The Cracker Barrel lesson

The rebranding of Cracker Barrel was a mistake many companies make

The business press was abuzz last week with the reaction to the rebranding of Cracker Barrel Old Country Stores restaurants. The rebranding includes a revision of the company’s logo, as well as an update to the interior of the restaurants’ country decor. The new logo, shown below on the right, next to the original, was met with derision and disbelief from the business press. The publicly traded company’s stock value plummeted $100 million in the wake of the announcement.

For those who don’t travel on Midwest interstates, Cracker Barrel Old Country Stores is a casual dining restaurant chain, started in 1969, featuring Southern comfort food. The typical Cracker Barrel also has a large retail section in front, hawking toys, games, clothing, and an array of country-music and Christian-themed merchandise. The company went public in 1981 and operates 257 locations in 45 states.

While Cracker Barrel is now in the news for its marketing efforts, the chain has been lagging for some time. Like most restaurants, Cracker Barrel has struggled in the post-COVID environment. Consumer dining habits were permanently altered. Partnering with DoorDash helped; carryout and takeout orders became 23% of sales by 2023. But still, since 2020, Cracker Barrel discovered that about 20% of regular customers had not returned.