Cracker Barrel is terminating its relationship with the consulting firm behind the restaurant's controversial attempt to rebrand, according to a new report.
The folksy diner faced severe blowback on social media — and in the market — after it announced it was changing its logo and dropping its "country store" aesthetic in favor of a more polished, modern look inside its restaurants.
The backlash was primarily led by conservatives, who were incensed by the new logo's omission of the Uncle Herschel character, decrying it as "woke."
In reality, the change was just a return to an older Cracker Barrel logo, and the Uncle Herschel farmer character was still going to remain present in other facets of the company's marketing.
Regardless, the issue became a Republican talking point, and became such an issue that it drew comment from President Donald Trump, who told the restaurant to change its logo back.
"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," he wrote in an August 26 Truth Social post. "They got a Billion Dollars worth of free publicity if they play their cards right. Very tricky to do, but a great opportunity. Have a major News Conference today. Make Cracker Barrel a WINNER again."
After taking a beating on social media and on losing approximately $140 million from its market value, Cracker Barrel relented and reverted to its old logo.
The company is now parting ways with the consulting team behind the rebrand, Prophet.
When Prophet was hired in March to lead the effort, a press release described the company's role: "In collaboration with Cracker Barrel, they are focused on shaping a new brand vision that will enhance market share while preserving the company's unique heritage. This new strategy will inform brand communication, restaurant redesigns, brand marketing campaigns and a redefined employee value proposition."
The agency was not only working on the marketing, but reportedly was also contributing to store redesign plans. Further plans for in-store redesigns have since been suspended at 660 Cracker Barrel locations, according to the restaurant.
During an earning call last month, Cracker Barrel executives said it expects to continue feeling the hurt from the response to the rebrand in the coming months, even after announcing its course reversal.
According to the earnings call, traffic to the restaurants dropped 8 percent the month after the chain changed its logo, and — unless there is a significant trend change — the company expects a continued decline of 7 to 8 percent for the remainder of the quarter.
Prophet isn't the only marketing entity no longer working for Cracker Barrel.
Matt Benton, Cracker Barrel's vice president of marketing, is leaving the company after only spending a year in the position.
He is being replaced by Thomas Yun, a previous executive who, according to a press statement from Cracker Barrel CEO Julie Masino, is "responsible for developing some of the company’s most successful menu introductions of the past several years while overseeing and honoring classic favorites."
The Independent has requested comment from Prophet.
