In a bold move by M Culinary Concepts, a leading name in the Valley's hospitality landscape, the company has shifted gears to become 100% employee-owned. Transitioning to an Employee Stock Ownership Plan (ESOP), the firm which pulled in gross sales of $14.12 million in 2023, is charting new territory in an industry where such moves are far from the norm. The incentive is clear: retain talent and make a compelling case for recruits.
With an ESOP, M Culinary's full-time staffers are in a position to reap the rewards of their hard work, seeing their investment grow as the company progresses. "It does set us apart to be more attractive for new employees as well as increases our retention," co-founder Brandon Maxwell told the Phoenix Business Journal. Company officials haven't shied away from sharing financial successes with employees, but now there's an added incentive to strive for profitability. The ESOP is not just a pat on the back. It's directly tied to the company's future cash flows, rewarding long-term commitment and financial savvy of the employees who work within.
Already serving up dishes for major Valley events like the WM Phoenix Open, M Culinary is heading into a busy season amplified by the expansive draw of the NCAA’s Men’s Final Four. Against this backdrop, they are looking to beef up their workforce. "We're hiring every day here — new employees — and we're just trying to stay ahead of it at this point," Maxwell explained in an interview with the Phoenix Business Journal. The firm is on a recruiting spree, inviting individuals to get in on the ground floor of a burgeoning ESOP and join the ranks of about 85 current full-timers who stand to benefit directly from the company's success.
Although part-time and seasonal staff don't qualify for the ESOP, there's an open door for them to step up to full-time status, which many have historically done at M Culinary. Maxwell noted, "There's a long term play here for us — join the company now when you get on the ground floor of an ESOP." It's a promising offer for those ready to dive into the culinary scene with the extra spice of potentially lucrative stock options.
As M Culinary toots its own horn with this novel employee-centric strategy, it joins a small league of Valley businesses that have embraced ESOPs, including marketing maverick Lavidge and the veteran Sundt Construction, which has sustained its ESOP since the 1980s. This could well be a recipe for a more stable and flourishing workforce in the fluctuating world of hospitality.
