Consumers Know What is Right and What They Want: The Role of Legacy DEI Programs in the Food Industry

 

Consumers have long demonstrated that they know what is right and what they want when it comes to corporate policies, including Diversity, Equity, and Inclusion (DEI) according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. The recent consumer-driven responses to major retailers’ handling of DEI initiatives—such as Costco’s increase in web traffic after reaffirming its DEI stance and Target’s decline following a rollback—prove that DEI is not just a corporate checkbox, but a business imperative. The food industry is no exception, as history has shown that consumer sentiment can shape the success or failure of companies. Here are seven key things that consumers care about when it comes to DEI programs, each illustrated by a historical food industry example.

1. Commitment to Inclusive Branding Matters

Consumers reject brands that reinforce outdated or offensive stereotypes. A prime example is Sambo’s, a once-thriving restaurant chain that faced national backlash due to its racially insensitive name and imagery. By the 1980s, growing public awareness and consumer pressure led to the company rebranding and eventually closing many locations. This illustrates that businesses ignoring inclusive branding put themselves at risk of consumer-driven decline.

2. Supplier Diversity Impacts Purchasing Decisions

Shoppers want to support businesses that invest in a diverse supplier base. Costco, which recently reaffirmed its DEI initiatives, has seen success by partnering with minority- and women-owned food vendors. Target, on the other hand, saw negative consumer response after eliminating its supplier diversity team, reinforcing that consumers value businesses that promote equity in their supply chains.

3. Equitable Workplace Practices Drive Consumer Loyalty

Consumers appreciate companies that treat their employees equitably. A historical example is McDonald’s, which, after facing criticism in the 1960s for racial discrimination in franchising, actively worked to include more Black franchise owners. The move not only addressed systemic issues but also won over a more diverse customer base, proving that equitable business practices lead to long-term loyalty.

4. Companies That Reverse DEI Commitments Face Consumer Backlash

Much like Target and Walmart’s recent DEI pullbacks resulted in boycotts and declining web traffic, the food industry has seen similar reactions. In 2020, Goya Foods faced consumer pushback after its CEO publicly opposed social justice movements, leading to widespread boycotts. Companies must recognize that withdrawing from DEI commitments can have real economic consequences.

5. Authentic Representation in Advertising Matters

Consumers respond positively to brands that reflect diverse audiences. Coca-Cola’s famous 1971 "I'd Like to Buy the World a Coke" campaign was groundbreaking in its portrayal of racial and ethnic diversity, solidifying its reputation as an inclusive brand. More recently, brands like Ben & Jerry’s have thrived by integrating social justice messaging into their marketing. Authentic representation is key to sustaining consumer trust.

6. Retail and Food Industry DEI Leadership Translates to Sales

Brands that take a leadership role in DEI often gain market share. PepsiCo’s $400 million commitment to racial equity, including investing in Black-owned restaurants and businesses, has reinforced consumer confidence. In contrast, Walmart’s decision to defund the Center for Racial Equity was met with skepticism, mirroring the declines in web traffic seen during the Feb. 28 consumer boycott. Leadership in DEI translates directly to consumer preference.

7. Consumers Want Actions, Not Just Words

Empty corporate statements are no longer enough; consumers demand tangible action. Starbucks learned this firsthand when it faced criticism in 2018 over racial bias incidents in its stores. In response, the company implemented nationwide racial bias training, which helped rebuild consumer trust. The lesson is clear: proactive DEI measures resonate more than reactive damage control.

Think About This

The food industry has long been a reflection of broader societal values, and consumer-driven demands for DEI are shaping corporate strategies. As demonstrated by historical examples and recent consumer actions against companies like Target and Walmart, businesses that fail to prioritize DEI initiatives risk losing public trust—and revenue. On the other hand, brands like Costco and PepsiCo that stand firm on their commitments benefit from consumer loyalty. The message from consumers is clear: they know what is right, and they want companies to act accordingly.

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With deep experience in restaurant operations, brand positioning, and strategic consulting, Steven provides valuable takeaways that inspire and drive results.

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