After more than five decades as a family-owned business, Arizona-based Spinato’s Pizzeria & Family Kitchen, a member of PMQ’s Pizza Hall of Fame, has transitioned 49% of company ownership to eligible employees in an Employee Stock Ownership Plan (ESOP).
That means about 33% of the brand’s current employees are now owners as well, according to a press release.
The company called it “a heartfelt decision,” noting that it “was made more than two years after reviewing succession and legacy options. The Spinato family is celebrating this new family and employee ownership partnership with joy, gratitude and an enthusiastic nod to the future.”
It’s an unusual move, but Spinato’s, which turned 50 in 2024, has never been your typical pizza chain. While some brands recite talking points about values, Spinato’s has always walked the proverbial walk, with initiatives like last year’s Holiday Kindness Challenge (won by a 10-year-old girl) and 2023’s “kindness bags” distributed to people experiencing homelessness. The Spinato family also founded the Kenneth A. Spinato Foundation in 2009 to raise funds and develop programs for Phoenix Children’s Hospital, the Arizona Children’s Association and Sentinels for Freedom.
And unlike virtually every other restaurant chain in the country, Anthony Spinato, the brand’s CEO, told PMQ Pizza last year that his family wasn’t looking to add more locations anytime soon. It currently has six locations in Tempe, Scottsdale, Gilbert, Ahwatukee, Central Phoenix and North Phoenix—and that suits the Spinato family just fine.
In fact, the company’s leadership has been strategic about new openings in order to protect itself and its staff and guests. Looking to the future, the company has plans to expand into Phoenix’s West Valley in the next few years.
“How do you grow it and do it well?” Spinato said last year. Our family and executive team have spent so much time thinking about that. After 40 years, we looked at our core values and realized we just love making people’s lives better….Our goal is not to be the biggest—it’s to be the best.”
The Spinato family will continue to be majority owners, but the new ESOP provides team members with a chance to share in profits while taking pride in contributing to Spinato’s continued growth. Anthony Spinato (pictured below) still leads a team of more than 420 employees as CEO, and the Spinato family will remain active in managing operations and guiding employees in delivering “The Spinato’s Experience.”
Why an ESOP Model?
An ESOP is an employee benefit plan that provides substantial benefits to the company, its current owners and its employees. Currently, there are only about 7,000 companies in the United States that are ESOPs. In Arizona, ESOPs are also rare—less than 1% of companies statewide offer an Employee Stock Ownership Plan.
The model is hard to find among pizza chains large or small, too. One example springs to mind: Johnny’s Pizza House, headquartered in West Monroe, Louisiana, completed its own transition to an ESOP model in 2019—a process that founder Johnny Huntsman started in 2000.
The Spinato family moved a lot faster than Huntsman. They began to discuss the restaurant’s legacy and succession planning during a family retreat in 2022. Ken Spinato, the family’s patriarch, opened Spinato’s first restaurant in 1974 in Scottsdale with his wife, Elaine. Now in his 80s, he continues to greet guests at restaurants, but the Spinato family knew they were approaching a pivotal time in the family business.
“We talked about how COVID-19 changed everything and how the dream of retirement became more elusive for our friends, family and even our own employees,” Anthony Spinato explained in the press release. “Dad shared that he really believed our restaurants are good for our communities and neighbors. Pizza brings people together…families, friends and neighbors connect with each other when they dine at our restaurants. We wanted to make sure we did everything we could to preserve and protect those connections happening in our restaurants for many decades in the future.”
Labor challenges, inflationary pressures and the wage gap also influenced the family’s decision. “We knew that if we were going to protect Spinato’s legacy, we needed to make sure the tenure of our people could grow,” Spinato said. “We want to find ways to retain our top talent, attract new talent and then reward their hard work and outcomes. We liked that an ESOP is true ownership.”
Spinato’s shared the exciting news with their team members on the morning of October 9 and alerted 150 employees that they already have a “slice of the pie” in ownership. Federal rules mandate that employees must be 21 years or older and work more than 1,000 hours in a year to be eligible for ownership. ESOP participants will get a statement every year about the value of their shares. Spinato’s first statement will be issued to employees during the second quarter of 2026. In addition, while many companies that transition to an ESOP remove 401(k) plans, Spinato’s is keeping its 401(k) plan in which they match 100% up to 4% to help employees maximize retirement savings opportunities.
From Dishwasher to F&B Director to Owner
Terry Wiberg, Spinato’s food and beverage director (pictured above with Anthony Spinato), has been a Spinato’s employee for 24 years. “I still remember my first interview,” he said. “I was 16 years old, applying for a dishwasher position, and sat across from Anthony, the owner’s son, for over an hour. At the time, I wondered why a dishwasher interview was so long. Looking back now, I understand. Anthony, like the rest of his family, has always been deeply compassionate and intentional about who joins this team.”
What started as a job slowly grew into Wiberg’s career.
“I fell in love with hospitality and the way food and service can make people feel at home,” he said. “Around the 10-year mark, I thought about owning my own restaurant. Once I saw how tough profit margins were, I realized I did not want to go alone. Instead, I chose to keep growing with a family who had always treated me as their own. Now, with this ESOP announcement, it feels like everything came full circle. The commitment I have felt for decades is now matched by ownership. I am proud to say that I am not just an employee anymore, I am an owner in the very place that has shaped my career and my life.”
‘It’s the Right Thing to Do’
Spinato’s ESOP announcement coincides with National Employee Ownership Month, and the family hopes other businesses will consider learning about the benefits of ESOPs.
“An ESOP provides ownership, but more importantly it’s about entrusting that team members will care for the company,” Anthony Spinato said. “Many of our team members are already acting as owners in the mindful way they provide memorable experiences to our guests, through delicious food and exceptional guest service. It is the right thing to do to reward them with shares of company ownership. Now they have a way to be rewarded for their commitment, positive outcomes and connections they work so hard to create.”
Spinato said guests can expect the same passionate dedication to delivering “the Spinato’s Experience” from Spinato’s team members, and the only change they will see is messaging about the now family- and-employee-owned company on uniforms, in menus, on social media, and other communication to guests.
“We’re just a small, humble family, and we look at our success not because of what we have done but because of what others have done with us and for us,” Spinato added. “So many people believe in what we’re doing, and from a heart standpoint, we are grateful that we could utilize an ESOP to reward our hard-working, amazing employees, protect the Spinato’s legacy, and look to future growth in the years to come.”
“I have seen too many great organizations dilute their experience when growing,” he continued. “My message to our team has always been, if we are going to grow and get bigger, we must get better while doing it. Now as an ESOP, 1 out of 3 Spinato’s employees is an owner.”
