Introduction to Cracker Barrel’s Logo Controversy
Cracker Barrel Old Country Store Inc. said it’s getting rid of a new logo that had sparked controversy and prompted a slump in its share price. The company made this announcement after facing a significant backlash on social media. “We thank our guests for sharing your voices and love for Cracker Barrel. We said we would listen, and we have,” the company said Tuesday in a statement. “Our new logo is going away and our ‘old timer’ will remain.”
The Impact on Share Price
The shares rose as much as 8.6% in extended New York trading, indicating a positive response from investors to the company’s decision to revert to its old logo. This move is seen as a strategic step to regain customer trust and loyalty, which had been affected by the introduction of the new logo.
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The Backlash Against the New Logo
Cracker Barrel has faced a backlash on social media since changing its vintage logo by removing an image of a man leaning against a barrel while making the lettering more modern. Critics said the new design strips the chain of its history. Political conservatives in particular accused the restaurant of looking to get rid of motifs seen as linked to American culture, which in their view has been under attack.
The Reason Behind the Rebranding
The reversal follows a string of share losses in recent days, with the largest coming on Aug. 21 as criticism surged. The rebrand was part of broader turnaround efforts that Chief Executive Officer Julie Felss Masino has undertaken to reverse declining diner traffic. The company is also remodeling stores and updating its menu. These efforts aim to attract a wider range of customers and improve the overall dining experience.
Customer Perception
The chain gets top marks from customers on factors such as authenticity, decor, kid-friendliness, and cleanliness, according to research firm Technomic Inc. But it underperforms with younger consumers, including Gen Z, while appealing to groups including millennials. This indicates a need for Cracker Barrel to find a balance between maintaining its traditional appeal and adapting to the preferences of newer generations.
Conclusion
In conclusion, Cracker Barrel’s decision to revert to its old logo is a significant step in addressing the controversy and backlash it faced. By listening to customer feedback and making changes accordingly, the company demonstrates its commitment to its customers and its brand heritage. This move is expected to help regain customer trust and loyalty, which is crucial for the company’s long-term success.
FAQs
Q: Why did Cracker Barrel change its logo in the first place?
A: The change was part of broader turnaround efforts to reverse declining diner traffic and attract a wider range of customers.
Q: What was the reaction to the new logo?
A: The new logo sparked controversy and faced a backlash on social media, with critics saying it stripped the chain of its history and accusing the company of trying to get rid of motifs linked to American culture.
Q: How did the share price react to the announcement of reverting to the old logo?
A: The shares rose as much as 8.6% in extended New York trading, indicating a positive response from investors.
Q: What other efforts is Cracker Barrel undertaking besides the logo change?
A: The company is remodeling stores and updating its menu as part of its turnaround efforts.
Q: How does Cracker Barrel perform in terms of customer perception?
A: The chain gets top marks from customers on factors such as authenticity, decor, kid-friendliness, and cleanliness, but underperforms with younger consumers, including Gen Z.
