Identity Crisis: Three failed rebrandings & what you can learn from them

Whether you’re selling houses, advocating for your community, or running for office, a good brand is everything. But that doesn’t mean your brand can last forever. Eventually, it might be time for a change.

Rebranding is full of challenges and pitfalls. What if your new brand is too similar to your old one? What if it’s too different? You have to walk a careful line to maintain your identity while also ushering in a new era, and sometimes, that can seem impossible. Changing your branding has to be done strategically with your audience, organization, and legacy in mind. 

Let’s take a look at four rebranding strategies that left consumers disappointed and how one of them succeeded despite its backlash.

Cracker Barrel Old Country Store

Cracker Barrel—one of America’s most iconic restaurants—is recognized by its equally iconic logo, featuring a man in a chair leaning against a barrel. The imagery has been in use since 1977 and pays respect to founder Dan Evins’s real-life uncle, which is why many were shocked when the restaurant unveiled a new, simplified logo on August 19, 2025. 

The new design was an attempt to modernize the brand while maintaining visual consistency with its classic gold and brown color palette, but it was quickly met with backlash and outrage from customers. And the impact was felt immediately. 

Over the following week, shares dropped more than 10%, and just as quickly as the new look was introduced, it was retired. Upon returning to their prior branding, stocks rose higher than before the rebranding. Still, this misstep has led to calls for CEO Julie Masino to resign from her position.

What went wrong? 

While some might try to draw politics into the conversation, the truth branding and logo design rarely have anything to do with politics. This case is no exception.

Simply put, the new design lacked the soul, character, and personality of their previous logo, but that’s only the beginning. Cracker Barrel is known for its nostalgic environment. While their branding might appear dated if you look at it through a modern lens, that isn’t necessarily a problem. Looking at their logo provides a sense of nostalgia, and its ties to the founder’s own family kept the company connected to its history.

Tropicana

In 2008, PepsiCo’s Tropicana juice brand led the market with a 39% market share according to research. But they put that in jeopardy when they redesigned the brand’s packaging in 2009. Almost immediately, sales dropped by 20% before jumping back up when they returned to the original design. 

What went wrong?

Recognition is a huge part of brand trust, and abandoning what’s recognizable can lead to a loss of trust. When consumers went to the store looking for the familiar juice they knew and loved, the new design raised an important question: What else has changed?

Familiarity is a powerful ally. The new design raised concerns, leading customers to wonder if they were getting the same juice they had bought before. The new design was also criticized by consumers for its ugly, overly simplistic look. Similar to Cracker Barrel, they removed the character of the product and left behind something unrecognizable. 

Within a few months, the old packaging was permanently back on the shelves. Tropicana learned a valuable lesson, but it came at the cost of more than $50 million.

RadioShack

Those of us who remember RadioShack probably don’t remember their ill-guided attempt at rebranding. In August 2009, RadioShack changed its identity to “The Shack.”

As the 21st century was proving more challenging for technology retailers, RadioShack’s brand was already in decline by 2009. By February 2009, RadioShack shares had dropped more than 90% since its peak in 1999. While the switch to “The Shack” garnered short-term attention and a slight boost in smartphone sales, it also sacrificed what recognition and brand equity the company had left.

What went wrong?

RadioShack’s rebranding was fated to fail from the start because it didn’t solve the real problem. 

Technology retail was moving online, and specialty stores like Best Buy had already claimed their ground. Shortening the name didn’t modernize the business model. Instead, it alienated longtime customers who associated the name “RadioShack” with a trusted store. Rebranding without strategic substance is nothing more than cosmetic.

What can we learn from these examples?

Rebranding is never just about a logo or a name. It’s about trust, timing, and strategy.

• Cracker Barrel learned that nostalgia was part of their value, and stripping it away alienated loyal customers.

• Tropicana discovered that familiarity is everything when consumers are making fast choices at the grocery store, and simplicity and minimalism don’t always work.

• RadioShack proved that a rebrand without a strategy to fix deeper business issues is meaningless.

The key takeaway? Don’t rebrand just to rebrand. Do it because you have a clear strategy, a deep understanding of your audience, and a plan to bridge the old with the new. Otherwise, you risk losing the most valuable thing a brand can have–trust.

Of course, rebrands can go well. Companies and organizations change over time, and sometimes, a fresh look can not only keep your audience engaged but draw in a new audience, too. But it has to be done right.

At Skysight, our focus is helping organizations shape a clear voice and a brand that stays true to who they are. Let’s talk about how we can bring your brand’s next chapter to life.