Cracker Barrel’s top executive on Tuesday said the folksy restaurant chain’s disastrous logo change wasn’t about politics — instead claiming the switch was made for the sake of highway visibility, according to a report.
Cracker Barrel CEO Julie Felss Masino was forced to defend the headline-grabbing bungle at the 13D Monitor Active-Passive Investor Summit in New York on Tuesday as the company faces stepped-up heat from an activist investor.
The embattled restaurant boss — who has faced accusations of having a “woke” agenda as she stripped the chain’s beloved “Uncle Herschel” mascot from the chain’s logo — instead insisted that the redesign was meant to make the sign easier to read for drivers speeding past interstate exits.
“Part of this transformation is setting up success for the long term,” Masino said at the conference. Her comments were reported by the Wall Street Journal.
In August, Cracker Barrel ’s stock tanked when the Tennessee-based chain replaced its classic image of a man in overalls leaning against a wooden barrel with a minimalist design that read only “Cracker Barrel.”
The new look was rolled out alongside a slate of modern store remodels and a marketing overhaul led by the consulting firm Prophet — all part of a $700 million rebranding plan aimed at drawing younger diners.
The change backfired almost immediately.
Loyal fans blasted the company online for erasing tradition and President Donald Trump urged the brand to restore its heritage logo, saying it should “go back to the old logo, admit a mistake based on customer response … and manage the company better than ever before.”
By the end of August, Masino reversed course.
The company fired Prophet, halted its test remodels and reinstated the original logo featuring “Uncle Herschel.”
Shares plunged nearly 10% after the backlash and are now down roughly 30% for the year, leaving Cracker Barrel with a market capitalization of about $825 million.
The fallout also rattled customers.
Consumer Edge data cited by The Post last month showed the chain lost a chunk of its Republican diner base — about half a percentage point of market share — and slid from the fastest-growing breakfast chain in the country to last place, behind Waffle House, IHOP and Denny’s.
In a September earnings call, Masino admitted the company underestimated the deep connection customers feel toward the company’s nostalgic imagery and promised to “lean into Uncle Herschel and the nostalgia around the brand.”
Masino, whose career includes stints at Starbucks and Taco Bell, appeared on stage with Cracker Barrel’s general counsel to discuss the company’s long-running clashes with activist investor Sardar Biglari, who has waged seven proxy battles against the chain since 2011 through his investment funds.
Biglari, who also owns Steak ’n Shake, has repeatedly accused Cracker Barrel of “poor capital allocation” and mismanagement.
He has seized on the logo fiasco to question Masino’s leadership and has publicly called for her ouster.
Steak ’n Shake’s corporate account has mocked the rebrand online.
Masino disclosed Tuesday that she met Biglari for lunch at a Cracker Barrel restaurant shortly after taking the helm in late 2023.
“Mr. Biglari’s playbook…is making many misinformed statements,” she said on Tuesday.
Cracker Barrel’s 70,000-employee chain has been trying to reposition itself after years of stagnant traffic.
Masino launched a three-year turnaround plan last year that includes menu upgrades, operational improvements and digital investments.
But the logo controversy derailed the rollout and spooked investors already skeptical of her strategy.
Cracker Barrel’s fourth-quarter revenue fell nearly 3% year-over-year to $868 million, and traffic dropped 8% in the weeks following the rebrand.
In an earnings call last month, Masino signaled that the company would stay the course on its transformation despite the setback.
She cited the return of “Uncle Herschel’s Favorite” breakfast dish and the debut of “The Herschel Way,” a new service model designed to improve consistency across locations.
The chain has also seen some momentum in its loyalty program, which gained 300,000 new members in four weeks, according to company data.
The Post has sought comment from Cracker Barrel and Biglari Holdings.
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