Cracker Barrel’s Prophet Dilemma

The recent rebranding debacle at Cracker Barrel has set a new standard for what not to do in marketing. The decision to partner with the San Francisco marketing agency Prophet presents another significant challenge.

Having grown up and lived in Tennessee for most of my life, I have witnessed the rise, growth, and slight decline of this iconic Southern restaurant chain. Admittedly, I have a southern bias and want Cracker Barrel to succeed. Until recently, I believed that the company’s senior management had learned valuable lessons after facing public backlash. 

In the mid-1980s, I observed the Coca-Cola fiasco when executives thought consumers wanted “New Coke.” Reducing the availability of six-and-a-half-ounce glass bottles was problematic enough (the company ended production in 2012). At that time, Coca-Cola also switched from cane sugar to high fructose corn syrup. The backlash was swift and strong; consumers didn’t want the main Coke product to taste like Pepsi, leading the company to retract their decision.

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Fast forward to 2023, when Anheuser-Busch executives made another marketing misstep by partnering with transgender influencer Dylan Mulvaney for Bud Light. This decision ignited significant backlash from a demographic that had traditionally consumed Bud Light, showcasing the ongoing disconnect in understanding their audience. You would think marketing professionals around the world would keep these cautionary tales in mind, but that doesn’t seem to be the case.

Which brings us back to Cracker Barrel. I must admit that I’m not a regular diner. Most of my visits occur when I’m traveling, and I spot a familiar billboard advertising their tempting, calorie-laden Country Fried Chicken platter or all-day breakfast.

Additional benefits, such as clean restrooms, a selection of vintage CDs (including artists like Conway Twitty, The Gatlin Brothers, Barbara Mandrell, and The Oak Ridge Boys), tasteful rural decor, and a healthy inventory of Goo-Goo Clusters, along with a dozen or so rocking chairs on the porch, contribute to the Cracker Barrel vibe.

I must admit that I can’t remember my last visit to a Cracker Barrel restaurant. The menu could use a refresh, and the gift shop would benefit from decluttering unprofitable items. Both of these improvements are straightforward fixes that would create minimal disruptions.

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The reasons why Cracker Barrel’s senior management believes that a complete rebranding would increase profitability by attracting a new audience can be elaborated upon in a future full-length manuscript. I’ll be among the first to place an order when it becomes available.

On November 1, 2023, Julie Masino assumed the role of CEO, bringing three decades of experience from major consumer brands such as Taco Bell and Starbucks. You would think the Bud Light fiasco might influence future marketing decisions. However, before delving into the current administration’s challenges, a brief history of the company will help provide context.

Founder Doug Evins opened the first Cracker Barrel in 1969 in Lebanon, Tennessee, just east of Nashville. As a Shell Oil representative, Evins’ initial concept combined a restaurant with a gas station, creating a convenient road stop for weary travelers. In the late 1960s, local truck stops were the only option for interstate dining, and many families were not fond of the “truck stop” atmosphere. As a result, they often had to pack their own food or search for restaurants in nearby towns close to interstate exits.

Social controversy isn’t new for Cracker Barrel. In 1991, Evins ignited a firestorm by implementing an anti-gay hiring policy, which resulted in the firing of 11 employees and sparked nationwide protests. Despite the backlash, Evins remained the CEO seat for another decade, and relinquished his board chairmanship in 2004.

Following him, CFO Michael Woodhouse took over the leadership, steering the company into calmer waters. Fast forward to 2011, when Sandra Cochran became CEO, making her the second female to lead a publicly traded company in Tennessee. Part of Cochran’s efforts included raising the company’s diversity practices among corporate elites. However, I doubt that the middle-American customer base was concerned, as long as the country gravy and macaroni and cheese recipes remained unchanged. 

Masino Will Make History

Looking ahead, Masino’s controversial tenure is likely to surpass the Evins era when all is said and done. This brings me to the purpose of this article. Whether anyone agrees or disagrees with Masino’s marketing decisions is beside the point. The company’s loyal customer base has made it clear that Uncle Herschel maintains his seat in rocker number one.

What intrigues me most is Masino’s choice to retain Prophet, a San Francisco marketing firm, in the hope of boosting Cracker Barrel’s sales and share price.  Am I to believe that there were no firms in Nashville, Atlanta, Birmingham, Charlotte, Charleston, Dallas, or Tampa that could provide the necessary skills to enhance Cracker Barrel’s performance? tendencies. It seems evident to me that Masino chose Prophet to shake things up, perhaps aiming to push away customers with rural roots or dining tendencies. 

A quick review of the Prophet website left me with questions. I wonder how many of their employees have ever visited or dined at a Cracker Barrel. The nearest Cracker Barrel to San Francisco is located in Rocklin, CA, which is a 96-mile drive away.

Know Your Customer

But let’s not evaluate Prophet’s expertise by geography alone. Did Prophet truly understand the needs of the average Cracker Barrel customer? I’m curious about how they recruited their focus group participants, the questions they asked, and the diversity of the participants. I doubt we’ll ever see that data.

Regardless of the focus group findings, it’s clear to me that Prophet, along with Masino, had their recommendations set before any memos were issued. They aimed to completely revamp Cracker Barrel’s image to align with their personal and corporate agendas. Wouldn’t it have been more advantageous to start a new chain instead? Unfortunately, that wasn’t feasible given the company’s existing customer base.

Tommy Lowe, a co-founder of Cracker Barrel and former Evins partner, criticized Masino for promoting an agenda that he believes contradicts the restaurant’s rural roots.

“Taco Bell is not Cracker Barrel,” Lowe said in a Fox Business interview. “…She knows very little about Cracker Barrel’s operation – the history, the food. The idea she’s come up with…doesn’t it the customer. If she’d go out and sit on the front porch and talk to all the customers that come in there, she’d have a little bit of a different outlook.”

One thing is certain: more people are aware of Cracker Barrel today than they were 12 months ago. Customers have voiced their preferences. They appreciate Uncle Hershel’s, enjoy the cluttered gift areas, and like the golf-tee games at every table.

Recommendations

I may not have advanced expertise in hospitality branding, but I have some recommendations:

• Double down on the hokey rural imagine that built Cracker Barrel
• Reevaluate the menu. Keep the old favorites like fried chicken, butter-laden vegetables, all day breakfast items.
• Source better ingredients for better dishes
• Reorganize the gift shop so that you can’t lose a three-year-old child
• Add a couple of vegan options minus “plant-based” meats, because that isn’t meat
• Create a commercial featuring Barbara Mandrell and Jelly Roll. Okay, maybe Jelly Roll isn’t the best option, but profile old and new
• Introduce a world championship rug checkers tournament played on Cracker Barrel front porches in rocking chairs. Maybe Shane Gillis and Peyton Manning holding Bud Light cans will help.

I look forward to visiting Cracker Barrel soon.