2025 Compensation Trends in Public Restaurant Companies: A Strategic Look at C-Suite vs. VP-Level Pay
In 2025, compensation structures across public restaurant companies are evolving in response to macroeconomic pressures, shifting consumer behavior, and the accelerated adoption of digital and operational technologies. Executive compensation, particularly at the C-level versus Vice President tiers, reflects these dynamics as companies aim to align leadership incentives with long-term strategic goals, while retaining top talent in a competitive market.
Macro Drivers of Compensation Shifts
The restaurant industry in 2025 faces a landscape defined by:
Sticky inflation and rising labor costs.
Heightened investor scrutiny on profitability and margin expansion.
Acceleration of AI and automation in front- and back-of-house operations.
Increased M&A activity, especially among fast-casual and QSR chains.
Evolving consumer expectations for digital, sustainable, and personalized experiences.
These forces have led boards and compensation committees to re-evaluate how they incentivize and reward leadership. There is a noticeable divergence in how public restaurant companies approach compensation for their C-suite versus VP-level executives.
C-Level Compensation Trends: Long-Term Alignment and Shareholder Value Focus
Base Pay:
C-level executives, especially CEOs and CFOs, have seen modest increases in base salary (typically 2-5% YoY), reflecting broader market inflation but staying within shareholder-acceptable norms.
Equity and Long-Term Incentives (LTIs):
The most significant growth in compensation is in performance-based equity awards. In 2025:
70%+ of total C-suite compensation in public restaurant companies is tied to stock performance and Total Shareholder Return.
Metrics increasingly include digital revenue growth and unit-level margin expansion.
Annual Bonuses:
Annual cash bonuses remain tied to a mix of EBITDA, comp sales, and guest satisfaction scores. However, bonuses are being weighted more heavily on multi-year goals, reducing volatility and short-termism.
VP-Level Compensation: Competitive, but More Cash-Oriented and Operationally Tied
VP-level roles are critical drivers of execution. Compensation trends at this level show a tilt toward retention and operational alignment.
Base Pay and Cash Bonuses:
VP base salaries rose more sharply in 2025 (4–7%), particularly for roles tied to digital transformation and supply chain management.
Bonuses are still predominantly cash-based, with 60–80% tied to annual EBITDA, comp sales, and department-specific KPIs (e.g., app conversion rates for Marketing VPs or turnover rates for HR VPs).
Equity Participation:
VP-level equity grants have increased modestly but are still significantly smaller (often 10–20% of what C-levels receive).
Smaller cap and high-growth restaurant chains are using phantom equity or Restricted Stock Units with shorter vesting periods as retention tools.
Strategic Implications and Emerging Practices
More Differentiation Based on Role Impact:
Companies are no longer applying blanket comp philosophies across all VPs. VPs in tech, labor strategy, or supply chain often receive differentiated packages based on measurable ROI impact.
Use of Retention Bonuses and Deferred Incentives:
Retention bonuses, especially at the VP level, have become more common in high-turnover roles. Deferred cash or RSU bonuses payable after 2–3 years are used to maintain continuity during strategic transformations.
Emphasis on Internal Equity and Pay Transparency:
Investor and employee pressure is forcing boards to narrow the gap between top earners and broader leadership. In response, public restaurant brands are increasingly disclosing pay ratio metrics and rationalizing top-heavy incentive structures.
Toward a More Balanced and Strategic Compensation Era
In 2025, public restaurant companies are leveraging compensation as a strategic lever not just a retention mechanism. The C-suite is being challenged to deliver shareholder-aligned long-term value, while VP-level leaders are being rewarded for tactical excellence and department-level innovation. With cost pressures and growth expectations continuing to collide, compensation programs that align executive incentives with sustainable growth will define the next generation of high-pe
