Sales at Cracker Barrel Old Country Store took a hit from the political firestorm that emerged after the chain updated its logo, underscoring the real-life business impact of social media outrage fanned by the president.
Transactions also slowed at the restaurants starting on Aug. 19, debit and credit card data from Bloomberg Second Measure show. That’s when the company unveiled a new emblem that modernized the font and removed an overalls-clad man known as Uncle Herschel.
The sales decline gathered steam through Aug. 26 as critics assailed the brand on social media. Political conservatives accused the chain of erasing traditional elements seen as linked to American culture, which in their view is under attack. Cracker Barrel relented the next day and restored its old logo after President Trump weighed in.
“We thank our guests for sharing their voices, and we’re listening to them,” Cracker Barrel said Tuesday in an emailed statement. The company had earlier apologized for how it communicated the changes.
Other full-service restaurants had mixed results during the same period, suggesting that Cracker Barrel’s woes weren’t due to a seasonal or industrywide trend but rather to the logo change, according to Second Measure.
Cracker Barrel had rebranded as part of a broader plan to attract younger customers and spark growth after struggling with persistent traffic declines. But the social media fiasco and ensuing diner retreat show how easily brands can get sucked into political controversies at a time of heightened polarization. Critics labeled the brand as “woke” and said it was yielding to diversity, equity and inclusion principles, which have become a target of the right.
The effect was palpable at a store about 25 miles northwest of Atlanta in Kennesaw, Ga., which one employee described as “dead for a week” as the backlash unfolded. At another location nearby, in Marietta, irate customers confronted restaurant staff.
“People came in, and I got phone calls,” said the manager, Dwight, a 22-year employee of Cracker Barrel, who asked to be identified by his first name only. “Oh, people do care about the brand. They were very passionate.”
Meanwhile, a server named Christian said that he and his colleagues were monitoring the firestorm on social media. “Some employees say they got threats on social,” he said. “People were angry.”
By Aug. 27, before employees at the Kennesaw location started their early shift, they were called into a meeting and informed that the new logo would be scrapped. They were also told they should start wearing an older uniform with the vintage emblem.
Cracker Barrel’s image seems to have taken a bigger hit than that of at least one other brand enmeshed in controversy. This summer, American Eagle Outfitters ran an ad campaign featuring actress Sydney Sweeney and the tagline “Sydney Sweeney has great jeans,” which some criticized as referencing eugenics. But Americans’ perception of the clothing chain barely budged in response, according to polling by research firm Morning Consult.
By contrast, the share of U.S. adults with an unfavorable view of Cracker Barrel rose from 10% on Aug. 23 to 25% two days later, the firm found. Trump opined on both controversies, praising American Eagle’s campaign while urging Cracker Barrel to go back to its old logo.
Morning Consult surveys about 150 people each day, the research firm said, adding the results are preliminary reads into the potential long-term consequences. The negative perception had already started to wane by later last week.
Investors also took notice of the Cracker Barrel controversy. The stock has lost about 10% of its value since Aug. 18, erasing much of its year-to-date gain.
Younger guests
Cracker Barrel gets positive diner feedback on factors such as having unique items, cleanliness and menu variety, according to research by Technomic, but it tends to underperform with Gen Z. That was, in part, the driving force behind the company’s broader revamp, which also included upgrades to its menu as well as restaurant remodels.
Several locations around the Atlanta area have already been upgraded. The old dim-lit Daniel Boone look has been replaced by bright lights, white-washed walls, large booths and family-style tables. Gone are the raccoon and bear traps and rusty washboards hanging from the ceiling. The vintage memorabilia — old tools and photographs, and local artifacts such as a “Georgia Peaches” sign — is displayed neatly and the aesthetic is a cleaner, curated country look that feels more HGTV than Field & Stream.
Dwight, the manager of the Cracker Barrel in Kennesaw, said the renovations were necessary to attract a younger generation of diners. A lot of his customers were 54 and older, and they stopped visiting during the COVID-19 pandemic. Several diners across the Atlanta region echoed the sentiment.
“It was time for a change,” said Tammy Anderson, as she and her husband finished breakfast at a location in Fairburn, Ga. “Some people are stuck in the 19th century. I like the changes. I like coming here.”
Yet veering too far from key elements that made a brand popular is a double-edged sword, Technomic’s Robert Byrne said.
“Nostalgia is a massive ongoing trend for Gen Z — even if it is nostalgia for something they never experienced directly,” said Byrne, a senior director of consumer research.
The Cracker Barrel faithful did not stay away long from the restaurant’s generous servings of fresh-baked biscuits, sawmill gravy, country ham, golden, crispy-edged pancakes and loaded hash browns.
By Aug. 28, a day after the company said it would scrap the new logo, server Tiffany Kryka and her colleagues were busy again at the Kennesaw location.
“They’ll be here ordering turkeys and hams during the holidays, and sitting by the fireplace when it’s cool outside,” she predicted, “and all will be forgotten.”
Sirtori and Pulley write for Bloomberg.