A Southern-style chain restaurant in dire straits has recently become a focal point of American culture and politics.
On August 26, following a heated controversy that extended all the way to the White House, Cracker Barrel restaurant decided to backtrack on its decision to unveil a simplified version of its logo, which omitted the character known as “Uncle Herschel.”
The company, with over 660 restaurants and country stores, stated: “Thank you to our customers for sharing valuable feedback and continuing to love Cracker Barrel. We said we’d listen, and now we’re delivering on that promise. The new logo will no longer be used, and the ‘Old Country Store’ imagery will continue to be preserved.”
This move reversed the company’s previous decision to replace the long-standing logo featuring “Uncle Herschel” sitting on a barrel with a more streamlined brown and yellow barrel logo that only displayed the name of the restaurant and store.
Originally, this rebranding was part of a brand revitalization strategy carried out by the company based in Lebanon, Tennessee, in response to longstanding financial challenges.
Since mid-2024, the company has been steadily revamping its stores with brighter and cleaner design aesthetics.
On August 19, Cracker Barrel transitioned the updated logo from a test run to what they dubbed a “new creative initiative,” naming it “All the More.”
This initiative sparked strong backlash online, especially within conservative circles. Some critics accused the company of abandoning its American traditions and opting for a more bland image.
The negative press even led to a roughly 12% decrease in Cracker Barrel Old Country Store Inc.’s stock in the four trading days following the announcement.
By the morning of August 26, even President Trump chimed in on the matter.
Trump posted on “Truth Social” that the company should retract the logo change decision based on customer feedback, “acknowledge mistakes… and manage the company better than ever before.”
That evening, Trump issued another post, congratulating the company on its decision to revert to the old logo.
“Your fans are very appreciative. Wishing you good luck for the future and make big money,” the post read, “but most importantly, make customers satisfied again!”
In response to the controversy, Cracker Barrel issued an apology on its official website, acknowledging that the company “could have done better in promoting the new initiative.”
The statement also read: “What hasn’t changed and will never change are the core values of the company.”
However, a former employee disagreed with this statement. He believed that the company’s values had been gradually evolving over the past two decades.
Erik Russell, who worked at various Cracker Barrel restaurants from 2007 to 2016, mentioned witnessing the company’s changes firsthand.
Russell, now a designer at his consulting firm Halcyon, told the Epoch Times that during his nine years of work, he first noticed subtle changes, followed by significant shifts in the company’s operations.
The most significant change came in 2020 when the restaurants began offering alcoholic beverages on their menus.
Offering beer, wine, and mixed drinks in casual dining is common, but the brand originated in Tennessee, a state that had long prohibited Sunday alcohol sales, with some areas still considering alcohol sales illegal.
“The Volunteer State” only recently lifted its Sunday ban on alcohol sales. Russell attributed this change to the impact the entire restaurant industry experienced during the COVID-19 period.
“I think the whole restaurant industry was spooked at that time,” Russell said, “and Cracker Barrel’s response was, ‘Hey, let’s start selling alcohol and reevaluate the entire business model, maybe we’ve fallen behind.'”
After he left the company, Cracker Barrel began relaxing dress code and hygiene standards for employees.
Previously, employees were required to wear specific styles and colors of long-sleeved shirts and khaki pants. Men had to be clean-shaven with hair above the shoulders, while women had to tie their hair up.
Over time, these dress code requirements gradually evolved to allow any collared shirt and jeans, with other appearance standards also being relaxed.
Russell stated that these changes symbolized the company gradually abandoning long-held standards in pursuit of profits.
“From a marketing perspective, it seems they weren’t satisfied with their existing customer base, so they felt the need to tap into new markets,” Russell noted.
Regarding the redesign of the logo, Russell believed that removing the most distinctive and well-known element from the Cracker Barrel brand was an unnecessary mistake.
Just like previous customer reactions, removing the image of Uncle Herschel from the logo would sever the strong emotional connection between customers and the brand.
Additionally, Russell thought the new logo was overly similar to its competitors in the restaurant and breakfast arena.
He also believed that the rest of the brand revamp had minimal impact and would ultimately be beneficial in the long run.
During his recent visit to the Greenville restaurant where he used to work, Russell observed the transformations of the restaurant and store and discussed the changes with former colleagues.
He said that the employees generally found the brighter interior tones more appealing compared to the previous dim and slightly chaotic interior environment.
Cracker Barrel’s spokesperson was unavailable to comment on Russell’s analysis and observations at the moment.
Like other restaurants, Cracker Barrel faces a challenging operating environment. In recent years, high inflation and slow wage growth have forced Americans to reduce their discretionary spending, including “small luxuries” like dining out.
From a stock perspective, Cracker Barrel’s performance has been on a downward trend since 2018.
Since the end of 2018 when the per-share trading price exceeded $180, the company’s stock has plummeted over 65% in the past seven years.
According to the latest annual financial report submitted to the U.S. Securities and Exchange Commission by Cracker Barrel, the company has experienced declining net income over the past three fiscal years.
Based on the annual report released in September 2024, profits from 2022 to 2024 dropped by nearly 69% from $131.9 million in 2022 to $40.9 million.
Just two years before that, the regulatory filing in September 2021 indicated an annual profit of around $254.5 million.
For over a year, Cracker Barrel has been gradually rolling out redesigned, brighter store aesthetics.
In May 2024, the company detailed a “strategic transformation plan” aimed at restoring profitability. The plan includes optimizing the menu to highlight top-selling items, updating store exteriors and ambiance, enhancing takeout appeal, and improving employee training systems.
During the company’s recent earnings call, Cracker Barrel CEO Julie Masino mentioned that the new restaurant logo introduced in August is just a part of their long-term brand optimization.
However, in October 2024, in a letter to investors, Sardar Biglari, the CEO of major Cracker Barrel shareholder Biglari Holdings Inc., pointed out that the company’s long-standing poor financial performance, Masino’s turnaround plan failed to restore shareholder confidence, and labeled Cracker Barrel as being “in crisis.”
In the letter, Biglari criticized Masino, the entire board, and her predecessor Sandra Cochran.
The letter also noted that the current turnaround plan for the company is a $600 to $700 million mistake.
The plan also continues other initiatives Biglari disagrees with, including building new stores, launching the Holler & Dash brand targeting urban communities in 2016 (now named Maple Street Biscuit), and investing in the bar chain Punch Bowl Social in 2019.
Biglari suggested that the company should cease big spending ventures and focus on attracting core customer groups to improve store profitability.
Russell mentioned that the changes the company underwent in the past and present, along with the recent logo controversy, might alienate the customer base that Cracker Barrel needs to retain the most, as these customers are crucial for the restaurant industry’s survival in challenging economic times.
“You could say that from a political perspective, this is equivalent to abandoning your base,” he said.