Company anticipates a protracted journey towards a restoration following public criticism over logo redesign
Cracker Barrel Faces Backlash and Traffic Challenges After Logo Change
Cracker Barrel Old Country Store, the popular Southern-style restaurant chain, has found itself in a tough spot following the unveiling of its new logo. The rebranding effort, which was announced earlier this year, has sparked a widespread backlash, particularly in the Southeast, besides Florida.
The new logo, which does away with the image of a man and a barrel, has been met with criticism from social media users, including conservatives and fans of the chain. This backlash has resulted in a 8% decrease in traffic for Cracker Barrel, according to the company's latest earnings report.
However, it's worth noting that the decline among consumers over the age of 65 has been less pronounced. This could be a positive sign for the company, as older consumers tend to be more loyal to established brands.
The logo change has also had a significant impact on Cracker Barrel's stock. In after hours trading, the company's stock tumbled by more than 9% due to the dim outlook.
Despite these challenges, Cracker Barrel remains optimistic. The company forecasts a same-store traffic decline of 4% to 7% for the full fiscal year. To combat these traffic challenges, Cracker Barrel plans to focus on improving food and customer experience, as well as increasing its marketing efforts.
In terms of food, Cracker Barrel will be introducing menu updates, including the return of Uncle Herschel's Breakfast and Country Mornings Breakfast, and new items such as pot roast, herb-roasted chicken, and a sausage and egg hashbrown casserole.
Cracker Barrel will also be launching a new feature called Front Porch Feedback as part of its loyalty program. This feature will allow members to share their thoughts about their experience directly with the chain.
Moreover, Cracker Barrel expects to close 14 underperforming Maple Street Biscuit Co. locations this fiscal year. The chain acquired Maple Street Biscuit Co. in 2019 with plans to grow the brand, but many of the underperforming locations have already been shuttered.
To boost its marketing efforts, Cracker Barrel will be launching a campaign tied to college football and 'big news' next week. The company is hoping that these initiatives will help to reverse the negative impact of the logo change and get customers back through the doors.
The debacle has, unfortunately, spoiled what would have otherwise been a strong earnings report for Cracker Barrel. The company reported net income of $62.7 million for the second quarter, up from $58.2 million in the same period last year. However, these positive financial results were overshadowed by the controversy surrounding the new logo.
Julie Felss Masino, the CEO of Cracker Barrel, who took over the leadership in July 2023, is at the helm during this challenging time. She has expressed her commitment to listening to customers' feedback and making the necessary changes to ensure the long-term success of the company.
The pattern of the logo backlash was evenly spread across income cohorts, suggesting that the issue is not isolated to a specific demographic. This is a complex problem that requires careful consideration and a thoughtful approach to resolve.
In conclusion, Cracker Barrel is facing a tough period following the backlash to its new logo. However, the company remains optimistic and is taking steps to improve its food, customer experience, and marketing efforts to win back customers and get back on track.
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