P. Terry's Burger Stand, one of Austin's largest homegrown restaurant chains, is transitioning to employee ownership. Co-founders Patrick and Kathy Terry say the move is intended to preserve the company's values and reward its workforce.
In a video posted to social media, the founders said the company will open an Employee Ownership Trust, officially making employees beneficiaries of the business. The change will include profit-sharing with employees for the first time, with the company initially distributing 5% of its operating income to employees, aiming to increase that share to 20% over time. The benefit will be available to employees with more than two years of tenure.
P. Terry's employs roughly 1,800 employees across the company's restaurants and corporate operations, and about 400 of those will qualify for the benefit. Kathy Terry said she considered transitioning to an ESOP, but chose to move forward with the EOT based on its straightforward bookkeeping requirements and compatibility with the chain's slim margins.
P. Terry's has a history of altruism in its business practices, hosting "Giving Back Days" where the company donates 100% of profits to a select local charity or cause.