Shares of Cracker Barrel Old Country Store experienced a significant drop of approximately 10% on Thursday following the unveiling of its new logo earlier this week. This logo change is part of a broader brand refresh that aims to modernize the restaurant's image while still honoring its heritage. The new design eliminates the iconic image of a man leaning against a barrel, which was a staple of the original logo. Instead, the updated logo prominently features just the words "Cracker Barrel" against a bright yellow background, and notably omits the phrase "old country store." The company explained that the colors chosen for the logo were inspired by the chain's signature dishes, specifically its scrambled eggs and biscuits.
This logo change is not merely cosmetic; it is part of a strategic transformation that began in May 2024, aimed at revitalizing the Cracker Barrel brand. As part of this comprehensive refresh, the company is updating a variety of elements, including visual branding, restaurant interiors, and food and retail offerings. Cracker Barrel emphasized in a recent statement that despite these changes, it remains committed to its roots of country hospitality and authentic charm, which have made it a cherished destination for families for generations. Chief Marketing Officer Sarah Moore reassured customers, stating, "We believe in the goodness of country hospitality, a spirit that has always defined us. Our story hasn't changed. Our values haven't changed."
Despite the company’s reassurances, the new logo has faced backlash on social media, particularly among conservative users. Prominent figures such as Donald Trump Jr. have criticized the change, suggesting that it reflects a move towards erasing traditional American elements in favor of more generalized branding to align with diversity, equity, and inclusion efforts. Conservative activist Robby Starbuck also weighed in, tweeting, "Good morning @CrackerBarrel! You're about to learn that wokeness really doesn't pay." This criticism highlights the divisive nature of branding changes in today's politically charged climate.
In addition to the logo change, customers have expressed dissatisfaction regarding the interior redesigns of numerous Cracker Barrel locations. Many patrons feel that the new decor leans towards a sterile and modern style, straying from the beloved country aesthetic that has characterized Cracker Barrel for years. On the restaurant's latest earnings call in June, Masino noted that the company had completed 20 remodels and refreshes. She reported positive feedback from employees and guests, stating that the newly updated stores are perceived as "lighter, brighter, and more welcoming."
Cracker Barrel's stock performance reflects broader trends in the market, particularly in response to political discourse on social media. The company has a relatively small market capitalization of about $1.2 billion when compared to other restaurant chains. Notably, earlier this month, shares of American Eagle surged after Donald Trump endorsed an ad featuring Sydney Sweeney, which had received backlash from the left. Similarly, in 2023, Anheuser-Busch InBev faced significant criticism from conservative circles following a collaboration between Bud Light and transgender influencer Dylan Mulvaney.
As Cracker Barrel navigates these challenges, it will be crucial for the company to balance modernization with its storied legacy, ensuring that it continues to resonate with its loyal customer base while attracting new patrons.
