Cheesecake Factory Incorporated : Corporate Social Responsibility Report

Corporate Social

Responsibility Report

2023

Table of Contents

00 Introduction

1 Letter from Our President

0 1 Caring for Our Staff

1. Access to Healthcare
2. HELP Fund
3. Learning and Development

1. Staff Retention and Tenure

02 Caring for Our

Communities

1. The Cheesecake Factory Oscar & Evelyn Overton Charitable Foundation
2. Gift Card Donation Program

1. Feeding America®

1. Project Ropa

1. Nourish Program

03 Diversity, Equity,

Inclusion & Belonging

1. Creating Opportunity for All

1. Providing Education

1. Fostering Our Inclusive Culture

1. Telling Our Story

04 Sourcing

1. Social
2. Animal Welfare

1. Environment

1. Training, Auditing & Governance

1. Food Quality & Safety

34 Extensive and Innovative Menu, Made Fresh from Scratch

05 Environment

1. Climate

1. Energy
2. Water & Waste

1. Packaging

06 Appendices

1. Environmental, Social & Governance Oversight & Management
2. Environmental, Social & Governance Methodology
3. Environmental Data Summary
4. Sustainable Sourcing Update

60 Sustainable Accounting Standards Board (SASB) Table

1. Global Reporting Initiative (GRI) Index

1. Forward Looking Statements

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Introduction

Caring For Our Staff

Caring For Our Communities

DEI & Belonging

Sourcing

Environment

Appendices

Letter from Our President

to increase, consistent innovation and evolution is needed to maintain the same level of absolute guest satisfaction we established when opening in 1978.

Absolute guest satisfaction starts with the meticulous selection of ingredients to create the intricate flavors that are in each dish on our diverse menu. Our teams craft each menu item with precision and care, blending culinary elements to create a symphony of taste that delights the palate and nourishes the soul. Balance permeates every facet of our operation, from our commitment to sustainability and ethical sourcing practices to our dedication to fostering a diverse, vibrant community. We recognize that true balance encompasses not only the harmony between flavors but also the delicate interplay among financial performance, social responsibility, environmental stewardship, and meaningful contribution to our communities.

David M. Gordon

PRESIDENT  

As a company, The Cheesecake Factory has always strived to create an atmosphere and dining experience that resonates with both our guests and our staff and managers. Throughout our 45+ year history, we've seen many trends come into fashion and leave almost as quickly. As the pace of the world has continued

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As a company, we are not able to deliver on our promise of absolute guest satisfaction without our talented staff and managers making each guest's experience a priority. To provide this same level of caring for our team members, we foster a supportive environment that encourages a healthy balance. We are proud of the extensive employee wellness programs we offer - from complimentary mental health visits to financial literacy courses. We uphold a culture of mutual respect and evolving leadership, from providing our leaders with thoughtful and challenging workshops as part of our Leading our Evolving Workforce program and fostering inclusivity with focused trainings on creating environments of psychological safety. We strive to empower our staff to excel both in their careers and in their personal pursuits. We understand that unforeseen financial burdens can arise, impacting the well-being of our employees. That's why we've maintained our robust employee assistance program, the HELP Fund, which provides support during times of financial hardship.

Introduction

Whether through employee assistance funds, access to financial counseling services, or flexible leave policies, we strive to ensure that our team members feel supported and empowered to navigate life's challenges with resilience and dignity. We believe that by nurturing this equilibrium, our team members can bring their best selves to the table and kitchen, enriching the dining experience for our valued guests. By nurturing a culture of generosity and compassion, we not only seek to enrich the lives of our employees but also strengthen the fabric of our community.

We also believe in the power of giving back to our community and supporting those in need. We encourage our team members to volunteer their time and expertise to causes they are passionate about, fostering a culture of compassion and social responsibility. Maximizing our positive impact in our communities continues to be a priority for each of our restaurants. One way we achieve this is by donating excess food to local shelters and food banks, helping provide nourishing meals to those in need.

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Additionally, we promote sustainability in our operations by implementing initiatives to reduce our greenhouse gas (GHG) emissions - with the goal of being net-zero by 2050. As our business continues to grow, we are focused on working even harder to reduce our emissions and are encouraged by our

6% absolute reduction in GHG emissions over the last year. Our commitment to work with third-party organizations like the Science Based Targets initiative (SBTi) helps ensure accountability that our businesses can balance strong growth while pursuing reductions to environmental impacts.

Yet it's important to understand that balance doesn't always mean a perfect 50/50 split across all aspects of life or business. Instead, it's about recognizing and managing what needs the most attention at any given moment, while still keeping an eye on the longer-term goal of maximizing financial value. At The Cheesecake Factory, we embrace this dynamic approach to balance, understanding that different situations may require varying degrees of focus

on different priorities. Whether it's dedicating extra time and resources to perfecting a new dish, supporting our team members during busy periods, or implementing sustainability initiatives to reduce our environmental impact, we remain agile and adaptable in our pursuit of equilibrium.

Achieving harmony among these elements requires we prioritize the well- being of our staff and meet the high standards and diverse preferences of guests, all while ensuring the profitability and sustainability of the business. By remaining attuned to the ever-changing needs of our guests, our staff, our communities, and the environ-ment, we work to ensure that our efforts are directed where they are needed most, ultimately fostering a sense of harmony and well-being for all involved while allowing us to live our company purpose of nurturing bodies, minds, hearts and spirits.

David M. Gordon

President

IN THIS SECTION

4 Access to Healthcare

015 HELP Fund

6 Learning and Development

9 Staff Retention and Tenure

Caring for Our Staff

Introduction

Caring For Our Staff

Caring For Our Communities

DEI & Belonging

Sourcing

Environment

Appendices

Caring for Our Staff

Our benefit offerings are a tangible demonstration of our focus on the wellbeing of our staff and managers. In keeping with our Purpose-to nurture bodies, minds, hearts and spirits-we strive to support our team members' physical, mental, emotional and financial wellness by offering equitable and convenient access to programs that support not only their health, safety and security, but also their personal and professional aspirations. Genuine concern and care for every aspect of the individual staff member remains central to our approach to our benefits programs.

ACCESS TO HEALTHCARE

One of the most tangible ways we care for our people is providing access to affordable and high-quality healthcare by keeping both costs and hour requirements low. Between 2021 and 2023, we did not increase medical,

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dental or vision plan premiums, even as healthcare costs continued to rise. In addition, in 2023, we introduced a new medical plan option for 2024 that offers a High Performance Network. This is designed to provide members with care from high-quality providers with lower out-of-pocket costs and improved care coordination among their healthcare team.

To keep healthcare accessible to as many staff members as possible, we offer benefits eligibility at just 25 hours worked per week, which is fewer than required by applicable national legislation.

Free mental health support

We offer mental health counseling with licensed psychologists and psychiatrists to all our staff and managers, at no cost to them. In 2023, team members utilized this service to access mental health care with over 1,200 individual appointments scheduled.

Care for alcohol and opioid addiction

Eligible staff and their dependents ages 18+ can receive virtual support for alcohol and opioid addiction from home. Participants can receive one-on-one virtual coaching with a personal, licensed counselor, and optional access to medication.

"One of our staff members described the benefits they experienced through this program:

"It boosts a little more 'pop' or 'oomph' with wanting to be sober or be positive or create a healthy lifestyle….I'm more mentally

present and in the best physical shape of my life, to be quite

honest." - ANONYMOUS STAFF MEMBER

In addition to caring for our staff and managers' physical, mental and emotional health, we also provide programs that support their financial well-being.

- ANONYMOUS STAFF MEMBER

- ANONYMOUS STAFF MEMBER

Caring For Our Staff

HELP FUND

Our Hardship and Emergency Lifeline Program (HELP), which is funded by contributions from staff members, is a key resource for staff who experience a catastrophic event. The program provides managers and corporate staff financial grants to cover basic needs, a housing disaster or death of a family member, with no repayment required. In 2023, the HELP fund fulfilled 309 grants for a total of $327,500.

Some of our staff members have shared the impact these programs and our culture of caring have had on their lives:

"The HELP fund came through in a such a timely manner. I knew I was going to be in need of some money to pay the bills for the next couple of months. I had just paid for my son's funeral, whom I didn't have life insurance for, and paid the bills for the month of December. It was also Christmas season. My accounts were DONE! The money from HELP Fund also allowed me to be able to take extra time off. I am a single mother, and I couldn't afford to take out a loan knowing I would be out of work for a few months while I grieved. Thank you again HELP Fund. You were there right when I needed you."

• ANONYMOUS STAFF MEMBER

"I am extremely grateful to be working for a company that has the resources to step in and help when you're going through a major life change. My GM made the process smooth and the communication from the HELP Fund was phenomenal."

"This is a great program. I have been a recipient 3 times over the past 15 years as I have had 7 spinal fusions. These are all major surgeries. Each time I have received it, I was extremely grateful and it was used for basic needs."

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Fortune 100 Best Companies to Work For® and Best Workplaces for Millennials

We are the only full-service restaurant to be ranked on the Fortune 100 Best Companies to Work For® list and we have maintained that recognition for the last 11 consecutive years.

In addition, in 2023, The Cheesecake Factory was named to the Fortune Best Workplaces for Millennials list for a seventh time and to the PEOPLE Companies that Care list for a third consecutive year.

From Fortune. ©2024 Fortune Media IP Limited. All rights reserved. Used under license. Fortune® and Fortune 100 Best Companies to Work For® are registered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, The Cheesecake Factory Incorporated.

People Companies That Care Logo® is a registered trademark of TI Gotham, Inc., a Dotdash Meredith company. Used under license.

- ANONYMOUS CFI

- ANONYMOUS CFI PARTICIPANT

- ANONYMOUS CFI PARTICIPANT

Caring For Our Staff

LEARNING AND DEVELOPMENT

We believe that our extensive training and development programs are vital to providing consistent and dependable service to our guests, and to provide meaningful and satisfying career development opportunities for our team members. We strive to provide our staff with career advancement opportunities and achieved an internal promotion rate into management of 41% in 2023.

We also support staff and managers with personal education aspirations with our Diploma and Degree and education reimbursement programs.

Developing our Managers

A unique way we develop our managers' business acumen and leadership skills is through Cheesecake Factory Institute (CFI), which is designed to inspire

and re-connect participants with our company culture. The sessions provided managers with the opportunity to

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learn directly from our executives and top leaders and to build connections with fellow managers. In each of the seven CFI sessions we conducted in 2023, approximately 90 managers from across the country convened at our Support Center in Calabasas, California.

In addition, we launched an online CFI curriculum that meets the needs of managers who are unable to travel due to caregiving duties or other reasons.

Several managers shared what they valued about their CFI experience:

"Iappreciate the immersion in the culture that CFI has provided. You can't train for every single situation but experiencing the culture and learning the values of the company provides a compass to handle any situation."

"It was great to see so many support staff and to really feel the encouragement and understanding that they have been where we are now and have such confidence in all of us!"

"I am so inspired and motivated to use the lessons and values I learned here [and] take them back home [to] make a meaningful impact…"

PARTICIPANT

Caring For Our Staff

First 6 Program

In 2023, we implemented our new First 6 program to provide specialized support to new restaurant managers hired from outside The Cheesecake Factory (we refer to them as "external managers") to help improve their retention rates during their first six months of employment. The First 6 program specifies best practices for retaining external managers.

These practices focus on helping new managers foster stronger relationships, experience open communication, and have rewarding and informative shift experiences.

We believe that helping new external managers feel supported, valued and connected to our teams and culture during their first several months sets them up for a successful first year, and ideally, for a longer management career with us. The First 6 program connects these new managers with their fellow managers, a mentor, their General Manager (GM) / Executive Kitchen Manager (EKM) and Area Director

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of Operations (ADO) / Area Kitchen Operations Manager (AKOM) early in their tenure. New managers are also given the opportunity to share feedback on their work experience through regular check-in meetings and a specialty "stay interview." Managers are also introduced to ongoing development and training opportunities, such as an opportunity to attend CFI after they complete their sixth month of employment.

Flawless Execution Weeks

We conducted our Flawless Execution program in 2023 to provide restaurant teams with the specific support

and training they need to deliver on our Mission through coaching and recognition from their ADO. Between January and June of 2023, each ADO spent five consecutive days in each of their restaurants in an effort to build connections with managers and staff, observe their shifts, find opportunities to improve their plans and systems, and work with teams to help them execute each shift.

ADOs focused on motivating, inspiring and connecting with managers and staff. They reinforced standards and helped GMs and EKMs work through issues and develop solutions together.

We believe our ADOs' emphasis on connecting with managers and staff had a positive effect on employee engagement. For our The Cheesecake Factory restaurants, overall engagement scores improved by four points, year over year, with some of the greatest increases occurring in the statements

"my manager cares for my wellbeing," "I have the resources to do my job effectively," and "I am satisfied with my training and learning opportunities."

Caring For Our Staff

General Managers' Conference

In September 2023, GMs from across the country gathered in Las Vegas at our annual General Managers' Conference.

It was an inspiring and productive week of learning and development through informative programs and leadership seminars. Key topics included the importance of cultivating and inspiring excellence as a leader; pursuing elevated levels of hospitality; leading with trust, fairness and respect; and overcoming obstacles.

Just as importantly, we presented prestigious awards to nearly 20 GMs and held a fundraising event that culminated in a $15,000 donation to non-profit C.O.R.E. (Children of Restaurant Employees) to support those impacted by the Maui wildfires.

Diploma and Degree program

When it comes to caring for the entire person, we know that providing access to education and career development opportunities can help contribute to an individual's sense of purpose and aspirations for the future. This is why we offer our Diploma and Degree program to our hourly staff members, which allows them to earn their GED and/or Associate's Degree at no cost to them.

Education Reimbursement

We support managers and Support Center staff who wish to pursue job-related certifications or post- secondary education through our education reimbursement program. Eligible participants can receive reimbursement of up to $2,500 per calendar year for expenses related to tuition, books and materials and other related fees.

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