FOX Enterprise’ Jeff Flock reviews on Cracker Barrel unveiling a brand new brand as a part of a broader model replace.
The fallout from Cracker Barrel’s brand change and restaurant makeover is not over. Shares of the meals chain plunged Thursday as buyer backlash and investor unease drove the chain’s worst shedding streak in months.
Shares of Cracker Barrel (CBRL) tumbled greater than 12% on Thursday, the steepest drop since April.
The inventory, down 16.47%, is on tempo for its worst five-day stretch since February 14, when it dropped 17.7%. Cracker Barrel’s inventory fell to $52, down greater than $6, or about 11%, marking its lowest degree since mid-June. Shares gained barely to $53.48 by the afternoon.
CRACKER BARREL UNVEILS NEW SIMPLIFIED LOGO: ‘OUR STORY HASN’T CHANGED’
Ticker Safety Final Change Change % CBRL CRACKER BARREL OLD COUNTRY STORE INC. 54.09 -4.93
-8.35%
Since Could, Cracker Barrel, beloved for its Southern consolation meals, front-porch rocking chairs and present store crammed with knickknacks and old school sweets, has launched into a $700 million transformation throughout its 660-plus eating places.
The sweeping makeover contains “decluttered” eating rooms, a revamped menu and different adjustments geared toward updating a model lengthy rooted in nostalgia.
CRACKER BARREL EXECUTIVE INSISTS RESTAURANT REMODELS ARE ‘WHAT THE GUESTS ASKED FOR’
On Tuesday, the model unveiled its new brand, which drops an illustration of a person resting his arm on prime of a picket barrel, a folksy picture that has embodied the model’s southern hospitality for the final 56 years.
The outdated and new Cracker Barrel logos (Cracker Barrel / Shutterstock)
Cracker Barrel described the brand new brand as squarely anchored on the model’s “signature gold and brown tones” whereas incorporating “the iconic barrel shape and word mark that started it all,” the corporate mentioned in a press release.
The assertion added that “farm fresh scrambled eggs and buttermilk biscuits” served as inspiration behind the “hues of a refreshed color palette.”
Critics say the rebranding is a dangerous transfer for an organization already scuffling with skinny margins.
Stern added that Cracker Barrel has constantly posted weak revenue margins round 1.5%, “roughly a third of what you’d expect from a successful restaurant.”
Stern argued that by chasing a brand new market, the chain has strayed from its roots.
“Their brand was partially the old-fashioned feel of an American general store, harkening to the pioneer west and the growth of rural highways,” Stern added.
