Cracker Barrel launched a simplified logo that removed the traditional Uncle Herschel image and replaced it with a minimalistic barrel outline and word mark. The redesign prompted strong negative reactions on social media, with customers calling the new mark "generic," "soulless," and "bland." The backlash coincided with heavy investor selling that wiped nearly $100 million from market capitalization and sent shares down about 7.2% in a single day. The company issued an apology for the redesign, and shares have not rebounded as strongly as the company likely expected following the apology.
Shares in Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) aren't reacting as much as the company had probably hoped on Tuesday after the beloved country-style restaurant chain apologized over a logo redesign it rolled out last week. The backlash highlights the level of emotional attachment that customers have to a brand's identity. Here's what you need to know about the Cracker Barrel logo redesign, apology, and the effect on CBRL stock.
On August 19, Cracker Barrel announced that it was launching a redesigned logo. Gone was the old-timey "Cracker Barrel Old Country Store" logo, which featured the laid-back "old timer" Uncle Herschel sitting in a chair, resting his arm over a wooden barrel. It was replaced with a more modern, minimalistic logo that consisted of nothing more than the name "Cracker Barrel" set on top of a rough outline of a two-dimensional shape resembling a barrel.
"Generic," "soulless," and "bland" were some of the most common words used to describe the redesigned logo, notes CNBC. From a financial standpoint, things got worse for Cracker Barrel. As noted by CBS, last Thursday, after public blowback to the logo went viral, Cracker Barrel saw almost $100 million wiped from its market cap as investors sold the stock. It ended up down about 7.2% for the day to $54.80.
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