---
title: "P. Terry’s Burger Stand Transitions to Employee Ownership"
url: https://burnaze.com/article/5c117a10-ef3a-48a7-a233-1c19152cc80c
source: "QSR Magazine"
original_url: https://www.qsrmagazine.com/growth/fast-casual/p-terrys-burger-stand-transitions-to-employee-ownership/
author: "Danny Klein"
category: "Burger"
industry: "Restaurants"
segment: "Burger"
published: 2026-06-09T20:24:03.000Z
modified: 2026-10-31T15:31:18.312Z
image: https://images.unsplash.com/photo-1504674900247-0877df9cc836?w=1600&q=80&auto=format&fit=crop
---

# P. Terry’s Burger Stand Transitions to Employee Ownership

**TL;DR:** P. Terry's Burger Stand has transitioned to employee ownership through an Employee Ownership Trust, benefiting its 1,800 employees across 38 locations. The company's co-founders, Kathy and Patrick Terry, will continue leading the company and remain actively involved in its future.

*By Danny Klein, originally published in QSR Magazine on 2026-06-09. [Read the original](https://www.qsrmagazine.com/growth/fast-casual/p-terrys-burger-stand-transitions-to-employee-ownership/).*

## Story

P. Terry’s Burger Stand, the Austin-based restaurant chain founded in 2005 and known for its people-first culture and commitment to community, today announced its transition to employee ownership through an Employee Ownership Trust, benefitting its 1,800 employees across 38 locations.

By transitioning to an Employee Ownership Trust (EOT), the company is establishing a structure that allows employees to share in the long-term value of the business. The EOT will hold shares on behalf of employees while helping preserve the company’s independence, mission, and culture for future generations. This approach also helps ensure P. Terry’s can continue delivering on the values that have defined the company since its founding, including serving high-quality food at prices affordable for families.

As part of this transition, the company has also established a company-wide profit-sharing program for employees with more than two years of tenure. Beginning immediately, 5% of the company’s operating income will be distributed among eligible employees, with plans to gradually increase that amount to 20% over time.

The decision to transition to an EOT was made by co-founders Kathy and Patrick Terry, who built P. Terry’s from a single 527-square-foot burger stand in Austin into one of Texas’ most beloved restaurant brands, now operating 38 locations across the state.

As part of this transition, Patrick and Kathy Terry will continue leading the company and remain actively involved in its future. The move to an Employee Ownership Trust is intended to strengthen the long-term stability of P. Terry’s while preserving the company’s culture, leadership, and mission for years to come.

To support this effort, P. Terry’s partnered with Common Trust, a firm that specializes in helping businesses establish employee ownership while preserving their culture and mission.

“From the beginning, we believed that taking care of people and building a great business weren’t competing ideas,” said Kathy Terry, co-founder of P. Terry’s Burger Stand. “This transition is the most honest expression of that belief we’ve ever made. P. Terry’s has always belonged to the people who show up every day. Now, it’s official.”

“We’re building something that lasts,” said Patrick Terry, co-founder and CEO of P. Terry’s Burger Stand. “We wanted our employees to feel the benefit of ownership in a real and ongoing way, which is exactly why we’re launching profit sharing alongside this transition.”

P. Terry’s has long been recognized for its workplace culture, above-market wages, and commitment to community investment. Since its founding, the company has donated millions of dollars to nonprofit organizations throughout Central Texas, San Antonio, and Houston.

## Entities

- QSR (sector)
- QSR Magazine (publication)
- company culture (topic)
- restaurant chain (topic)
- Danny Klein (person)
- community investment (topic)
- employee ownership (topic)
- profit sharing (topic)
- P. Terry's Burger Stand (company)
- Kathy Terry (person)
- Patrick Terry (person)
- Common Trust (investor)

---
Originally reported by Danny Klein, QSR Magazine (https://www.qsrmagazine.com/growth/fast-casual/p-terrys-burger-stand-transitions-to-employee-ownership/). Summarized by Burnaze (https://burnaze.com/article/5c117a10-ef3a-48a7-a233-1c19152cc80c).