Cracker Barrel Faces Intensified Backlash Over Queer Inclusion Amid Corporate Rebrand

Cracker Barrel Old Country Store, a national restaurant chain, has a longstanding and complex history with LGBTQ+ inclusion. In 1991, the company faced widespread protests and boycotts after instituting a corporate-wide policy that mandated termination of any employee who failed to demonstrate “normal heterosexual values.” At least eleven employees were fired under this policy, which drew condemnation from LGBTQ+ advocacy groups and civil rights organizations, leading to a tarnished reputation among LGBTQ+ communities and their allies .

Over the past decade, Cracker Barrel has undertaken significant efforts to transform its company culture. The chain partnered with the Human Rights Campaign , a leading LGBTQ+ advocacy organization, to overhaul its internal policies and foster a more inclusive environment. Steve Smotherman, a former management and training leader, played a key role in these changes, spearheading the establishment of an LGBTQ+ employee resource group and facilitating diversity and inclusion training across the company .

The company’s recent store rebrand, which included updated branding and a public recommitment to diversity, equity, and inclusion —specifically LGBTQ+ inclusion—has reignited controversy. Cracker Barrel’s sustained partnership with HRC and its increased visibility around LGBTQ+ workplace inclusion drew criticism from conservative advocacy group America First Legal, which has publicly attacked the restaurant chain’s DEI policies. This backlash is part of a broader national trend in 2025, with several companies facing pressure to scale back or eliminate DEI initiatives due to shifting federal policy and heightened culture wars .

America First Legal, a nonprofit co-founded by former White House aide Stephen Miller, has targeted Cracker Barrel for what it calls “woke” corporate policies, arguing that the chain’s DEI efforts and support for LGBTQ+ employees represent an ideological overreach. The organization has leveraged recent federal executive actions that discourage DEI programs, amplifying its campaign against Cracker Barrel and similar companies .

The backlash has had financial repercussions. Cracker Barrel’s stock experienced a notable decline amid the controversy surrounding its rebrand and ongoing commitment to LGBTQ+ inclusion. Company spokespeople have acknowledged the criticism but have reiterated their dedication to fostering an inclusive workplace, emphasizing that diversity and equity are core values that benefit both employees and customers .

Cracker Barrel’s leadership has highlighted the positive outcomes of its partnership with HRC, citing improved employee satisfaction and retention, as well as broader community engagement. Steve Smotherman, who left the company in 2020, reflected on his experience: “For more than ten years of my time at Cracker Barrel, I had an emphasis on Diversity & Inclusion, especially with LGBTQ workplace inclusion. My training background allowed me to understand the steps of adult learning, facilitate difficult conversations and be effective at it Diversity & Inclusion content” .

LGBTQ+ advocacy organizations, including the Human Rights Campaign, have praised Cracker Barrel for its efforts to reverse past discriminatory policies and foster a respectful, supportive workplace. The company’s journey from exclusion to inclusion is viewed as a model for how businesses can evolve and address historical injustices. However, many in the LGBTQ+ community remain vigilant, noting that progress can be fragile in the face of political and cultural backlash.

The debate over Cracker Barrel’s policies reflects broader tensions in corporate America, as companies navigate increasingly polarized political and social landscapes. While some brands are scaling back their public support for LGBTQ+ initiatives amid concern over consumer and activist backlash, others—like Cracker Barrel—are standing by their commitments, even at the expense of short-term financial stability .

Cracker Barrel’s experience underscores the complexities of corporate LGBTQ+ inclusion in 2025. As the company faces renewed scrutiny and market challenges, it remains a flashpoint in the ongoing debate over the role of business in advancing equity and inclusion. The response from both advocacy groups and critics illustrates the high stakes for companies navigating these issues—and the enduring importance of affirming policies that support LGBTQ+ employees and customers .