Cracker Barrel has ended its working relationship with the marketing firm behind its rebranding this summer.
The casual dining chain with a country-style theme has ended its relationship with Prophet, a consulting firm it engaged last year as part of a three-year strategy to revamp its brand.
Cracker Barrel has also revamped its leadership team, notably by removing the position of chief restaurant and retail operations officer, previously held by Cammie Spillyards-Schaefer, who has since left the company.
Prophet was responsible for developing the new simplistic logo that removed the well-known barrel and Uncle Hershel, a character depicted as a man in overalls, who served as the company’s real-life ‘goodwill ambassador.’
The updated logo, launched on August 19, faced widespread criticism from Americans, particularly conservatives, who accused the company of abandoning its rustic aesthetic in favor of a more ‘woke’ image.
Initially, Cracker Barrel’s executives stood by the change, with CEO Julie Felss Masino asserting on Good Morning America that ‘people like what we’re doing.’
On August 26, the restaurant succumbed to the overwhelming pressure and announced it would revert back to its old logo.
However, despite the shift in direction, Cracker Barrel’s stock continues to decline, closing at $44.19 on Thursday, which represents a drop of over 25 percent since the brief introduction of the new logo.
Cracker Barrel has ended its relationship with the marketing firm behind its disastrous rebranding this summer, which changed its logo and stripped the chain of its rustic charm
Before Cracker Barrel reversed course, CEO Julie Felss Masino insisting that ‘people like what we’re doing’, referring to the logo change
Jerry Thomas, the CEO of Decision Analyst, a restaurant advising firm, told the Daily Mail in August that Cracker Barrel’s rebrand was ‘a major failure’ that can be laid entirely at the feet of senior management.
‘It’s obvious that Cracker Barrel did not do its homework before launching its “rebrand,”‘ Thomas added.
‘In the short-term, Cracker Barrel’s awareness will increase, and its sales will likely increase,’ Thomas said. ‘But longer term, the debacle raises serious questions about the leadership of Cracker Barrel and how its executives make strategic decisions.’
Cracker Barrel’s next earnings report is scheduled for November 13.
The intense coverage of Cracker Barrel’s rebrand gave way to increased scrutiny on working conditions for employees.
Many of them have flooded workplace review site Glassdoor to make their feelings known about management’s shortcomings.
A crew member in Minnesota posted: ‘To the CEO Julie Masino, stop cutting our hours.
‘We are making less pay for more work when we are understaffed because you suck at bringing this dead company from its grave.
‘Stop lowering your food quality. No it is NOT a good idea to force your cooks to serve bacon that is over a day old. Bacon shouldn’t be saved overnight, believe it or not.’
More recently, Cracker Barrel had to close 14 underperforming Maple Street Biscuit Company restaurants, a brand it has owned since 2019
Separately, Cracker Barrel recently had to close 14 Maple Street Biscuit Company restaurants, a brand it bought in 2019 that it hoped would fuel growth.
Maple Street, founded in Florida 13 years ago, features high-end breakfast staples that include premium ingredients like apple butter and fresh goat cheese.
Cracker Barrel bought the chain for $36 million, when it had 28 locations, and expanded it to 68 at its peak earlier this year.
But the bet hasn’t paid off. Filings show Maple Street lost an estimated $16.2 million in value over the past year as sales lagged expectations.
