Adam Lamb:

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.

Adam Lamb:

This episode is made possible by e vocalize.

Adam Lamb:

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Adam Lamb:

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Adam Lamb:

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Adam Lamb:

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To find out more, go to turning the table podcast.com/e vocalize, and

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.