The Cost of Alienating Average Americans

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In August 2025, two all-American brands, recognized by millions stood at a cultural crossroads, each chose a path in for their marketing strategies.

American Eagle Outfitters leaned into nostalgic Americana, a crowd-pleasing campaign featuring actress Sydney Sweeney in its “Great Jeans” commercial, a move that sent its stock soaring more than 25% in a single hour and 35% in a single day.

Meanwhile, Cracker Barrel, a chain synonymous with rural Americana comfort and tradition, attempted a “woke” rebrand.

It stripped away its iconic “Old Timer” logo and embraced a more “inclusive” identity. The result? A staggering $250 million loss in stock value, a swift retreat to its original branding and a presidential tweet.

These contrasting fortunes are not mere corporate anecdotes but a reflection of a broader societal rejection of performative progressivism, signaling that “go woke, go broke” has evolved from a catchy slogan into a stark business reality that can burn a centuries worth of brand loyalty within a matter of hours.

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The story begins with American Eagle, a retailer navigating a very hostile retail landscape battered by inflation and cautious consumer spending. Things were not looking good for American Eagle Outfitters. Its decision to cast Sydney Sweeney, a rising star with broad appeal, in a campaign celebrating its denim line was a calculated return to basics and adding a classic Shelby Mustang wasn’t a bad call either.

The “Great Jeans” ad cam that launched in August 2025, tapped into a universal desire for authenticity and relatability, qualities that resonated with a customer base weary of over-engineered marketing seeking to “educate” their customers. The market responded emphatically: American Eagle’s stock surged, climbing from a precarious position to a high not seen in months, with analysts attributing the single-day jump to renewed consumer confidence in the brand’s direction.

According to a report from Bloomberg, the campaign’s success lay in its ability to align with cultural currents favoring unpretentious, feel-good messaging over divisive social posturing.

Cracker Barrel’s experience could not have been more different.

Under the leadership of CEO Julie Felss Masino, the chain embarked on a rebrand that sought to shed its Southern “country store” nostalgic image in favor of a more “inclusive” aesthetic.

The decision to remove the “Old Timer” logo—a kindly, white-haired figure emblematic of the brand’s heritage—sparked immediate backlash.

Social media erupted with accusations that Cracker Barrel was erasing its identity to appease a vocal minority, with posts on X decrying the move as a betrayal of its loyal customer base. The financial toll was brutal and immediate: the company’s stock plummeted 14%, wiping out $250 million in market value in a matter of days.

The missteps at Cracker Barrel were not just a failure of execution, but both a profound misreading of cultural sentiment and also elitist arrogance, dismissing concerns that cultural sentiment was even something that needed to take in to account when making business decisions.

A Wall Street Journal analysis noted that the rebrand ignored repeated internal warnings from board members who cautioned against alienating the chain’s core demographic—Southern, conservative, and family-oriented patrons— citing the risk of alienating customers in a polarized climate fearing precisely what would come to pass.

Yet Masino, a marketing executive with no prior experience running a sit-down restaurant chain, pressed forward regardless, investing heavily in DEI initiatives and pride-themed promotions that ran counter to the brand’s traditional image.

The backlash was swift and unforgiving, with customers voicing their discontent online and in-store, forcing Cracker Barrel to reinstate the “Old Timer” logo within a week. A Forbes report written in the aftermath of the implosion highlighted that the rebrand’s failure stemmed from a disconnect between corporate leadership and the brand’s customer base, a mistake that cost Cracker Barrel dearly and never should have happened.

This tale of two brands underscores a broader cultural shift: the waning tolerance for “woke” corporate agendas. The term “woke,” once a badge of social awareness, has become a lightning rod for criticism, associated with performative gestures that prioritize ideology over authenticity.

The 2023 Bud Light controversy, where a partnership with transgender influencer Dylan Mulvaney led to a boycott and a $1 billion drop in sales should have been the pivotal moment that companies took notice of. However, as evidenced by Masino’s ill fated venture at Cracker Barrel, the Bud Light debacle it appears was an early warning shot that apparently not everyone took notice of.

Cracker Barrel’s misadventure suggests that companies have yet to fully heed this lesson. In contrast, American Eagle’s success illustrates the rewards of aligning with cultural values that resonate with the majority—values of simplicity, relatability, and tradition in a time of economic and social uncertainty.

The economic implications for any wannabe “woke” CEO’s still out there are stark. According to a 2025 Gallup poll 62% of Americans say they are less likely to support brands that engage in overt social activism, a sentiment that has grown since 2023. For Cracker Barrel, their $700m rebrand’s failure translated into a 14% stock drop, a loss that could take months if not years to recover from. American Eagle, by contrast, saw its market capitalization rise by nearly $500 million in the wake of its campaign, per MarketWatch. These numbers tell a story of consumer power in an era where cultural missteps can devastate a brand’s bottom line.

What drives this rejection of “woke” branding? At its core, it’s a reaction to perceived inauthenticity. Consumers crave brands that reflect their values, not ones that lecture or alienate them. Cracker Barrel’s attempt to appeal to a broader, more progressive audience ignored its heartland customer base, who saw the rebrand as a rejection of the brands identity and them as individuals. American Eagle, however, tapped into a universal appeal—jeans, youth, and a charismatic star—without wading into cultural controversies.

The contrast highlights a critical lesson for corporate America: authenticity trumps ideology. The broader implications of this cultural shift are profound. As The Economist noted in a 2025 analysis, companies that prioritize cultural neutrality over divisive social agendas are better positioned to thrive in today’s polarized market.

As companies navigate an increasingly fragmented society, the temptation to signal progressive virtues remains strong, particularly among urban, coastal corporate elites. The Cracker Barrel debacle suggests that such strategies can backfire spectacularly, especially when they alienate the core loyal customers a business has curated for decades. The success of American Eagle’s campaign, meanwhile, points to a safer path: embracing cultural touchstones that unite rather than divide. This is not to say that brands must avoid social issues entirely, but they must tread carefully, ensuring their messaging aligns with their audience’s values and avoids the perception of pandering.

Will companies learn from these contrasting fortunes? The evidence suggests a slow awakening. The Bud Light boycott, Cracker Barrel’s retreat, and the rise of brands like American Eagle indicate that the “go woke, go broke” mantra is gaining traction in the boardroom. Yet the allure of social activism persists, particularly among executives insulated from their customers’ realities.

For every American Eagle, there may be another Cracker Barrel, risking millions in pursuit of a trendy cultural ideal. As consumers grow more vocal and begin to realize the power that they can flex —amplified by platforms like X, where backlash can spread like wildfire— companies must weigh the cost of cultural missteps against the rewards of staying true to their roots.

In this new era, the market rewards those who listen to everyone.