Posted by How Social Media and Political Climate Played a Role
For a restaurant characterized by a long-held connection to tradition, the old-school phrase “If it ain’t broke don’t fix it” seems apt for the recently scrapped Cracker Barrel rebrand. By now everyone’s heard of it – the one that sparked backlash from customers and made headlines that aren’t the kind a marketing effort is aiming for.
It also sent their stock plummeting. In an August 25th news report, shares lost over 10% following the company’s rebrand announcement, “erasing over $143 million in market value.”
What Went Wrong
As part of the now defunct strategy, Cracker Barrel leadership was ditching its old-timer logo in favor of one with letters only, losing the barrel as well as the famous “Uncle Herschel” mascot. The company also planned a refurbishment to “update” the look and feel of its restaurants – which brand themselves as a traditional old country store.
But consumers were indignant at the departure from Cracker Barrel’s traditional roots, and critics voiced their dismay at the proposed changes in a social media landslide that went viral, only not in a good way.
Cracker Barrel CEO, Julie Felss Masino, had shared with major investors the details of the “strategic transformation plan” approved by her board of directors back in May. At that time investors expressed dissent, and in the ensuing five months Masino ignored at least four warnings by one top investor who insisted the rebranding was “obvious folly” according to the SEC.
America’s Front Porch
What evoked such a strong reaction in Cracker Barrel’s demographic? Erik Russell, a former employee who worked at the restaurant for years while putting himself through school, shared this insight. According to Russell, Cracker Barrel is like “America’s Front Porch.” It hearkens back to a time when “people were more connected.”
Russell, who is now a brand designer, described how a logo goes far beyond artwork. “There’s no such thing as just a logo,” he explained. “What makes a logo meaningful, and what makes a brand meaningful, is the connection that it represents to your customers.” People connected with the timeless feel of Cracker Barrel’s brand. Taking it away evoked an impassioned response – like a kick to the gut of rural Americana.
Social Media and Political Elements
Market analysts postulate the dive in the company’s stock says more about the role that social media plays in today’s financial markets than it does about Cracker Barrel itself. Following the announcement to reverse changes, stock surged nearly 8% leading to a partial recovery of losses from the rebranding. The stock has not, however, fully recovered from its previous peak.
Politics played a role as well. Even the president and Donald Trump, Jr. chimed in with dissent. The rebrand was quickly viewed as a “woke effort” in the face of Cracker Barrel’s by and large, traditional and conservative demographic.
Shortly thereafter the company issued a retraction statement, “We said we would listen and we have. Our new logo is going away and our ‘Old Timer’ will remain. At Cracker Barrel, it’s always been – and always will be – about serving up delicious food, warm welcomes, and the kind of country hospitality that feels like family.”
The president later congratulated the company when Cracker Barrel issued a statement confirming they would keep the original logo and much of the iconic look of their restaurants, including the rocking chairs, fireplaces, and peg games.
Importance of Connection
The company has made strong efforts to assert their decision to stick to their roots, the message consumers – the ones whose voice ultimately matters most – stated loud and clear. “What has not and will never change are the values Cracker Barrel was built on when the Lebanon, Tennessee-based chain first opened in 1969,” said the company. Those values, the statement read, are “hard work, family, and scratch-cooked food made with care.”
A lesson to be taken from the rebranding fiasco is not straying from a strong connection with your demographic. Change may be beneficial, but not if your base is founded in timeless tradition, in counting on something always being the way you remember it.
Said Russell, that connection is invaluable. “As a brand designer, that’s what you’re trying to create. And so when you already have that, and you discard that in favor of something that looks like everyone else, in my opinion you’re committing one of the cardinal branding sins.”
Has the U-turn come too late? Or will the reversal be enough to restore consumer confidence in Cracker Barrel? Read more here, here, and here.