Cracker Barrel stock tanks after unveiling a controversial logo change

The new Cracker Barrel logo is pictured. Cracker Barrel’s modern makeover doesn’t stop with redoing its restaurants. It’s dropping the barrel and the man from its logo, too. (Cracker Barrel via CNN Newsource)

NEW YORK — Cracker Barrel’s modern makeover doesn’t stop with redoing its restaurants. It’s dropping the barrel and the man from its logo, too.

On Tuesday, the Southern-inspired casual dining chain unveiled a new logo “rooted even more closely to the iconic barrel shape,” but without the barrel itself — a central part of the brand’s identity since 1977. (As for the the barrel itself, it was “essentially the water coolers of the day,” Cracker Barrel explained in a blog post.)

Shares of Cracker Barrel (CBRL) nosedived more than 12 per cent in trading Thursday.

The identity refresh also includes new TV commercials, a redesigned menu and several new fall-themed foods, part of a larger US$700 million transformation plan to shake off its stodgy image and lure in new diners.

“The way we communicate, the things on the menu, the way the stores look and feel … all of these things came up time and time again in our research as opportunities for us to really regain relevancy,” said CEO Julie Felss Masino in 2024.

In particular, the new logo is the latest in a string of changes angering some of its loyal fans who fear the 56-year-old chain is drifting too far from its bucolic roots. On social media, some users griped, with one writing that the “changing the logo just feels like another little piece of culture dying off.” The change also angered some conservatives, too, like President Donald Trump’s son.

Cracker Barrel has also been remodeling some of its 660-plus restaurants. The chain has “decluttered” the interiors by removing the country-themed trinkets that lined the walls and lightened up the interiors, shifting away from the dark woods. So far, reaction has been mixed on social media, with some videos on TikTok going viral voicing their displeasure.

Masino remains adamant that the renovations are working, telling ABC News this week that “people like what we’re doing” and that feedback has been “overwhelmingly positive.”

Still, Cracker Barrel risks confusing its customers with a rebrand, especially with its recognizable logo and decor, according to Anjali Bal, associate professor of marketing at Babson College.

“This risk is amplified if the company misjudges the market or fails to communicate the change effectively,” she told CNN. “In Cracker Barrel’s case, they’ve retained their colour palette but altered their iconic logo, which is likely to face resistance simply because of how recognizable it is. That could spark curiosity among new customers, but it may also upset long-time patrons.”

Bal added that the updated logo makes Cracker Barrel “stand out less and risks diluting the brand’s uniqueness,” but the “challenge is ensuring that modernization doesn’t come at the expense of brand recognition or emotional connection.”

In June, Cracker Barrel posted an unusual earnings report for a restaurant: It’s taking a $5 million hit from tariffs because of its retail shops, which largely has products imported from overseas. Restaurant revenue and same-store sales both slightly grew, mirroring other increases casual dining chains are experiencing.

By Jordan Valinsky, CNN