Cracker Barrel logo backlash - Lessons for businesses considering a rebrand

Whilst company branding is often updated and modernised over time, Cracker Barrel’s recent decision to completely overhaul its much loved “Old Country Store” logo couldn’t have gone any worse.

The restaurant and gift store chain was founded in 1969 and is famous for its Southern-style cuisine and Americana-inspired décor. The man and barrel depicted in its long-established logo represented “the old country store experience where folks would gather around and share stories”, according to the company’s website. Its proposed move to a minimalist logo featuring only its name proved divisive, not helped by President Trump weighing in with a plea to revert to the old logo, and the company’s stock took a hit with a loss of almost $100 million in market value.

Following the backlash and in less than a week from launch, it scrapped the new logo and thanked guests “for sharing your voices and love for Cracker Barrel”, confirming that “our new logo is going away and our ‘Old Timer’ will remain”.

All of which serves as a reminder that logos can evoke strong feelings of nostalgia, creating powerful emotional connections with your customers which shouldn’t be underestimated. For businesses considering a rebrand, whether to support an image update or shift in commercial focus, there are a number of key factors to consider:

Consumer research – consider what your customers identify with and assess how much dependence consumers place on your brand, in order to find you. It may be that a brand refresh, rather than completely discarding elements that could hold an emotional connection amongst your consumers, is more appropriate.

Finances – rebranding is a big investment, taking a big chunk from your marketing budget to ensure consumers recognise the new brand. Old material will need to be updated, including websites, stationery, sales materials, etc. and your brand identity will need to be rebuilt.

Review the market – choosing a brand that is distinct from competitors operating in your market or your target markets helps to avoid disputes, improve chances of registration and maximise your investment. Trade mark clearance searches are key.

Trade mark applications – obtaining registrations in relevant markets will protect your new brand and make it easier to enforce against copycat brands.

Update partner contracts – if you have business partners who use your brand, any changes will need to flow through to their contracts, both to ensure the use of current branding and to prevent dilution of the image.

Rebranding shouldn’t be taken lightly and is a complex process, requiring careful planning. Seeking early advice on any proposed new brand and the business impact of any change can save considerable cost and legal disputes.

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How we help

If you would like any guidance on rebranding or the potential impact of changing your brand identity, please get in touch with our Commercial and Technology lawyers at [email protected].