Cracker Barrel Old Country Store, the chain of southern-style restaurants with a gift shop that lines highways across America, has gotten a makeover. Their logo has lost the ‘Old Country Store’ tagline, as well as the iconic man in a chair resting his arm on a barrel in favor of the words Cracker Barrel in text only. Inside, per patron videos of remodeled locations, gone is the dark nostalgic feel replaced with a sterile renovation. The knick-knacks have gone from quirky kitsch from yesteryear to something you might see in a suburban craft store.
While the company’s CEO has said that initial reaction to these changes was positive, the verdict across social media was very much the opposite. The new look removes the old-school charm and character that was central to the brand’s identity for decades.
Cracker Barrel is just the latest in a string of companies, including Jaguar more recently and even Coca-Cola in the mid-’80s with their New Coke rollout, to violate the critical principle of making sure that you do not alienate your loyal customer base.
I wear many hats in business and have more than 20 years of experience as an advocate for loyal customers and clients in business, working in an outsourced CCO (Chief Customer Officer) function and sharing my proprietary customer loyalty models via speeches and consulting with both the biggest companies in the world and a variety of small and mid-sized businesses. And I firmly believe that one of a company’s most important assets isn’t listed on its balance sheet: the company’s loyal customers.
Loyal customers are easier to sell more to, both in frequency of purchases and upsells, because they already love your business and have often given you permission to communicate with them and build a relationship. They are also excellent advocates for generating new business via their own advertising efforts — word of mouth, posts on social media and more.
While it is a challenge for companies to continually grow, and publicly traded companies are under even more pressure to do so, mathematically, growth becomes harder if you are losing customers from your key customer base.
If you make your customers believe you do not care about them and their relationship with your brand and company, it is going to be very difficult for you to be successful in your business. This is the stark reality many businesses who have sought out new customers have faced lately. It’s fine to reach new customers, but you must do it carefully and in a way that doesn’t simultaneously burn goodwill with your existing customers.
New customers should never be treated better or given more weight than existing, loyal customers.
In my own social media post resharing a video of a Cracker Barrel dining room remodel, I received thousands of interactions. Among the majority comments from long-time customers expressing their displeasure at the changes, one other comment stood out. The poster said, ‘I don’t eat there but it looks nice to me.’
And that is the crux of the issue. The poster is not a customer, and based on the comment, is not likely to become a customer. So, seeking her approval is not a revenue-enhancing win for the company. Maybe it gets some ROE (return on ego) points for the marketing team, but it doesn’t get ROI (return on investment) for shareholders.
For Cracker Barrel, losing character in a time when corporatization is making everything around us bland and soulless feels like something enjoyable from the past is being killed off. And for a brand which has been based on nostalgia — from their décor to their nostalgic candy and wares in their adjacent store — it doesn’t make a lot of sense.
I am a long-time Cracker Barrel patron. I stop in whenever I am on the road. And as a long-time customer, as well as business advisor and executive, I can tell you that Cracker Barrel’s logo was not their issue.
My last stop in was in June on a road trip. I noted that I hadn’t been there in a while prior, because I hadn’t been on the road much. And in a moment where convenience is a part of the equation and DoorDash has taken hold of younger generations, it is harder to get touchpoints with a brand, even if you want them. This is a much bigger strategic endeavor that Cracker Barrel needs to think through.
My other issue was the menu. They had taken off my favorite item and their hashbrown casserole tasted off — the food overall wasn’t as fresh as I had experienced in the past. In my social media post, there were several comments about a decline in food quality over recent years. Making the menu and food quality rock-solid is critical for a restaurant, particularly when consumers are trying to stretch their dollars.
Cracker Barrel isn’t the first and certainly won’t be the last company to fall into the trap of thinking that all change is good. Companies should be bringing their customer voices to the table, which can be accomplished with a CCO whose job it is to know the customers well and advocate for them within the company or other loyalty specialist advising.
Loyalty is hard to build and easy to lose. Companies always want to attract new customers, but that isn’t effective if relationships with existing customers aren’t nurtured at the same time.