Sep 17, 2025, 11:23 AM
Sep 17, 2025, 12:00 AM

Cracker Barrel faces backlash as customer visits plummet

Highlights
  • Cracker Barrel's customer visits have decreased 8% since the logo change on August 19, 2025.
  • The company is reversing its logo and halting renovations after customer backlash.
  • Expectations for the upcoming earnings report suggest a significant drop in earnings compared to the prior year.
Story

In the United States, Cracker Barrel Old Country Store Inc. is facing significant challenges following a controversial rebrand and logo change that began in August 2025. The company attempted to modernize its brand by unveiling a new logo that removed its long-time mascot, 'Uncle Herschel.' This decision sparked intense backlash from customers and conservative figures, including Donald Trump, which led to a considerable decline in customer visits and a loss of market value totaling over $140 million. The chain also reported that the reaction to its new renovations further exacerbated the situation, with traffic dropping 8% shortly after the logo change was introduced. As a response to the negative feedback, Cracker Barrel reversed its logo and halted the planned remodels of its restaurants. On September 15, 2025, Cracker Barrel communicated via social media that it would return to its traditional, nostalgic design elements, which have been integral to its brand identity for over five decades. This reversal came amid expectations of a significant decline in earnings for the first quarter of the 2026 financial year, largely due to decreased customer traffic and investments in marketing and advertising totaling $16 million. Prior to the backlash, the chain had experienced growth, boasting four consecutive quarters of same-store sales increases. However, the marketing strategy targeting younger customers, which included reducing clutter and updating its restaurant decor, was met with resistance. Cracker Barrel's leadership acknowledged the need to adapt to customer preferences while maintaining the brand's core nostalgic values. In the wake of these events, the company remains committed to regaining customer trust and loyalty, as it navigates through this turbulent period. The upcoming earnings report on September 17 is expected to shed light on the full impact of these changes on Cracker Barrel's financial performance and market position moving forward. The company hopes its recent reversal may help restore its reputation and mitigate declining customer traffic, which has threatened its place in the competitive restaurant industry.

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