Cracker Barrel CEO outlines path forward after logo controversy
Share
7 Min Read
SHARE
Nicely, it appeared like a good suggestion on the time.
After we final left Cracker Barrel Previous Nation Retailer (CBRL) , the southern-country-themed restaurant and present chain had gotten its biscuits fried after attempting to dropkick the Uncle Herschel character from its emblem.
The transfer was a part of a “strategic transformation” supposed to modernize the corporate and appeal to a youthful crowd within the face of declining gross sales and site visitors.
Many firms are simplifying and streamlining their logos, as a part of a longstanding pattern towards minimalism.
Cracker Barrel’s CEO says the corporate misstepped on its emblem change.Picture supply: Shutterstock
“Visible identities have the ability to make a model immediately recognizable,” Jessica Wong, digital advertising strategist, wrote in Entrepreneur in 2023. “The less complicated a emblem or different component is, the faster prospects can memorize and establish it. This has by no means mattered greater than immediately.”
Wong, CEO of Valux Digital, mentioned that on common Individuals see between 4,000 and 10,000 adverts per day, double the determine from 2007 and a fivefold bounce from the Nineteen Seventies.
Extra Retail Shares:
“Simplifying visible identities permits manufacturers to chop by way of the noise and be observed by customers,” she mentioned.
Along with the (nearly) emblem change, the Lebanon, Tenn., restaurant chain’s renovations concerned a shift from the standard rustic aesthetic to a brighter, extra trendy design with lighter partitions, streamlined cubicles and new seating.
Cracker Barrel CEO Julie Masino defended the redesign efforts, saying in a “Good Morning America” interview that public suggestions to the reworked areas had to this point been “overwhelmingly optimistic” and that “folks like what we’re doing.”
Perhaps not.
An terrible lot of individuals — proper on as much as President Donald Trump — rallied across the overalls-wearing “Previous Timer,” who resembles Herschel McCartney, the real-life uncle of the corporate’s founder, Dan Evins.
Trump declared that “Cracker Barrel ought to return to the outdated emblem, admit a mistake primarily based on buyer response (the final word ballot), and handle the corporate higher than ever earlier than.”
The inventory tumbled practically 16% amid the hullabaloo and the dreaded allegation of wokeness from conservative circles.
Site visitors dropped about 8% since Aug. 19, the date of the preliminary emblem change, and the corporate warned that if the tendencies continued, it anticipated a site visitors decline of seven% to eight% for the remainder of its fiscal 2026 first quarter.
Cracker Barrel Chief Monetary Officer Craig Pommells mentioned the corporate anticipated earnings for Q1, which started Aug. 1, to return in “considerably under” the year-earlier interval’s degree on account of decrease site visitors and roughly $16 million in investments in promoting and advertising.
“The suggestions we obtained from our company in latest weeks on our model refresh and retailer remodels has proven us simply how deeply folks care about Cracker Barrel,” Masino instructed analysts through the firm’s earnings call.
“We thank our company for sharing their voices and love for the model and telling us after we’ve misstepped,” she added. “We’ve listened fastidiously.”
Masino mentioned that the corporate had performed intensive analysis to tell its strategic plan.
“What can’t be captured in information is how a lot our company see themselves and their very own story within the Cracker Barrel expertise, which is what’s led to such a robust response to those modifications,” she mentioned.
“Now we have already taken steps to get again on monitor. We would like longtime followers and new company to expertise the total story of the folks, locations and meals that makes Cracker Barrel so particular.”
Masino mentioned the workforce pivoted rapidly to modify again to the old-timer emblem and has begun executing new advertising, promoting, and social media initiatives, “leaning into Uncle Herschel and the nostalgia across the model, with extra to return.”
“We additionally hit pause on our remodels and are reverting the 4 areas with the fashionable design to our old-timer signage and extra conventional interiors,” she mentioned.
Analysts at Truist beneficial shopping for the weak spot within the inventory. They are saying the core drivers of the model turnaround are intact and that gross sales quickly may begin to get well from the rebranding backlash because the autumn menu advertising resumes.
The funding agency lowered its value goal on the inventory to $58 from $62 and affirmed a purchase score.
It mentioned the preliminary fiscal 2026 steerage was far decrease than anticipated but in addition seems to incorporate excessive advertising and labor spending to help the gross sales restoration.
In the meantime, Citi reduce its value goal on Cracker Barrel to $42 from $47 and reiterated a promote score on the shares.
The corporate reset fiscal 2026 expectations nicely under estimates whereas saying that fiscal Q1 started in a “deep site visitors gap” given the emblem mishap, the funding agency mentioned.
Associated: The inventory market is being led by a brand new group of winners
