P. Terry's Doesn't Want to Become Just Another Burger Chain

Austin-born burger chain P. Terry's recently announced it is transitioning into an Employee Ownership Trust, giving eligible employees a path to share in the future profits of the business.

The plan starts with 5% of operating income and is designed to rise to 20% over time for employees who have been with the company for more than two years.

That is a big move for a fast-growing local brand.

P. Terry's started in Austin in 2005 and has grown into one of Texas' most recognizable regional restaurant chains, with locations across Austin, San Antonio, and Houston.

But as most franchises scale, they eventually hit a wall.

More locations. More managers. More hiring. More systems. More distance between the founders and the front line. This is when culture either becomes operational, or it turns into nostalgia.

P. Terry's employee ownership move is a bet that the people carrying the brand every day should also participate in the upside, that this will help propel the culture of P. Terry's forward as the brand continues to scale from here in Austin, all across the country.

P. Terry's has always been more than burgers for a lot of Austinites. The question now is whether employee ownership can help keep it that way as the company keeps growing.