Cracker Barrel CEO Admits Mistake During Earnings Call

Watch Cracker Barrel CEO Admits Mistake During Earnings Call - Rizzle on Dailymotion

Transcript

00:00Cracker Barrel's CEO admits mistake during earnings call.

00:04Cracker Barrel learned the hard way this quarter that nostalgia is not just a marketing gimmick.

00:10It's the backbone of the brand.

00:12In August, the chain introduced a text-only logo, replacing the old-timer resting against a wooden barrel.

00:19This change, aimed at minimalism, sparked a swift, loud backlash.

00:24Traffic fell 8% almost immediately.

00:27Revenue dipped nearly 3% compared to last year.

00:30By the time the backlash reached full boil, the company had managed to erase $140 million in market value,

00:37all because of a logo that customers didn't recognize, or worse, didn't want.

00:42CEO Julie Massino told investors on Thursday that the company had underestimated the deep connection customers feel toward the original imagery.

00:50Translation, people don't come to Cracker Barrel for modern vibes.

00:53They come for fried okra, checkerboards, and the feeling that Uncle Herschel might just shuffle out of the kitchen to refill their sweet tea.

01:01The reversal has been fast and complete.

01:03The new advertising campaigns lean heavily into nostalgia, with Americana Decor making a comeback in remodeled stores.

01:11That test project is no longer moving forward.

01:14Customers love the brand's tradition and comfort, and Massino thanks them for vocal feedback on missteps.

01:19But the company insists it's not just clinging to the past.

01:24CEO Massino highlighted the importance of modernizing food, service, and technology.

01:29Notable successes include Uncle Herschel's Breakfast, and a loyalty program with 300,000 new members recently.

01:36For now, though, investors are still skeptical.

01:39Shares are down more than 10% this year, and the company has a lot of work to do to win back Wall Street's confidence.

01:44Cracker Barrel employs 70,000 people across more than 600 restaurants, and the pressure to stabilize is intense.

01:52The controversy is a stark reminder that Cracker Barrel sells more than just food or chairs.

01:57It's an experience.

01:59While logos can change, tradition endures at a cost.

02:03One thing is certain.

02:04The old-timer on that barrel is back in the spotlight, potentially holding the company together.

02:09I've had to watch.

02:10See you all later.