What's Happening?
Cracker Barrel Old Country Store is experiencing a decline in customer visits following a controversial logo rebrand that was criticized for being 'woke.' The company reported an 8% drop in traffic after unveiling the new logo on August 19, compared to a 1% decline earlier in the month. The rebrand involved removing the 'Old Timer' character from the logo, which sparked backlash from fans and political figures, including President Trump. In response, Cracker Barrel reversed the logo change and paused further remodels. The company is now focusing on a new marketing strategy that emphasizes nostalgia and existing restaurant features.
Why It's Important?
The failed logo rebrand highlights the risks companies face when altering iconic brand elements that resonate with their customer base. Cracker Barrel's experience underscores the importance of understanding consumer sentiment and the potential backlash from changes perceived as politically motivated. The decline in customer visits and subsequent drop in share prices reflect the financial impact of such branding missteps. As Cracker Barrel works to regain momentum, the situation serves as a cautionary tale for other businesses considering similar changes.
What's Next?
Cracker Barrel plans to implement a new marketing approach that leverages nostalgia and focuses on the brand's traditional elements. The company aims to regain customer traffic and improve its financial trajectory. It anticipates generating between $3.35 billion and $3.45 billion in revenue this fiscal year, slightly down from the previous year. Cracker Barrel will also close 14 Maple Street Biscuit Company restaurants while opening two new Cracker Barrel locations. The company's efforts to recover from the rebrand controversy will be closely watched by investors and industry analysts.
