RICHMOND, Va. (WRIC) — Labor shortages are impacting businesses all over Richmond. To limit short staffing, one River City coffee shop owner is considering following a business model that he hopes limits turnover.
Although The Lady by Alchemy Coffee shop is fully staffed, owner Eric Spivack wants to follow the Employee Co-op model.
“It’s a higher form of unionization. It’s where they’re partial owners,” explains Spivack.
Spivack says the model will allow his staff to share the work and have the same profits.
“The employees have already been doing a lot of heavy lifting to begin with. I’ve seen potential they have to run the operation, and when we think of different ways to reward them from a compensation standpoint, ownership to me is that highest level of compensation,” says Spivack.
The coffee shop owner has been in the business for ten years. This is the first time he plans to follow the Employee Co-Op model.
“We’ve never had any form of employee ownership in the past. We’ve had some tries or attempts as bonus structures that didn’t always workout. This is like a higher-level version of it but never close to what we wanted it to be,” Spivack tells 8 News.
Spivack doesn’t know when his coffee shop will be following the Employee Co-Op model but hopes it does within the year.