Austin-based burger chain P. Terry’s is shifting to an Employee Ownership Trust, or EOT, and rolling out profit sharing, in a move its leaders say will improve worker retention and support plans to expand beyond its five existing stores in San Antonio.
The EOT structure — rare in the United States — makes employees beneficiaries of a trust with a controlling stake in the company’s shares. Kathy Terry, co-owner of the 35-unit chain, told the Current the new structure allows it to avoid selling to private equity firms or outside buyers — moves she worries would hurt its employee-first culture.
“We knew someone else probably wouldn’t be making birthday cakes or offering interest-free loans [to employees],” she said, referencing longstanding internal policies. “The trust lets us protect the business and the people who make P. Terry’s what it is.”
In addition to providing interest-free loans to workers, the company pays above-industry wages, which makes it stand out against restaurant-industry peers.
Alongside the EOT, P. Terry’s is launching a profit-sharing program. Five percent of the company’s earnings will benefit employees who have been on the payroll for more than two years. The goal is to scale that share to 20% over the next four to five years.
Patrick and Kathy Terry founded P. Terry’s in 2005 as a single 527-square-foot burger stand and have since grown the business into a Central Texas institution. The couple emphasized that the new business model formalizes values they have held since the beginning.
“We’ve always been focused on our employees from day one,” Patrick Terry said. “We’re always looking for ways to take care of the people who help make P. Terry’s great.”
in July 2021, San Antonio was the first city to welcome a P. Terry’s location outside of Austin. The chain now operates five locations in the area, including a 24-hour location on Broadway. The Terrys said business in the Alamo City has stayed strong, adding that they expect to add locations to open soon.
The didn’t offer a timetable of say how many restaurants they might add here. However, the co-founders said the workforce has been especially strong.
“The people who work at the P. Terry’s in San Antonio are really above average,” Patrick said. “It’s an amazing group.”
P. Terry’s also will continue its quarterly Giving Back Day, during which one Saturday’s profits go to a local nonprofit. Kathy Terry, who oversees the initiative, said the program has deepened the company’s ties to the San Antonio community.
“It’s been such a great opportunity to meet the local heroes doing life-saving work,” she said. “I’m learning what the needs are in San Antonio and who’s out there meeting them.”
While it will take time to see how the Employee Ownership Trust and profit-sharing model will reshape the company, the Terrys said the changes mark a structural bet on stability and culture — one that positions P. Terry’s to be watched closely as more businesses explore alternatives to traditional ownership.
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