Cracker Barrel’s $700 million rebranding effort has joined a list of corporate missteps that have sparked public backlash. The restaurant chain’s new logo, which modernizes the iconic image of a man resting on a barrel, has drawn criticism from experts and consumers alike.
The move is reminiscent of other high-profile business decisions that have faced fierce criticism and consumer boycotts. Target’s retreat on diversity, equity, and inclusion (DEI) initiatives and Bud Light’s partnership with transgender influencer Dylan Mulvaney are two recent examples of brands facing backlash over their business choices.
Industry expert Richard Stern, director of the Thomas A. Roe Institute for Economic Policy at The Heritage Foundation, warned that abandoning a brand’s roots can be detrimental to a company’s growth. “Like Bud Light or New Coke, this is yet another example of how abandoning your brand and loyal customers is not the way to grow a business,” he said.
The fallout from Cracker Barrel’s logo change has been significant, with shares plunging over 12% on Thursday. The chain’s restaurant makeover, which includes decluttering dining rooms and a revamped menu, has also sparked controversy among critics who argue that the rebranding is a risky move for a company already struggling with thin margins.
In recent years, several major companies have faced similar backlash over their business decisions, including Anheuser-Busch InBev’s partnership with Dylan Mulvaney and Ben & Jerry’s decision to cease distribution of its products in the Occupied Palestinian Territories. These moves have not only drawn criticism but also impacted sales and led to consumer boycotts.
The incident highlights the importance of understanding one’s brand identity and the potential consequences of altering it. As Stern noted, “A company’s brand is a reflection of its values and mission. If you change that, you risk alienating your customers and damaging your reputation.”
Source: https://www.foxbusiness.com/lifestyle/cracker-barrel-joins-bud-light-target-branding-backfires