Customer feedback convinces Cracker Barrel to retreat on new logo

Customer feedback was the big winner this week as the restaurant chain Cracker Barrel was forced to retreat from its redesigned logo with clean lines and return to the original with the "Old Timer" in overalls leaning on a barrel. The old logo paid tribute to Uncle Herschel, the nickname for the store's founder. Known for its old-fashioned, southern style, Cracker Barrel miscalculated the public's tolerance for change.

When the company released the new logo and restaurant design, customers revolted. And the stock price dropped about 9 percent. The company lost $100 million in market value as a result of this controversial rebranding. The rebrand had cost $700 million, according to PBS. 

Cracker Barrel customer feedback is loud

As soon as the rebranding was announced and the new logo with clean lines and no art around the restaurant name was visible, the backlash began. Even US President Donald J. Trump weighed in on his social media platform Truth Social. 

"Go back to the old logo, admit a mistake based on customer response (the ultimate poll) and manage the company better than ever before," he wrote.

Many online went beyond basic criticism of the strategy, which included the logo change and renovation of the restaurant interiors. They found it offensive, and they made it a part of the political culture war. Make America Great Again (MAGA) supporters described the changes - both to the logo and the interior of the restaurants - as "woke," which has become shorthand for things like diversity, equity and inclusion (DEI), an effort that has been demonized by Trump. They felt the company was trying to erase its history to appeal to younger customers. 

Why did customers think Cracker Barrel went woke? 

Many people on the left and Never Trumpers, a reference to Republicans who have left the party because of the leadership, also did not like the rebranding. However, they did not understand the political overtones of the other side of the argument.

"This could have been a world in which everybody thought the new logo kind of [stunk] relative to the old logo," said Bulwark publisher Sarah Longwell on a podcast. "Because we live in a world where everyone has to have an opinion, that was the dominant opinion. But the way it got turned into a cultural flash point is bizarre because it didn't need to."  

As some analysts have pointed out, the political link is murky. What makes this rebranding woke? Reportedly, the CEO Julie Masino, who took over the chain in July 2023, was looking for solutions to a problem that many enduring companies face: An aging customer base. Executives thought a less nostalgic and more modern look and feel would be a way to appeal to younger people.

Masino has also reportedly said that the executives realized some would be reluctant to change, but they expected most customers would eventually come around. They were wrong. As a result, the company was forced to grant customers at least part of their wish.  

"We thank our guests for sharing your voices and love for Cracker Barrel. We said we would listen, and we have. Our new logo is going away and our 'Old Timer' will remain," according to a statement Cracker Barrel wrote on the social media platform X. "At Cracker Barrel, it's always been - and always will be - about serving up delicious food, warm welcomes and the kind of country hospitality that feels like family." 

The lesson in listening to customer feedback

This story demonstrates that brands must pay attention to the Voice of the Customer (VoC), surveys, focus groups, etc. before investing in transformations that require hefty investments. Executives should also surround themselves with those who constantly take the pulse of customers. Sardar Biglari, a top investor, warned Cracker Barrel that there would be such backlash before the transformation got underway, but the company proceeded anyway, according to Fox Business Report. 

The saga continues as customers contend with the other part of this transformation: the remodeling of the interior of the restaurants and stores. Dating back to 1969 when Cracker Barrel launched, it has included a kitschy restaurant and market that sells trinkets, including candy, toys, fashion and home accessories. The intention was to evoke a sense of nostalgia for a bygone era in the South.

Memorabilia lined the walls and there were peg games on every table. Rocking chairs, which customers could buy, lined the patio. People could play checkers or do some shopping while they waited for a table. The menu featured classic Southern fare like fried chicken and peach cobbler, and it also included breakfast that was available all day. Much of that has remained amid the transformation. The change is more about the look.  

As part of this new rebranding, designed to attract Gen Z, Cracker Barrel took down the memorabilia, painted the walls white and went for a minimalist look. In addition, it freshened up the menu, offered a couple of healthier choices, but kept the staples like fried chicken and meatloaf. The peg games and rocking chairs remained available.

The future of Cracker Barrel

Still, this effort has also been largely panned by customers. However, the investment is so large that many believe the company will have to follow through on their interior renovation plans despite reverting on the logo.

In fact, the Wall Street Journal reports that 40 of 660 locations have already been revamped in some way. Southern Living described the makeovers as including "a different color palette, updating lighting, offering more comfortable seating and simplifying decor and fixtures." 

Southern Living magazine reported that in response to these aesthetic changes, customers posted their concerns on social media. The magazine shared two posts: 

"It's like going to grandma's, and we need that comfort these days," one customer wrote. 

Another was more descriptive: 

"The heart of Cracker Barrel was never in the sign outside. It was in the inside experience, the moment you stepped through the doors and felt like you were going back in time. The warmth. The safety. The stories on the walls. The feeling that you were part of something special, not just another table in anothr chain restaurant. It's so cookie cutter now!" 

What makes this controversy more interesting is the fact that the transformation was a response to the company's recognition that it was losing its relevancy and therefore its customers. As some podcasters have pointed out, the endless discussion about the disdain customers have for the changes has kept the brand in the news - and on the tip of tongues - for days now. 

Quick links: 

• Starbucks rolls out Green Apron Service in new CX plans
• AI governance gap threatens customer trust, Genesys study warns
• McDonald's lowers prices to regain customer loyalty