By Charlie Pogacar
Brandon Byrd has worked in the hospitality industry for over 20 years. After holding just about every position one could hold in a restaurant, he began freelance consulting in 2014. That was successful enough that it became his full-time gig in 2019.
Restaurant consulting has taught Byrd a lot of things about the industry, and not all of them are positives. “One less inspiring thing I’ve learned,” Byrd said, “is how many small- and medium-sized businesses are plagued by weak leadership.”
That realization, combined with entering an MBA program in recent years, led Byrd to believe that if and when he ever opened a restaurant, he’d do things differently. Pivotally, he would use a profit-sharing model—where 25 percent of profits are split by team members—in order to separate his business as an employer of choice.
Related: Trust Your Gut: The Bold Choices That Made Wizard Hat Pizza a Word-of-Mouth Hit
Byrd, who has worked for New York City pizza institutions like Two Boots and Best Pizza, will soon put his convictions to the test. His pop-up, Vivian’s Pizza Parlor (@vivianspizzaparlor)—named for his young daughter, born in April 2024—is looking for a permanent home in New York City. The restaurant, Byrd said, will have a profit-sharing model from day one.
To explain why profit-sharing feels necessary, Byrd points to industry statistics, none of which will surprise pizzeria operators. According to the National Restaurant Association, the average turnover rate in the hospitality industry is around 75%. That means three of every four workers leave their job within a year.
There are direct costs associated with losing an employee, such as the recruitment and training of their replacement. There are also indirect costs, Byrd noted, like lost productivity, reduced morale and customer satisfaction issues.
All in all, Byrd estimated that it generally costs somewhere between 15% and 50% of an hourly worker’s annual pay to replace them. A manager is even more costly to replace. A profit-sharing model, then, is a way to combat these issues.
“In my opinion, restaurants often focus too much on black-and-white problems, like inventory or spreadsheets, instead of addressing turnover and culture issues,” Byrd said. “That’s part of why I became interested in creating a business with a profit-sharing model—to reduce costs related to employee turnover. I really want to help create a conversation about making the restaurant industry a more attractive and sustainable place to work.”
Here’s a lightly edited conversation with Byrd regarding Vivian’s Pizza and why Byrd will launch the brick-and-mortar version of the business with a profit-sharing model.
Q. Where did the idea for profit sharing come from?
Brandon Byrd: I decided to open my own place in early 2020, but COVID delayed those plans. I spent two years trying to secure leases, but deals fell through for various reasons. In late 2022, I decided to pursue an MBA.
During the program, I was exposed to different industries and perspectives, which helped me think about solutions to restaurant turnover. I started quantifying the costs of turnover and comparing it to other industries. That gave me the confidence to explore profit sharing as a way to improve team stability and customer experience.
Q. What’s the story behind Vivian’s?
Byrd: Vivian’s started this year as a pop-up. My daughter was born in April, so I figured a pop-up was a good way to start something while keeping my consulting clients and managing my time.
The profit-sharing model is at the heart of the concept. Twenty-five percent of profits would go to employees, with the remaining 75% split between equity investors and operating partners. It’s not a customer-facing thing but is intended to improve the customer experience by building a stronger, more consistent team.
Q. Do you plan to build profit-sharing into menu pricing? How does that work?
Byrd: No, prices wouldn’t be inflated because of profit sharing, and employees wouldn’t be paid less. I aim to pay industry-standard or better wages and benefits like paid time off and health insurance. Profit sharing would be based on hours worked, and I see it as a long-term competitive advantage rather than a cost.
Q. I feel like we should talk about your pizza at some point. What’s your pizza like?
Byrd: Yeah, the pizza itself is really important to me. It’s an absolute labor of love. I like to consider myself a pizza geek, and I’ve taken a lot of time over the years honing my recipe.
Right now, everything is room-temperature fermentation because I don’t have the walk-in space available. I use a poolish for fermentation, which gives it a crisp exterior and pillowy interior. I use King Arthur Flour because they’re a 100% employee-owned company, so why not stick with them? And we try to keep everything really fresh and simple, with Grande mozzarella and Bianco DiNapoli tomatoes. It’s really just about letting the ingredients speak for themselves.
Q. What are some of your favorite spots to grab pizza in New York?
Byrd: My favorite spot right now is L’Industrie Pizza. Their crust is consistently amazing—crispy on the outside, pillowy on the inside. I also love Mama’s TOO! Both places are doing exceptional New York-style pizza.
