First, let’s deal with the facts as they have been reported to this point about an subject of enormous cultural and business import that has gotten an enormous number of headlines.
On August 19, Cracker Barrel – which operates more than 600 stores in 44 states – announced a rebranding that would include the changing of its logo from the name of the chain accompanied by an elderly man known as “Uncle Herschel” sitting next to a barrel. Now, the logo would only carry the name “Cracker Barrel,” and the words “Old Country Store” would be eliminated from the graphic.
The Associated Press reports that in advocating for the rebrand, the chain’s new CEO, Julie Felss Masino, a former Taco Bell and Starbucks executive, “laid out the argument to investors … Cracker Barrel’s customer traffic was down 16% compared to 2019. Research showed consumers thought the brand fell short of competitors in essential ways, from the quality of the food to value and convenience.”
This is a continuation of a broader rebranding effort, which has had the company streamlining the decor to make it more modern and less dependent on antiques, as well as refreshing, to some degree, its traditional eggs-bacon-gravy-and-fried food menu.
From Fast Company:
“In its fiscal 2024 year, its revenue was $3.4 billion, up 0.8% from the prior year, with net income of $40.9 million, down from $78.5 million. Earlier this year, Cracker Barrel shares dipped as low as $34, from upwards of $175 in 2021.
“The simplified logo was part of a broader $700 million transformation plan designed to modernize the restaurant chain. The goal was to brighten and streamline the restaurant, which is known for its homey aesthetic of wood paneling and bric-a-brac wall decor as well as a gift shop full of tchotchkes.”
By August 26, faced with enormous backlash largely driven by conservative media that seemed to believe that the redesign was “woke,” Cracker Barrel’s management changed its mind and announced that it would not update its logo after all.
KC’s View:
I think that captures the facts of the case as concisely as possible.
Now, let me offer an opinion: This may be one of the dumbest cultural controversies imaginable, but it is not a dumb business controversy. It is, in fact, the kind of branding decision that many companies face during their existence, especially one that is 56 years old.
It seems clear that Cracker Barrel has seen better days, and the new CEO was brought in by a board that recognized that some sort of reinvention was necessary. Or, Cracker Barrel could end up occupying the same graveyard as formerly prominent restaurant brands as Howard Johnson’s, Chi-Chi’s, Horn & Hardart, and Hot Shoppes, not to mention retailers that include Sears, A&P, Tower Records, Blockbuster, and EJ Korvette.
This can be a tough balancing act. Management has to figure out a way to bring in new customers without disenfranchising existing customers. In the case of Cracker Barrel, I am guessing, there were two challenges. First, they had to make the menu more appealing to a younger clientele. Second, they had to create an atmosphere that would not be off-putting to those prospective customers.
I’d also guess that before the company made this decision, it employed more than a few analysts, designers, brand experts, and pollsters. The move was not made in a vacuum – if Cracker Barrel is like many companies, it almost certainly researched the crap out of this move before making it. And management probably figured it didn’t have any choice, lest Uncle Herschel occupy a cemetery plot next to Howard Johnson.
Now, let me offer some context for my analysis. I’ve been to a few Cracker Barrels in my life, but not for a long time, and I have no intention of ever going back. (A recent review of its menu online only reinforced for me that wisdom of this decision.) Doesn’t matter to me what the logo is or was – though truth in labeling would suggest that instead of a barrel and an old guy, there should have been a cardiologist proffering a double dose of Lipitor.
I am not suggesting that Cracker Barrel’s menu should be targeted at people like me, who share my tastes. Far from it. I think that the world is a big place, and businesses should feel free to identify who their customers are and should be – few businesses can satisfy all the people all the time.
When you pull all this together, it defines the complicated business problem that Cracker Barrel faced. It had to modernize many of the identifying characteristics of a legacy brand, without alienating legacy customers – and had to do in a way that also would minimize any negative impacts on the investor class.
A set of problems that faces many businesses.
That’s hard to do in the best of circumstances.
These were not the best of circumstances.
Social media makes it hard enough. Social media driven by politics makes it even harder, if not impossible, to navigate.
It is hard for me to imagine how or why Cracker Barrel’s branding decisions could or should be defined in a political and/or cultural context. Unless, of course, it was less about Cracker Barrel and more about some people feeling the need to generate outrage because it was good for them, having nothing to do with an aging restaurant chain facing decline and potential obsolescence.
It is a pretty good bet that the loudest agitators are people who rarely, if ever, go to a Cracker Barrel. All the incendiary rhetoric achieved was to make it difficult for the chain to survive long-term – and the people who engineered the outrage ought to be ashamed of themselves.
And every business leader out to be concerned about the new challenges that they face in a marketplace – where people and movements that have no idea what your business is, are clueless about what goes into operating and succeeding in your business, and ignorant about what it takes to maneuver in a demanding and often onerous business, economic, cultural and political landscape – start to weigh in, make demands, and require obeisance.
But that’s where we are.
Good luck, folks.
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