Flyers Pizza & Subs, a 10-location shop based in Columbus, Ohio, launched an employee stock ownership plan (ESOP) in 2016. According to Scott Ulrey, the brand’s co-president, the move has led to a positive culture and served as a bedrock of the brand’s growth.
October marks Employee Ownership Month, and Flyers is taking a moment to reaffirm its commitment to the program.
“The culture and stability of our ESOP organization has provided a foundation from which we have been able to weather cost escalations, maintain consistent service across all 10 of our locations and invest in new growth opportunities,” Ulrey said.
A press release from Flyers Pizza & Subs outlined how its ESOP plan has served as a strategic differentiator:
1. Stronger employee retention, lower turnover, and workforce resilience
Studies of ESOPs in food-related industries show that ESOP companies saw lower median involuntary separation rates (2 percent vs. 5 percent) and far lower quit rates (6 percent vs. 20 percent) during the pandemic years. ESOP-driven food companies were also less likely to downsize or cut benefits in crisis periods. In volatile labor markets—where restaurants struggle to recruit and retain staff—ownership culture can posture a company of stability.
2. Higher employee engagement, productivity, and shared accountability
When employees are owners, their interests align more closely with the company’s success. ESOPs have been tied to higher productivity, greater innovation, and stronger operational discipline. In the restaurant world—where speed, consistency, quality, and service drive guest loyalty—having a workforce that feels integral to success can make a margin-level difference.
3. Reduced risk, built-in succession planning, and tax advantages
For entrepreneurs or founders seeking a transition path, ESOPs provide an effective succession mechanism without selling to outside buyers. From a tax standpoint, ESOPs offer potential advantages at corporate and shareholder levels, making them attractive vehicles for maintaining independence while leveraging tax efficiencies.
4. Long-term wealth creation and alignment
ESOPs empower employees to build retirement assets directly tied to the company’s performance. Over time, as the business grows and value accrues, all shareholders benefit. This helps shift the mindset from “employee wage earner” to “stakeholder owner.”
Flyers Pizza & Subs’ ESOP Journey to Date:
- Flyers launched its ESOP in 2016.
- As of the end of 2024, 114 active participants are included in the plan, and 24 new employee shareholders were welcomed in 2024 alone.
- At year-end 2024, 48 of those 114 were fully vested.
- Vesting schedules are designed to reward long-term commitment: 0 percent after year 1; 20 percent in year 2; 40 percent in year 3; 60 percent in year 4; 80 percent in year 5; and 100 percent in year 6.
Flyers Pizza was founded in 1976 by Wayne Ulrey after acquiring Tonni’s Pizza in West Jefferson, Ohio. Flyers remained a family-operated business until 2016, when it became a 100% employee-owned company, offering qualifying employees an Employee Stock Ownership Plan (ESOP).
The Ulrey family remains actively involved with the company in various roles. The company is dedicated to the communities it serves, supporting local schools, the Mid-Ohio Food Bank and Autism Speaks, among other organizations and causes.
