Profit Sharing

KEEPING THE MONEY IN THE FAMILY

Issues at the Restaurant

Food waste at double the accepted industry standard

Poor staff retention

Understaffing

Employees already overworked

Poor morale

No reason to conserve

Benefits to Profit Sharing

A better connection with the company

Sense of accomplishment when the company does well

Improves moral

Allows the company to recruit and retain the best employees in the
industry and allows each employee the opportunity to think like an
owner

Southwest Airlines Profit Sharing

Over 40 years in the business and many airlines have shut down
operations

In 2014 Southwest contributed a record $228 million to their profit

sharing program.

In 1994 when Southwest had to conserve cash for growth and intense
competitive battles Southwest was able to negotiate a contract with
their pilots freezing pay rates for 5 years giving their pilots larger profit
sharing options.

Stewards have been able to retire after 25 years as millionaires

How Do We Implement it?

Figure which must be met to begin profit sharing payouts

Percent of profits to be shared with employees

Requirements that employees must meet for payout

Method of payout to associates

Frequency of payouts to associates

Plan for Success

Set attainable figure to begin profit sharing at

Between a 10% and 20% payout of profits to employees

Payout to all employees, prorated by hours worked

Cash/Check payout rather than stock

Frequent payouts