Cracker Barrel Takes Beating on Wall Street Amid Backlash Over Logo Redesign

Cracker Barrel’s stock has plunged nearly 15 percent this week over backlash related to a new logo — the latest headache for a company facing calls for an investigation into its diversity, equity, and inclusion policies.The new logo, unveiled by the restaurant chain on Tuesday, drops the image of a seated man beside a barrel and the words “Old Country Store” from its familiar 48-year-old icon. It describes the new logo as “enhanced.”The old logo was established in 1977 with a goal of “creating a feeling of nostalgia with an old-timer wearing overalls.” Now the company is dumping nostalgia.The new logo is part of Cracker Barrel’s three-year plan to modernize its restaurants in a bid to expand its customer base. Established in 1969 at Lebanon, Tennessee, Cracker Barrel has approximately 660 company-owned locations in 43 states.Cracker Barrel already faced calls last month for an investigation by the Equal Employment Opportunity Commission over potential violations of civil rights laws stemming from its diversity, equity, and inclusion policies. A pro-Trump advocacy group, America First Legal, charges the company is discriminating against whites and heterosexuals in an effort to diversify its workforce.Online accounts on the right pounced on the latest rebranding effort, calling it part of a “woke” agenda pursued by the company.“Go woke, go broke. I predict … a bankruptcy,” one X user stated.Another called it “brand suicide.”Even Donald Trump Jr. weighed in, asking, “WTF is wrong with @CrackerBarrel??!”The online outrage is drawing comparisons to the 2023 boycott of Bud Light after the beer brand partnered with a transgender influencer, Dylan Mulvaney, for a promotion. The beer dropped out of the no. 1 sales position in the fallout from the outrage.While Bud Light is just part of a larger corporation, the situation is different for Cracker Barrel, which relies solely on its restaurants for revenue.The company announced the new logo as part of a new menu launch for the fall. Cracker Barrel is a year into its redesign of its restaurant interiors.The company is pulling down the antiques and tools from its walls as part of the modernization. That is not sitting well with some of the chain’s most loyal customers, who worry the restaurants are losing their charm.“Because it’s nostalgic and because it’s such an old brand and means very specific things to different people, there may be pushback,” a senior equity research analyst at Truist Securities, Jake Bartlett, told the Wall Street Journal. “That’s why they have to be careful.” Cracker Barrel’s president and CEO, Julie Masino, defended the changes in an interview on ABC this week. “People like what we’re doing,” she said.Cracker Barrel did not immediately respond to requests for comment from The New York Sun.

Cracker Barrel Takes Beating on Wall Street Amid Backlash Over Logo Redesign

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