Beleaguered restaurant chain Cracker Barrel has reported a significant drop in customers since the backlash from its disastrous logo redesign, and warned that a further hit to its in-store traffic is on the way.
An earnings report shared Wednesday by the Tennessee-based company stated that traffic dipped about 8 percent after the August 19 rebrand, compared to a 1 percent decline in the first half on the month.
The store also predicts traffic will be between 4 percent to 7 percent lower for the full 2026 fiscal year.
Company shares also dropped 9 percent in after-hours trading following the release of the report.
The rebrand, which removed the iconic “Uncle Herschel” character, was criticized as “soulless” and “woke” by the MAGA crowd, and was even commented on by President Donald Trump.
“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 on his social media site Truth Social.
After a viral outcry and stock decline, Cracker Barrel quickly reinstated its old logo and restored elements of its original decor.
In a statement accompanying Wednesday’s earnings report, Cracker Barrel President and CEO Julie Masino said: "We thank our guests for sharing their voices and their passion for Cracker Barrel in recent weeks, and we've listened.”
As well as switching back to the “Old Timer” logo, Cracker Barrel has been forced to hit pause on the remodeling of its 660 restaurants around the U.S. – which was announced last year as a $600 million project.
Now, the homestyle restaurant chain is working on a new marketing approach that leans “into Uncle Hershel and the nostalgia around the brand,” Masino said, which involves “placing an even bigger emphasis in the kitchen and other areas that enhance the guest experience.”
“Looking ahead, there is much to be optimistic about, and our teams are focused on getting back to the momentum we created last fiscal year,” she added in a statement.
Cracker Barrel said it expects to generate $3.35 billion to $3.45 billion in revenue this fiscal year, down from $3.48 the previous year. They also reported $6.8 million in profit for the quarter ending August 1 - before the redesign was announced - down from the $18.1 million posted from the same period last year.
The company is also continuing to grow its loyalty program. Masino said the 2-year-old program now has 9 million members, 300,000 of whom signed up in the last four weeks. Masino said one new loyalty perk will be the ability to give the company feedback after every restaurant visit.
“We’re moving ahead with a strong plan to regain traffic and the momentum we had a month ago,” Masino said. “There is a lot to be optimistic about.”
