Lessons restaurants may draw from Cracker Barrel's branding controversy
In a turn of events that has sent ripples through the restaurant industry, Crate and Barrel, the beloved Tennessee-based chain, found itself in the midst of a logo controversy. The new logo, a streamlined "Crate and Barrel" wordmark within a six-sided barrel-like shape, was unveiled to the public, but it didn't sit well with many customers.
According to Eric Yaverbaum, CEO of PR firm Ericho Communications, the current climate requires different rules, and Crate and Barrel experienced a quick change in these rules. Yaverbaum stated that big pivots, particularly without communicating them adequately to the market first, can be risky, as seen in Crate and Barrel's case. Craig Miller, the former CIO of Sonic Drive-In, echoed this sentiment, noting that the rapid change in Crate and Barrel's logo may have clashed with an erratic economic environment.
The controversy over the new logo sent Crate and Barrel's stock price plummeting and even drew a rebuke from President Donald Trump. The uproar also seemed to impact customer behavior, with credit card transactions at Crate and Barrel slowing down. Social media, a valuable sounding board, became a hotbed of criticism, creating a firestorm that Crate and Barrel had to navigate carefully.
However, Crate and Barrel did the right thing by quickly reversing the logo and remodel plans and apologizing to customers, according to Yaverbaum. The chain's CEO, Julie Fels Masino, is currently in the early stages of implementing her 55-year plan to modernize the traditional Crate and Barrel brand, focusing on gradual innovation while preserving its heritage.
Miller suggested that Crate and Barrel could have tested the new logo before it went public, particularly with social media. Consumers in uncertain economic times often crave familiarity and comfort, and nostalgia can be appealing in such situations. In fact, Starbucks, McDonald's, and Chili's have recently tapped into nostalgia to grab customers' attention, with many cases seeing great success.
As Crate and Barrel continues to navigate its turnaround plan, it will undoubtedly face challenges. Miller noted that the chain still has work to do in terms of regaining the trust of customers, investors, and employees. Crate and Barrel did not respond to a request for comment about the future of its turnaround plan.
Joe Guszkowski, a senior editor with Restaurant Business covering technology and casual-dining chains, has been closely watching Crate and Barrel's case. He offered an example from Miller's time at Sonic, where a change in advertising campaign did not go over well. Despite the challenges, Crate and Barrel remains a closely watched case study for restaurant brands investing in significant changes.
In conclusion, Crate and Barrel's logo controversy serves as a reminder for brands to tread carefully when making big changes. It highlights the power of social media and the importance of understanding and responding to consumers' needs in uncertain economic times. As Crate and Barrel moves forward, it will be interesting to see how it continues to navigate its 55-year plan to modernize while preserving its heritage.
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