Cracker Barrel faces another 'woke' customer controversy

Backlash to corporate diversity, equity, and inclusion policies has led to several major companies downplaying their DEI programs in 2025.

McDonald's got the ball rolling in January 2025 as it ended some of its DEI practices and renamed its diversity team as “Global Inclusion team.”

The company also faced a lawsuit filed by the American Alliance for Equal Rights, objecting to McDonald's and International Scholarship & Tuition Services' HACER National Scholarship Program and asking that its scholarship recipients be chosen on their “own merits and essential qualities,” since it believes the scholarship unlawfully discriminates against students from other races and ethnicities.

Several companies have followed McDonald's lead and renamed or eliminated DEI programs and removed references to DEI in their annual reports, including Amazon, PBS, Pepsi, Citigroup, BlackRock, Paramount, UnitedHealth Group, Constellation Brands, and Gannett, Forbes reported.

This is only a partial list of companies adjusting DEI programs.

Companies adjusting diversity, equity, and inclusion policies:

McDonald's: Renamed diversity team as “Global Inclusion team.”

Amazon: Removed references to inclusion and diversity hiring from its annual report.

PBS: Closed its diversity, equity, and inclusion office.

Pepsi: Removed representation goals from hiring.

Citigroup: Renamed its Diversity, Equity and Inclusion and Talent Management team as Talent Management and Engagement.

BlackRock: Removed references to DEI in its annual report.

Paramount: No longer uses diversity tied to race and gender in hiring.

UnitedHealth Group: Removed diversity, equity, and inclusion webpages and adopted terms like “culture of belonging.”

Constellation Brands: Renamed DEI team as Inclusive Culture.

Gannett: Removes diversity references from its website.

Cracker Barrel faces an attack over its diversity, equity, and inclusion policies.

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Cracker Barrel attacked by American First Legal over DEI policies

And now, popular dining chain Cracker Barrel is facing an attack on its diversity, equity, and inclusion policies from legal advocacy group America First Legal, a conservative nonprofit co-founded by White House aide Stephen Miller.

America First Legal requested that the U.S. Equal Employment Opportunity Commission and Tennessee Attorney General Jonathan Skrmenti investigate Cracker Barrel for alleged potential violations of federal and state civil rights laws stemming from its diversity, equity, and inclusion policies, according to a July 21 AFL statement.

The restaurant chain has faced a customer backlash in the past, as in August 2022, when it added a plant-based-sausage option to its menu.

It did not take traditional sausages off its menu; it only added a meat-free choice, and that angered some of its customer base, which called for boycotts.

Cracker Barrel launched its Diversity and Inclusion Strategy in June 2021, which included an effort to “better identify, recruit and advance strong, racially and ethnically diverse talent,” WMAL Radio reported.

The restaurant chain also asserted its support for the NAACP and Urban League, as well as doing more to recognize the LGBTQ+ community, in its Diversity and Inclusion Strategy.

The company in 2024 shifted its Diversity and Inclusion Strategy to Culture and Inclusion, focusing on “Culture,” “Workforce,” and “Business.”

Cracker Barrel Culture and Inclusion Strategy:

Culture: to educate, advocate, and communicate to create an inclusive, engaging, culture, and work environment.
Work Force: to attract, select, develop, and retain high-performing talent with diverse backgrounds, experiences, and perspectives.
Business: Build and nurture diverse partnerships in the communities where we live and work, and ensure we have diverse representation in our advertising.

Cracker Barrel's Culture and Inclusion Strategy is a 180-degree turn from the company's policies in early 1991, when the company adopted a policy to stop hiring LGBTQ people and terminate those who were already employed by the restaurant chain, according to Forbes.

The company's Board of Directors voted to end discrimination against gay employees in 2002.

More food and restaurants:

American First Legal objected to Cracker Barrel's Business Resource Group benefits that “appear to be restricted to specific identity groups,” according to its statement.

It also objected to the company's Nominating and Corporate Governance Committee considering “diversity of age, gender, race, and ethnic background” when evaluating potential nominees for the company's Board of Directors.

“Treating employees differently because of their race or sex is not only wrong, it is illegal and violates numerous federal and state civil rights laws. AFL will continue to fight back against unlawful discrimination in all its forms,” American First Legal said in its statement.

The organization submitted a complaint with the U.S. Equal Employment Opportunity Commission, to investigate Cracker Barrel's employment practices, which they allege “appear to discriminate against employees or prospective employees, solely because of their skin color or sex.”

American First Legal also filed a complaint with the Tennessee attorney general, as well as the Cracker Barrel Board of Trustees.

Cracker Barrel was not immediately available for comment.

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