Great Places to Work S haring Our Successes Presentation

1. Great Places to Work • Sharing Our Successes • Presentation • Worker-Owned Restaurant Corporation dba Casa Nueva • Leslie Schaller – Business Director/Founder • leslies@acenetworks.org • October 25, 2006

2. Worker-owned Restaurant Corporation • Established in 1985 • Operates as a c corporation – By Laws designate business as worker cooperative • Started with staff of 20 worker owners now employ staff of approximately 60 to 68 since 2004 • All worker-owners from 1985-2000, hired employees as well 2001 to 2006

3. "Casa Nuevais an innovative worker-owned cooperative based in Southeast Ohio. We are dedicated to strengthening the environmental, economic, and social well being of our community by promoting wholesome products, democratic participation and responsible practices."

4. Timeline of operations • Incorporated June 1985 • Restaurant opened 10/85 • Liquor permit 9/89 • Cantina opened 9/93 • Manufacturing began 1997 (wholesale) • Commissary sales growth in 2000 – 2001 • Athens Farmers Market member 2001 + • Major expansion to 4th storefront 2004 • Bodega kitchen & quick casual menu 2004

5. Core Values • Participatory democracy • Access to ownership and equity • Living wages and benefits • Environmental stewardship • Sustainable agriculture • Keeping $$$ local • Homegrown, handmade, fair trade • Incubating community

6. Participatory democracy • all employees can become coop members • coop member = shareholders • coop members make all decisions • coop members follow groundrules for cooperation

7. Participatory democracy • coop members participate on committees, board of directors and coordinator team • coop members participate on human resource teams • all meetings open • associates can participate in meetings, on teams and committees

8. Access to ownership and equity • everyone is hired as an employee • worker-owner track includes 3 to 6 month trail period • worker owners buy in for 2007 will be $1500, typically paid through a payroll deduction • shown a profit every year since 1986 • profit split 60% for ICA’s and 40% corporation • patronage dividends calculated based on hours worked

9. Living wages & benefits • Employee wages start at about $8.50 to $9.00 (average food service worker in Athens County is $5.15) • Worker-owners start at $1.00 over employees • Wage increases based on hours worked and status • All tips split amongst all shift workers (both w/o’s and employees) • Everyone eligible for health insurance (health, eye and dental) • Retirement co-pay available to worker-owners

10. Environmental stewardship • Reduce energy use and increase efficiencies • Winner of Ohio EPA Pollution Prevention Award • Advocate for commercial curbside recycling in 1988 • Recycle plastic, paper, newsprint, cardboard, aluminum, steel, clear glass & brown glass • Recycle green glass to local furniture maker • Compost all vegetable waste, fruit waste & coffee grounds • Food scraps recycled to area hog farmers

11. Environmental stewardship • purchase goods & services from environmentally friendly biz • investigating ways to reduce energy costs with solar panels on roof top • work with local non-profit to advocate for Class 2 EPA municipal composting facility • work with Athens Uptown Business Association on recycling issues

12. Sustainable agriculture support • long history of buying local since 1986 • currently purchase from over 40 local farmers, producers and distributors, even flowers grown locally • work with growers to provide capacity analysis and identify certain varieties of produce • special training on use of local ingredients for back & front of house staff • regular workshops for staff on local agricultural issues

13. Sustainable agriculture support • About 90% of food ingredients are local, sustainable, organic or international fair trade • Have provided Casa staff and pay to work on area farms as teaching tool • Member of the Ohio Ecological Food and Farm Association, Athens Farmers Market, Slow Food USA, Chef Collaborative and Community Food Initiatives • Use local food advocacy in marketing and publicity • Participate on national web pages: Food Routes, Local Harvest, etc.

14. Keeping $$$ local • Participate on Athens Area Chamber of Commerce and Athens Uptown Business Association --- encourage small biz services and local tourism initiatives • One of 5 founders of Athens Independent Restaurant Association – advocate for independents, share services, lobby officeholders and media, sponsor events • Work with local service providers, often promote in our marketing materials • Participate in both city and county comprehensive plans

15. Homegrown, handmade and fair trade • Utilized in house graphic design and local artist for restaurant, Cantina and manufactured product line marketing materials • Utilized local ingredients for wholesale product and Limited harvest lines • All processed items on our menu – produced either by our staff or value- added producers (jams, pickles, roasted chiles, spreads, tortillas, breads, granola, crackers, maple syrup, honey, etc.) • Our space is used as gallery and we act as broker for all sales of artwork • Invest in other worker coops and fair trade organizations

16. Incubating community • Space has become a networking hub for local food economy • Assisted with development of ACEnet Food Ventures Center • Eighteen worker-owners have started other businesses • Many worker-owners have become community leaders • Hold fundraisers for community organizations • Celebrate customer and producer appreciation weeks • Regular customers refer to themselves as “eater owners!”

17. Why and how it all works • Clear operating procedures (200 page + handbook) • Groundrules and on-going cooperative education • Open book accounting practices (sales and tips posted after every shift, weekly financial reports, income statement & balance sheet posted every month • Transparent decision-making • Clear group process (agenda postings, minutes, weekly scheduled meetings for coordinators and board of directors) • Annual business plan (about 80 pages with extensive pro-formas)

18. Coordinator Team 1 to 7 day decisions, up to $5,000, supervises & implements HR Board of Directors Monthly decisions up to $10,000, hire/fires/disciplines HR Membership Monthly to annual decisions, must vote on budget & expenditures exceeding $10k, creates & revises HR policies & procedures

19. Creating a culture of cooperation • Clear application and interview process (how a coop workplace is different) • Extensive orientations for incoming staff • Trial period for incoming worker – owners • Buddy systems and frequent peer evaluations • Existing worker-owners mentor and model coop norms

20. Creating a culture of cooperation • Minimum coop ed and financial training prior to acceptance • Flexible member fee pay-in, family friendly policies, sabbaticals, staff prices, paid leaves under certain circumstances • Mediation and conflict resolution as needed • Annual celebrations, all staff trainings and conferences

21. Financial Management Evolves • Policy assistance from national experts • Understanding bank and accounting assistance • Invest in training financial managers • Always upgrading technology, software, POS system • 1 to 3 year pro-forma development • Conservative liability to asset ratio • Utilized large percentage of equity for expansions

22. Human resources at the core of success • Train everyone as if they are owners • Emphasis rights and responsibility • Self-management as north star • Peer learning and peer evaluations • Deal with conflicts and personality types • Embrace diversity

23. Signposts of success • Still around after 21 years and still worker-owned • Grown from $200k to $2m in annual sales • Shown a profit and paid out patronage dividends every year • Have helped launch and expand at least 25 other businesses and farmers doing over $2.5 million in annual sales (Shade River Organics, Green Edge Gardens, King Family Farms, Rich Gardens, Minerva Cheese, Village Bakery, O’Betty’s Red Hots, Crumbs Bakery, Marietta Brewing Company, Sundown Garage, Media Brite, Eden Marketing, to just name a few) • Beloved by our customers & community!!!!

24. What’s next? • Increase number of worker-owners • Increase wages, benefits and profits • Increase number of local customers • Promote “uniquely Athens” experience to visitors • Expand distribution of manufactured products • Continue local advocacy in our community • Work on national coop awareness

26. You can support us by asking for our products at your local grocery shelves!

27. Visit us at www.casanueva.com

28. For more information Leslie Schaller leslies@acenetowrks.org Nancy Beurkel casa@casanueva.com Greg Lyle call the Cantina at 740-594-8691