Austin’s popular fast food chain, P. Terry’s Burger Stand, is set to implement a new employee ownership model and introduce a profit-sharing initiative for its workforce. Founders Kathy and Patrick Terry shared this significant change in a social media video, highlighting their commitment to prioritizing employee welfare.
The couple announced the establishment of an employee ownership trust, a mechanism that allows employees to hold shares in the company, ensuring that their interests are at the forefront of the business’s operations. This initiative will encompass 1,800 employees across the chain’s 38 locations, as detailed in a release from Common Trust, a firm specializing in employee ownership strategies.
Under the new profit-sharing program, employees who have been with P. Terry’s for a minimum of two years will be eligible to receive a share of 5% of the company’s operating income starting this year, with the potential for this percentage to rise to 20% in the future.
“From the very beginning, we have always believed that taking care of people and building a great business are not competing ideas,” Kathy Terry stated in the video. “So this transition is the most honest expression of that belief we’ve ever made.”
The Terrys clarified that they have no intention of stepping away from the company, emphasizing that this shift is aimed at preserving P. Terry’s core values for generations to come. “This move is made to preserve the core values of P. Terry’s for future generations,” Kathy added.
P. Terry’s first opened its doors in Austin in 2005 and has built a reputation not only for its burgers but also for its philanthropic initiatives, which have included donating to flood relief efforts and organizing community support days for various Texas nonprofits.
In their announcement, the Terrys expressed their belief that caring for people and building a strong business are intertwined, solidifying their commitment to this principle with the shift towards employee ownership and profit sharing.
