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Serving Up Shared Ownership
Formerly family-owned restaurants are increasingly shifting to employee ownership
In Brief: Restaurants and bars in NYC are increasingly transitioning to an employee owned business structure, following suit of bakeries and other food establishments in the Bay Area.
Why It Matters: In the case of many restaurants, the owners are choosing to transition to employee ownership rather than selling their business to a third party. Employee ownership is a compelling exit strategy for families who may be looking to exit a business but aren’t interested in or comfortable with selling to a third party. The hope is that employee ownership will make a career in the restaurant industry more feasible for many, as well as decrease employee turnover in an industry where it is traditionally high.
How They’re Doing It: Many of the transitions are occuring organically as small business owners sell to their employees. Groups like TeamShares, however, offer an alternative. The collective buys family owned businesses that are looking to close and converts them to employee owned businesses.
Go Deeper: Read what employees who have experienced the transition had to share with Eater.
Image Credit: Louis Hansel via Unsplash