The CEO of Cracker Barrel is experiencing the benefits of her bold choice to abandon a planned rebranding, as the company’s share prices have surged.
Julie Felss Masino encountered significant opposition last year when the popular southern restaurant unveiled a new, modern logo that removed the iconic ‘Old Timer’ figure sitting on a barrel.
The revamped logo, introduced on August 19, was quickly criticized by conservatives who labeled it as overly progressive, arguing it stripped away the eatery’s rustic appeal.
Even former President Donald Trump advised against the rebranding, while activist investor Sardar Biglari attempted to oust Masino through a proxy fight.
In response to mounting pressure, Masino decided within a week to reinstate the traditional logo.
Almost a year later, Masino reports that shares of the charming restaurant chain have increased by as much as 35 percent.
She credited the success, in part, to her decision to change her focus from renovating and modernizing the restaurant and store chain to preserving its charm, the Wall Street Journal reports.
‘We have been really clear. We put the remodel program on pause this year, given everything that’s happened to us,’ Masino told investors in a phone call on Tuesday.
Cracker Barrel CEO Julie Felss Masino announced on Tuesday that its shares have shot up by as much as 35 percent
The roadside eatery is known for its folksy and rustic charm
Cracker Barrel’s stock is now up more than 22 percent – at its highest price since the company was embroiled in controversy in September
Instead, Masino sought to double down on its rustic appeal.
The American chain brought back two menu favorites, Hamburger Steak and Eggs in the Basket, in January.
Thomas Yun, Cracker Barrel’s vice president of menu strategy and innovation, said the decision to bring back the classic comfort dishes was an easy choice.
‘Not only are they timeless favorites with deep roots on our menu, but they’re also among the most requested dishes from our guests,’ he said at the time.
Loyal customers have since returned, Masino told investors in the earnings call on Tuesday.
‘The food is even more delicious, is made the way they remember, and the service is going to be out-of-this-world,’ she vowed.
The company saw customers flock to its stores to buy merchandise commemorating America’s 250th birthday, including US Constitution t-shirts, flag pillows and patriotic smock dresses – all of which fell off the shelves quicker than expected.
At the same time, Masino also trimmed the company’s costs, laid off corporate staff and pulled back on its big marketing budget.
Masino had tried to roll out a new modernized logo last summer that took away the ‘Old Timer’ sitting on a barrel for a more sanitized look (pictured)
The restaurant chain has since benefited from increased sales of its merchandise commemorating America’s 250th birthday. A cashier is seen speaking to a customer at a Cracker Barrel Old Country Store in 2019
Cracker Barrel’s stock is now up more than 22 percent – at its highest price since the company was embroiled in controversy in September.
Yet the American food chain is still not out of the woods, as Masino reported that restaurant customer traffic declined 6.7 percent from a year earlier in the first three months of the year.
It was an improvement from the previous quarter, but executives are still hoping to reverse the loss.
To do so, the company is looking to continue bringing back its target audience by promoting the brand at Speedway Motorsports races this summer.
And while there are concerns that its sales may plummet by rising gas prices as families rethink expensive vacations and long-distance driving trips, Cracker Barrel is giving away free gas and free food in a major summer promotion.
Under its new ‘Fuel Your Summer Road Trip’ sweepstakes, Cracker Barrel says it will hand out a total of $250,000 in prizes until July 26, with 250 winners each receiving $1,000 toward summer travel expenses.
Each prize package includes a $500 Cracker Barrel gift card alongside a separate $500 gas gift card, giving travelers help both at the restaurant table and at the fuel pump.
Inside a revamped Cracker Barrel in Tennessee, before the move was scrapped
The company is now giving away free gas and free food in a major summer promotion
‘Road trips are synonymous with summer and our goal is to help our guests take the trip, see the country and make new memories,’ Sarah Moore, chief marketing officer at Cracker Barrel, said in a statement announcing the giveaway.
‘So many of our guests have wonderful memories of their summer road trips with family and friends and Cracker Barrel has always been a favorite stop along the way,’ she added.
The company says the campaign is designed to make summer travel ‘feel a little easier – both at the table and at the pump.’
The catch is that customers must join Cracker Barrel’s free loyalty program in order to participate.
Travelers can sign up through the chain’s official website and earn entries by purchasing meals or retail items.
Customers receive one entry for every qualifying entrée purchased in-store or through takeout, while buying retail merchandise unlocks additional entries.
Diners can also score bonus entries when they order Cracker Barrel’s seasonal Campfire Meals.
