Cracker Barrel is scrapping plans to remodel its restaurants, reversing yet another piece of its $700 million turnaround strategy in the face of consumer backlash.
The family-dining chain said Tuesday that it is “suspending” its remodel program and will stick to its "vintage Americana" design after customers complained about the new, more minimalist look being tested in four locations.
“If your restaurant hasn’t been remodeled, you don’t need to worry, it won’t be,” the company said in a message on its website.
The 660-unit chain has faced mounting public scrutiny recently over its turnaround plan, which includes changes to its menu and branding as well as its restaurants themselves, which are known for their old-timey decor and cozy atmosphere.
Some customers have complained that the more modern approach is out of tune with Cracker Barrel’s classic American vibe.
The trouble began to stir earlier this year when videos of remodeled restaurants began circulating on social media. Last month, criticism reached a fever pitch after Cracker Barrel unveiled a new logo that eliminated an image of a man seated next to a barrel.
After nearly a week of outcry, including a reprimand from President Donald Trump and a stark drop in its stock price, the company switched back to its old logo.
According to data from Bloomberg Second Measure, Cracker Barrel transactions began to slow after the logo was unveiled on Aug. 19 and continued to decline as the firestorm grew.
The decision to stop remodeling restaurants is Cracker Barrel’s latest effort to show that it is listening to customers who did not like where the brand was headed.
“With our recent announcement that our ‘Old Timer’ logo will remain, along with our bigger focus in the kitchen and on your plate, we hope that today’s step reinforces that we hear you,” the company said.
The remodels were one pillar of the turnaround plan spearheaded by CEO Julie Felss Masino, who determined that the 55-year-old brand needed a refresh in order to appeal to a new generation of consumers.
And there were early signs that it was working. As of June, the company had reported four consecutive quarters of same-store sales growth and raised its earnings expectations for the year.
On remodels specifically, the company said in March that tests of the new look yielded a sales and traffic lift, and that it was studying which elements of the remodels were most effective.
It was planning to remodel up to 30 locations and “refresh” 30 others this fiscal year.
Cracker Barrel stock was down slightly Tuesday. Since the new logo was unveiled on Aug. 19, shares are down about 15%.
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