An Interview With Chad Silverstein
Education: Employees need a clear understanding of how the ESOP works and how it benefits them financially. M Culinary has partnered with WealthPoint to provide ongoing educational workshops and resources. Equipping our employees with the knowledge they need is essential for maximizing their participation and engagement in the ESOP model.
The global pandemic has forever altered the landscape of sales, propelling us into the era of remote selling. Today, businesses and sales professionals face the challenge of connecting with clients and closing deals without the traditional in-person interactions. Mastering the art of remote selling has become not just an advantage but a necessity. From leveraging technology and digital tools to building trust and rapport over virtual platforms, the skills required for effective remote selling are evolving. I had the pleasure of interviewing Brandon Maxwell.
Brandon Maxwell, CEO of M Culinary Concepts, Inc., has carved his path in the hospitality industry. From his early days as a bartender to navigating the challenges and rewards of business ownership, Maxwell has a deep understanding of what it takes to create a successful culinary experience. In the past year, M Culinary Concepts has taken a bold step toward the future by transitioning to an Employee Stock Ownership Plan (ESOP).
Thank you so much for joining us in this interview series! Before we dive in, our readers would love to “get to know you” a little bit about you. Can you tell us about your ‘backstory’ and how you got started?
The world of restaurants wasn’t just a career choice for me — It was part of my upbringing. I’m the son of a bartender from New Jersey. My mother made pizzas at my dad’s restaurant when she was pregnant with me. It’s no surprise that I found myself drawn to the hospitality industry at a young age. My first foray began at 14, where I learned the ropes from the ground up as a dishwasher, cook, bartender and eventually manager. That experience instilled in me a deep appreciation for the hard work and dedication it takes to create truly memorable dining experiences.
Building on that foundation, I pursued a degree in Hotel Administration from Cornell University. Armed with practical knowledge, gained during years with Hyatt Hotels, and a passion for the business, I embarked on my entrepreneurial journey. I invested in a restaurant and nightclub in Santa Monica, California. After an earthquake caused property damage and shuttered that business, I pivoted my focus to Scottsdale, Arizona.
Once in Arizona, I partnered with Chef Michael DeMaria in 1997 to open Michael’s at the Citadel. The restaurant’s success led to a surge in catering requests. In 2008, we closed the restaurant to dedicate all resources to the catering arm of the business. Today, M Culinary Concepts boasts an impressive track record. We’ve catered the WM Phoenix Open for over 24 years, along with major sporting events for the USGA, NFL, and NCAA. From intimate gatherings to massive events serving 200,000 people, M Culinary continues to deliver exceptional culinary experiences.
How would you describe the culture at your company and what has been the biggest contributor?
The spirit of M Culinary is deeply rooted in our operational background. We’re not afraid to roll up our sleeves and get things done, no matter the obstacle. It’s a culture built on teamwork, problem solving, and a shared commitment to delivering exceptional service. This ethos stems from our early days, when we took on challenging projects with a “figure it out” mentality. We didn’t always have all the answers beforehand, but we had each other, a team pulling on the rope together. That collaborative spirit has become the cornerstone of who we are at M Culinary.
How would you explain what an ESOP is to someone who has never heard of it before?
Imagine a company where the employees own a piece of the pie — not just figuratively, but literally. That’s the idea behind an ESOP. Here’s how I explain it:
Over time, employees at M Culinary will gradually become owners of the company. Every year, a portion of the company’s ownership is essentially “assigned” to employees for free. As M Culinary grows and becomes more profitable, the value of those shares owned by employees also increases. It’s like a retirement account that grows alongside the company’s success, but instead of being in an interest-bearing account, it’s directly tied to the company’s stock and success.
Now, it’s important to understand this isn’t a get-rich-quick scheme. You can’t cash out your shares every week. However, over time, as you accumulate these shares and the company grows, they become increasingly valuable. Eventually, when you leave the company or retire, you can sell your shares and potentially receive a significant sum of money.
Looking back, what was the catalyst that made you start thinking about transitioning to an ESOP?
As any successful business owner contemplates, succession planning becomes a crucial question. For M Culinary, the answer wasn’t so straightforward. We didn’t have any children or relatives with interest in taking over the company. This led me to consider how I could ensure the legacy of M Culinary — a company built by the hard work of so many talented individuals — would continue to thrive. Selling to an outside entity didn’t feel right. I wanted to find a way to transfer ownership and wealth to the very people who made M Culinary the success it is: our employees. The idea of an ESOP resonated with me because it offered a unique solution. It allowed me to become a participant alongside my employees, sharing in the future growth of the company. More importantly, it gave everyone at M Culinary a stake in the game. It wasn’t just about coming to work and getting a paycheck — it was about becoming part of something bigger, something they owned a piece of. This shared ownership model, I believe, will propel M Culinary toward an even brighter future.
Was there ever a point you doubted the ESOP route? What kept you motivated to push through those challenges?
Transitioning to an ESOP is a complex process, and there were moments when questions arose. It’s natural to have doubts when embarking on a new journey. Fortunately, the guidance and support of WealthPoint, a Phoenix-based wealth management and ESOP administration company we partnered with, were invaluable. They provided the expertise and reassurance we needed to stay focused and move forward. Having a professional team in our corner made (and will continue to make) all the difference.
ESOP companies often have a distinctive culture and operational approach. What makes your company stand out from others, thanks to the ESOP structure?
The hospitality industry thrives on a customer-centric approach. We want people to walk into our events and feel welcomed, cared for, and delighted by the experience. An ESOP fosters a sense of shared ownership and responsibility among all employees. This translates into a more engaged workforce, where everyone takes a personal interest in the success of the company. When employees understand that their efforts directly contribute to the company’s profitability, which in turn increases the value of their stock, it creates a powerful incentive. It’s a win-win situation for everyone involved. M Culinary Concepts becomes a more attractive place to work, as employees feel valued and invested in the company’s future. This not only benefits employee morale but also translates into a superior customer experience. With a team that takes genuine pride in their work, our guests are sure to feel the difference.
Great. Now, let’s dive into the heart of our interview. The transition to an ESOP involves a lot of challenges and opportunities to learn. Could you list the top “Five Things You Need to Successfully Leverage the Power of ESOPs”?
Implementing an ESOP is a strategic decision that requires careful planning and execution. Here are the key elements I believe are crucial for successfully leveraging the power of an ESOP:
1. Education: Employees need a clear understanding of how the ESOP works and how it benefits them financially. M Culinary has partnered with WealthPoint to provide ongoing educational workshops and resources. Equipping our employees with the knowledge they need is essential for maximizing their participation and engagement in the ESOP model.
2. Professional Management: Setting up and managing an ESOP requires specialized expertise. Working with a reputable ESOP development company, like WealthPoint, ensures compliance with regulations and smooth operation of the program. Their guidance helps us navigate the complexities of the ESOP structure and maximize its effectiveness.
3. Customer Awareness: We believe that highlighting our employee-owned status can be a significant advantage. Many customers value companies with strong employee engagement. M Culinary plans to leverage its ESOP model as a differentiator, attracting customers who appreciate the unique experience an employee-owned business offers.
4. Grow Revenues: Employees are no longer simply working for a paycheck; they are actively invested in the company’s success. This translates into a more focused and motivated workforce, ultimately contributing to M Culinary’s bottom line, which will be shared by all.
5. Team Mentality: The ESOP fosters a sense of community and shared purpose. Employees feel a responsibility not just to their individual tasks, but to the overall success of the company.
Financial literacy is crucial in an ESOP for employees to understand the value of their shares and how their actions impact the company’s success. What initiatives have you taken to educate your employees about financial aspects and the workings of the ESOP?
We have partnered with WealthPoint to conduct educational workshops and presentations for our employees. We’ve also begun developing informational materials and resources to provide a comprehensive understanding of the ESOP program. This is an ongoing process, and M Culinary is committed to ensuring all employees feel informed and engaged with the ESOP model. This takes time.
Employee ownership often changes the dynamics of engagement and participation. How have you seen employee involvement evolve in decision-making and daily operations since transitioning to an ESOP?
Since the announcement, we’ve witnessed a positive shift in employee involvement, impacting both decision-making and daily operations. Employees are genuinely interested in understanding the company’s performance beyond just their individual roles. They’re not just focused on completing tasks but also identifying inefficiencies and suggesting improvements that could benefit the company. This collaborative spirit fosters a culture of continuous improvement.
We’re excited about the initial changes, however, it’s important to remember that we’re still in the early stages of our ESOP implementation. We’re confident that as employees gain a deeper understanding of the program and their ownership stake continues to grow, their engagement and participation will continue to evolve in positive ways.
Company culture and the ability to attract top talent are critical factors for business success. How has adopting an ESOP model impacted your company culture and your approach to recruiting and retaining employees? Do you believe the ESOP model has given you an advantage in the labor market?
While we are only in our first year of this model, we are optimistic that the ESOP will make M Culinary a more attractive employer. The opportunity to be part of something different, employee-owned company with a stake in its future success is a powerful draw for talented individuals seeking meaningful work. We plan to monitor industry trends and employee feedback to gauge the impact of the ESOP on our talent acquisition efforts.
How can our readers further follow you or your company online?
Instagram: @mculinaryconcepts
Facebook: facebook.com/mculinaryaz
Pinterest: @MCulinaryConcepts
Linked In: linkedin.com/company/MCulinaryAZ
This was great. Thank you so much for the time you spent sharing with us.
About the Interviewer: Chad Silverstein, a seasoned entrepreneur with over two decades of experience as the Founder and CEO of multiple companies. He launched Choice Recovery, Inc., a healthcare collection agency, while going to The Ohio State University, His team earned national recognition, twice being ranked as the #1 business to work for in Central Ohio. In 2018, Chad launched [re]start, a career development platform connecting thousands of individuals in collections with meaningful employment opportunities, He sold Choice Recovery on his 25th anniversary and in 2023, sold the majority interest in [re]start so he can focus his transition to Built to Lead as an Executive Leadership Coach. Learn more at www.chadsilverstein.com
Brandon Maxwell Of M Culinary Concepts On Why ESOPs Are the Future of Business Succession was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.