA 'CHEESE' FROM WALMART, THE PLACE FOR GROCERIES (AN OLD FASHIONED TERM)!!! 'FIX IT' ASAP! WOKE IS DEAD!! THANK YOU FOR YOUR ATTENTION TO THIS MATTER," California Gov. Gavin Newsom's (D) press office posted on X on Thursday, apparently mimicking President Donald Trump's social media style.

Cracker Barrel shares fell sharply Thursday before recovering somewhat ending the day at $54.80, down nearly 7.2 percent.

Company CEO Julie Felass Masino told ABC's "Good Morning America" that the "feedback has been overwhelmingly positive." She added that "Cracker Barrel need to feel like the Cracker Barrel for today and for tomorrow."

In a statement, the company emphasized that its "value haven't changed, and the heart and soul of Cracker Barrel haven't changed." It noted that the new logo is the fifth iteration since 1969.

According to the company's blog, the logo featuring the "old-timer wearing overalls" was first drafted on the back of a napkin nearly five decades ago by a Nashville-based designer. It was meant to create a "feeling of nostalgia," according to the post.

The restaurants themselves are also being revamped. The dining rooms are being outfitted with more modern furnishing and decor, as opposed to the "old country store" design it had in place for decades.

Americas Reed, a marketing professor at the University of Pennsylvania's Wharton School said the negative attention means Cracker Barrel's effort has largely failed. Companies walk a fine line when they redesign logos, he said. The goal is just noticeable difference" and to not change too much as to create disruption.

"If you're doing this right, you've tweaked a little bit on the edges and you've tested it." Reed said. adding that logo rebrands can cost "hundreds of thousands of dollars" so the stakes are high.

The redesign "flopped by definition of the negative pushback." he said.

Cracker Barrel faced similar pushback in 2022 when it started offering meat alternatives on its menu, similarly riling up its conservative customer base, which also cast the move as a liberal ploy. But numerous brands have been pulled into politics over marketing decisions in recent years.

Bud Light was America's top selling beer when it partnered with transgender actress Dylan Mulvaney in a 2003 campaign, sparking an outcry and conservative boycott.

Angry customers filmed themselves destroying cans of Bud Light with firearms and construction equipment.

Meanwhile, some liberal customers took issue with the brewer for failing to stick up for Mulvaney in the face of criticism. Sales took a major hit.

Reed said lessons can be learned from the episode, in which Bud Light and parent company AB InBev alienated both sides. If a company changes its marketing, Reed said, it must go "all in."

"Once you're in, you live er die by it," he added. "You can't backtrack."