Cracker Barrel customers upset with the restaurant chain’s recent plans to revamp its brand have hit the national chain in the pocketbook. During a conference call with investors Wednesday, Cracker Barrel announced restaurant traffic dropped 8% over the last month and is expected to remain down over the next few months, the Associated Press reports.
As part of the call, the company said it anticipates traffic will be down between 7% and 8% in the first quarter of 2026. Traffic may decline 4% to 7% for the full 2026 fiscal year, the company warned investors.
The company’s stock price dipped by 9% in after-hours trading following the announcement. In the month since the rebrand was announced, the stock is down more than 21%.
The customer backlash began on Aug. 18 when the company announced it was removing the ‘Uncle Herschel’ character from its logo in favor of a simpler, modern logo. The company also said it was going to renovate the restaurants to feature a more modern look with decor different from what was featured in restaurants for years.
Cracker Barrel CEO Julie Felss Masino said the company conducted research prior to moving forward with the plan and thought customers would approve of the changes. However, the decision was met with almost instant backlash from customers, many of whom threatened to boycott the chain.
“What can not be captured in data is how much our guests see themselves and their own story in the Cracker Barrel experience, which is what’s led to such a strong response to these changes,” Masino said.
It now appears that customers were not just making idle threats online, they’ve backed them up by electing to dine elsewhere.
After initially saying it was committed to the rebrand despite customer backlash, Cracker Barrel eventually backed down and abandoned the logo change along with the restaurant redesigns. The company has halted ongoing remodels at dozens of locations and says the four restaurants that had finished renovations will revert to the previously used decor.
As part of the plan to bring customers back, the company is continuing its efforts to expand its loyalty program. That includes giving customers the chance to offer direct feedback after every visit.
“We’re moving ahead with a strong plan to regain traffic and the momentum we had a month ago,” Masino said. “There is a lot to be optimistic about.”
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