So it's been almost three years since the pandemic
Adam Lamb:and shutdown and most of the major hospitality media have announced
Adam Lamb:that hey, the good times are back.
Adam Lamb:But I'm not sure if that's necessarily been your experience.
Adam Lamb:Are you cashing in on the restaurant boom, or do you sense that things
Adam Lamb:aren't quite what they should be?
Adam Lamb:Do you still need help finding the right staff?
Adam Lamb:You know, they say revenue cures all ills, but if that's true, that
Adam Lamb:doesn't necessarily mean that the problems have gone away, does it?
Adam Lamb:Sometimes it just makes them hidden.
Adam Lamb:And then when something happens like pandemic and shutdown all
Adam Lamb:those systems come crashing down.
Adam Lamb:I.
Adam Lamb:And so to find out we invited the founder and c e o of Electric Hospitality,
Adam Lamb:Michael Lennox from Atlanta, to join Jim Taylor and me to take a sobering
Adam Lamb:collective look into the hospitality industry mirror to see if there's
Adam Lamb:anything that we could do to make this business better, for everyone concerned.
Adam Lamb:Welcome to another episode of Turning the Table.
Adam Lamb:My name is Adam Lamb and I'm here with my co-host Jim Taylor.
Adam Lamb:We're dedicated to bringing you solutions to the hospitality industry's most
Adam Lamb:persistent challenges in this episode, we'll discuss real world examples of
Adam Lamb:what's working in the hospitality industry and give you three actionable ideas
Adam Lamb:to help restaurant owners, managers, chefs improve employee retention rates.
Adam Lamb:And we'll get into all of that conversation right after these messages.
Adam Lamb:Welcome to Turning the Table, the Most Progressive Weekly podcast for
Adam Lamb:today's food and beverage industry, featuring staff centric operating
Adam Lamb:solutions for restaurants in the hashtag new hospitality culture.
Adam Lamb:Join Jim Taylor of Benchmark 60 and Adam Lamb as they turn the tables on
Adam Lamb:the prevailing operating assumptions of running a restaurant in favor
Adam Lamb:of innovative solutions to our industry's most persistent challenges.
Adam Lamb:Thanks for joining us and now onto the show.
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Adam Lamb:we'd like to welcome Michael Lennox to the show.
Michael Lennox:Michael, how are you doing?
Michael Lennox:Great, Adam.
Michael Lennox:Jim, thanks for having me.
Michael Lennox:Yeah, thanks for joining us.
Adam Lamb:Absolutely.
Adam Lamb:And there's gonna be a lot to unpack in this particular episode, and we're
Adam Lamb:going to do our best to make it as the best 30 minutes that you're gonna spend
Adam Lamb:in your day either today or any day.
Adam Lamb:So Michael, not only do you personally have an interesting story, but
Adam Lamb:electric hospitality has been on a tear since Covid or previous to Covid.
Adam Lamb:So I'm wondering if you can kind of give us a thumbnail sketch for anybody who's
Adam Lamb:living under, a rock and doesn't know anything about electric hospitality.
Michael Lennox:Sure.
Michael Lennox:Yeah.
Michael Lennox:So Electric Hospitality is our restaurant group that I started
Michael Lennox:a, while back here in Atlanta.
Michael Lennox:We've got a.
Michael Lennox:A number of, one-off restaurant brands.
Michael Lennox:Ladybird is the first that we opened on the Atlanta BeltLine
Michael Lennox:East Side Trail in 2014.
Michael Lennox:It's a kind of large outdoor oriented national park inspired
Michael Lennox:concept on the BeltLine.
Michael Lennox:And then a few years after that, we opened a place called Mocho about a mile
Michael Lennox:south also on the BeltLine in Atlanta.
Michael Lennox:It's a Southern California inspired.
Michael Lennox:Also outdoor oriented concept that is an all day brand.
Michael Lennox:So we have three day parts, morning, noon, night, and have coffee, breakfast
Michael Lennox:tacos, and then go into kind of a light lunch with toast sandwiches.
Michael Lennox:We've got a Southern California surfer burrito, chip salsa
Michael Lennox:the, whole nine and full bar.
Michael Lennox:And that's a really fun brand that we're actually starting to grow.
Michael Lennox:We've got two new con two new locations we're working on.
Michael Lennox:Then we've got a cocktail bar called Ranger Station above Ladybird, and we also
Michael Lennox:have an events and catering arm that we started last year called Electric Events.
Michael Lennox:And we've got two pretty fun event spaces in town.
Michael Lennox:We've got a rooftop space on the west side called the Electric Room.
Michael Lennox:And then we've got another venue that is just a few months old called
Michael Lennox:East Side Swimming Social Club.
Michael Lennox:On the east side of town that is in an old car garage.
Michael Lennox:It's got a big outdoor space and a swimming pool.
Michael Lennox:And it's it's a super fun electric hospitality in a nutshell.
Adam Lamb:And and do you, had, you had to say goodbye to the Golden Eagle
Michael Lennox:a too long ago, right?
Michael Lennox:Yeah.
Michael Lennox:So we also had good catch.
Michael Lennox:I skipped over it.
Michael Lennox:We opened Golden Eagle in 2017.
Michael Lennox:It was a sort of Midwestern supper club that we really dressed up to
Michael Lennox:the nines, won a bunch of awards for the interior design, had an
Michael Lennox:amazing cocktail program menu.
Michael Lennox:The whole work.
Michael Lennox:So I was super proud of the concept.
Michael Lennox:It ran into some trouble during Covid.
Michael Lennox:We closed all of our restaurants.
Michael Lennox:When Covid hit and, regrouped for a few months, and once we reopened
Michael Lennox:it, it really never got backed up beyond 20, 30% of pre covid revenues.
Michael Lennox:So we made the tough call to close it in 2021.
Michael Lennox:It was built in the same building as the original Mu Chacho location,
Michael Lennox:which was much smaller at the time and only had daytime hours.
Michael Lennox:So we ended up.
Michael Lennox:Closing Golden Eagle, expanded mu chacho into the golden eagle space and expanded
Michael Lennox:the hours and really just built up the brand some more for, mu chacho and it's,
Michael Lennox:taken off like a, bottle rocket set.
Michael Lennox:So great.
Michael Lennox:We, and it was bittersweet, but it, definitely was the right business move.
Michael Lennox:All, things considered.
Michael Lennox:Nice
Jim Taylor:question for you about, so you said Ladybird is
Jim Taylor:National Park inspired and then,
Michael Lennox:All the spaces are fairly outdoor driven.
Jim Taylor:Golden Eagle and Ranger Station.
Jim Taylor:There's like a theme there of outdoor.
Jim Taylor:Are you a, is there like a, are you a big outdoors guy?
Jim Taylor:I know that's, you know, that's not necessarily the top of the
Jim Taylor:podcast, but it's kind of got me thinking about where all that sort of
Michael Lennox:came from.
Michael Lennox:Yeah.
Michael Lennox:I can't really explain it.
Michael Lennox:And, perhaps there's some, deep subconscious forces at play I
Michael Lennox:need to unpack in a or something.
Michael Lennox:But yeah, with i, keep a long list of restaurant names and sort of ideas
Michael Lennox:that come to me at random times.
Michael Lennox:Walking the dog, getting mail out of the mailbox, whatever.
Michael Lennox:It's a hundred, you know, names long at this point.
Michael Lennox:And whenever I see a space that I'm like, oh, the light bulb turned on.
Michael Lennox:I can totally see it.
Michael Lennox:Like it's gotta be this thing.
Michael Lennox:I it, kind of takes over my brain for a few months while I'm figuring
Michael Lennox:out, you know, the brand and the experience and, all of that.
Michael Lennox:And so I usually have a name that jumps off the page that I've already
Michael Lennox:come up with and that I start just building like a narrative around
Michael Lennox:it and sort of an identity that.
Michael Lennox:To me, it makes a lot of sense and, but builds sort of a persona and
Michael Lennox:a character and, I just kind of imagine, hey what, would a person
Michael Lennox:be that represents this brand?
Michael Lennox:What are they into, what are they like?
Michael Lennox:What are they, yeah.
Michael Lennox:What do they listen to?
Michael Lennox:Like all, just everything.
Michael Lennox:And I, suppose there's an outdoor bent.
Michael Lennox:Yeah.
Michael Lennox:Though I, if I'm being completely honest, I.
Michael Lennox:I, you know, my wife and I have two young boys, nine and six in
Michael Lennox:between them and the restaurants.
Michael Lennox:I'd love to have a parallel life where I'm, you know, rock climbing or having
Michael Lennox:Everest or whatever, but don't, get out as much as I might otherwise.
Michael Lennox:Well, the interesting thing about
Jim Taylor:that is I, it just clicked with me now too,
Jim Taylor:that we were talking to you.
Jim Taylor:A couple weeks ago, you know, in advance of, getting you on the show.
Jim Taylor:And we were talking about how National Geographic named your restaurants
Jim Taylor:as, so there's this, yeah, it's a really interesting connection there.
Jim Taylor:And Dar another outdoor space, garden and gun or something also
Jim Taylor:named you guys give you some words.
Jim Taylor:Right.
Jim Taylor:So anyway, I just think that's really cool, ranger station
Jim Taylor:and outdoor spaces and National Geographic as you on the radar.
Jim Taylor:So that's cool.
Michael Lennox:It's
Adam Lamb:interesting.
Adam Lamb:It's interesting because here in Asheville and the surrounding neighborhoods like
Adam Lamb:Black Mountain and Hendersonville.
Adam Lamb:There's, you know, I'm looking at the picture of Ladybird on the website and
Adam Lamb:it reminds me of some of the places out here where there's outdoor dining.
Adam Lamb:Very often there's hog fencing so that people can bring their dogs and the dogs
Adam Lamb:are interacting, which is I don't know if it's better for the dogs or the owners.
Adam Lamb:I'm not quite sure.
Adam Lamb:This, idea of incorporating the outside with the inside, I
Adam Lamb:think is a very powerful thing.
Adam Lamb:And so to get back to the topic of the show, which is is there
Adam Lamb:anything like, can the restaurant industry be changed for the better?
Adam Lamb:Previous to going live, you were mentioning some of your backstory
Adam Lamb:of which, you know, you spent some time as as a lawyer, but always
Adam Lamb:held this idea of that you wanted to get into the hospitality business.
Adam Lamb:And so looking to you as being someone from outside the industry that came in and
Adam Lamb:is now forced from within the industry, can you speak a little bit to that?
Adam Lamb:Yeah,
Michael Lennox:sure.
Michael Lennox:So I.
Michael Lennox:I'm, sure most folks, it takes a while to find your calling or your path
Michael Lennox:it and, that's just the lucky ones that even find that at all, right?
Michael Lennox:But yeah, growing up I was told from an early age my,
Michael Lennox:you know, my mom was a lawyer.
Michael Lennox:My uncle was a lawyer.
Michael Lennox:My grandparents and other folks in my family would always say, Hey,
Michael Lennox:you'd make a great lawyer one day.
Michael Lennox:I have no idea what that means.
Michael Lennox:I still haven't cracked the code on, what that's all about, but Right.
Michael Lennox:I, had a pretty narrow view of what the range of options were.
Michael Lennox:As a kid, you know, Hey, I thought you could grow up to be a pro athlete, maybe.
Michael Lennox:But then I, ruled that out after I realized that was not gonna happen.
Michael Lennox:And then I thought, all right, you gotta be a doctor or a lawyer, or maybe like
Michael Lennox:work in business, whatever that means.
Michael Lennox:And so all the while I, got really big into food and cooking and the restaurant
Michael Lennox:world became my, my, my sort of passion and fascination from an early age.
Michael Lennox:Just my, parents got divorced when I was 12, and that led to me needing
Michael Lennox:to basically figure out how we're gonna put food on the table for
Michael Lennox:me and my, brothers a lot of days.
Michael Lennox:And that led to, you know, cosing around in the kitchen and
Michael Lennox:eventually getting decent at food.
Michael Lennox:And one thing led to another.
Michael Lennox:So but it wasn't until I was maybe 25, 26 and had already been practicing
Michael Lennox:law for a little while that I.
Michael Lennox:It dawned on me that I, this was really my, this is where I needed
Michael Lennox:to spend my time and energy.
Michael Lennox:And it's not doing contracts and legal documents.
Michael Lennox:It's 'cause I was working with Starbucks as a lawyer and working with them.
Michael Lennox:That was literally the first time that it dawned on me, Hey, you can
Michael Lennox:actually start your own business.
Michael Lennox:Like entrepreneur.
Michael Lennox:Being an entrepreneur is a path.
Michael Lennox:And so immediately after getting into that role or position, I started brainstorming,
Michael Lennox:Hey, I don't like this at all.
Michael Lennox:I'm not at best.
Michael Lennox:I could be a, mediocre lawyer if I worked 80 hours a week for the rest of my life.
Michael Lennox:I'd rather put that time and energy into doing something I'm passionate about.
Michael Lennox:What am I passionate about?
Michael Lennox:It's, food, cooking, restaurants, and just like the, hospitality experience.
Michael Lennox:So started hatching plans.
Michael Lennox:The BeltLine in Atlanta was.
Michael Lennox:Starting to become a thing.
Michael Lennox:And it's since, I think, fundamentally changed the trajectory of the
Michael Lennox:city in a really positive way.
Michael Lennox:But I was obsessed with it.
Michael Lennox:They had just opened it.
Michael Lennox:I walked it up and down.
Michael Lennox:First day they cut the ribbon, walked past this space where Ladybird is
Michael Lennox:now, and it was a pretty banged up warehouse with an art gallery in it.
Michael Lennox:And I'm, using that term pretty charitably.
Michael Lennox:Five person red in-ground jacuzzi that you'd see in like a, cheap
Michael Lennox:Vegas motel in one of the rooms.
Michael Lennox:And it was pretty jacked up.
Michael Lennox:But in any event I, could see it plain as day.
Michael Lennox:I was like, man, there's a big outdoor space.
Michael Lennox:It's right in the belt line.
Michael Lennox:This is gonna be huge.
Michael Lennox:I've wanted to do an outdoor oriented concept on the belt
Michael Lennox:BeltLine for a long time.
Michael Lennox:Let me figure this out.
Michael Lennox:Connected with the landlord.
Michael Lennox:One thing led to another, signed the lease and.
Michael Lennox:It, you know, 18 months later we ended up opening it.
Michael Lennox:So, and I haven't, looked back ever since.
Michael Lennox:Wow.
Jim Taylor:Amazing.
Jim Taylor:And, it's very cool that you're and, you know, we can get into this a little
Jim Taylor:bit, I think, but I think it's very cool that you're able to see a space
Jim Taylor:and right away be able to go, okay.
Jim Taylor:Here's what needs to happen here.
Jim Taylor:Here's what I like, a really strong vision in advance.
Jim Taylor:Right.
Jim Taylor:Because, you know, that's a big part of being able to put something together
Jim Taylor:that people are gonna enjoy and come to.
Jim Taylor:And it's not just about how much foot traffic
Michael Lennox:goes by.
Michael Lennox:Yeah.
Michael Lennox:I, can't really explain where that comes from, but I mean, that's definitely
Michael Lennox:something that I've, sort of took it for granted for a while, and then it took.
Michael Lennox:A while for me to put words to it that like, oh this is more of a skill and this
Michael Lennox:is vision and this is there's a sort of creative aspect to it that and, not every
Michael Lennox:space, it's not like I walk into any room and I'm like, wow, this could be a put a
Michael Lennox:circus stent here and like away you go.
Michael Lennox:But when in the right place at the right time I, do have those light
Michael Lennox:bulb moments where it's like, oh wow I can totally see it down to.
Michael Lennox:What the tables and the plates and the glassware just right
Michael Lennox:then and there and what happens.
Michael Lennox:I just, I kind of listen to what the space tells me.
Michael Lennox:'cause it's always just, it's gonna tell you what to do if you listen close enough.
Michael Lennox:And I think we've been really fortunate to, I.
Michael Lennox:Stumble on.
Michael Lennox:So the, all the spaces we have honestly are pretty like funky,
Michael Lennox:unique, and have a patina on character.
Michael Lennox:And it's, har it's hard for me to imagine nothing against it, but just
Michael Lennox:like we've been pitched a lot of new build, new construction, white box,
Michael Lennox:mixed use, end cap kind of stuff.
Michael Lennox:And it's like, Hey, that's great.
Michael Lennox:Maybe we'll do that one day.
Michael Lennox:But I, it's, my imagination is never gone hog wild.
Michael Lennox:Just looking at like a gray square.
Michael Lennox:So, I don't know.
Michael Lennox:It, usually requires something with, a personality and then more character.
Michael Lennox:We, kind of take it from there.
Adam Lamb:So I'm thinking of the old trope of the frog in the beaker
Adam Lamb:and such that, you know, if you try to put a, throw a frog in a.
Adam Lamb:Beaker of hot water, he usually jumps out.
Adam Lamb:But if the water's cold and you put the beaker over a burner and you just
Adam Lamb:start raising the temperature, slowly but surely the frog will end up expiring
Adam Lamb:in the, because he never realizes the outside environment is changing.
Adam Lamb:And I think to a certain extent, there's a lot of us in the restaurant industry
Adam Lamb:that are the frogs and the beakers.
Adam Lamb:Like we think that things need to go back to the way that they
Adam Lamb:were because that's really what.
Adam Lamb:That's really when we felt like we could control things or we were successful then.
Adam Lamb:And then Covid comes and hits, and some of us have to rethink
Adam Lamb:everything that we're doing.
Adam Lamb:So I'm just curious from your standpoint, Michael, when you first got into the
Adam Lamb:industry, say pre Covid and you're looking around, did it seem like a
Adam Lamb:healthy environment or a healthy industry,
Michael Lennox:you know, It in some ways it's, almost like hard to remember
Michael Lennox:back to what I even thought in a, on a normal day, you know, 7, 8, 9 years ago.
Michael Lennox:But I, think I, I've always had the predilection to, I think it comes
Michael Lennox:from the same place as sort of the vision tendencies of really trying
Michael Lennox:to look ahead and think about, hey, There's always opportunities and I'm,
Michael Lennox:the kind of person who enjoys change and, growth and, all of this, but
Michael Lennox:that not everybody is, and so, yeah.
Michael Lennox:I think pre covid to me that it was always clear that a huge opportunity, and
Michael Lennox:this was frankly one of the reasons that pulled me into the restaurant industry.
Michael Lennox:I mean I, naively perhaps at the time thought that, I was
Michael Lennox:like, man, I could do this.
Michael Lennox:There's a lot of people out there that are not doing anything special, and I'm
Michael Lennox:pretty confident I can figure this out.
Michael Lennox:And I just had strong conviction that one of the foundational ways to
Michael Lennox:do that is if you are just genuine, real and do everything you can just
Michael Lennox:bend over backwards to, support your team and give them a chance to
Michael Lennox:succeed that people feel that like you, there's no way to fake that.
Michael Lennox:And I, was not, I mean, I was a lousy manager.
Michael Lennox:I.
Michael Lennox:Not in a malicious way, just like I didn't know what the hell I
Michael Lennox:was doing when I first started.
Michael Lennox:So I've, grown quite a bit in that regard, but that has always been just
Michael Lennox:a general North Star is like, when in doubt, do right by your team and that'll,
Michael Lennox:take you where you need to get to.
Michael Lennox:But the, blocking and tackling of, Hey, what does that look like?
Michael Lennox:And you know it's, everything from comp to benefits to training to
Michael Lennox:the, soft skills of, listening and talent development and all this.
Michael Lennox:And I, think Covid has absolutely, there was a lot of, places just kind
Michael Lennox:of taking their teams for granted and hey, you know, as long as we're
Michael Lennox:hitting our numbers, like who caress and you can just kind of do whatever
Michael Lennox:you want and kick back and, relax and.
Michael Lennox:That's, to me just very shortsighted.
Michael Lennox:And the party will be over.
Michael Lennox:And, it's just, it's not fair to the, people that are choosing to work with
Michael Lennox:you, like they could work anywhere and we're not investing in them.
Michael Lennox:I mean, we're kind of missing the point.
Michael Lennox:So yeah.
Michael Lennox:Covid, in a weird way has, forced more internal reflection, I think with a
Michael Lennox:lot of organizations to really Yeah.
Michael Lennox:And, refocus on the most important things, which is your team.
Michael Lennox:Well, interesting though.
Jim Taylor:And we were talking about this prior to the call or prior to the show.
Jim Taylor:It, you know, it's not just about your team.
Jim Taylor:I mean, you guys did incredible things outside of your team just to
Jim Taylor:help support the industry through the pandemic and beyond, right?
Jim Taylor:So, I mean, that to me is I, mean, I couldn't agree with you more about taking
Jim Taylor:care of your team and protecting people and do right by 'em and all of that
Jim Taylor:type of stuff that you're mentioning.
Jim Taylor:But tell us a little bit more about what you guys did outside of the company.
Jim Taylor:'cause that's, you know,
Michael Lennox:that's stuff that you didn't have to do.
Michael Lennox:Yeah.
Michael Lennox:So I'd say late February, 2020, I bumped into a high school friend of
Michael Lennox:mine who I hadn't seen in a long time, who had been living in Hong Kong.
Michael Lennox:For 10 years and had just flown back to Atlanta to bunker down with his family.
Michael Lennox:'cause everything was, it was getting outta control in, China.
Michael Lennox:And there was like, you know, a little bit on the news here and there, but I think
Michael Lennox:people were brushing it off and he, we had a long conversation and, he was telling
Michael Lennox:me about what was happening in China.
Michael Lennox:And he was like, look, I don't know anything about the restaurant industry,
Michael Lennox:but you guys need to do something now.
Michael Lennox:'cause it's coming here and it's gonna be bad.
Michael Lennox:He was like, every place is closed.
Michael Lennox:It's, really not a good situation.
Michael Lennox:And so that hit me like a ton of bricks and I immediately started
Michael Lennox:brainstorming like, Hey, what are what, the hell are we gonna do?
Michael Lennox:And so where my head immediately went, was there.
Michael Lennox:We're at the time about 350,000 hospitality workers that were
Michael Lennox:in the metro Atlanta area.
Michael Lennox:And 85% of that cohort are paycheck to paycheck.
Michael Lennox:And so that certainly represents a, subset of, some of our hourly staff.
Michael Lennox:But that's just a, that's a shitload of people.
Michael Lennox:I mean, that's a, crazy amount of folks that Yeah.
Michael Lennox:If they're out of work for any meaningful period of time, I mean,
Michael Lennox:we're talking, you know, nobody's paying their bills, nobody's eating food.
Michael Lennox:I mean it's, bad news, so.
Michael Lennox:I was like, Hey, I, how can we help?
Michael Lennox:Well, if we're closed, the only thing that we can really do is
Michael Lennox:we, have some infrastructure in the form of our kitchens.
Michael Lennox:We've got talent in the form of our.
Michael Lennox:Our teams, we've got vendor relationships.
Michael Lennox:If everything's closed, like everything we can sort of recalibrate our model.
Michael Lennox:And so instead of making food to to, serve our customers, our guests, we need to
Michael Lennox:take food in, put it out the door, just like we normally do, but we need to route
Michael Lennox:it to, folks that have lost their jobs.
Michael Lennox:So that led to starting this nonprofit called a t l Family Meal.
Michael Lennox:And we launched it March 16th when we closed our restaurants, tons of
Michael Lennox:restaurants all over the country.
Michael Lennox:Closed it in 2020 and four to 5 0 1 C three.
Michael Lennox:We got a board, worked closely with the Georgia Restaurant Association.
Michael Lennox:Ended up developing a, tech driven delivery platform and
Michael Lennox:partnered with Lyft on, that.
Michael Lennox:The Rideshare Company.
Michael Lennox:Yeah.
Michael Lennox:And.
Michael Lennox:And basically came up with this meal program where we would batch out a
Michael Lennox:week's worth of meals for folks in, in our industry who had lost their jobs and
Michael Lennox:their families, got their addresses, and then set up a, like a mail delivery route
Michael Lennox:where they would, where had drivers come, pick things, pick up the meals from us
Michael Lennox:at our restaurants, they would take it to addresses all over the metro area.
Michael Lennox:And we raised about two and a half million dollars to support.
Michael Lennox:A t l family meal and the meal.
Michael Lennox:Oh, work.
Michael Lennox:And, then the restaurants that participated ended up getting reimbursed
Michael Lennox:$5 a meal for each, meal they produced.
Michael Lennox:Awesome.
Michael Lennox:So we ended up putting out about 250,000 meals from that, part of 2020 on through
Michael Lennox:the end of 2021, and worked with about 15 other restaurants and, food businesses to.
Michael Lennox:To feed a lot of folks that were in a tough spot in our industry.
Michael Lennox:So really proud of that and it definitely saved our, teams and gave
Michael Lennox:us a sense of purpose and, kind of kept things afloat for us and, a lot
Michael Lennox:of other businesses that were involved.
Adam Lamb:So it, is it still existing now because I'm, even though some
Adam Lamb:folks might be working, they still might be under their poverty line
Adam Lamb:and need help from a day-to-day
Michael Lennox:standpoint.
Michael Lennox:Yeah.
Michael Lennox:So, We ended up trying to pivot the a t l family meal work and the team in 2021 and
Michael Lennox:shift it to toward the end of the year, shifted it away from the meal program.
Michael Lennox:'cause a lot of people were going back to work and we were like,
Michael Lennox:Hey, we think there's a workforce development need here where there's
Michael Lennox:a lot of people in our industry that.
Michael Lennox:Are trying to get back into, restaurants, but a lot of folks have just left the
Michael Lennox:industry outright and there's a lot of just festering issues that are left over
Michael Lennox:from before Covid in terms of people not having the tools they need to succeed,
Michael Lennox:being underpaid, et cetera, et cetera.
Michael Lennox:So we were like, yeah, we develop some programming that can upskill folks that
Michael Lennox:are trying to get back into the industry.
Michael Lennox:So take hourly talent.
Michael Lennox:Build them up into managers and then place them into good organizations that,
Michael Lennox:that, that do good work with their people.
Michael Lennox:And I think the, vision for that program was spot on.
Michael Lennox:We just ended up, it had some, various things that didn't go in our favor as we
Michael Lennox:were trying to pull it off and, worked with a few, like different organizations.
Michael Lennox:It was honestly a little more complicated and it probably needed to be.
Michael Lennox:So it.
Michael Lennox:It ended up not working.
Michael Lennox:And that was hard to be like, Hey, we're doing the right thing.
Michael Lennox:We've got the right idea, but this just isn't clicking for whatever reason.
Michael Lennox:And so I ended up trying to recalibrate again and after, you know, four or five
Michael Lennox:months we, kind of just ran outta steam and it became, it was like, Hey, I'm, we
Michael Lennox:got a lot going on with our restaurants.
Michael Lennox:We've done some really good work with the nonprofit.
Michael Lennox:I'm super proud of it, but the time is just not now.
Michael Lennox:So we've talked a.
Michael Lennox:And part of our long range vision for electric hospitality is to
Michael Lennox:have like an in-house nonprofit or foundation that's, that is meal
Michael Lennox:oriented and, hunger oriented.
Michael Lennox:And it's jumped something I'm, definitely passionate about because I mean, to
Michael Lennox:your point, there were a lot of hungry folks in our industry before Covid,
Michael Lennox:and to me there's, that's just a.
Michael Lennox:That's still there's a lot of unfinished business there.
Michael Lennox:And it's gonna take a pretty, you know, far reaching holistic array of solutions
Michael Lennox:to, to kind of get it to the right place where that's just in the rear view.
Michael Lennox:But we're not there yet.
Michael Lennox:So I, definitely see some opportunities to do more in that general zone.
Adam Lamb:So it seems like when you use the phrase, looking in the mirror,
Adam Lamb:To see what could be done better.
Adam Lamb:You've always had this focus on the team and as you said, you
Adam Lamb:know, it doesn't happen overnight, but I just want to quickly kind
Adam Lamb:of go over general compensation program for electric hospitality.
Adam Lamb:And I just want to use that as an illustration of what that
Adam Lamb:long-term vision can look like.
Adam Lamb:And some of these things probably cost.
Adam Lamb:You know, more than your average, you know service, bottom line.
Adam Lamb:But some of these things are also accessible right now.
Adam Lamb:So, you know, you talk about compensation back of the house starts at $15 an hour.
Adam Lamb:Payday is every week on Friday.
Adam Lamb:Good job, paid time off.
Adam Lamb:All hourly employees are eligible for P T O after 60 days of employment.
Adam Lamb:And you accrue one hour p t o for every 30 hours.
Adam Lamb:Worked with an annual cap of 30 hours per pt, so you're basically
Adam Lamb:giving 'em one week of vacation paid.
Adam Lamb:Per year, or they can use it however they want it.
Adam Lamb:So it's P T O health insurance.
Adam Lamb:Full-time employees are eligible for health insurance coverage the first of
Adam Lamb:the month after 30 days of employment.
Adam Lamb:We offer three different tiers of coverage through UnitedHealth Electorate
Adam Lamb:Hospitality pays an equivalent of 60% of the lowest tier for single coverage.
Adam Lamb:Employees are able to add immediate family members and will be responsible
Adam Lamb:for the additional premium cost.
Adam Lamb:4 0 1 K.
Adam Lamb:After one year of employment, full-time employees are eligible
Adam Lamb:to enroll in our 4 0 1 k plan.
Adam Lamb:You can elect to save up to 6% of your pre-tax wages, and electric
Adam Lamb:cost will match a hundred percent up to 4% and 50% up to 6%.
Adam Lamb:Man, you guys, that's awesome.
Michael Lennox:Very cool.
Adam Lamb:Bu I'm sorry.
Adam Lamb:Bonusly.
Adam Lamb:Bonusly is a fun personal employee and I love this one.
Adam Lamb:Bonus recognition program bonus.
Adam Lamb:Every month the employees get an allowance to give bonuses to their colleagues
Adam Lamb:to recognize their contributions.
Adam Lamb:So if you're the front of the house, you can tip a hat to the
Adam Lamb:back of the house and vice versa.
Adam Lamb:Save up your bonus earnings to redeem them for from our extension
Adam Lamb:digital reward catalog featuring Amazon, Southwest Airlines bass
Adam Lamb:Pro Shops, et cetera, et cetera.
Adam Lamb:Rewards never expired.
Adam Lamb:And the last one is za Zune, which allows employees to instantly access a
Adam Lamb:portion of their earned wages on demand.
Adam Lamb:It's a voluntary benefit that reduces financial stress, really to cash
Adam Lamb:shortfalls between paychecks and the fact that you're paying them every Friday.
Adam Lamb:Again, these are very, well thought out.
Adam Lamb:Additions to what would normally be a package, and I can point to quite
Adam Lamb:a few restaurant companies that don't do half of this or a third of it.
Adam Lamb:You know, it's like here's your check, here's your check.
Adam Lamb:See you later.
Adam Lamb:Don't bother me for
Jim Taylor:another two weeks.
Jim Taylor:Well, you know what, I think is interesting, Michael, is that.
Jim Taylor:You know you've been in the restaurant industry long enough now, obviously
Michael Lennox:that you're one of us, right?
Michael Lennox:You're, a hospitality guy.
Michael Lennox:I've doing this longer than anything else I've done in my entire life, so, exactly.
Jim Taylor:But, you know, listening to that list and from the conversations
Jim Taylor:that we've had before, You know, you're talking about looking in
Jim Taylor:the mirror and doing things better.
Jim Taylor:But I mean, in terms of how the industry in general, as far as I've experienced
Michael Lennox:goes,
Jim Taylor:a lot of that stuff is like outside of the hospitality norm, right?
Jim Taylor:Let's do things the way that other industries do, which I love.
Jim Taylor:'cause you know, I spend a lot of time talking operators about comp plans and
Jim Taylor:stuff like that, and the conversation is usually the same as we've always done it.
Jim Taylor:Maybe tweak it a little bit.
Jim Taylor:This is like, So much of this is
Michael Lennox:totally different, so.
Michael Lennox:I mean, pat on the
Jim Taylor:back, that's just very cool because, you know, we can never get
Michael Lennox:good enough at that kind of stuff, I don't think.
Adam Lamb:Well, and the fact of the matter is, that, you know, for the
Adam Lamb:operators who are not thinking this.
Adam Lamb:Largely, you know, you get to be the beneficiary of their shortsightedness
Adam Lamb:because folks working over there, they look over the fence and
Adam Lamb:seeing what you're offering.
Adam Lamb:Like you know, like I'm said, I'm three hours away, man.
Adam Lamb:I can be at work at eight.
Adam Lamb:Am you ready?
Michael Lennox:Well, yeah, I mean I, appreciate you calling all that out.
Michael Lennox:I, and just wanna, this isn't tooting horns, it's just no, it
Michael Lennox:just is additional context, but the.
Michael Lennox:The list you're reading off, most of that is calling out benefits
Michael Lennox:and perks for hourly staff.
Michael Lennox:Okay.
Michael Lennox:And so, which is great and like we're super proud of that, the benefits are,
Michael Lennox:even stronger for salaried managers and, salaried members of the team.
Michael Lennox:So by that I mean we do a hundred percent health insurance
Michael Lennox:coverage for if you're salaried.
Michael Lennox:The, we have the 4 0 1 K, but the p t o, you know the, p t O piece that you
Michael Lennox:were talking about is for hourly staff.
Michael Lennox:We've got a P T O program for salary managers.
Michael Lennox:We also offer a $1,500 annual continuing education stipend if you're salaried.
Michael Lennox:And that's mandatory, by the way.
Michael Lennox:So it's like, Hey, you gotta, this is like, use it.
Michael Lennox:You gotta use it.
Michael Lennox:So yeah, it, some of this also too is like we.
Michael Lennox:Did the, implemented the weekly payroll process.
Michael Lennox:Probably four years before Covid.
Michael Lennox:And, some, a lot of this has like, grown organically over the years.
Michael Lennox:It wasn't, Hey, oh shit, we gotta do something because covid just happened.
Michael Lennox:What, do you do?
Michael Lennox:But at, the end of the day Why, are we doing this?
Michael Lennox:There's definitely a cost associated to it, right?
Michael Lennox:But it's not as high as you honestly think, and it's a lot of little
Michael Lennox:stuff that I think in the aggregate adds up to significant value.
Michael Lennox:And there's only the way to show people that you care.
Michael Lennox:There's lots of ways to do it.
Michael Lennox:Money just unfortunately, is a way that you can express that
Michael Lennox:and, benefits are as well, so.
Michael Lennox:I would definitely encourage any, other operators to view not,
Michael Lennox:view ours as like the holy Grail.
Michael Lennox:'cause we're always, trying to make it better.
Michael Lennox:But it's like, Hey, this should be an annual quarterly thing.
Michael Lennox:Like, how can we take as good of a, good care of our team as possible and know
Michael Lennox:that they're gonna return the favor by sticking with you if you invest in them.
Michael Lennox:Which ultimately to me, pencils out.
Michael Lennox:Because it does cost money to, hire and replace people.
Michael Lennox:That's what I was gonna say is that, you know, there's a bit of cost
Michael Lennox:associated to what you're doing,
Jim Taylor:but the cost and the pain is probably far less than 150% turnover.
Jim Taylor:Like other places, other
Michael Lennox:places in our industry face, our retention rate has been in
Michael Lennox:free fall over the last couple years.
Michael Lennox:Meaning like, we are holding onto people for much longer than we ever have.
Michael Lennox:And they're, really incredible bought in.
Michael Lennox:And so that's, exactly what we're shooting for.
Michael Lennox:And we're, really not letting off the gas.
Michael Lennox:We've been investing into building out a learning management
Michael Lennox:system, working with Wisetail.
Michael Lennox:Which has been a big undertaking.
Michael Lennox:But yeah, it's like you gotta have all the table stakes up and perks
Michael Lennox:and benefits, but you've, also gotta invest into the skills and the.
Michael Lennox:The sort of career development of your, teams, and we're trying to
Michael Lennox:be best in class and, the only way to do that is to, really throw it
Michael Lennox:out the and, do what you gotta do.
Adam Lamb:And you, say very clearly, we are actively working to be the
Adam Lamb:best in hospitality, and in order to do that, we wanna hire the best.
Adam Lamb:And so it's not just as simple, it's just hiring the best and
Adam Lamb:letting them do what their thing.
Adam Lamb:But the fact that you're enticing them to continually learn to to have
Adam Lamb:continuing training going on to to probably have great and you know,
Adam Lamb:timely reviews to keep communication up.
Adam Lamb:I mean, all those critical skills that you know, The associates are
Adam Lamb:telling us that's what they want.
Adam Lamb:Right.
Adam Lamb:It's not, you know, some industry consultant saying, Hey, you should really
Adam Lamb:do this if you wanna be best in class.
Adam Lamb:Like our people are telling us what they want.
Adam Lamb:And whether or not we're listening is up to us.
Michael Lennox:Yeah, a hundred percent.
Michael Lennox:Yeah, so true.
Michael Lennox:Integrated more.
Michael Lennox:Well, and
Jim Taylor:that totally aligns, I mean, one of our little taglines
Jim Taylor:is that retention is the new Cool.
Jim Taylor:So that you guys are, already speaking that too, so that's, pretty cool.
Michael Lennox:It's like, why would you not wanna retain people?
Michael Lennox:Like, why, like, what the hell who, does not wanna retain?
Michael Lennox:It's like it's to hire people.
Michael Lennox:Like why
Adam Lamb:it it becomes the, Amazon business principle, right?
Adam Lamb:Amazon doesn't, they actively.
Adam Lamb:You know, hire people for about two years and then they, you know, have a way
Adam Lamb:of moving people out because you know, someone who's tenured has a tendency of
Adam Lamb:wanting more and more or so the theory goes where as opposed to someone who's
Adam Lamb:coming in probably doesn't have enough.
Adam Lamb:Security in their own right to be able to stand for themselves and
Adam Lamb:say, Hey, this is what I'm worth.
Adam Lamb:And that's just me theorizing.
Adam Lamb:But I do know that Amazon has kind of set that up in motion.
Adam Lamb:So to me it's incredibly exhausting to have to continually turn around
Adam Lamb:and train people as opposed to having a solid group of folks.
Adam Lamb:And yet, you know, how do you, well, let me ask you this, Michael.
Adam Lamb:So what do you do to kind of help stall complacency Yeah.
Adam Lamb:Amongst tenured staff?
Michael Lennox:Yeah.
Michael Lennox:So, I mean I, think a few things.
Michael Lennox:One is that we've been growing quite a bit.
Michael Lennox:We're working on a few new restaurant properties right now, and we're, not huge.
Michael Lennox:I mean, we're bigger than a, one-off mom and pop, but we've got about
Michael Lennox:160, 170 staff across the org.
Michael Lennox:So, I mean, I think growth is huge.
Michael Lennox:It's just if you're not growing you're, dying in my opinion.
Michael Lennox:And so having, things to grow into and look toward is just a forced
Michael Lennox:opportunity to say, Hey we've got a lot of we things coming.
Michael Lennox:We've got some big opportunities on the board.
Michael Lennox:How are we gonna get there?
Michael Lennox:And that's, created a lot of permit from within opportunities with us.
Michael Lennox:So that's one, two.
Michael Lennox:Our core values are creativity, connectivity, positive energy,
Michael Lennox:and that anchors, you know, virtually everything that we do.
Michael Lennox:And that's we, talk about it a lot.
Michael Lennox:It flows into bonusly, the staff recognition platform that we have.
Michael Lennox:And it's just embedded in how we do things.
Michael Lennox:And so how does that manifest itself?
Michael Lennox:Creativity, connectivity, positive energy, we, that honestly is always something
Michael Lennox:that we're trying to view through the lens of continuous improvement.