Recent data indicates that Republican diners have abandoned Cracker Barrel following a controversy over a new logo, causing the Southern-style dining chain to drop from its position as the fastest-growing breakfast chain in the U.S.
The chain, famous for its chicken fried steak, biscuits, and grits, saw an 8% decline in growth from mid-August to early September, which allowed Waffle House to claim the top spot with a 1% increase in sales.
According to information from Consumer Edge, the percentage of Republican diners visiting Cracker Barrel fell by half a percentage point during the first half of September compared to other casual dining options. This shift is particularly damaging for the Tennessee-based restaurant.
While Cracker Barrel hasn’t commented publicly, it’s evident that the backlash has had a significant financial impact. After introducing a rebranding campaign that included the controversial logo elimination of a character called Uncle Herschel, the chain faced criticism not just from consumers but also from figures like President Trump.
The resulting stock decline has cost the company over $100 million in market value, leading to a scramble among investors.
Even after reversing its logo decision on August 26, the chain continued to experience a decline in its market share among GOP Diners, and the effects on Democratic and independent diners were also noticeable, although less pronounced.
Michael Gunther, director of insights at Consumer Edge, reflected that political affiliation might not always be a key consideration for consumers, yet this situation has raised eyebrows. “What happened with American Eagle and Cracker Barrel is particularly intriguing,” he said.
He mentioned that the backlash concerning Cracker Barrel took some time to manifest in customer data. “It wasn’t an immediate reaction,” Gunther noted. “Customers don’t frequent these establishments every day.”
In a statement from August, Cracker Barrel expressed gratitude to its customers for their feedback and confirmed it would return to its previous logo.
Earlier in the day, President Trump posted on Truth Social that Cracker Barrel should revert to its old logo and heed customer opinions, calling it the ultimate poll. He added that with the right handling, the chain could have gained substantial advertising value from the situation.
