Cracker Barrel’s announcement this week that it’s replacing CEO Julie Masino brought back one of the most-confounding recent corporate crises. Masino oversaw last year’s debacle in which the restaurant chain trumpeted a rebrand and then backed out after a huge public backlash. The new CEO will have to deal with the lingering effects.

Masino joined the company in 2023 from Taco Bell, which is currently having its own crisis. During a 2024 investor call, she said the Cracker Barrel brand was “just not as relevant as we once were” and needed a “transformation.” Last August, the company officially announced the rebrand, which included a new logo and restaurant remodeling. And that’s when the storm began.

Longtime customers (the chain’s origins go back to 1969) were not shy in expressing their opposition to the changes, including on social media. The hostility was politically tinged in that conservatives accused Cracker Barrel of going “woke” by removing tchotchkes from the restaurants, changing the menu and — especially — replacing its longtime logo featuring “Uncle Herschel” in overalls leaning on a barrel to one with only the chain’s name. Even President Trump weighed in (and not positively).

Sales, Profit

It was hard to believe a logo change could create such a firestorm. Sales, profit and stock price fell. It was a crisis like that over Bud Light after it ran a promotion with a trans activist: the negative reaction from customers hurt sales.

At first, Cracker Barrel, based in Lebanon, Tenn., tried to defend itself, but merely a week later it caved to the public pressure about the logo. Then in September, it changed its mind about remodeling the restaurants.

It’s hard to predict a negative response of this magnitude, but Masino’s attempt to revitalize the brand was seen as a major misstep. It seemed that Cracker Barrel, like Bud Light, misjudged its customers. Crisis communicators would be wise to give such a serious change some serious thought. What’s viewed positively in the company could be perceived quite differently outside it.

‘Search Process’

Cracker Barrel’s July 27 announcement offered no reason for Marino stepping down but all the news stories connect the dots to the logo fiasco, which, reading between the lines, looms large as a main culprit. The Washington Post’s headline referred to Masino as the “CEO Behind a Rebrand Blasted as ‘Woke.’” Cracker Barrel emphasized that the hiring took place “following a comprehensive succession planning and search process.” Still, analysts were quoted as saying the switch was a surprise.

Also clear is that new CEO David Deno will continue to have to deal with the ongoing fallout, though there are signs the company’s performance is improving. Deno was most recently CEO of Bloomin’ Brands, which owns Outback Steakhouse, and prior to that did stints at Best Buy, Yum! Brands, Pizza Hut and Burger King.

The transition takes place Aug. 10, though Marino will stay on as an adviser into October “to support a smooth transition,” Cracker Barrel said.

Photo Credit: Joseph Hendrickson – stock.adobe.com

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