The marketing decision to rebrand Cracker Barrel did not sit well with consumers or the stock market, a valuable lesson according to a Tennessee Tech Marketing Professor.
The company’s stock dropped some $94 million in the hours after the removal of the man and barrel from the logo. Professor of Marketing Dr. Julie Pharr said the customers’ negative response could be because of their attachment to the old logo.
“When people see the old Cracker Barrel sign, they just don’t think restaurant,” Pharr said. “That may spur memories in them that make them think about road trips or biscuits and gravy or family memories that they’ve created. That’s why changes like this hit so hard.”
Pharr said strong brands build emotional connections, and altering the image people associate with those emotions could be detrimental. The company had already faced backlash to removing the antiques from the walls of remodeled restaurants.
Pharr said creating emotional connection to a brand can be done through logos, products and values. She said Cracker Barrel has historically succeed at building this connection with customers, but changes to the menu, decor, and other elements were concerns.
Pharr said the logo was a very visible part of the brand, and that change likely was the straw on the camel’s back.
“l think the timing of it, the company even has recognized that the timing of it could’ve been handled much better,” Pharr said. “If they had a plan for rolling this out over a longer period of time or talking about why they’re doing it in a better way. So they faltered in the area of communicating with their customers, and also in the way the whole thing was handled.”
Pharr said it is difficult to predict how customers will react to a major change like a rebrand, but the response shows the public’s investment in their brand. She said people feel like they know and love brands, which creates their perception of a company.
Pharr said it is important for companies to get a r-brand right, and Cracker Barrel has some ground to make up. She said the restaurant’s latest statements make it appear the changes are here to stay, but they will be rolled out at a slower pace. Pharr said that consumer input will be taken into consideration moving forward.
“To bring their customers and consumers into the dialogue surrounding their decision making and into the process itself is a key thing for them to do at this point,” Pharr said. “And even if they don’t make substantive changes to the logo going forward, as long as consumers feel like they have a voice in what’s going on, that they have a voice in a company that they’re invested in, it will help Cracker Barrel to repair the damage.”
Pharr said once things settle down in a few weeks and take in more consumer input, Cracker Barrel’s numbers may start to rebound.
Pharr said the rebrand came about because Cracker Barrel has had declining sales over the last few years, especially among younger people. She said the impetus for the change was a desire to modernize for a younger demographic.
