Report on Gender Equality and Corporate Leadership in the Restaurant Industry

An Analysis in the Context of Sustainable Development Goals

The restaurant industry is at a critical juncture regarding its commitment to Sustainable Development Goal 5 (Gender Equality) and Sustainable Development Goal 10 (Reduced Inequalities). While internal efforts to promote female leadership are underway, they face significant external pressure from anti-DEI (Diversity, Equity, and Inclusion) movements, which threaten to undermine progress toward creating decent work for all (SDG 8) and fostering strong, inclusive institutions (SDG 16).

Current State of Female Leadership and Alignment with SDG 5

Statistical Overview of Gender Representation

Analysis of the Technomic Top 500 Restaurant Chains reveals a significant disparity in leadership roles, indicating a substantial gap in achieving SDG 5, Target 5.5, which calls for women’s full and effective participation and equal opportunities for leadership.

• Restaurant Industry CEOs: Women hold only 7% (35 out of 500) of CEO positions in the largest U.S. restaurant chains.
• Fortune 500 Comparison: This figure is lower than the representation in Fortune 500 companies, where women led approximately 10% of companies in 2023.
• Broader C-Suite Progress: Across all industries, women now hold 29% of C-suite positions, a notable increase from 17% in 2015, yet progress at entry and manager levels remains slow.

Despite the low overall percentage, some industry experts view the 7% figure as an encouraging outcome of two decades of advocacy, noting that many of these female leaders are relatively young.

Systemic Barriers to Gender Equality and Decent Work (SDG 5 & SDG 8)

The “Broken Rung” Phenomenon

A primary obstacle to achieving gender parity in leadership is the “broken rung” on the corporate ladder. This systemic issue directly impedes progress on SDG 5 and SDG 10 by creating unequal opportunities from the outset of a career.

1. Entry-Level Disparity: Women, particularly women of color, are less likely to be hired into entry-level roles than men, leaving them underrepresented from the start.
2. Managerial Promotion Gap: This initial disparity leads to fewer women being promoted into management, which is a critical step for advancement to senior leadership.
3. Fragile Progress: While gains have been made at the senior level, progress remains fragile. McKinsey & Company projects that at the current pace, achieving leadership parity that reflects the U.S. population will take nearly 50 years.

Challenges to Inclusive Institutions (SDG 10 & SDG 16)

The Impact of Anti-DEI Pressure

Corporate initiatives designed to advance SDG 10 (Reduced Inequalities) are facing legal and social challenges that create a “chilling effect” on public discourse and corporate policy. This directly challenges the development of the inclusive and strong institutions envisioned in SDG 16.

• Legal Challenges: Groups such as America First Legal are targeting companies like Cracker Barrel, alleging that DEI policies violate civil rights laws. These actions seek to dismantle frameworks that support diversity and inclusion.
• A Chilling Effect: The threat of legal action and public backlash has made publicly traded companies cautious about their DEI commitments. This has led to a reduction in public discourse and a scaling back of some programs designed to advance women.
• Internal vs. Public Stance: In response, many organizations are maintaining their commitment to leadership development and inclusion privately. While public statements may be muted, internal efforts to support diverse talent continue, demonstrating a quiet resolve to uphold the principles of SDG 5 and SDG 8. As Denny’s CEO Kelli Valade noted, the playbook has not changed, and the focus remains on the diversity of leaders.

Leadership Perspectives and Future Outlook

Navigating a Shifting Landscape

Female leaders in the industry acknowledge the “hyper awareness” surrounding DEI conversations but emphasize that the work continues. The focus is shifting toward practical strategies for career advancement and fostering inclusive environments despite external pressures.

Key Strategies and Observations:

• Proactive Career Management: Leaders advise aspiring women to seek opportunities outside their comfort zones and to have candid conversations about career goals and support systems before accepting C-suite roles.
• Addressing the Mobility Gap: There is a perception of a talent and upward mobility gap, where women are not being selected to backfill CEO positions as they become available.
• Shifting Evaluation Metrics: A crucial change would be to evaluate all candidates on both performance and potential, regardless of gender, to overcome inherent biases. This aligns with the core objective of SDG 10 to promote the social and economic inclusion of all.
• Fragility of Gains: The list of female CEOs is dynamic, with recent departures from companies like Smashburger and Duck Donuts highlighting how quickly gains can be reversed.

The path toward achieving gender equality in the restaurant industry’s leadership is fraught with systemic barriers and new socio-political challenges. However, a continued, albeit more private, commitment to the principles of the Sustainable Development Goals provides a foundation for future progress.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 5: Gender Equality

• The article’s central theme is the underrepresentation of women in leadership positions, specifically as CEOs in the restaurant industry. It directly addresses the goal of achieving gender equality by highlighting the disparity where “Women hold just 7% of the CEO posts at the country’s largest restaurant chains.” This focus on gender-based disparity in economic and public life is a core component of SDG 5.

SDG 8: Decent Work and Economic Growth

• The article connects to SDG 8 by discussing the barriers to full and productive employment for women. It mentions the “broken rung” in the corporate ladder, where “women are less likely to be hired into entry-level roles than men,” which hinders their career progression and access to decent work. The discussion of leadership development, work-life choices, and creating opportunities for all talent relates to ensuring productive employment for everyone.

SDG 10: Reduced Inequalities

• This goal is addressed through the article’s extensive discussion of Diversity, Equity, and Inclusion (DEI) policies. These policies are designed to reduce inequalities within companies by promoting the inclusion of underrepresented groups, including women. The article highlights the conflict between efforts to promote inclusion and the “anti-DEI forces who call such efforts discriminatory,” which directly pertains to the challenge of reducing inequalities of outcome and opportunity.

2. What specific targets under those SDGs can be identified based on the article’s content?

SDG 5: Gender Equality

• Target 5.5: “Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.” The article directly relates to this target by analyzing the low percentage of female CEOs in the restaurant industry (7%) and comparing it to other sectors like the Fortune 500 (~10%). It discusses the slow progress and challenges women face in reaching top leadership roles, which is the exact focus of this target.

SDG 8: Decent Work and Economic Growth

• Target 8.5: “By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value.” The article touches upon this target by examining the systemic barriers that prevent women from achieving full employment and advancing in their careers. The McKinsey report’s finding that women are less likely to be hired into entry-level roles or promoted to management (“the broken rung”) illustrates a failure to provide equal opportunities for productive employment from the very start of the corporate pipeline.

SDG 10: Reduced Inequalities

• Target 10.2: “By 2030, empower and promote the social, economic and political inclusion of all, irrespective of… sex…” The discussion around DEI initiatives and business resource groups (BRGs) directly aligns with this target. The article notes that companies have made “a big commitment to various BRG (business resource) groups” and remain focused on “inclusion, of opportunity” to empower their employees, which is the essence of promoting economic inclusion.
• Target 10.3: “Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory… policies and practices…” This target is relevant in the context of the legal challenges against DEI policies. The article mentions that America First Legal (AFL) has charged Cracker Barrel with violating civil rights laws, alleging its DEI policies are discriminatory. Conversely, proponents argue that “DEI is about opportunity, not discrimination,” framing these policies as a tool to ensure equal opportunity, which is the core of Target 10.3.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Indicators for SDG 5, Target 5.5

• Proportion of women in senior and middle management positions (Indicator 5.5.2): The article provides several explicit data points that serve as this indicator.
  • “Of those 500 companies, there are 35 female CEOs, or 7%.”
  • “52 of the Fortune 500 companies last year had women at the top, or more than 10%.”
  • “According to McKinsey’s 2024 report, women make up 29% of C-suite positions. That’s up from 17% in 2015.”
  • “Since 2015, female representation at the manager level has grown only 2 percentage points.”

Indicators for SDG 8, Target 8.5

• Implied Indicator – Proportion of women hired into entry-level roles: While not a formal UN indicator, the article implies this as a crucial metric for measuring progress towards full and productive employment. The McKinsey report is cited as saying, “women are less likely to be hired into entry-level roles than men, which leaves them underrepresented from the start.” This suggests that tracking hiring rates by gender at the entry-level is a key measure of opportunity.
• Implied Indicator – Rate of promotion from entry-level to management by gender: The concept of the “broken rung” in the corporate ladder, where women are less likely to be promoted into management, implies that tracking promotion rates is a necessary indicator to assess if decent work and career progression opportunities are available to all.

Indicators for SDG 10, Targets 10.2 & 10.3

• Implied Indicator – Adoption and implementation of DEI policies: The article does not provide a number but discusses the existence, nature, and challenges to DEI policies as a measure of a company’s commitment to inclusion and equal opportunity. The text notes that some companies have “scaled back programs designed to advance women” while others, like Denny’s, insist their “focus is exactly where it has been” on diversity. The presence and strength of these policies serve as a qualitative indicator of progress.

4. Table of SDGs, Targets, and Indicators

Source: restaurantbusinessonline.com