P. Terry's Burger Stand has announced its transition to employee ownership through an Employee Ownership Trust (EOT), creating a path for 1,800 employees to share in the company's long-term success. The transition helps preserve the values, culture, and independence that have guided the business since its founding.
Founded in 2005 by Kathy and Patrick Terry, P. Terry's began as a single burger stand in Austin, Texas, and has become one of the state's most recognizable restaurant brands, with 38 locations across central Texas.
Inspired by the classic burger stands of the 1950s and 1960s, Kathy and Patrick Terry built P. Terry's around hospitality, accessibility, and genuine care for the people it serves. From the beginning, the company has focused on serving high-quality food at affordable prices.
As P. Terry's grew, that philosophy extended beyond the customer experience to employees and the communities it serves. Team members are supported through professional development opportunities, above-industry-standard pay, interest-free hardship loans, and personal touches like birthday cakes baked by the company's full-time baker. Through its quarterly Giving Back program, P. Terry's has donated more than $2.9 million to local causes.
Working with Common Trust, P. Terry's designed and transitioned to an Employee Ownership Trust (EOT), a structure that holds company shares for the benefit of employees. EOTs allow companies to extend ownership more broadly while helping preserve their culture, mission, and long-term independence.
“From the beginning, we believed that taking care of people and building a great business weren't competing ideas,” said Kathy Terry, co-founder of P. Terry's Burger Stand. “This transition is the most honest expression of that belief we've ever made.”
The transition also includes a company-wide profit-sharing program for employees with at least two years of tenure. Beginning this year, 5% of operating income will be distributed among eligible employees, with plans to increase that amount to as much as 20% over time.
“We're building something that lasts,” said Patrick Terry, co-founder and CEO of P. Terry's Burger Stand. “We wanted our employees to feel the benefit of ownership in a real and ongoing way, which is exactly why we're launching profit sharing alongside this transition.”
Patrick and Kathy will continue leading the company and remain actively involved in the business. The same commitment to quality, hospitality, and community that has guided P. Terry's since its founding continues to define the company today.
“With 1,800 employees across 38 locations, P. Terry's decision to set up an EOT is setting a new standard in the industry for how to invest in and reward employees,” said Zoe Schlag, CEO of Common Trust. “The company has spent two decades building a strong culture and a loyal customer base, and this transition creates a structure that ensures those strengths will endure long into the future, while creating opportunities for employees to participate in the company's long-term success.”
While employee ownership is becoming more common across a range of industries, it remains relatively rare in restaurants. For P. Terry's, the EOT is an extension of a philosophy that has guided the business from the beginning: investing in people while building a business designed to last. It also offers an example of how employee ownership can work at scale within a growing restaurant company.
P. Terry's mission remains the same: serving quality food at affordable prices, rewarding the people who make the business possible, and supporting the communities it serves. Employee ownership now becomes part of that foundation, helping ensure those commitments continue for generations to come.
If you're exploring whether employee ownership could be the right fit for your business, we'd love to talk. Schedule a call with one of our advisors today.
