Cracker Barrel caves to Trump-stoked logo outrage. So now what?

Cracker Barrel, the Lebanon, Tennessee-based rustic old-country store eatery whose menu features home-style country food, has caved to public pressure that came from as high as the White House and is scrapping its new logo. Instead, the company will revert to its old “Old Timer” logo, which has been in place since 1977.

In an August 26th statement on its website, Cracker Barrel announced it would bring back its logo, which features an old man nicknamed Uncle Herschel relaxing next to a barrel with the banner “Old Country Store” underneath.

The logo’s retirement was a short one; company officials admitted they had made a mistake in canceling the iconic image, a move led by Cracker Barrel CEO Julie Felss Macino.

“We thank our guests for sharing your voices and love for Cracker Barrel,” the company stated. “Our new logo is going away, and our ‘Old Timer’ will remain.”

“At Cracker Barrel, it’s always been – and always will be – about serving up delicious food, warm welcomes, and the kind of country hospitality that feels like family,” the statement noted. “As a proud American institution, our 70,000 hardworking employees look forward to welcoming you to our table soon.”

Cracker Barrel stock rebounded strongly on the news, with shares up 6.3% on August 26 after the decision and up 4.5% on Wednesday, August 27. CBRL shares had slid 12% since management had changed the logo last week.

High-profile critics had a field day after the news of the old logo hit social media.

“Cracker Barrel should go back to the old logo, admit a mistake based on customer response (the ultimate Poll), and manage the company better than ever before. They got a Billion Dollars' worth of free publicity if they play their cards right. Very tricky to do, but a great opportunity,” President Donald Trump posted on social media on August 26 before the announcement.

Team Trump followed up with a new post after the reversal was announced. "Congratulations, ‘Cracker Barrel’ on changing your logo back to what it was. All of your fans very much appreciate it," Trump wrote. "Good luck in the future. Make lots of money and, most importantly, make your customers happy again!"

It was a hard lesson for Cracker Barrel’s top management

Marketing experts said while plenty of mistakes were made in the company’s C-Suite, a pivot to pragmatism was the best move.

“The Cracker Barrel matter dealt with more than aesthetics; no one has ever boycotted a product or service because of a logo change,” said Kevin Mercuri, an executive in residence at Emerson College who teaches a class on public relations and crisis communications. “The pivot back to the old logo represented an altogether new fear among American executives: to keep their company or organization off of President Trump’s radar. It’s neither a good move nor a bad move; it’s a prudent move, given the zeitgeist.”

Other marketing experts agree, adding the decision gives much-needed cover for Cracker Barrel executives and comfort for its legions of customers.

“The decision was good, and unfortunately necessary,” said Linda Orr, Ph.D. and fractional CMO and marketing psychologist, at Orr Consulting in Cleveland, Ohio.

Orr said the now-junked design cut against what Cracker Barrel actually sells: comfort, nostalgia, continuity, and a pause from the constant churn. “Reverting stabilized the story and even nudged shares up after the announcement,” she said. “Going back stops the bleeding and steadies the story.”

Company leaders don’t get to walk away unscathed, however.

“Trust took a hit,” Orr said. “Customers are left wondering, 'Do you still know who you are and why I love you?”

Orr expects a few months of cleanup costs and strict message discipline, not to mention millions of dollars in content and branding expenses. “This will go down in marketing 101 textbooks as one of those enormous marketing mistakes and an example of what not to do,” she added. “The executive team should 100% go as should any consultants or agencies who encouraged the logo and design change."

Caving to Team Trump could leave hard feelings, too

Other management gurus say the damage was immediate, as Cracker Barrel looks unsure and disconnected from its brand strategy and core values. “This reaction wasn’t just about a few tweets,” noted Lauryn Warnick, CEO at B2B marketing firm Villain Branding in Boston, Mass.  

Financially, the logo saga’s impact on the downside is significant, as the new design rollout cost them nearly $94–$ 100 million in market value in one session, with the stock dropping significantly. “This is a clear example of how emotional connections affect value,” Warnick said. “People don't like change. If they had waited a few months for things to settle, I believe their equity would have returned.”

Giving the Trump administration a big public relations win isn’t going to go over well with some customers and likely with other companies that’ve come under fire by the Trump administration.

“We should know by now to no longer underestimate the influence of Team Trump and conservative social media,” Warnick said. “They set the narrative, and Cracker Barrel gave in. Their call with the White House and the public thank-you afterward show that political noise influenced corporate decisions.”

“That’s not a brand choice; it’s giving in to the loudest voices,” she added.

Here are some lessons learned for change-minded CEOs and marketing executives

No doubt, marketing professors and business consultants will be studying the Cracker Barrel playbook for decades. When they do, Warnick advises adhering to these lessons learned for antsy company executives with new messages in mind.

Heritage is the emotional core of your brand. Nostalgia is more powerful than many realize, and you need to build a brand from a position of strength. “That’s the case when changing direction,” Warnick noted. Don’t disrupt emotions; strengthen them.”

Communication is as crucial as the change itself. Cracker Barrel mishandled the rollout and failed to explain its strategy. “Brand isn’t just a logo; it’s the foundation for all your decisions, if done correctly,” she added. “If you implement a significant change without a solid rollout strategy, this is the outcome you might face.”

Reacting to outrage is a trap. When your brand signals that it folds, it invites more challenges.

Brand equity isn’t just sentimental; it's financial. Losing $100 million in minutes should remind leaders that a brand costs money. “Brand value equals business value,” Warnick said.