Why Employee Ownership Matters

As Crêpes à Latte celebrates Employee Ownership Month this October, we’re reflecting on our history as an employee-owned company. We’re banding together to evolve our business during the COVID-19 crisis—from launching #BetterTogether Boxes to creating a more nimble work culture—and having candid conversations about what employee ownership means to us.

A conversation with the team at Crêpes à Latte

Hailey Rosenstein
Employee Owner / Chief Marketing Officer

Originally, Crêpes à Latte was like most companies: privately owned. As we grew, we had looked into other options, like bringing on outside investors, but transitioning to an ESOP [Employee Stock Ownership Program] made the most sense. It would allow us to create a succession plan, while rewarding our long-time employees. And it gave us the chance to create a long-term legacy. So to start, we met with numerous advisors and also spoke to other employee-owned companies. After educating ourselves on how it worked, we chose a team to support the transaction and we planned for the announcement to all the employees. The process took nine months.

Katie Selleck
Employee Owner Staffing and Logistics Manager

"I had not worked at an employee-owned company before Crêpes à Latte. When we became an ESOP company, I noticed the shift right away. There’s a big difference knowing you have a stake in the business."

Judi Scott
Employee Owner Senior Account Manager, Training and Development

"I couldn’t agree more. I’ve noticed that my colleagues are more likely to give it their all and go above and beyond in what they contribute to a project."

Insights on How ESOPS Create the Framework for an Ownership Culture

Hailey: I think some people outside of ESOPs can be confused by the idea of “employee ownership.” It just means tenured employees have the opportunity to benefit from the company’s long-term success. Employees receive an annual stock award that can continue to grow over time and build wealth in addition to earning a salary. This allows each employee to contribute to the company’s long-term impact.

Katie: Everyone works smarter knowing they’re an owner. I’d also add that the amount of the award is based upon many factors, but the bottom line is this: the better the company does, the more valuable the shares are. So we all work extra hard to achieve a common goal.

Judi: Employee ownership is so smart because everyone’s working towards the same thing. Many companies want you to cut costs and reduce waste, but when you’re an employee-owner and you implement ideas to accomplish those, it results in a direct benefit to you.

Katie: I do think that it affects your day-to-day decisions as an employee. I’ve become much more conscious of our resources. I have a renewed thought process when making decisions on expenses and time management. I try to treat company money like my own money—and time is money, as they say.

Judi: Occasionally we have newer team members that think and react in the moment and don’t fully realize the benefits of employee ownership. Once they start to receive stock awards, they see the value. And they improve on their already-good habits.

Hailey: Employee ownership makes us all better. It also challenges us to be effective communicators. We share details about the company’s finances, our successes, and our challenges. We all lean in and support each other.

The Challenges and Opportunities of Employee Ownership

Judi: I love working for an employee-owned company. There’s a special camaraderie and an entrepreneurial spirit, as everyone is working towards the same goal.

Hailey: You know, running an ESOP comes with its own unique challenges. But the rewards are worth the effort. It gives you the opportunity to impact your employee’s livelihoods over the long-term. Being an ESOP, you join a community of other employee-owned companies. And you discover how the principles of employee ownership can help you run a more successful business.

Katie: We have always felt like a family, but I have to say that employee ownership has made our group much tighter. We all look out for one another. Now more than ever.

The Impact of COVID-19 on our Business

Katie: COVID-19 caused the cancellation of over 150 tradeshows where we were scheduled to provide hospitality services to our clients; essentially wiping out our entire business for 2020. But we showed our grit by rolling up our sleeves as a team, adapting to our new world and creating a new offering that combines memorable experiences with food and beverage. As an employee owner, it makes me so proud to be a part of the journey that helped make a difference in moving our company forward despite this year’s challenges.

Hailey: The last several months have been challenging. As we've pivoted to support virtual meetings and experiences, we have received so much support from the ESOP community. We've learned that by sharing our story via our new #BetterTogether Boxes product line we are building off our culture of creativity, entrepreneurship, and resilience. As an employee-owned company, we know our team is fully vested in our long-term success and we will come out of our current challenges stronger than before.   

To learn more about Crêpes à Latte, our employee ownership program, and how we can create an in-person or virtual experience for your brand, please visit us at CrepesaLatte.com.