After over a half a century as a family-run business Spinato’s Pizzeria and Family Kitchen is giving employees a piece of the pie.
Not pizza, but profits, that is.
Spinato’s, whose six Valley venues include at Ahwatukee, Tempe, Scottsdale and Gilbert, has transitioned 49% of company ownership to eligible employees in an Employee Stock Ownership Plan (ESOP).
Calling it a “heartfelt decision that was made more than two years after reviewing succession and legacy options,” a spokeswoman said, “The Spinato family is celebrating this new family and employee ownership partnership with joy, gratitude, and an enthusiastic nod to the future.”
While the family will remain majority owners, employees will share in the profits “while taking pride in contributing to Spinato’s continued growth,” she added.
Anthony Spinato will be CEO of the company, which employs 420 people in delivering what he calls “The Spinato’s Experience” to its patrons, which include the Arizona Cardinals, Phoenix Suns and Phoenix Mercury.
Spinato’s also serves fresh pizza at concession stands at State Farm Stadium in Glendale and Mortgage Matchup Center in downtown Phoenix.
An ESOP is an employee benefit plan that provides substantial benefits to the company, its current owners and its employees.
Currently, about 7,000 companies in the United States are ESOPs.
In Arizona, ESOPs are also rare – less than 1% of companies statewide offer one, according to Spinato’s.
Another new entry into this rarity is Scottsdale-based Camelot Homes, which also announced that its company is 100% employee-owned.
The homebuilder owners Julie and Mark Hancock surprised their employees in a meeting to announce the ownership transition of the 56-year-old company
“While the ownership structure has changed, the company will continue to operate under its existing management, including Mark and Julie Hancock, ensuring a seamless transition and continuity for its customers, partners, and suppliers,” Camelot said in a release.
Mark Hancock said, “Establishing an ESOP is the ultimate way to reward their dedication and ensure that the legacy of quality, craftsmanship, and customer service that our family started continues for generations to come.”
The Spinato family 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, Ken 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 changed everything, and how the dream of retirement became more elusive for our friends, family, and even our own employees,” Anthony Spinato said.
“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.”
The family also said, “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.”
Federal rules mandate that employees must be 21 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 plan in which they match 100% up to 4%.
Terry Wiberg, Spinato’s food and beverage director who has been with the pizzeria for 24 years recalled, “I still remember my first interview. 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,” Wiberg said.
“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.”
Spinato’s ESOP announcement coincides with National Employee Ownership Month.
“An ESOP provides ownership, but more importantly it’s about entrusting that team members will care for the company,” Anthony Spinato said 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.”
He said guests can expect “the same passionate dedication to delivering The Spinato’s Experience.
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,” Anthony said said.
“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. 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, one out of three Spinato’s employees is an owner.”
Its locations include 96 S. Rockford Drive, Tempe; 4848 E. Chandler Blvd., Ahwatukee; 9210 East Vía de Ventura, Scottsdale; and the Epicenter at Agritopia, Higley and Ray roads, Gilbert.
Information: SpinatosPizzeria.com.
