Order up! A slice of humble pie has just been served. This week's BL Business Branding newsletter investigates why Cracker Barrel's rebrand attempt was met with such opposition from its customers leading to the company's logo flip flop, and what lessons other businesses can take away from the failed experiment.
First opened in Lebanon, Tennessee, in 1969, Cracker Barrel has grown into a massive corporation with over 650 locations in operation today. At the helm of the brand was the company's logo, featuring an "old timer" leaning against a barrel next to the "Cracker Barrel" moniker, and with "Old Country Store" underneath the design. Known as a destination for down-home southern comfort food, customers had come to associate the brand with its homey feel, antique-laden interior, and country store offerings.
However, with revenue stalling and the chain's relevance declining, Cracker Barrel felt the need to inject new life into the brand to attract a new customer base. And thus, the rebrand was born. Following success at companies like Taco Bell and Starbucks, Cracker Barrel's leadership spent $700 million developing the new approach, opting for a more modern and simplified design for the logo and the restaurants. However, upon rolling out the new and very pricey initiative, the audience was not impressed.
Although the simple all-text logo and refreshed restaurant makeovers are in line with a trendy aesthetic, they did not align with the company's nostalgic image. Rather than feeling like the new logo was a modern take on a legacy company, consumers felt more like someone was remodeling their grandparents' house, getting rid of the charm and personality that made it feel like home. Its audience had built a relationship with the existing brand and the feelings it gave them, which the failed makeover simply could not replace. There was also a chorus of objections saying the company was trying to pander to a less conservative minded audience.
Foot traffic in the restaurants decreased, the stock value plummeted, and social media was a firestorm of criticism for the new brand. Just one week after the rebrand was announced, Cracker Barrel backtracked, reverting to its previous logo and classic aesthetic.
What Can Businesses Learn From This?
When done right, unveiling a rebrand can supercharge your business. Rebrands are typically aimed at drawing in new customers, but alienating existing customers in the process is like pouring water into a bucket with a hole in it. Developing a rebrand should be a boots-on-the-ground endeavor to ensure the new brand supports the business identity, not erases it. It should take the company story further, possibly adding a new element or angle, without sacrificing what makes the business unique in the process. Rebranding should also not be an exercise in generic output.
Consumers can sense inauthenticity, and it can damage your bottom line. Make sure any changes align with your values, not trends. Cracker Barrel's zeal to tap into a new demographic led them down the path of minimalism, a complete 180 from the classic vibe its existing audience had come to expect. The quick reversal after the multi-million-dollar investment is evidence of how misaligned the new direction of the branding was with the core of Cracker Barrel's relationship with its customers.
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