First Watch Restaurant Group

First Watch Restaurant Group operates a chain of over 500 breakfast and brunch restaurants across the United States. Its menu relies heavily on animal products, including eggs, bacon, sausage, and dairy, which are sourced from industrial agricultural systems that employ intensive confinement practices. In February 2024, a shareholder proposal filed by Cruelty Free Investors specifically demanded the company address animal cruelty and food safety risks in its supply chain, citing the use of gestation crates for pigs and battery cages for egg-laying hens. These confinement systems are banned or restricted in 11 U.S. states and most developed economies due to animal welfare concerns.

The shareholder proposal argues that these practices, which First Watch has characterized as “standard industry practice,” present material financial risks related to brand reputation, regulatory compliance, and shifting consumer expectations. The company’s public disclosures and corporate governance materials reviewed for this assessment do not articulate a comprehensive animal welfare policy or supply chain standards that would mitigate these risks. As a publicly traded company deriving significant revenue from animal-derived ingredients, First Watch’s operations are intrinsically linked to commercial systems of animal exploitation.