Cracker Barrel drops marketing firm after logo backlash
Cracker Barrel Old Country Store has terminated its partnership with the marketing firm behind a controversial logo refresh. The decision comes amid customer backlash and raises questions about the company's future branding strategy. Shares fell following the announcement.
Cracker Barrel Old Country Store Inc., the casual dining chain known for its country-themed decor, has ended its relationship with the marketing firm responsible for a recent logo redesign that drew widespread criticism. The logo refresh, unveiled in May 2024, aimed to modernize the brand but instead sparked backlash from loyal customers who felt it eroded the company's traditional identity.
A spokesperson for Cracker Barrel stated, "We have decided to part ways with the firm to refocus our efforts on strategies that better align with our heritage and customer expectations." The firm, which handled the creative overhaul, was not named in the announcement, but the move highlights ongoing challenges at the restaurant chain, which has been grappling with declining sales and shifting consumer tastes.
The timeline of events began with the logo reveal in early May 2024, when Cracker Barrel introduced a simplified design featuring updated fonts and colors. Social media erupted with negative feedback, including comments like "This isn't the Cracker Barrel we know" from longtime patrons. By June 2024, the company acknowledged the misstep and began exploring alternatives, leading to the firm's dismissal announced on September 12, 2024.
This development adds to uncertainties surrounding Cracker Barrel's leadership and long-term plans. The company, founded in 1969 and headquartered in Lebanon, Tennessee, has seen its stock price decline by about 5% in the days following the news, trading at around $45 per share. Analysts note that while the logo issue is symbolic, it underscores broader issues like menu innovation and competition from fast-casual rivals.
Cracker Barrel's CEO has faced scrutiny over the branding push, with some investors questioning whether the refresh was part of a larger turnaround effort. The company reported a 2.5% drop in same-store sales for the fiscal quarter ending July 2024, prompting calls for a return to core values. No further details on a replacement firm or revised plans were provided, leaving observers to speculate on the next steps for the 660-location chain.