Newport Restaurant Group, which owns The Mooring and 17 other hospitality venues across Rhode Island and Massachusetts, has been 100% employee-owned since 1995. The company has paid out $33 million to its employee-owners through its employee stock ownership plan (ESOP), according to fortune.com. Founded in 1925 as a fuel oil business, the company transitioned to employee ownership over the past three decades.
The ESOP structure means that the company’s approximately 1,100 employee-owners, swelling to 1,800 in the summer season, hold all company shares through a trust. Andy Staane, who started as a bartender at The Mooring in 2002, exemplifies the company’s low turnover and long-term employee commitment. Staane highlighted benefits such as stock options, health insurance, paid time off, and 401(k) plans as reasons for his lifelong career at the group, according to fortune.com.
Employee stock ownership plans like Newport Restaurant Group’s are rare in the restaurant industry, which typically experiences high turnover. The group’s model aligns employee incentives with company success, fostering loyalty and stability. The $33 million paid out since 1995 underscores the financial value created for workers, contrasting with traditional ownership models where outside investors reap most benefits.
The company’s century-old legacy and employee ownership model have created a unique workplace culture with low turnover. Newport Restaurant Group’s ESOP continues to distribute benefits to its workforce, with payouts totaling $33 million since the plan’s inception in 1995, as reported by fortune.com.