Cracker Barrel chief executive steps down a year after rebrand chaos

Cracker Barrel's chief executive is quitting a year after the company faced a widespread backlash over its controversial rebrand.

The restaurant chain said on Monday Julie Masino will leave in August, with the former boss of Bloomin' Brands, David Deno, taking over.

Its rebrand sparked a national controversy, with critics including President Trump, who urged the chain to restore its original logo after critics accused it of abandoning its heritage.

Masino did not issue a statement about her resignation, but Cracker Barrel's management thanked her for her tenure.

Masino will be paid an estimated $4.6m as part of a departure package, according to the company's 8-K filing. Cracker Barrel declined to comment, referring the BBC instead to the filing.

The leadership change comes after a turbulent period for the business, which runs nearly 660 country-themed store and restaurants sites across 44 US states.

Plans to simplify the classic logo and modernise store interiors sparked fierce resistance from loyal diners who argued the changes stripped away the brand's nostalgic Southern charm.

It follows a similar uproar in 2022 when Cracker Barrel faced online backlash from some customers after adding plant-based sausages to its breakfast menu.

Such controversies highlight the delicate balance facing brands hoping to attract younger audiences without alienating their core, longstanding customer base. Critics described the latest rebrand as "soulless" and "generic".

Jo-Ellen Pozner, an associate professor at Santa Clara University's Leavey School of Business, said the leadership swap "seems to reflect the polarization many Americans feel today".

She added that doubling down on conservative values may help win back vocal loyalists but "paints the company into a corner".

"Changing anything about the menu, decor, or branding at this point is dangerous, so there are few levers to attract new customers," Pozner said.

President Trump later congratulated the chain on its reversal.

In his own statement on the transition, Deno paid tribute to Cracker Barrel's "deep connection with guests across generations".

In addition to public scrutiny, Cracker Barrel has struggled financially.

Shares of the Tennessee-based chain fell by more than 2% after Monday's announcement and are still around a fifth lower than this time last year.

Cracker Barrel's shares have struggled because sales are falling and customer traffic is slowing, all while restaurants grapple with soaring costs.

The transition comes as Cracker Barrel faces fierce competition from chains like Denny's and IHOP, which have been fighting to take market share among budget-conscious diners seeking classic American comfort food.

Masino will stay at the company until October to help Deno through the transition.