by David Hagenbuch - professor of marketing at Messiah University -
author of Honorable Influence - founder of Mindful Marketing -
author of Mindful Marketing: Business Ethics that Stick
author of Honorable Influence - founder of Mindful Marketing -
author of Mindful Marketing: Business Ethics that Stick
When you write about current ethical issues in marketing, there are sometimes trending topics you feel compelled to discuss. That’s the case with Cracker Barrel, which has stirred up two hot questions: 1) Is the company’s rebranding as unpalatable as some say, and 2) Has the “Old Country Store” cooked up something unethical?
To call the current conversation surrounding the half-century-old restaurant known for downhome southern atmosphere and comfort food a “controversy” is a bit of a misnomer. True controversies are pretty evenly split between proponents and detractors. Looking online and talking with people about Cracker Barrel’ rebranding, it’s hard to find many who like the restaurant chain’s new direction.
A basic Google search of “Cracker Barrel rebrand” produces these kinds of harsh responses:
Even one of the restaurant’s co-founders, 93-year-old Tommy Lowe, has called the logo resign “pitiful.”
When I asked a couple of my classes for their thoughts, responses to the rebrand were also chilly. Most of the students are in Gen Z, not the stereotypical Cracker Barrel customer, and only a few had visited the restaurant recently, but many still voiced strong negative reactions. One student suggested the whole thing might be a PR stunt.
Although anything’s possible, I doubt the company would have 1) expected such backlash and 2) been willing to risk the long-term repercussions of things going sideways. That’s not a risk many companies would be willing to assume, particularly a restaurant as traditional as Cracker Barrel.
So, why did it decide to do such a bold rebranding? The company needed to reverse a downward slide and better position itself for the future.
On April 9, 2021, Cracker Barrel stock (CBRL on NASDAQ) traded at a high of $175.09. Since then, the stock has charted a rather consistent downward path.
About a year ago on September 6, 2024, its stock reached a low of $37.33, a decrease of $137.76, or 78.7% of the stock’s value from the April 2021 high.
The precipitous loss of equity would be concern enough, but demographics also suggest a challenging future for the restaurant chain that for many years has targeted Baby Boomers and older adults. As those customers keep aging, their restaurant visits decrease and will eventually dry up. Like any organization, Cracker Barrel must ensure there are new, younger consumers to replace the ones who age out of its products/services.
Although this generation-to-generation transition is a perennial challenge for restaurants and other businesses, significant industry changes have made life even harder for Cracker Barrel. Fast casual chains like Panera, Chipotle, and Cava are now the eateries of choice for many consumers, including Gen Ys and Zs, who often would rather not spend the time and money on a more traditional table-service meal.
In addition, food tastes have changed considerably over recent years. Comfort food for millennials is more likely to be a bowl with brown rice and falafel than a plate of mashed potatoes and meat loaf.
To call the current conversation surrounding the half-century-old restaurant known for downhome southern atmosphere and comfort food a “controversy” is a bit of a misnomer. True controversies are pretty evenly split between proponents and detractors. Looking online and talking with people about Cracker Barrel’ rebranding, it’s hard to find many who like the restaurant chain’s new direction.
A basic Google search of “Cracker Barrel rebrand” produces these kinds of harsh responses:
- “So Arrogant”
- “The Worst Rebrand of All Time?
- “How Cracker Barrel’s Rebrand Went So Wrong”
Even one of the restaurant’s co-founders, 93-year-old Tommy Lowe, has called the logo resign “pitiful.”
When I asked a couple of my classes for their thoughts, responses to the rebrand were also chilly. Most of the students are in Gen Z, not the stereotypical Cracker Barrel customer, and only a few had visited the restaurant recently, but many still voiced strong negative reactions. One student suggested the whole thing might be a PR stunt.
Although anything’s possible, I doubt the company would have 1) expected such backlash and 2) been willing to risk the long-term repercussions of things going sideways. That’s not a risk many companies would be willing to assume, particularly a restaurant as traditional as Cracker Barrel.
So, why did it decide to do such a bold rebranding? The company needed to reverse a downward slide and better position itself for the future.
On April 9, 2021, Cracker Barrel stock (CBRL on NASDAQ) traded at a high of $175.09. Since then, the stock has charted a rather consistent downward path.
About a year ago on September 6, 2024, its stock reached a low of $37.33, a decrease of $137.76, or 78.7% of the stock’s value from the April 2021 high.
The precipitous loss of equity would be concern enough, but demographics also suggest a challenging future for the restaurant chain that for many years has targeted Baby Boomers and older adults. As those customers keep aging, their restaurant visits decrease and will eventually dry up. Like any organization, Cracker Barrel must ensure there are new, younger consumers to replace the ones who age out of its products/services.
Although this generation-to-generation transition is a perennial challenge for restaurants and other businesses, significant industry changes have made life even harder for Cracker Barrel. Fast casual chains like Panera, Chipotle, and Cava are now the eateries of choice for many consumers, including Gen Ys and Zs, who often would rather not spend the time and money on a more traditional table-service meal.
In addition, food tastes have changed considerably over recent years. Comfort food for millennials is more likely to be a bowl with brown rice and falafel than a plate of mashed potatoes and meat loaf.
These trends have already severely impacted sit-down dining restaurants such as Applebee’s, Red Lobster, and TGI Fridays. Cracker Barrel likely has lasted longer because its older and more loyal customers helped insulate the company from the trends, but that insulation is now wearing very thin.
To its credit, Cracker Barrel’s rebranding has involved much more than just revising its logo, or graphic icon.
Earlier this year, the restaurant chain began updating the interiors of its dining rooms, which has included brighter colors and more comfortable seating. It also revamped its country stores to make the floorspace less cluttered and the merchandise more attractive. Finally, it added a variety of new menu items that both fit the old southern comfort food theme and appeal to more modern palettes, e.g., Nashville Hot and Honey Butter Fried Chicken.
Big market challenges usually demand bold solutions, which Cracker Barrel’s A-to-Z rebranding seems to represent. To be fair, it didn’t just slap a bandage (a more modern logo) on deeply seated problems. However, that general evaluation doesn’t mean the specific tactics it’s used are the right ones.
Since I’m Gen X, not one of the younger age cohorts that Cracker Barrel is most interested in for survival and future growth (Gen Y and Z), I spoke with a couple of people who are.
The first conversation was my son Daniel Hagenbuch, a doctoral student at Cincinnati College-Conservatory of Music, who has a great ear for sound and eye for design. Although he hadn’t visited a Cracker Barrel store since the renovations, he’s liked what he’s seen online of the new design elements. He said the fresher paint colors and new wall décor looked more tasteful and should appeal more to younger customers, who would appreciate a more modern look. He also thought one of the restaurant’s new seasonal items, OREO Stuffed Cheesecake Pancakes looked promising. He wasn’t, however, a fan of the new logo.
Neither was the second Gen Z member with whom I spoke, Daniel Smith, a thoughtful senior graphic design major and marketing minor at Messiah University. On one hand, he understood reasons for replacing the old logo, such as its fine detail posing challenges for scaling to small sizes like those required for pens and business cards. However, his design sense also went against the new logo:
“The rebranded logo uses a modern and minimalist approach, which is not at all related to Cracker Barrel’s ‘old country store’ aesthetic. The type is surrounded by a massive, blank margin space, making it feel like it lacks character. Also, the yellow space behind the type is supposed to be a barrel on its side but is barely recognizable, making the new logo worse than the iconic original.”
His evaluation aligns with my own analysis and likely with those of other professionals. Logos shouldn’t be pictures, partly because they need to be adaptable to a variety of surfaces and imprint sizes. The first article I ever wrote made that case: “Logos Should Work on Paper, Products,” which the American Marketing Association published in Marketing News in 2001.
Nostalgia is often a complicated thing to market. Sometimes what people want isn’t exactly the ‘way it used to be’, rather it’s a blend of the past and present. For instance, some new turntables for vinyl records have Universal Serial Bus (USB) outputs even though USB didn’t exist during the golden age of turntables. USB was first introduced in 1996. By that time CDs had replaced cassettes, which had replaced vinyl records a decade or more before.
A metaphor for people’s mixed appreciation for nostalgia might be American’s tastes for international food. Although many of us say we really like Mexican food or Chinese food, individuals from those nations sometimes point out that the food in their home countries is considerably different than the versions served in the U.S., which may be blander, have less heat, etc.
To survive, Cracker Barrel’s value proposition probably needs to become a fusion of past and present in order to satisfy the desires of younger generations whose lives are increasing far removed from the restaurant’s old country era. For that reason, refreshing the dining area, renovating the store, and revamping the menu are likely good things.
Revising its logo was also a good idea; however, the company’s execution fell short. The new logo was lacking in many ways. There likely could have been more input into its development and better communication ahead of its release.
Change can be hard for any of us to accept, including when it’s related to an iconic restaurant. However, it’s hard to argue that Cracker Barrel’s changes were unethical. For these reasons, the restaurant’s less-than-satisfying recipe for change tastes like Simple-Minded Marketing.
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Check out the book, Mindful Marketing: Business Ethics that Stick
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