Cracker Barrel is facing a rocky road after a series of missteps, including a controversial logo change and a shift in biscuit preparation, leading to a decline in customer visits and a drop in stock prices. The company's attempt to modernize its brand image backfired spectacularly, triggering a wave of negative feedback from loyal customers.
Logo Fiasco Leads to Traffic Slump
The initial logo change, which eliminated the iconic "old-timer" figure and the barrel, sparked immediate backlash. According to the company's earnings call, traffic has fallen 8% since the new logo was introduced on August 19th. Cracker Barrel now anticipates a further decline of 7% to 8% for the remainder of its first fiscal quarter of 2026 if these trends continue.
The negative reaction was so intense that Cracker Barrel swiftly reversed course, reverting to its original logo. President and CEO Julie Masino acknowledged the customer feedback, stating, "We thank our guests for sharing their voices and their passion for Cracker Barrel in recent weeks. We’ve listened, switching back to our ‘Old Timer’ logo, hitting pause on remodels and placing an even bigger emphasis in the kitchen and other areas that enhance the guest experience.”
Frozen Biscuits: Another Culinary Catastrophe?
Adding fuel to the fire, reports surfaced that Cracker Barrel had implemented a new biscuit-making process involving freezing and reheating. This change, intended to improve efficiency, has been met with complaints about the quality of the biscuits. Customers have taken to social media to express their disappointment, describing the biscuits as "cold," "hard as a rock," and "inedible."
According to employees, the biscuits are now frozen after being made and reheated the next day to be served to customers. The purpose was supposedly to improve efficiency and reduce the customers' waiting time. “People want biscuits to be buttery and soft,” the cook revealed. “The most common complaint we've gotten is that our biscuits are sometimes like a rock.”
Financial Impact and Future Outlook
The combined impact of the logo controversy and biscuit complaints has taken a toll on Cracker Barrel's financial performance. The company expects its first-quarter earnings to be “significantly below” the prior year, citing lower traffic and increased investments in advertising and marketing. Cracker Barrel shares closed down 3.16% and fell 9.58% in after-hours trading.
The company is now focusing on improving guest experiences and addressing the concerns raised by its customers. However, the road to recovery may be challenging as Cracker Barrel seeks to regain the trust and loyalty of its core customer base.