August 27, 2025 • 32 mins
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Episode Transcript
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Speaker 1 (00:01):
So there are two stories when it comes to the
Cracker Barrel fiasco. One is what you know about that
has happened over the last I don't know, ten days.
And then there's the other part of the story. I
want to tell you just how stupid the CEO of
Cracker Barrel and their team actually is. Now, this is
(00:23):
the story you don't know about. There was a prominent
Cracker Barrel investor that warned executives that they were walking
into quote a text book trap.
Speaker 2 (00:36):
That's right.
Speaker 1 (00:37):
One of Cracker Barrel's largest investors literally sent up a
red flag last fall regarding the board director's rebranding plan
for the company, but it went unheated.
Speaker 2 (00:50):
Now that was last fall.
Speaker 1 (00:52):
In fact, it was a two page critique dated November thirteenth,
twenty twenty four. Start Ar Glory, who owns about five percent,
which is a lot of the restaurant chain's stock, wrote
his fellow shareholders that the Cracker Barrell transformation was quote
a mistake of misguided executives falling for quote a textbook
(01:15):
trap of overspending on cosmetic remodeling. Here is his exact words.
The day Cracker Burrough opened, it was already old. Its
theme derived from the nineteen twenties. I am concerned that
not only will the remodel not work, but it could
actually damage the brand further. These decisions are taking us
(01:37):
down the same path, he said. I believe as Ruby
Tuesday's Red Lobster, TGI Fridays and the likes. Let me
make my position clear, The shareholder said the coming seven
hundred million dollar remodel plan will not work. In a
private letter to shareholders on October the twenty fourth, the
man called the board's transformation plan obvious folly. The investor
(02:01):
is also a major investor in Stake and Shake Friendlies
and Western Sizzelin. Shareholders ultimately sided with the Cracker Barrell CEO,
who took the position with the company last year. They
rejected the shareholder's bid to become a member of the
board and instead elected Cracker Burrell's slate of ten recommended
(02:21):
nominees on November the twenty first of twenty twenty four.
A bunch of Yes people for a Predictable Woke CEO
management tow the vote as an endorsement of the transformation
as the quote right path to return Crackerbell to growth
and meaningful value creation for all shareholders.
Speaker 2 (02:41):
The rollout of Crackerbell's.
Speaker 1 (02:42):
New logo did not go well, and that's the story
you know about the stock falling from a close of
fifty eight to eighty last Wednesday to fifty to fifty
four the following day, resulting in one hundred million in
market value loss, all because they didn't understand who their
customers were and they were ashamed of their own brand.
(03:03):
Now they coming has since gone into damage control and
the stock rebounded to approximately fifty seven seventy by Tuesday,
only because the markets were realizing they were going to
stop this insane idea, which brings us to what you
know and where we are now. But first I want
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ferguson or nine to seven to two Patriot. You would
think that companies would learn from the fiascos and the
(05:33):
disasters of woke ideology. A great example of that is
what happened with bud Light using a transgendered person aka
a dude acting like a chick to try to promote
their brand. We all know how that ended. You would
also think that CEOs in twenty twenty five would understand
that there's quite a few Americans out there that just
(05:55):
want brands to be normal and not push in agenda,
or if they have a core audience, don't be ashamed
of them.
Speaker 2 (06:04):
And who they actually are.
Speaker 1 (06:06):
Well, you would think that CEOs of companies would understand
that insert Cracker Barrel, aiming to quote modernize under the
new CEO appointed in twenty twenty three, they decided it
was a good idea to trash an entire brand, but
not just the brand, actually trash the customers that had
(06:26):
propped up that brand for decades. They unveiled what they
described as a minimalist text only logo and upditted the
restaurant de core, dropping the iconic image of Uncle Herschel,
the overalls clad man leaning on a barrel, and removing
the quote old country store from all of their branding.
Speaker 2 (06:49):
Yes, it was a slap in the face or a middle.
Speaker 1 (06:52):
Finger, however you want to describe it to the customers
that love Cracker Barrel oil customers and branding critics, and
then slam the changes, accusing the chain of abandoning not
only it's nostalgic but also it's Southern Country identity. The
company's stock tumbled by more than ten percent, in fact,
(07:15):
to seventeen percent if you look at the latest reports,
and the brand lost as much as one hundred million
dollars in its valuation. But apparently that wasn't enough for
Cracker Barrel leaders. They stuck to their plan day after
day as it continued to get out of control, and
then when they knew they had a road problem, they
(07:37):
went on Good Morning America the Cracker Barrel CEO on
the restaurant renovations that had made everyone start talking about
the brand. Here's what she had to say when was
asked about, Hey, did you guys maybe make a mistake?
Speaker 3 (07:52):
And I got to ask this question, I think I'd
probably know the answer. What if all the customers are
coming at you hard enough about the look at a
restaurant and they want to go back to the old way.
Speaker 2 (08:02):
Would you do it?
Speaker 4 (08:03):
Honestly, the feedback's been overwhelmingly positive that people like what
we're doing. I'll give you another SoundBite. I actually happened
to be in Orlando last week with all of our managers.
We bring them together and once every other year, and
the number one question that I got asked Michael was
how can I get a remodel? When can I get
a remodel? How do I get on the list? Really so,
because the feedback and the buzz is so good, not
(08:25):
only from our customers but from our team members. They
want to work in a wonderful restaurant. So we're doing
everything for our guests and our team members.
Speaker 3 (08:32):
When Julia Messino, it's wonderful to have you here, pleasure
to thank you. I answer those questions for all the
Cracker Barrey fans out there's a lot of great changes.
Speaker 1 (08:41):
Thank you so much, a lot of great changes. Is
how Good Morning America put it well? That didn't go
over well. Fast forward to Monday and finally Cracker Barrow
Admite a defeat and there woke CEO realizing she had
a very big problem on her hands. Cracker Barrel acknowledge
did it quote could have done a better job job
of sharing who we are and who will always be
(09:04):
attempting to calm the furious customer base, and had abandon
the store. Their public communications team emphasized that quote beloved
elements like Uncle herschel rocking chairs out front, the classic
decor would in fact remain in the stores. And then
there's the politics of this. Donald Trump weighed in strongly
(09:26):
saying quote Crackerbrell should go back to the old logo
and made a mistake and manage the company better than
ever before. Hours later, the White House, via the pres
Secretary Caroline Levitt, praise Crackerbrell's decision to revert, stating that
Trump has unmatched business instincts and that the brand made
(09:47):
a great decision to trust the president of the United
States of America. By Tuesday evening, Cracker Barrel had changed
her tune even more.
Speaker 2 (09:57):
They announced it.
Speaker 1 (09:58):
Would scrap the new go entirely and revert to the
original old Timer design with Uncle Herschel and the old
country store naming back. The company described the change as
listening quote to its customers and reaffirming the importance of tradition, hospitality,
and comfort. Now Donald Trump's vocal criticism and the public
(10:23):
urging made a massive difference and aligned with widespread customer
outrage as well as the financial losses, and then Cracker
Barrel had to fully admit that the rebrand was a mistake.
Not only was it a mistake because they were ashamed
of apparently their image, they were ashamed of their customer base.
(10:43):
They wanted to be new, trendy and woke. Well now,
Cracker Barrel said, after losing one hundred million in their
market cap, Okay, I guess we're just going to go
back to how things were before. Remember, nothing was actually broken.
And this is the bigger question that so many people
should be asking, especially in the advertising, marketing and the
(11:05):
business brand world, why on earth would you try to
take an iconic brand like Cracker Barrel and change into
something clearly that doesn't align with your customers. It's an
amazing brand, it's a business that people love going into.
The food is actually incredible and the President United States
of America calling them out was a brilliant move. By
(11:28):
the way, he was also protecting so many of the
people that work there and people that invested in the business.
Speaker 2 (11:36):
Job.
Speaker 1 (11:36):
Well done to the President of the United States of
America for doing this, and it'll be very interesting to see
how long the leadership at Cracker Barrel will still be
employed after this nightmare and disaster. Donald Trump promised you
that tariffs were going to work, not only so America
wouldn't be taken advantage of anymore, especially hard working Americans.
(11:59):
He also said it was going to bring jobs back
to America, and he said it was going to raise
money that was not going to be.
Speaker 2 (12:06):
A pass through to you.
Speaker 1 (12:08):
Well, now we're finding out just how successful some of
the US tariff could be. By the end of the year,
as US tariff revenue could actually top five hundred billion
dollars a year. The US Treasury Secretary Scottvissent said today
the customs duty revenues from President Donald Trump's tariffs may
(12:28):
surpass five hundred billion a year, with a substantial jump
from July to August, and likely a bigger jump in September,
October and November with Christmas coming into the US Estimates
of a three hundred billion annual tariff collection rate was
too low, he said, quote, we had a substantial jump
from July to August, and I think we're going to
(12:50):
see a bigger jump from August to September. So I
think we could be on our way well over half
a trillion, maybe towards a trillion dollar n this administration.
Your administration has made a meaningful dent in the budget deficit.
Now tariff revenue would offset the deficit. Increase is triggered
by the Republican Tax cut and Spending bill passed this.
Speaker 2 (13:13):
Year as well.
Speaker 1 (13:14):
The Congressional Budget Office estimated that the bill would widen
the deficit by three point four trillion over the next
ten years. Well, Trump's tariffs drove July US customs duty
collections up by nearly twenty one billion from the seven
billion collected in July of twenty twenty four. And even
with that, you had a twenty billion dollar increase that
(13:36):
was registered in June. Now, this is a significant increase
in tariff rates for nearly all trading partners, and that
kicked in on August the seventh.
Speaker 2 (13:46):
What does that mean? Even more money?
Speaker 1 (13:49):
The US Treasury reported on Monday that is of August
the twenty second, the government had collected twenty nine point
six billion dollars twenty nine point six billion in combined
customs and excise taxes so far during August, matching its
total for the whole month of July.
Speaker 2 (14:09):
And yes, there are still quite a few days left
in the month. Now.
Speaker 1 (14:13):
As of July twenty second, that combined figure stood at
seven point eight billion, but customs duty collections can vary
from day today now. The Treasury Secretary Pisent also noted
that the Congressional Budget Offices upwardly revised estimates last week
a federal revenue from Trump's tariffs, forecasting that it could
(14:35):
quote reduce federal deficits by four trillion dollars over the
next ten years, saying, quote, and I would expect that
that number could go up from here. Now the latest
Congressional Budget Office estimate marks an increase from June when
it was forecast that revenue from new tariffs would reduce
(14:57):
deficits by three trillion over the next ten years. Well,
now that may jump to four trillion dollars. So the
President United States of America not only making sure that
we're protecting jobs, but also when it comes to our
national security issues. Scott Pissent went on the Ingram angle
talking about the risk to our economy and how dependent
(15:18):
we've been on foreign industry.
Speaker 2 (15:21):
China included.
Speaker 1 (15:22):
Here's part of what he had to say about bringing
industries back to our country and getting the mirror as
quickly as we can.
Speaker 5 (15:29):
Rare earth in the magnets, obviously, those are the critical
things we need from China. How difficult a situation are
we in without an industrial policy that almost makes it
an emergency for us to be independent of our strongest
adversary when it comes to those critical things rare earth
and magnets.
Speaker 6 (15:49):
Oh well, or it's rare ear, it's magnets, but it's
so many other things. It's the single biggest point of
failure for the US economy and for the Western economies.
Ninety nine percent of high value chips are made on
the island of Taiwan. So we're trying to bring semiconductor
manufacturing back to the US. We're trying to bring steel
production back to the US. We're bringing pharma back to
(16:12):
the US under President Trump's leadership. There's a group of
us in the Cabinet in the White House who believe
if we have not de risked the US economy and
brought these industries back on shore, when we walk out
the door in January twenty twenty nine, we will have failed.
And we are not going to fail.
Speaker 5 (16:31):
And your message to Congress tonight, because without Congress really
taking action and spending real money for our own industrial policy,
this is going to be more difficult.
Speaker 6 (16:39):
We've got to do this. The only good thing about
COVID was it was a beta test. We could see
there are plenty of unreliable suppliers. I mean, think about this.
Eighty ninety percent of the precursor pharma products that we
get for very basic medicines, you know, the antibiotics for
children come from China or India. So we have to
(17:01):
bring a big amount of that home.
Speaker 1 (17:03):
You just heard it there. We've got to bring it
back home. We stress test this because of COVID. This
actually maybe one of the only good things that came
out of COVID was realizing just how risk we are
as a country, including on the issue of pharmaceuticals.
Speaker 2 (17:19):
And so the present is not backing down on this.
That is very clear.
Speaker 1 (17:24):
Now, that wasn't the only question that Scott was asked,
by the way about China. In fact, he was asked
a very tough question about China, and why is it
that China hasn't actually had to deal with secondary tariffs
for buying Russian oil. I want you to hear what
the administration and the Treasury Secretary had to say about that.
Speaker 5 (17:42):
You know better than anyone that the Russian economy really
isn't strong enough or big enough to carry on a
sustained war and not certainly not indefinitely couldn't do it
without the help of India buying mostly oil, could not
do it without the help of China, which is providing
the bulk of the support to Russia. Now India has
gotten hitten with hit with secondary tariffs. I was I
(18:04):
think it's very positive, put them back on their heels
a bit. But China really is the big contributor to
Russia's current economic stability. Given that, why haven't we put
significant secondary tariffs on China for what they're doing to
help Russia.
Speaker 6 (18:21):
Well, a couple of things there were. One, China had
always been buying Russian oil, So in twenty twenty two,
thirteen percent of their oil came from China and now
it's sixteen and they want to diversified oil supply. India,
on the other hand, got about one percent of their
oil from China in twenty two. Now it's up to
(18:41):
thirty seven percent. So they're doing what I call the
Indian arbitrage. They're buying cheap Russian oil, selling petrochemicals back out.
Much of that is going to the richest families in India.
We already have very high tariffs on China, and now
India is going to see what it feels like.
Speaker 5 (19:00):
Kind of buys an enormous amount of agg from Russia
as well. And they are the biggest supporter of Russia.
Without Without China, Russia couldn't be in this war.
Speaker 2 (19:07):
Do you not agree?
Speaker 6 (19:08):
I agree. They've fifteen billion minimum in dual use technologies
and other support that I'm sure we don't know about.
Speaker 1 (19:17):
What This is truly incredible. And so I think there's
two things here. If you listen to what he had
to say, he said, Number one, China has always been
buying Russian oil. So in twenty twenty two, thirteen percent
of their oil came from China and now it's sixteen.
And they also said want to diversified oil supply. Now India,
he says, on the other hand, got one percent they're
(19:39):
oil from China in twenty twenty two.
Speaker 2 (19:41):
That is now up to thirty seven percent.
Speaker 1 (19:44):
So this is another example of the present dealing with
policy issues that the last administration refused to.
Speaker 2 (19:52):
Even think about looking at.
Speaker 1 (19:54):
In the prior administration, it was obvious that they would
just look other way, no matter what, they would look
the other way and let this happen. And this administration saying, no,
we're not gonna do that. No, we are not going
to sit here and act like this isn't happening. We're
not going to allow these countries to continue to act
(20:17):
this way. That is the part about this that I
think is so vitally important is that this is happening
right now by a president that is not afraid to
make those tough decisions. One other thing that I just
want to point out on this and is the point that,
by the way, has been made by several others, is
(20:39):
that while we are getting the rest of the world
in check, the US debt is getting paid down by
all of these tariffs.
Speaker 2 (20:49):
So we're bringing jobs back to America.
Speaker 1 (20:53):
We are then holding these bad actors accountable for what
they've been doing, and we're getting money out of them
for the reasons that we just described. You put all
of that together, it is unbelievable. I mean, it is
truly unbelievable what is happening right now. And there's so
(21:17):
many Americans that should be thankful for the president. The
President Trump, by the way, also threatening tariffs and response
to digital taxes and regulations as well. This is a
new frontier for US. But President Donald Trump said this,
he said, look, I've already made tariffs a key component
of my president of playbook. Now he's threatened to attack
(21:37):
significant extra tariffs on exports to America from countries with
what he describes as digital taxes and regulations. Quote as
the presidents it's America. I will stand up to countries
that attack are incredible American tech companies, Digital taxes, digital
services legislation, and digital market market regulations are all designed
(22:02):
to harm or discriminate against American technology. They also outrageously
give a complete pass to China's largest tech companies.
Speaker 2 (22:11):
This must end and end now.
Speaker 1 (22:14):
In addition to the threat of tariffs against offenders, he
also threatened to impose restrictions on the export of US
technology as well.
Speaker 2 (22:22):
And he said, We're not doing this anymore.
Speaker 1 (22:25):
We are going to put America first, America technology companies first,
and we're not going to allow China to be able
to get away with this, and we're going to hold
any other country accountable. This is incredible, truly incredible for
everyone involved. Nearly two dozen Republican state attorney generals have
(22:46):
sent a letter to the EPA chief Lee Zelden, calling
on him to cancel funding to a left wing environmental
group accused of training and lobbying judges on climate policy.
Fox News Digital has exclusively revealed this quote as Attorney General,
I refuse to stand by while American tax dollars fund
(23:10):
radical environmental training for judges across the country. Is with
the Montana Attorney General told Fox News Digital of his
push to encourage the EPA to end its funding of
the Climate Judiciary Project quote the Environmental Law Institutes. Climate
Judiciary Project is using woke climate propaganda under the guise
(23:33):
of what they call neutral quote unquote education to persuade
judges and push their wildly unpopular agenda through the court system.
He went on to say, I commend President Trump's efforts
to cut waste and abuse during the first eight months
of his presidency, and I am optimistic that his administration
(23:55):
will do the right thing and halt all funding to
el Now. He spearheaded this ag the letter that was
sent to Zelden, which included the signatures of twenty two
other Republican state attorney generals, all of them calling for
the EPA to acts their funding to the left wing
(24:17):
environmental nonprofit. Now they lie and they say that this
thing is like neutral.
Speaker 2 (24:22):
It's not.
Speaker 1 (24:23):
It is called the Environmental Law Institute. They claim they
oversee the neutral importance of climate law. In reality, they
oversee the Climate Judiciary Project known as the CJP.
Speaker 2 (24:39):
Now.
Speaker 1 (24:40):
The Environmental Law Institute was founded by the Climate Judiciary
Project in twenty eighteen, which pitches itself as a quote
first of its kind effort that provides judges nationwide with authoritative, objective,
and trusted education on climate science, impacts of climate change,
(25:02):
and the ways climate science is arising into the law.
The group has actually been accused of trying to manipulate
judges to make them more understanding or advocates or exciting
to left wing climate litigation. The letters sent Tuesday called
on the EPA to specifically end any and all grants
(25:26):
and awards that are endowed to this group, saying this,
we write to bring attention to the grants made by
the EPA to the Environmental Law Institute. The letter reads,
according to its twenty twenty four financial statements, ELI received
approximately thirteen percent of its overall revenue in twenty twenty
(25:46):
three and eight point four percent in twenty twenty four
from EPA awards. The group also apparently still expected to
receive funds from the federal government. Its financial statement warned
that the collect the ability of federal grant funds is
subject to significant uncertainty related to collaboration and continual funding
(26:10):
due to the Federal grant funding freeze or other federal
actions quote unquote. In other words, they knew Trump was
in office, and there's a chance these funds could go
away if they found out what they were actually doing
with the money. Now, the Environmental Law Institute actually received
six hundred and thirty seven thousand change from the EPA
(26:31):
in twenty twenty four, to be clear, that's your tax dollars,
and then eight hundred and sixty six thousand in twenty
twenty three from the EPA, again your tax dollars. That
according to the nonprofit tax documents that have been published, quote,
the Climate Judiciary's Project mission is clear lobby judges in
(26:54):
order to make climate change policy through the court systems.
The twenty three state Attorney Generals said this clearly in
the letter, saying quote an alumni magazine profile said the
quiet part out loud, writing that the Climate Judiciary Project
co founder was explaining the science of climate change to
a group of people with real power to act on it, judges.
(27:19):
The Climate Judiciary Projects tampering raises serious legal and also
ethical questions. The Environmental Law Institute, in a recent comment
to Fox Digital about this story, maintains that its only
purpose is educational programs that they are in accordance with
these standards established by the National Judicial Education Institution. Climate
(27:43):
Judiciary Projects educational events are done quote in partnership with
leading national judicial education institutions. State judicial authorities. Also, they
claim in accordance with their accepted standards. That's what the
spokesperson said. Well, the reality is these are radical lefties
and the call for the EPA to slash any funds
(28:05):
to the Environmental Law Institute is long overdue. It was
clearly established, and it was established for one purpose, to
get in front of judges and make judges go hard
on anyone they believe is not you know, woke, is
not saying that global warming is a fact, that is
doing anything that global warming advocates or the anarchists say
(28:28):
is somehow evil or hurting the earth. That's why they're
lobbying these judges. The state attorney generals quote are right
to call for the elimination of taxpayer funding for the
Environmental Law Institute and its Climate Judiciary project. That is
what Jason Eiscott, the CEO of American Energy Institute said, saying, quote,
(28:49):
this is a coordinated campaign by the left to advance
the Green New Deal, and this time they want to
do it through the judiciary, using so called climate litigation
in the courts. Its curriculum is clear. It was developed
by climate alarmists and their allies of the plaintiffs and
delivered two judges behind closed doors. Public funds should never
(29:14):
be used to finance political advocacy disguised as judicial education.
Now you also look at the executive director of the
Alliance for Consumers, that's a nonprofit focus on advocating on
behalf of American consumers.
Speaker 2 (29:29):
What do they say about this quote?
Speaker 1 (29:31):
As we have long warned, the left has a plan
to reshape American society by using lawsuits in the courts
all across the country, especially in places like Hawaii and
other coastal enclaves. The new wave of revelations about ELI
is further concerning evidence of how committed they say the
(29:53):
left is to imposing mandatory progressive lifestyle choices through the
court room and are maneuvering to see how big they
can do it and how big of a threat they
can actually be to every one of our way of lives, which,
by the way, is where we should just pause. And
if you think what I'm saying is maybe crazy, let's
(30:13):
just go back a few months ago when there was
a guy named Joe Biden who was in theory the president.
What do they try to do. Do you remember when
they started trying to ban gas stoves? Yes, that was
the left, And how do they start that idea the
exact way that we're talking about this right now. They
want to take away your rights acide what you want
(30:36):
to do. They want to take away your rights to
side what type of car you can drive. They want
to make sure that you don't have the option that
they tell you what the value set is and then
you must abide by it, and if you don't, they'll
literally arrest you or find you. And this Tuesday letter
specifically argued that quote, state consumer protection laws prohibit deceptive
(31:00):
and misleading statements to market a product. They then say
Elia is representing its training as objective when reality shows
that it's not. And the state attorney general is all
twenty two of them are responsible to say, say for
protecting consumers, and we are concerned by this activist group's statements.
(31:22):
Now here's the big point that you need to know.
The EPA has taken a hatchet to millions and millions
of dollars doled out under the Biden administration to left
winging radical groups and other programs deemed a waste of
taxpayer funds. Lee Zelden also making it clear that he
is going to look at this problem and see what
(31:43):
he can do about it. The EPA under the Trump
administration has already canceled more than twenty billion grants under
the Inflation Reduction Act, which has led to ongoing court
battles the same courts right now that liberals are trying
to indoctrinate. And that's exactly why the United States of
America picked lee Zelden. And while there's a very good
(32:03):
chance what we just talked about is going to become
even more of a reality moving forward, don't forget Share
this podcast please with your family and your friends wherever
they are, and I will see you back here tomorrow.
So there are two stories when it comes to the
Cracker Barrel fiasco. One is what you know about that
has happened over the last I don't know, ten days.
And then there's the other part of the story. I
want to tell you just how stupid the CEO of
Cracker Barrel and their team actually is. Now, this is
(00:23):
the story you don't know about. There was a prominent
Cracker Barrel investor that warned executives that they were walking
into quote a text book trap.
Speaker 2 (00:36):
That's right.
Speaker 1 (00:37):
One of Cracker Barrel's largest investors literally sent up a
red flag last fall regarding the board director's rebranding plan
for the company, but it went unheated.
Speaker 2 (00:50):
Now that was last fall.
Speaker 1 (00:52):
In fact, it was a two page critique dated November thirteenth,
twenty twenty four. Start Ar Glory, who owns about five percent,
which is a lot of the restaurant chain's stock, wrote
his fellow shareholders that the Cracker Barrell transformation was quote
a mistake of misguided executives falling for quote a textbook
(01:15):
trap of overspending on cosmetic remodeling. Here is his exact words.
The day Cracker Burrough opened, it was already old. Its
theme derived from the nineteen twenties. I am concerned that
not only will the remodel not work, but it could
actually damage the brand further. These decisions are taking us
(01:37):
down the same path, he said. I believe as Ruby
Tuesday's Red Lobster, TGI Fridays and the likes. Let me
make my position clear, The shareholder said the coming seven
hundred million dollar remodel plan will not work. In a
private letter to shareholders on October the twenty fourth, the
man called the board's transformation plan obvious folly. The investor
(02:01):
is also a major investor in Stake and Shake Friendlies
and Western Sizzelin. Shareholders ultimately sided with the Cracker Barrell CEO,
who took the position with the company last year. They
rejected the shareholder's bid to become a member of the
board and instead elected Cracker Burrell's slate of ten recommended
(02:21):
nominees on November the twenty first of twenty twenty four.
A bunch of Yes people for a Predictable Woke CEO
management tow the vote as an endorsement of the transformation
as the quote right path to return Crackerbell to growth
and meaningful value creation for all shareholders.
Speaker 2 (02:41):
The rollout of Crackerbell's.
Speaker 1 (02:42):
New logo did not go well, and that's the story
you know about the stock falling from a close of
fifty eight to eighty last Wednesday to fifty to fifty
four the following day, resulting in one hundred million in
market value loss, all because they didn't understand who their
customers were and they were ashamed of their own brand.
(03:03):
Now they coming has since gone into damage control and
the stock rebounded to approximately fifty seven seventy by Tuesday,
only because the markets were realizing they were going to
stop this insane idea, which brings us to what you
know and where we are now. But first I want
to talk to you about my friends over at Patriot Mobile.
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a free month of service today Patriotmobile dot com slash
ferguson or nine to seven to two Patriot. You would
think that companies would learn from the fiascos and the
(05:33):
disasters of woke ideology. A great example of that is
what happened with bud Light using a transgendered person aka
a dude acting like a chick to try to promote
their brand. We all know how that ended. You would
also think that CEOs in twenty twenty five would understand
that there's quite a few Americans out there that just
(05:55):
want brands to be normal and not push in agenda,
or if they have a core audience, don't be ashamed
of them.
Speaker 2 (06:04):
And who they actually are.
Speaker 1 (06:06):
Well, you would think that CEOs of companies would understand
that insert Cracker Barrel, aiming to quote modernize under the
new CEO appointed in twenty twenty three, they decided it
was a good idea to trash an entire brand, but
not just the brand, actually trash the customers that had
(06:26):
propped up that brand for decades. They unveiled what they
described as a minimalist text only logo and upditted the
restaurant de core, dropping the iconic image of Uncle Herschel,
the overalls clad man leaning on a barrel, and removing
the quote old country store from all of their branding.
Speaker 2 (06:49):
Yes, it was a slap in the face or a middle.
Speaker 1 (06:52):
Finger, however you want to describe it to the customers
that love Cracker Barrel oil customers and branding critics, and
then slam the changes, accusing the chain of abandoning not
only it's nostalgic but also it's Southern Country identity. The
company's stock tumbled by more than ten percent, in fact,
(07:15):
to seventeen percent if you look at the latest reports,
and the brand lost as much as one hundred million
dollars in its valuation. But apparently that wasn't enough for
Cracker Barrel leaders. They stuck to their plan day after
day as it continued to get out of control, and
then when they knew they had a road problem, they
(07:37):
went on Good Morning America the Cracker Barrel CEO on
the restaurant renovations that had made everyone start talking about
the brand. Here's what she had to say when was
asked about, Hey, did you guys maybe make a mistake?
Speaker 3 (07:52):
And I got to ask this question, I think I'd
probably know the answer. What if all the customers are
coming at you hard enough about the look at a
restaurant and they want to go back to the old way.
Speaker 2 (08:02):
Would you do it?
Speaker 4 (08:03):
Honestly, the feedback's been overwhelmingly positive that people like what
we're doing. I'll give you another SoundBite. I actually happened
to be in Orlando last week with all of our managers.
We bring them together and once every other year, and
the number one question that I got asked Michael was
how can I get a remodel? When can I get
a remodel? How do I get on the list? Really so,
because the feedback and the buzz is so good, not
(08:25):
only from our customers but from our team members. They
want to work in a wonderful restaurant. So we're doing
everything for our guests and our team members.
Speaker 3 (08:32):
When Julia Messino, it's wonderful to have you here, pleasure
to thank you. I answer those questions for all the
Cracker Barrey fans out there's a lot of great changes.
Speaker 1 (08:41):
Thank you so much, a lot of great changes. Is
how Good Morning America put it well? That didn't go
over well. Fast forward to Monday and finally Cracker Barrow
Admite a defeat and there woke CEO realizing she had
a very big problem on her hands. Cracker Barrel acknowledge
did it quote could have done a better job job
of sharing who we are and who will always be
(09:04):
attempting to calm the furious customer base, and had abandon
the store. Their public communications team emphasized that quote beloved
elements like Uncle herschel rocking chairs out front, the classic
decor would in fact remain in the stores. And then
there's the politics of this. Donald Trump weighed in strongly
(09:26):
saying quote Crackerbrell should go back to the old logo
and made a mistake and manage the company better than
ever before. Hours later, the White House, via the pres
Secretary Caroline Levitt, praise Crackerbrell's decision to revert, stating that
Trump has unmatched business instincts and that the brand made
(09:47):
a great decision to trust the president of the United
States of America. By Tuesday evening, Cracker Barrel had changed
her tune even more.
Speaker 2 (09:57):
They announced it.
Speaker 1 (09:58):
Would scrap the new go entirely and revert to the
original old Timer design with Uncle Herschel and the old
country store naming back. The company described the change as
listening quote to its customers and reaffirming the importance of tradition, hospitality,
and comfort. Now Donald Trump's vocal criticism and the public
(10:23):
urging made a massive difference and aligned with widespread customer
outrage as well as the financial losses, and then Cracker
Barrel had to fully admit that the rebrand was a mistake.
Not only was it a mistake because they were ashamed
of apparently their image, they were ashamed of their customer base.
(10:43):
They wanted to be new, trendy and woke. Well now,
Cracker Barrel said, after losing one hundred million in their
market cap, Okay, I guess we're just going to go
back to how things were before. Remember, nothing was actually broken.
And this is the bigger question that so many people
should be asking, especially in the advertising, marketing and the
(11:05):
business brand world, why on earth would you try to
take an iconic brand like Cracker Barrel and change into
something clearly that doesn't align with your customers. It's an
amazing brand, it's a business that people love going into.
The food is actually incredible and the President United States
of America calling them out was a brilliant move. By
(11:28):
the way, he was also protecting so many of the
people that work there and people that invested in the business.
Speaker 2 (11:36):
Job.
Speaker 1 (11:36):
Well done to the President of the United States of
America for doing this, and it'll be very interesting to see
how long the leadership at Cracker Barrel will still be
employed after this nightmare and disaster. Donald Trump promised you
that tariffs were going to work, not only so America
wouldn't be taken advantage of anymore, especially hard working Americans.
(11:59):
He also said it was going to bring jobs back
to America, and he said it was going to raise
money that was not going to be.
Speaker 2 (12:06):
A pass through to you.
Speaker 1 (12:08):
Well, now we're finding out just how successful some of
the US tariff could be. By the end of the year,
as US tariff revenue could actually top five hundred billion
dollars a year. The US Treasury Secretary Scottvissent said today
the customs duty revenues from President Donald Trump's tariffs may
(12:28):
surpass five hundred billion a year, with a substantial jump
from July to August, and likely a bigger jump in September,
October and November with Christmas coming into the US Estimates
of a three hundred billion annual tariff collection rate was
too low, he said, quote, we had a substantial jump
from July to August, and I think we're going to
(12:50):
see a bigger jump from August to September. So I
think we could be on our way well over half
a trillion, maybe towards a trillion dollar n this administration.
Your administration has made a meaningful dent in the budget deficit.
Now tariff revenue would offset the deficit. Increase is triggered
by the Republican Tax cut and Spending bill passed this.
Speaker 2 (13:13):
Year as well.
Speaker 1 (13:14):
The Congressional Budget Office estimated that the bill would widen
the deficit by three point four trillion over the next
ten years. Well, Trump's tariffs drove July US customs duty
collections up by nearly twenty one billion from the seven
billion collected in July of twenty twenty four. And even
with that, you had a twenty billion dollar increase that
(13:36):
was registered in June. Now, this is a significant increase
in tariff rates for nearly all trading partners, and that
kicked in on August the seventh.
Speaker 2 (13:46):
What does that mean? Even more money?
Speaker 1 (13:49):
The US Treasury reported on Monday that is of August
the twenty second, the government had collected twenty nine point
six billion dollars twenty nine point six billion in combined
customs and excise taxes so far during August, matching its
total for the whole month of July.
Speaker 2 (14:09):
And yes, there are still quite a few days left
in the month. Now.
Speaker 1 (14:13):
As of July twenty second, that combined figure stood at
seven point eight billion, but customs duty collections can vary
from day today now. The Treasury Secretary Pisent also noted
that the Congressional Budget Offices upwardly revised estimates last week
a federal revenue from Trump's tariffs, forecasting that it could
(14:35):
quote reduce federal deficits by four trillion dollars over the
next ten years, saying, quote, and I would expect that
that number could go up from here. Now the latest
Congressional Budget Office estimate marks an increase from June when
it was forecast that revenue from new tariffs would reduce
(14:57):
deficits by three trillion over the next ten years. Well,
now that may jump to four trillion dollars. So the
President United States of America not only making sure that
we're protecting jobs, but also when it comes to our
national security issues. Scott Pissent went on the Ingram angle
talking about the risk to our economy and how dependent
(15:18):
we've been on foreign industry.
Speaker 2 (15:21):
China included.
Speaker 1 (15:22):
Here's part of what he had to say about bringing
industries back to our country and getting the mirror as
quickly as we can.
Speaker 5 (15:29):
Rare earth in the magnets, obviously, those are the critical
things we need from China. How difficult a situation are
we in without an industrial policy that almost makes it
an emergency for us to be independent of our strongest
adversary when it comes to those critical things rare earth
and magnets.
Speaker 6 (15:49):
Oh well, or it's rare ear, it's magnets, but it's
so many other things. It's the single biggest point of
failure for the US economy and for the Western economies.
Ninety nine percent of high value chips are made on
the island of Taiwan. So we're trying to bring semiconductor
manufacturing back to the US. We're trying to bring steel
production back to the US. We're bringing pharma back to
(16:12):
the US under President Trump's leadership. There's a group of
us in the Cabinet in the White House who believe
if we have not de risked the US economy and
brought these industries back on shore, when we walk out
the door in January twenty twenty nine, we will have failed.
And we are not going to fail.
Speaker 5 (16:31):
And your message to Congress tonight, because without Congress really
taking action and spending real money for our own industrial policy,
this is going to be more difficult.
Speaker 6 (16:39):
We've got to do this. The only good thing about
COVID was it was a beta test. We could see
there are plenty of unreliable suppliers. I mean, think about this.
Eighty ninety percent of the precursor pharma products that we
get for very basic medicines, you know, the antibiotics for
children come from China or India. So we have to
(17:01):
bring a big amount of that home.
Speaker 1 (17:03):
You just heard it there. We've got to bring it
back home. We stress test this because of COVID. This
actually maybe one of the only good things that came
out of COVID was realizing just how risk we are
as a country, including on the issue of pharmaceuticals.
Speaker 2 (17:19):
And so the present is not backing down on this.
That is very clear.
Speaker 1 (17:24):
Now, that wasn't the only question that Scott was asked,
by the way about China. In fact, he was asked
a very tough question about China, and why is it
that China hasn't actually had to deal with secondary tariffs
for buying Russian oil. I want you to hear what
the administration and the Treasury Secretary had to say about that.
Speaker 5 (17:42):
You know better than anyone that the Russian economy really
isn't strong enough or big enough to carry on a
sustained war and not certainly not indefinitely couldn't do it
without the help of India buying mostly oil, could not
do it without the help of China, which is providing
the bulk of the support to Russia. Now India has
gotten hitten with hit with secondary tariffs. I was I
(18:04):
think it's very positive, put them back on their heels
a bit. But China really is the big contributor to
Russia's current economic stability. Given that, why haven't we put
significant secondary tariffs on China for what they're doing to
help Russia.
Speaker 6 (18:21):
Well, a couple of things there were. One, China had
always been buying Russian oil, So in twenty twenty two,
thirteen percent of their oil came from China and now
it's sixteen and they want to diversified oil supply. India,
on the other hand, got about one percent of their
oil from China in twenty two. Now it's up to
(18:41):
thirty seven percent. So they're doing what I call the
Indian arbitrage. They're buying cheap Russian oil, selling petrochemicals back out.
Much of that is going to the richest families in India.
We already have very high tariffs on China, and now
India is going to see what it feels like.
Speaker 5 (19:00):
Kind of buys an enormous amount of agg from Russia
as well. And they are the biggest supporter of Russia.
Without Without China, Russia couldn't be in this war.
Speaker 2 (19:07):
Do you not agree?
Speaker 6 (19:08):
I agree. They've fifteen billion minimum in dual use technologies
and other support that I'm sure we don't know about.
Speaker 1 (19:17):
What This is truly incredible. And so I think there's
two things here. If you listen to what he had
to say, he said, Number one, China has always been
buying Russian oil. So in twenty twenty two, thirteen percent
of their oil came from China and now it's sixteen.
And they also said want to diversified oil supply. Now India,
he says, on the other hand, got one percent they're
(19:39):
oil from China in twenty twenty two.
Speaker 2 (19:41):
That is now up to thirty seven percent.
Speaker 1 (19:44):
So this is another example of the present dealing with
policy issues that the last administration refused to.
Speaker 2 (19:52):
Even think about looking at.
Speaker 1 (19:54):
In the prior administration, it was obvious that they would
just look other way, no matter what, they would look
the other way and let this happen. And this administration saying, no,
we're not gonna do that. No, we are not going
to sit here and act like this isn't happening. We're
not going to allow these countries to continue to act
(20:17):
this way. That is the part about this that I
think is so vitally important is that this is happening
right now by a president that is not afraid to
make those tough decisions. One other thing that I just
want to point out on this and is the point that,
by the way, has been made by several others, is
(20:39):
that while we are getting the rest of the world
in check, the US debt is getting paid down by
all of these tariffs.
Speaker 2 (20:49):
So we're bringing jobs back to America.
Speaker 1 (20:53):
We are then holding these bad actors accountable for what
they've been doing, and we're getting money out of them
for the reasons that we just described. You put all
of that together, it is unbelievable. I mean, it is
truly unbelievable what is happening right now. And there's so
(21:17):
many Americans that should be thankful for the president. The
President Trump, by the way, also threatening tariffs and response
to digital taxes and regulations as well. This is a
new frontier for US. But President Donald Trump said this,
he said, look, I've already made tariffs a key component
of my president of playbook. Now he's threatened to attack
(21:37):
significant extra tariffs on exports to America from countries with
what he describes as digital taxes and regulations. Quote as
the presidents it's America. I will stand up to countries
that attack are incredible American tech companies, Digital taxes, digital
services legislation, and digital market market regulations are all designed
(22:02):
to harm or discriminate against American technology. They also outrageously
give a complete pass to China's largest tech companies.
Speaker 2 (22:11):
This must end and end now.
Speaker 1 (22:14):
In addition to the threat of tariffs against offenders, he
also threatened to impose restrictions on the export of US
technology as well.
Speaker 2 (22:22):
And he said, We're not doing this anymore.
Speaker 1 (22:25):
We are going to put America first, America technology companies first,
and we're not going to allow China to be able
to get away with this, and we're going to hold
any other country accountable. This is incredible, truly incredible for
everyone involved. Nearly two dozen Republican state attorney generals have
(22:46):
sent a letter to the EPA chief Lee Zelden, calling
on him to cancel funding to a left wing environmental
group accused of training and lobbying judges on climate policy.
Fox News Digital has exclusively revealed this quote as Attorney General,
I refuse to stand by while American tax dollars fund
(23:10):
radical environmental training for judges across the country. Is with
the Montana Attorney General told Fox News Digital of his
push to encourage the EPA to end its funding of
the Climate Judiciary Project quote the Environmental Law Institutes. Climate
Judiciary Project is using woke climate propaganda under the guise
(23:33):
of what they call neutral quote unquote education to persuade
judges and push their wildly unpopular agenda through the court system.
He went on to say, I commend President Trump's efforts
to cut waste and abuse during the first eight months
of his presidency, and I am optimistic that his administration
(23:55):
will do the right thing and halt all funding to
el Now. He spearheaded this ag the letter that was
sent to Zelden, which included the signatures of twenty two
other Republican state attorney generals, all of them calling for
the EPA to acts their funding to the left wing
(24:17):
environmental nonprofit. Now they lie and they say that this
thing is like neutral.
Speaker 2 (24:22):
It's not.
Speaker 1 (24:23):
It is called the Environmental Law Institute. They claim they
oversee the neutral importance of climate law. In reality, they
oversee the Climate Judiciary Project known as the CJP.
Speaker 2 (24:39):
Now.
Speaker 1 (24:40):
The Environmental Law Institute was founded by the Climate Judiciary
Project in twenty eighteen, which pitches itself as a quote
first of its kind effort that provides judges nationwide with authoritative, objective,
and trusted education on climate science, impacts of climate change,
(25:02):
and the ways climate science is arising into the law.
The group has actually been accused of trying to manipulate
judges to make them more understanding or advocates or exciting
to left wing climate litigation. The letters sent Tuesday called
on the EPA to specifically end any and all grants
(25:26):
and awards that are endowed to this group, saying this,
we write to bring attention to the grants made by
the EPA to the Environmental Law Institute. The letter reads,
according to its twenty twenty four financial statements, ELI received
approximately thirteen percent of its overall revenue in twenty twenty
(25:46):
three and eight point four percent in twenty twenty four
from EPA awards. The group also apparently still expected to
receive funds from the federal government. Its financial statement warned
that the collect the ability of federal grant funds is
subject to significant uncertainty related to collaboration and continual funding
(26:10):
due to the Federal grant funding freeze or other federal
actions quote unquote. In other words, they knew Trump was
in office, and there's a chance these funds could go
away if they found out what they were actually doing
with the money. Now, the Environmental Law Institute actually received
six hundred and thirty seven thousand change from the EPA
(26:31):
in twenty twenty four, to be clear, that's your tax dollars,
and then eight hundred and sixty six thousand in twenty
twenty three from the EPA, again your tax dollars. That
according to the nonprofit tax documents that have been published, quote,
the Climate Judiciary's Project mission is clear lobby judges in
(26:54):
order to make climate change policy through the court systems.
The twenty three state Attorney Generals said this clearly in
the letter, saying quote an alumni magazine profile said the
quiet part out loud, writing that the Climate Judiciary Project
co founder was explaining the science of climate change to
a group of people with real power to act on it, judges.
(27:19):
The Climate Judiciary Projects tampering raises serious legal and also
ethical questions. The Environmental Law Institute, in a recent comment
to Fox Digital about this story, maintains that its only
purpose is educational programs that they are in accordance with
these standards established by the National Judicial Education Institution. Climate
(27:43):
Judiciary Projects educational events are done quote in partnership with
leading national judicial education institutions. State judicial authorities. Also, they
claim in accordance with their accepted standards. That's what the
spokesperson said. Well, the reality is these are radical lefties
and the call for the EPA to slash any funds
(28:05):
to the Environmental Law Institute is long overdue. It was
clearly established, and it was established for one purpose, to
get in front of judges and make judges go hard
on anyone they believe is not you know, woke, is
not saying that global warming is a fact, that is
doing anything that global warming advocates or the anarchists say
(28:28):
is somehow evil or hurting the earth. That's why they're
lobbying these judges. The state attorney generals quote are right
to call for the elimination of taxpayer funding for the
Environmental Law Institute and its Climate Judiciary project. That is
what Jason Eiscott, the CEO of American Energy Institute said, saying, quote,
(28:49):
this is a coordinated campaign by the left to advance
the Green New Deal, and this time they want to
do it through the judiciary, using so called climate litigation
in the courts. Its curriculum is clear. It was developed
by climate alarmists and their allies of the plaintiffs and
delivered two judges behind closed doors. Public funds should never
(29:14):
be used to finance political advocacy disguised as judicial education.
Now you also look at the executive director of the
Alliance for Consumers, that's a nonprofit focus on advocating on
behalf of American consumers.
Speaker 2 (29:29):
What do they say about this quote?
Speaker 1 (29:31):
As we have long warned, the left has a plan
to reshape American society by using lawsuits in the courts
all across the country, especially in places like Hawaii and
other coastal enclaves. The new wave of revelations about ELI
is further concerning evidence of how committed they say the
(29:53):
left is to imposing mandatory progressive lifestyle choices through the
court room and are maneuvering to see how big they
can do it and how big of a threat they
can actually be to every one of our way of lives, which,
by the way, is where we should just pause. And
if you think what I'm saying is maybe crazy, let's
(30:13):
just go back a few months ago when there was
a guy named Joe Biden who was in theory the president.
What do they try to do. Do you remember when
they started trying to ban gas stoves? Yes, that was
the left, And how do they start that idea the
exact way that we're talking about this right now. They
want to take away your rights acide what you want
(30:36):
to do. They want to take away your rights to
side what type of car you can drive. They want
to make sure that you don't have the option that
they tell you what the value set is and then
you must abide by it, and if you don't, they'll
literally arrest you or find you. And this Tuesday letter
specifically argued that quote, state consumer protection laws prohibit deceptive
(31:00):
and misleading statements to market a product. They then say
Elia is representing its training as objective when reality shows
that it's not. And the state attorney general is all
twenty two of them are responsible to say, say for
protecting consumers, and we are concerned by this activist group's statements.
(31:22):
Now here's the big point that you need to know.
The EPA has taken a hatchet to millions and millions
of dollars doled out under the Biden administration to left
winging radical groups and other programs deemed a waste of
taxpayer funds. Lee Zelden also making it clear that he
is going to look at this problem and see what
(31:43):
he can do about it. The EPA under the Trump
administration has already canceled more than twenty billion grants under
the Inflation Reduction Act, which has led to ongoing court
battles the same courts right now that liberals are trying
to indoctrinate. And that's exactly why the United States of
America picked lee Zelden. And while there's a very good
(32:03):
chance what we just talked about is going to become
even more of a reality moving forward, don't forget Share
this podcast please with your family and your friends wherever
they are, and I will see you back here tomorrow.
Host
Ben Ferguson
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If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
New Heights with Jason & Travis Kelce
Football’s funniest family duo — Jason Kelce of the Philadelphia Eagles and Travis Kelce of the Kansas City Chiefs — team up to provide next-level access to life in the league as it unfolds. The two brothers and Super Bowl champions drop weekly insights about the weekly slate of games and share their INSIDE perspectives on trending NFL news and sports headlines. They also endlessly rag on each other as brothers do, chat the latest in pop culture and welcome some very popular and well-known friends to chat with them. Check out new episodes every Wednesday. Follow New Heights on the Wondery App, YouTube or wherever you get your podcasts. You can listen to new episodes early and ad-free, and get exclusive content on Wondery+. Join Wondery+ in the Wondery App, Apple Podcasts or Spotify. And join our new membership for a unique fan experience by going to the New Heights YouTube channel now!
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.