Cracker Barrel’s recent attempt to rebrand and subsequent reversal could be a master class in marketing missteps.
“History is rife with bad rebrands,” franchising expert Nick Neonakis said. “Cracker Barrel’s attempt will surely be one for the books.”
The company’s decision to refresh its brand identity came as the company looked to recover from financial struggles. Stock prices were drastically down from an all-time high of $185 a share in 2018 to less than $50 a share in 2024.
“This wasn’t a knee-jerk reaction,” Neonakis said. “And what they did was like many other brands. They thought, let’s do a refresh. But I think they took it too far when they changed the logo.”
After reverting to the old logo, which features a man leaning on a barrel, stock prices rose 8% in the days after.
The reaction from consumers after Cracker Barrel unveiled a modern new logo is just the latest in a long line of major rebrands gone bad.
Tropicana’s bold rebrand in 2009 was meant to modernize its image and put the focus on the product itself. The company did away with its iconic orange with a straw inserted, replacing it with a glass of orange juice. It was such a shift that consumers were confused and sales tanked 20%.
“People like familiarity,” Neonakis said.
Companies have successfully rebranded in the past. Dunkin’ Donuts launched a new logo in 2018, removing the word donuts for a complete name change to just Dunkin’. This simplified identity allowed the company to shift its public perception as a donut shop to a coffee shop with donuts as beverage sales had become its main source of sales. Dunkin’ maintained its brand heritage by keeping its colors and fonts the same.
It also helped that consumers already used the nickname Dunkin’ for the store. Similarly, Kentucky Fried Chicken was already known by KFC before the company made its change.
McDonald’s made a move to more sleek, simple storefronts with neutral palettes — a major shift from the former red-roofed restaurants with bright yellow highlights abounding. But it didn’t face public backlash like Cracker Barrel, Neonakis said, because it left the logo alone.
“When you start messing with the brand identity, with the logo, that’s where all of a sudden people start feeling it,” Neonakis said.
Cracker Barrel’s experience emphasizes the power of public sentiment and the crucial role of consumer feedback.
“If you’re thinking about changing something, talk to the people that are coming in and out,” Neonakis said. “If you’re thinking about messing with your DNA, then it’s the people that are coming in and out of your doors everyday, they’re the ones that are paying the bills. They’re the ones you want to listen to. … If you have an existing brand that’s powerful, think about how to protect that. It’s hugely important to you.”
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