Cracker Barrel CEO claims logo change was ‘not – Business News
Cracker Barrel’s high govt on Tuesday mentioned the folksy restaurant chain’s disastrous logo change wasn’t about politics — as a substitute claiming the change was made for the sake of freeway visibility, based on a report.
Cracker Barrel CEO Julie Felss Masino was compelled to defend the headline-grabbing bungle on the 13D Monitor Active-Passive Investor Summit in New York on Tuesday because the company faces stepped-up heat from an activist investor.
The embattled restaurant boss — who has confronted accusations of having a “woke” agenda as she stripped the chain’s beloved “Uncle Herschel” mascot from the chain’s logo — as a substitute insisted that the redesign was meant to make the signal simpler to learn for drivers dashing previous interstate exits.
Cracker Barrel CEO Julie Felss Masino defended the restaurant chain’s temporary and dear logo experiment. REUTERS
“Part of this transformation is setting up success for the long term,” Masino mentioned on the convention. Her feedback had been reported by the Wall Street Journal.
In August, Cracker Barrel ’s stock tanked when the Tennessee-based chain changed its traditional image of a man in overalls leaning in opposition to a wood barrel with a minimalist design that learn solely “Cracker Barrel.”
The new look was rolled out alongside a slate of trendy store remodels and a advertising and marketing overhaul led by the consulting firm Prophet — all half of a $700 million rebranding plan geared toward drawing youthful diners.
The change backfired virtually instantly.
Loyal followers blasted the company online for erasing custom and President Donald Trump urged the model to revive its heritage logo, saying it ought to “go back to the old logo, admit a mistake based on customer response … and manage the company better than ever before.”
By the top of August, Masino reversed course.
The company fired Prophet, halted its take a look at remodels and reinstated the unique logo that includes “Uncle Herschel.”
Masino mentioned the goal of the new logo that was ultimately discarded was to be more seen for drivers on the freeway. AP
Shares plunged practically 10% after the backlash and at the moment are down roughly 30% for the 12 months, leaving Cracker Barrel with a market capitalization of about $825 million.
The fallout additionally rattled prospects.
Consumer Edge information cited by The Post final month confirmed the chain misplaced a chunk of its Republican diner base — about half a proportion level of market share — and slid from the fastest-growing breakfast chain within the nation to final place, behind Waffle House, IHOP and Denny’s.
In a September earnings call, Masino admitted the company underestimated the deep connection prospects really feel towards the company’s nostalgic imagery and promised to “lean into Uncle Herschel and the nostalgia around the brand.”
Masino, whose profession consists of stints at Starbucks and Taco Bell, appeared on stage with Cracker Barrel’s common counsel to debate the company’s long-running clashes with activist investor Sardar Biglari, who has waged seven proxy battles in opposition to the chain since 2011 by his investment funds.
Biglari, who additionally owns Steak ’n Shake, has repeatedly accused Cracker Barrel of “poor capital allocation” and mismanagement.
He has seized on the logo fiasco to query Masino’s management and has publicly known as for her ouster.
The chief govt mentioned the choice to drop the company’s longtime “old-timer” logo was not ideological. BACKGRID
Steak ’n Shake’s company account has mocked the rebrand online.
Masino disclosed Tuesday that she met Biglari for lunch at a Cracker Barrel restaurant shortly after taking the helm in late 2023.
“Mr. Biglari’s playbook…is making many misinformed statements,” she mentioned on Tuesday.
Cracker Barrel’s 70,000-employee chain has been making an attempt to reposition itself after years of stagnant visitors.
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Masino launched a three-year turnaround plan final 12 months that features menu upgrades, operational enhancements and digital investments.
But the logo controversy derailed the rollout and spooked traders already skeptical of her strategy.
Cracker Barrel’s fourth-quarter income fell practically 3% year-over-year to $868 million, and visitors dropped 8% within the weeks following the rebrand.
Loyal followers blasted the company online for erasing custom and President Donald Trump urged the model to revive its heritage logo. BACKGRID
In an earnings call final month, Masino signaled that the company would keep the course on its transformation regardless of the setback.
She cited the return of “Uncle Herschel’s Favorite” breakfast dish and the debut of “The Herschel Way,” a new service model designed to improve consistency throughout places.
The chain has additionally seen some momentum in its loyalty program, which gained 300,000 new members in 4 weeks, based on company information.
The Post has sought remark from Cracker Barrel and Biglari Holdings.
