The Power of Women in Restaurant & Bar Ownership: An In-Depth Look
The restaurant and bar industry has long been a cornerstone of the hospitality sector, and women are increasingly at the forefront of this dynamic space. In the U.S., 47% of restaurant firms are at least 50% owned by women, a significant figure in an industry known for its fast-paced and often male-dominated nature. These women-led establishments are driving change and innovation while playing a critical role in the overall success and evolution of the hospitality industry.
Ownership Trends and Economic Impact
Women-owned restaurants and bars are part of a broader trend where women own over 12 million businesses in the U.S., contributing a staggering $1.8 trillion in revenue annually across various sectors. This includes a significant slice of the hospitality pie, which is growing faster than many other industries. Between 2018 and 2023, the number of women-owned businesses grew by 22%, far outpacing the overall business growth rate of 9%. A large portion of this growth is attributed to the rising number of women of color entering the business world, who now own 50% of all women-owned businesses, with Black women experiencing the highest growth rate at 50%.
The growing presence of women in restaurant and bar ownership signifies a broader shift toward inclusivity and diversity in the industry. Restaurants and bars are not just businesses; they’re cultural hubs and community centers where food and drink bring people together. Women-led establishments are increasingly emphasizing customer experience, innovative cuisine, and creating welcoming spaces for all demographics.
Employment and Workforce Representation in Restaurants & Bars
While women are stepping into ownership roles, their contributions to the workforce remain just as vital. Women make up 70% of the hospitality workforce, especially in entry-level and customer-facing roles such as servers, bartenders, and hosts. These positions often serve as entry points into the industry, with many women advancing into management over time. However, wage disparities persist. Women in full-time management roles earn just 77 cents for every dollar earned by men, highlighting a significant pay gap.
Despite making up a large portion of the workforce, women are underrepresented in leadership positions. 38% of executives in the restaurant industry are women, and the glass ceiling becomes more apparent in upper management and executive role. This lack of representation highlights the need for more targeted initiatives that support career advancement for women in hospitality.
Challenges and Barriers to Advancement
Gender disparity in wages and leadership positions remains one of the biggest challenges for women in the restaurant and bar industry. Women often occupy roles that are lower paid, seasonal, or less secure, which contributes to both the wage gap and high turnover rates in the industry. These barriers not only limit women’s earning potential but also hinder their career progression, leaving fewer opportunities for advancement into senior leadership roles.
However, progress is being made. Companies such as Chipotle and Yum Brands are actively working to close the gender pay gap and promote women into higher positions. McDonald’s, for example, has set ambitious targets for promoting women into global leadership roles, and as of 2024, 41% of their global leadership positions are held by women.
Initiatives for Improvement in the Restaurant & Bar Sector
The drive to promote gender equity in the restaurant and bar sector is backed by several initiatives. One such effort is from Yum Brands, which aims to add at least 100 women franchisees by 2026. Programs like these provide women with access to capital, mentorship, and resources necessary for scaling their businesses. Similarly, Shake Shack has launched leadership training initiatives to support the career progression of women within the company.
These programs play a crucial role in helping women break through the barriers to higher-level management and ownership roles. In addition, industry-wide organizations such as the James Beard Foundation’s Women’s Leadership Program provide invaluable support, offering coaching, networking opportunities, and business resources for women in hospitality.
What This Means for Consumers
Consumers have a direct impact on the success of women-owned businesses by choosing to dine at establishments owned and operated by women. Supporting female-led businesses contributes to economic growth and helps empower more women to enter and thrive in the restaurant and bar industry. Beyond financial support, consumers can also advocate for wage equity and promote policies that ensure women have equal opportunities in leadership.
The Battle of the Babes Cocktail Competition
One fantastic way to support women in the hospitality industry is by attending or partnering with HoCo’s 5th Annual Battle of the Babes Cocktail Competition. This exciting event celebrates women bartenders, mixologists, and entrepreneurs by giving them a platform to showcase their skills in front of industry leaders and the public. Not only does the competition spotlight the talents of women in the cocktail space, but it also raises awareness about the importance of supporting women in hospitality.
Book Your Early Bird Tickets
To show your support, you can book tickets to this year's event, which will take place at Merchant + Trade in Uptown Charlotte. Whether you're a business looking to partner or a cocktail enthusiast, you won’t want to miss this opportunity to be part of a vibrant community of women leaders. Join us in empowering female entrepreneurs and creating lasting change in the industry.
