Cracker Barrel Board Member Resigns After Controversial DEI Rebranding

Cracker Barrel has lost a key board member linked to its diversity, equity, and inclusion initiatives.

In the wake of a marketing blunder that saw the company alter its famous logo and distinctive in-store décor, Cracker Barrel issued a swift apology and reverted to its original branding. The company has since been striving to rebuild consumer confidence and has taken steps within its board.

The independent director responsible for a portion of the rebranding, Gilbert Davila, announced his resignation on Thursday following a shareholder vote. Shareholders approved nine out of ten nominees for directorship, which included CEO Julie Masino, who has faced significant backlash due to previous marketing errors.

In acknowledging Davila’s departure, Cracker Barrel expressed gratitude for his contributions over the past five years, highlighting his role in developing the company’s strategic plan.

Recently, major proxy advisory firms, including Institutional Shareholder Services and Glass Lewis, had urged shareholders to remove Davila due to his involvement in the unfortunate marketing incident that damaged the brand’s reputation.

According to ISS, Davila was identified as one of two marketing specialists on the independent board and was part of a committee tasked with evaluating social and political risks affecting the company.

Interestingly, both ISS and Glass Lewis noted that while firing Masino might lead to instability, she bore equal responsibility for the logo fiasco alongside Davila. However, they agreed on the need for a significant shift within the company, stating that Davila’s marketing strategies were “flawed.”

In a recent discussion, Blaze Media’s co-founder Glenn Beck confronted Masino and senior VP Doug Heisel regarding DEI initiatives and marketing practices, making it clear many consumers prefer a focus on quality food over political messaging.

Under Davila’s leadership, Cracker Barrel’s attempts at promoting diversity seemed to spiral out of control—frequent changes on the company’s values-based webpage showcased this confusion.

At one point, the page transitioned from “Culture and Inclusion”—discussing concepts like “unconscious bias”—to the more elaborate “Diversity, Equity, Inclusion, and Belonging,” highlighting various programs including efforts to foster leadership within the Black community and strengthen ties with the LGBTQ+ community.

The rapid shifts and the emphasis on social initiatives appeared to alienate some customers, leading to heightened scrutiny and discontent.