The Eternal Child Within

The Eternal Child Within

The ubiquitous, serendipitous life and art of Chip Holton

by: Nancy Oakley, O.Henry Magazine December 2016

Chip Holton breezes down a central hallway of the O.Henry Hotel, clad in a simple black T-shirt and jeans, greeting the hotel staff with affable “heys” and “hellos” as he makes his way to the Green Valley Grill before it opens for lunch. Pointing to the arched space, or lunette, above the kitchen, the artist explains that the mural occupying it — a massive table laden with a feast of chicken, ham, fish, a loaf of bread, fruits, melon and wine — was meant to effect the Old World ambiance that hotelier Dennis Quaintance hoped for.  “I’ve been working for Dennis for twenty-plus years,” says Chip, who insists that everyone call him by his first name, certainly not “Mr. Holton,” let alone “Frank P. III.” He and Quaintance met when the hotel’s designer, the late Don Rives, (“one of my best buddies,”

“I’ve been working for Dennis for twenty-plus years,” says Chip, who insists that everyone call him by his first name, certainly not “Mr. Holton,” let alone “Frank P. III.” He and Quaintance met when the hotel’s designer, the late Don Rives, (“one of my best buddies,” Chip describes him . . . as nearly everyone he encounters seems to be) recommended to Quaintance that Chip paint a mural for Lucky 32 Restaurant. “Serendipity is part of what I do,” Chip observes. “A lot of work comes to me that way.” Whether helping out a friend, which landed him a gig as set designer for Twin City Stage in Winston-Salem, or striking up a conversation with Dave Fox at Thursday night Cocktails and Jazz and agreeing to give a visual interpretation to a “musical tapestry” the musician is composing. Chip describes his relationship with Quaintance as “brotherly,” unusual for a boss and employee, or patron and artist, if you will. “He’s sort of my Pope Julius,” the artist says of his employer, referring to Julius II, who commissioned

Chip describes his relationship with Quaintance as “brotherly,” unusual for a boss and employee, or patron and artist, if you will. “He’s sort of my Pope Julius,” the artist says of his employer, referring to Julius II, who commissioned Michelangelo’s painting of the Sistine Chapel. “I kid him about it. But he’s a
jolly pope. Nobody that would put you in chains in the Vatican if you misbehaved.” In time, with his exceptionally broad range of skills and artistic styles, Chip became vital to the aesthetic of both the O.Henry and Proximity Hotel, where he was given the title, artist-in-residence.

He painted the semirecumbent portrait of William Sydney Porter in the lobby of the O.Henry. Taken from a photograph he and Rives discovered at the Greensboro Historical Museum, “part of the picture didn’t exist,” Chip recalls. “So I had to have somebody pose in a jacket in the chair and invented the environment. The curtain and all that stuff. And I was trying to make it look like the time period, the turn-of-the-century, with the tones and the painting, so it didn’t look modern,” the artist says. It was a challenge, because Chip, who had been working at the McWane Science Center in Birmingham, Alabama, had accidentally dropped a metal exhibition piece on the fingers of his left hand — the one he paints with. He reveals the scar from the injury. “So I had this hand all bandaged up and I started this painting with my right hand,” he continues. Don’t get the idea that he’s bragging, though: “It was something I had to do, but in the process of doing that, I realized I could do either, so I can write with both, write upside down.”

He can also do faux-finishing on walls, paintings and furniture, repair carpet, and with equal agility paint architectural renderings and English-style watercolors that evoke the Belle Époque of a John Singer Sargent painting. There’s one of these, each different, in every room and in the downstairs of the O.Henry, painted live, on-site. Some depict the pergola outside, some are interiors of, say, a lamp on a table, or of Chip painting himself doing a painting of a sofa. “It can get monotonous doing the same place all the time,” he says. “So I move around a little bit, but it’s still the same subject.”

He flexed different artistic (and physical) muscles working on the interiors at Proximity Hotel, stating in a fleeting moment of solemnity that he feels “honored to visually represent a place in more than one way.” Leaving the Print Works Bistro, where he has just shown how he painted a Matisse-like floral motif on the backs of the restaurant’s chairs, Chip feigns a limp, clowning around, and says, “Walk this way.” It is his salute to the late Gene Wilder who limped the same limp at British comic Marty Feldman’s command in the film Young Frankenstein. “He said it, ‘wyay.’” Chip mimics Feldman’s English accent with no trace of his Lexington roots. He climbs the stairs from the social lobby to the mezzanine lined with his border bearing a faint pattern of tree branches rendered in metallic paint on wood, and retrieving a couple of room key cards, jokes with the young woman at the check-in desk about burning his paintings and making a bonfire out of them.

Opening an unoccupied room, he reveals yet another style of painting that “vacillates between Cubism and Abstract Expressionism,” to fit the hotel’s Mid Century Modern vibe. Monochromatic black-on-white (Chip is currently adding color accents to all 150-some paintings throughout the lodging), the works are more restrained. “You would think it would be real restrictive, but it hasn’t been, for me. It’s been liberating, in that you have to engage your mind and your brain in a different way that’s really tightly controlled.” He pauses.

“I’m not sure many other folks in my position would be comfortable switching back and forth between modes. But I am. I’m sort of like that, because I do lot of different things. But my normal style is realism, with a nod to surreal.”

Such as the mural in the Green Valley Grill that Chip considers his best work in the style. It derives from a 17th-century Baroque painting by Dutch master Jan Davidszoon de Heem. “They brought the fish to me from Lucky 32 on a platter. I got a ham from Conrad & Hinkle [Food Market] in Lexington to use as a resource for the color on the ham,” Chip says. Prior to tackling the larger work, he painted six or seven studies of it, one of which hangs in a private meeting room in the O.Henry Hotel’s lower level. When it came time to paint the mural he approached it the way it would have been painted during the Renaissance or in van Heem’s day, starting with an underlayer, or grisaille, in shades brown, before applying the color with oils. All told, the project took him about four months to complete.

One wonders whether restaurant patrons, as they’re diving into a helping of grits, appreciate his skill and labor that went into the piece.

“Probably not,” says Chip, matter-of-factly. “But I’ve run into some people who stare at the painting and figure out how it was put up.” Answer: He painted it on canvas off-site, rolled it up, stretched it, and with the help of some workers stapled it into its arched alcove.

It’s how he configures most of his murals, “an effective use of my time,” Chip says. Additionally, they are more transportable, such as the comical one in the Black Chicken Coffee shop in Lexington that was moved from the establishment’s original location to its current one on West Second Street. Painted in folk art style, it depicts several chickens and roosters reading books — Don Quixote, The Golden Bough, Animal Farm, The Little Prince, Grimm’s Fairy Tales and volumes of poetry by John Keats and W. B. Yeats (“books I like to read,”says Chip); trotting across the bottom of the mural is a Scottish terrier — the original black “chicken.”

Another mural, based on the writings of Thomas Berry, fills the octagonal rotunda of the Kathleen Clay Edwards Library in Greensboro’s Price Park. The mural is a favorite of Chip’s, he says, because it’s “more intellectualized” than some of his other woks. Yet more adorn walls of several Mexican restaurants in the Triad and beyond. And then there’s the one in the children’s room at the Lexington Public Library that pays homage to the department’s librarian, Valerie Holt Craven, who met an untimely death at the hands of an abusive boyfriend. “I was so distraught, because my kids loved coming up here and talking to Val. She was a fantastic person,” Chip reflects. The mural, spanning two adjacent walls in a corner of the library, is a colorful fantasyland with the Tree of Knowledge as its focal point. Children, engrossed in books, lounge on its branches or in its shade. Oversized mushrooms (“hallucinogenic mushrooms,” Chip clarifies with a sly laugh) punctuate the scene. A dog and cat, and a frog enjoy a Punch and Judy show; a man on stilts throws balloons. Tom Sawyer makes an appearance, as does a windmill (another allusion to Don Quixote); a Chinese laborer unloads a boat “a reference to the furniture industry leaving,” Chip explains. “There’s all kinds of stuff in there.”

He frequently adds symbols and jokes to his works. And his own image.

“That’s me reflected in that green thing,” Chip says, pointing to a shiny object in the upper right-hand portion of the Green Valley Grill mural. “There’s a fly in there, too, somewhere, but I couldn’t tell you where.” In a drawing in his Lexington studio, a finished barn at March Motors, he has depicted himself with a portion of his head as a drip sandcastle (“I used to make ’em all the time at the beach,” he laughs). In another, the artist looks outward — his eyes and forehead paintedover with a patch of blue sky and clouds. He’s sculpted himself as a crude clay Cro-Magnon man from a museum exhibit he worked on; and painted a serious self-portrait during his grad student days, his faunlike face framed by beard and long hair. “I had much longer hair than that,” Chip says. But as it began to thin, he decided he looked too much like Ben Franklin and keeps it short most of the time.

The self-portraits are scattered alongside other works in the barn: Fauvist-style paintings of musicians performing live; a backdrop for the set of a play about Siamese twins Chang and Eng for the Andy Griffith Playhouse in Mount Airy copied from a vaudeville poster; commissions from photographs (“so terribly boring”); a portrait of his daughter as a child; a representational sculpture in resin of his son as a boy: a bust of an anguished woman filled and painted with bronze powder; an acrylic painting of his dog; a wooden headboard with an animal motif carved for his children’s crib. These are situated among his brushes and paints, and MGs, Austin Healeys and assorted English racing cars.

He discovered the barn — how else? — serendipitously when he bought a car (a Ford Taurus not a racecar) from owner Jeff March and wound up doing a painting for a charity auction the car dealer was sponsoring. Several paintings of cars (Chip’s “overhead,” as it were) also hang on the studio’s walls and in an adjacent room. In one, set against the backdrop of an imaginary farm, the artist has playfully added a country bumpkin burning trash. Chip likes the building’s long walls, conducive to working on murals, but it often gets too cold to work with paint. “I guess, in some ways, I’m an itinerant painter, because I don’t have a permanent studio,” he says, having given up the one in his house after his marriage ended. He has an apartment in Greensboro, and the hotels, of course, but has to be careful not to spill paint on carpets and curtains. “You want this little place that’s yours, that you think is yours,” Chip says. “But everything’s temporary. You’re only there long enough to eat a little bit and turn back to dust. But in reality, it’s a comfort to have that place to locate our work in and do it. It’s practical to have a studio.”

On the back wall of the barn behind a worktable is a sentimental favorite, a portrait of Chip’s mother that he painted just before she died. Also a painter, she was the primary artistic influence in his life. “She’d burn toast and fried chicken while I was in the next room coloring,” he remembers, and provided him with “constant exposure to art.” The family home contained volumes of Michelangelo’s paintings alongside copies of The Saturday Evening Post, famous for its covers by Norman Rockwell. “I grew up instinctively drawing things I could see and wanting to draw them like that,” Chip says. They were his early steps in the direction of realism.

He says the painting of her is more than a portrait, but “a statement about change that connects everybody” through various images and symbols. In it, his mother faces the viewer, her back to the ocean while Chip’s nephew makes a drip castle in a tidal pool in the background. “I’m reflected in the fisherman’s buoy,” Chip says, referring to the white sphere his mother is holding in front of her womb. The top right-hand portion of the canvas is damaged from where an air-conditioner leaked water behind it, a haunting reminder to Chip that he “often neglects things” and an ironic one, too: The title of the painting is Mother and the Sea. “You know, “Ave Maria.” Mare [Italian for ‘sea’]”, Chip says, with an Italian accent.

It recalls his stint in the late 1960s when he studied in Asolo, Italy, under Jim Moon. The founder of the Art Department at School of the Arts in Winston-Salem, Moon became a mentor to Chip, one of many artists he supports with collective shows through the Asolare Fine Art Foundation. A simple line drawing of the Northern Italian burg and a painting of the house where Chip stayed while under Moon’s tutelage have prominent places in the racecar barn.

Chip’s formal study of art didn’t begin until graduate school. He had hoped to train as an architect at N.C. State’s School of Design, “but my math allergy set in,” he quips. The barn/studio in Lexington contains a pen-and-ink drawing of figures striking poses similar to Rodin’s The Thinker; they are set in a warped black and-white checkered background. “It’s based on the work of Jean-Paul Sartre, called Nausea,” Chip says, adding that it was around this time he started studying philosophy. “Learning how to reason was helpful. You start with an idea and must reach a conclusion. It’s helpful in artwork: Start to finish with logic in between.”

He went on to UNCG, where he got his Master’s in Fine Art with a concentration in portrait painting. In the barn/studio, he stops by a portrait of his father, shown in profile sitting in an armchair and wearing a simple undershirt. There is a noticeable resemblance between father and son. “It wasn’t his favorite,” Chip admits. “I said, ‘Dad, I know I’m not going to depict you in a smiley-face kind of way,” he remembers, adding that the point of the painting was to support his Master’s thesis: “studying the structure of the head in a simplistic pattern, in a simplistic way, with a reduced number of colors involved.” He explains that the painting only uses about four or five colors. “And it’s been urinated on by cats,” Chip laughs. “Anyway, I’ve got to clean it.”

Frank P. Holton Jr. was an attorney in Lexington, and Chip remembers, as a child, visiting his dad when he worked at the splendid antebellum courthouse downtown. It is now the home of the Davidson County Historical Museum, and it is here that Chip has contributed some of his more unusual work: twenty life-size cutouts, or dummy boards, of participants of the famous and sensational 1921 trial of Dr. John Peacock, who shot a police officer in cold blood in the light of day — and was acquitted on what was an early use of the temporary insanity defense. Some of the cutouts are so realistic in detail and liveliness, you find yourself turning around to see if one of them might wink at you. “It was a lot of fun,” Chip says, recalling the careful planning and historical research of the cutouts’ details, from the dress and haircuts among the millworkers who comprised most of the jury, to the cigarettes that an attorney is puffing on (horrifying to visiting schoolchildren). The tableau is an extension of Chip’s museum work that he’s done off and on over the years — at the N.C. Zoo in Asheboro, the N.C. Museum of Natural Sciences in Raleigh, the McWane in Birmingham where he crushed the fingers of his painting hand. He’s done a lot of work around his hometown: a bronze sculpture for the police station in Lexington, Italianate murals in the tasting room at Childress Vineyards and numerous paintings that hang in private homes. “It’s all a part of the output of an artist,” he says.

And yet, his restless creativity, “the eternal child thing,” as Chip calls it, longs for expression without a commercial element; expression of his choosing. “I feel like if I don’t do it, I’m going to die . . . unrequited,” he says. “One thing’s certain: I’m gonna die. The other thing that’s uncertain: I might die happy if I do more of my own stuff.” Whatever that might be, it, too, will be as eternal as that eternal child who long ago dreamed of being a modern-day Michelangelo . . . while he colored to the smell of burnt toast and fried chicken.

3 Questions with Greensboro Hotel/Restaurant Owner Dennis Quaintance

3 QUESTIONS WITH GREENSBORO HOTEL/RESTAURANT OWNER DENNIS QUAINTANCE

by: John Brasier, Triad Business Journal
January 25, 2017

Growing up in Montana in a family of modest means, Dennis Quaintance began working as a housekeeper’s assistant at a Missoula hotel at age 15 and quickly worked his way up to assistant general manager. After high school, he worked in hotel management for four years before coming to Greensboro to help a friend open Franklin’s Off Friendly in 1979.

Quaintance and Mike Weaver formed Quaintance-Weaver in 1988, and the next year opened their first restaurant, Lucky 32, beginning a string of upscale restaurants and hotels featuring top-of-the-line quality and service. In November, QW announced an ownership retirement program for its employees

Today, QW includes two four-diamond hotels, the O. Henry and Proximity; and four restaurants, the original Lucky 32, a second Lucky 32 in Cary, Green Valley Grill and Paint Works Bistro. Proximity and Print Works Bistro were the first hotel and restaurant to gain Platinum certification with the U.S. Green Building Council’s Leadership in Energy and Environmental Design program.

Quaintance, CEO and chief design officer, responded to a few questions from Triad Business Journal:

QW began an employee ownership retirement program fully vesting employees after three years in November. How has the new program affected employee attitude and performance in the short time since its inception?

Because our colleagues will not receive their first accounting statement for their participation in the employee ownership retirement program until mid-year, we have not made this a big topic. We think that over the coming years that this program will make a positive impact on our colleague’s attitudes about the role they play. But, most QW staff members are already “with us” with our macro intention of being of genuine service to our guests and colleagues. It is my belief that we’ll take this already high level of collaboration and unified intention / behavior and improve upon it … but over years, not days or months.

How has the Greensboro hotel market changed since 1998 when O. Henry opened?

Unfortunately, unlike some other cities, there has not been much improvement in demand for hotel rooms during that time. The demand for hotel rooms in this market has not grown as much as many “peer” cities or markets.

Is there any underserved demographic (location or economic) for hotels in Greensboro or the Triad in general?

We are standing by with dry powder to respond to gaps in the market. We would like to have more businesses in Greensboro.

Alignment of Interests

ALIGNMENT OF INTERESTS

News & Record, November 21, 2016

Some businesses refer to employees as associates. The workers know they’re still employees.

Greensboro entrepreneur Dennis Quaintance can now use the word “partners” to describe the people who work for his businesses.

Quaintance and his wife, Nancy, announced last week that they will sell their management company to an employee stock ownership plan. Full-time employees are vested in the plan after three years. They accumulate retirement benefits based on annual profits.

“You don’t put any money into it. You gain participation just by working here,” he told them.

The management company owns some of Greensboro’s signature hotels and restaurants. The Proximity Hotel is one of the greenest buildings of its kind. Quality and service distinguish the properties, which depend on committed workers.

“I cannot imagine a situation where our interests could be more aligned,” Quaintance said of his businesses and the new partners who run them.

That’s a progressive attitude that will serve everyone’s interests well.

Quaintance-Weaver Now Employee-Owned Company

QUAINTANCE-WEAVER NOW EMPLOYEE-OWNED COMPANY

by Steve Huffman
Triad Business Journal | November 17, 2016

Quaintance-Weaver Restaurants and Hotels has become employee-owned, a move that company founders believe will prove advantageous for staff members.

Quaintance-Weaver, which announced the move Thursday, has more than 600 employees. It was founded 28 years ago and includes O. Henry Hotel, Green Valley Grill, Proximity Hotel, Print Works Bistro and two Lucky 32 Southern Kitchen locations.

CEO Dennis Quaintance said the biggest advantage for employees will involve retirement benefits. He referred to the new plan as, “a retirement program on steroids.”

Quaintance said that with retirement benefits provided by the Quaintance-Weaver Employee Stock Ownership Plan Trust, staff members ages 18 and up who work at least 20 hours a week will start accruing retirement units. They’ll be fully vested after three years.

“They own the enterprise now,” Quaintance said. “They own the trust.”

He said the company had a 401(k) retirement program for its employees a number of years ago, but it was discontinued because of a lack of participation. Quaintance said the change makes Quaintance-Weaver one of only a few employee-owned restaurant and hotel companies in the country. He and others involved in the company’s management promised guests won’t notice a difference.

Quaintance and his wife, Nancy King Quaintance, will continue to lead the company. The couple said they and Mike Weaver, the company’s other founder, sold their interest in Quaintance-Weaver to the Quaintance-Weaver Employee Stock Ownership Plan Trust because they feel that’s the optimal way for the company to be owned and managed.

The move seems a natural one for the community-based, locally owned company, the Quaintances said. It fits with the company’s sustainable practices initiative, they said, which considers how decisions affect current and future generations, as well as their fairness doctrine for diversity and inclusion.

Dennis Quaintance said more than 50 staff members at Quaintance-Weaver have been with the company at least 10 years. The fact that so many people continue to demonstrate such a level of professionalism and commitment reinforced the decision to make it an employee-owned company, he said.

An employee stock ownership plan is a program that offers a company’s staff members an ownership stake in the company. This sort of employee stock ownership plan is a trust that’s been created to purchase 100 percent of the equity in the company in order to provide retirement benefits for the company’s staff members.

Over time, eligible staff members will gain participation opportunities with the trust simply by working with Quaintance-Weaver and meeting some other reasonable requirements. Quaintance-Weaver staff members will not invest their own money into the employee stock ownership plan; they gain participation by working there.

Dennis Quaintance said one of the reasons they opted to make the company employee-owned was to give staff members more reasons to work together as a team to take care of Quaintance-Williams’ guests and their colleagues.

“All of our interests are now aligned,” he said.

The Quaintance-Weaver Employee Stock Ownership Plan Trust now owns the Quaintance-Weaver operating companies, not any real estate. Quaintance-Weaver leases its restaurants and it manages the hotels for a fee. That has been the structure all along.

Quick Quaintance-Weaver history:

* 1988: Company founded by Dennis Quaintance, Nancy King Quaintance, and Mike Weaver;

* 1989: Lucky 32 opens in Greensboro;

* 1998: O.Henry Hotel and Green Valley Grill open in Greensboro;

* 2002: Lucky 32 opens in Cary;

* 2007: Proximity Hotel and Print Works Bistro open and are the first to receive the U.S. Green Building Council LEED (Leadership in Energy and Environmental Design) Platinum Certification for a hotel and restaurant in USA;

* 2009: Dennis and Nancy Quaintance, along with Mike Weaver, named national semifinalists for James Beard Foundation Outstanding Restaurateur award (Oscars of the food world);

* 2011: Dennis Quaintance receives the Citation Award from the National Conference for Community and Justice;

* 2016: Quaintance-Weaver becomes 100 percent employee owned.

Quaintance-Weaver Restaurants and Hotels is Now Owned by Employees

QUAINTANCE-WEAVER RESTAURANTS AND HOTELS IS NOW OWNED BY EMPLOYEES

Fox8 News | November 17, 2016

GREENSBORO, N.C. — The founders of Quaintance-Weaver Restaurants and Hotels announced Thursday that the company is now 100 percent owned by its staff members, a news release said.

Dennis and Nancy King Quaintance will continue to lead the company and guests will not see any changes at their six restaurant and hotel locations: O. Henry Hotel, Green Valley Grill, Proximity Hotel, Print Works Bistro and two Lucky 32 Southern Kitchen.

“Co-founders Mike Weaver, Nancy King Quaintance and I like to think long term, not just months or years out, but decades ahead,” said Dennis Quaintance, company CEO. We’ve sold our interest in QW to the QW ESOP Trust because we believe that it’s the optimal way for QW to be owned and managed in the future.”

With the Employee Stock Ownership Plan, workers who are above the age of 18 and work at least 20 hours a week will start accruing retirement benefits after one year. After three years, employees will become fully vested.

“With this program, all of us who work here will have even more reasons to take great care of our guests and colleagues. That ought to make QW even healthier and keep it vibrant for decades to come,” Quaintance said.

Who’s lucky? The staff of Lucky 32. They now own the business.

WHO’S LUCKY? THE STAFF OF LUCKY 32. THEY NOW OWN THE BUSINESS.

By David Ranii
The News & Observer | November 18, 2016

CARY – Tyler Psaroudis, a server at the Lucky 32 Southern Kitchen, just became part-owner of the Greensboro business that operates that restaurant — as well as three other eateries and two hotels — without lifting a finger.

Instead, the heavy lifting – in fact, all of the lifting – was done by the former owners of Quaintance-Weaver Restaurants and Hotels, who this week notified the business’s 600-plus staff members that they now collectively own 100 percent of the company. Co-founders Dennis Quaintance and Mike Weaver accomplished that by selling their business to an Employee Stock Ownership Plan, or ESOP.

Dennis Quaintance
Dennis Quaintance Chris English Quaintance-Weaver Restaurants and Hotels
“It’s pretty cool stuff,” said Psaroudis, 26, who has worked at the 80-employee restaurant for all of four months. “I’m excited to be a part of something like this because I do think it is moving the industry in the right direction because it is leading by example.”

The key benefit for workers, other than bragging rights, is the creation of a retirement fund whose value is determined by the business’s profitability.

“This isn’t something where you go around and say, ‘Hey, I own a part of a company and I’m going to buy a new car,’ ” Quaintance, who continues as CEO despite the change in ownership, told a group of Lucky 32 employees Friday morning when he unveiled the ESOP. “This is a marathon, a really long marathon, that we run together.”

Although everyone knows there is no such thing as a free lunch, it turns out that, with an ESOP, there is a free retirement plan.

“It’s so neat because we don’t put money in it,” Quaintance told the group. “You gain your participation by working.”

Nationwide, according to the National Center for Employee Ownership, there are in the neighborhood of 7,000 ESOPs, which are highly regulated by the federal government. Among the best known: Publix Super Markets, Avis, the Omaha World-Herald newspaper and publishing company W.W. Norton.

The roots of the Greensboro business go back to 1988 when Weaver, Quaintance and Quaintance’s wife, Nancy King Quaintance, co-founded the company. It opened its first restaurant in Greensboro the following year and now owns two Lucky 32 restaurants – the other is in Greensboro – two other restaurants and two Greensboro hotels, the O. Henry Hotel and Proximity Hotel.

The business in thriving, said Quaintance, ranking among the top 25 percent in the industry in key metrics such as revenue per square foot and profit per dollar of revenue.

The ESOP acquired the business from the owners at an undisclosed price that was negotiated with a trustee whose fiduciary duty was to the staffers. The money to buy the business was loaned to the ESOP by the owners, who will be paid back over time.

“If the business does well, great,” Quaintance said. “If it doesn’t do well, then these loans don’t get paid.”

Staffers who work more than 20 hours a week become fully vested in the retirement plan after three years. In addition to being affected by the company’s overall performance each year, benefits are also based on an individual’s wages, bonuses and tips.

Quaintance said the owners didn’t explore selling the business to another buyer because they were enamored with creating a retirement plan for staffers.

“We get that we are sort of standing on people’s shoulders as owners,” he said. “And we so appreciate it, that it got us where we are.”

In addition, he said, “We are able to sell the company to an owner that shares our values … It seems a little bit too good to be true.”

Those values include a sense of “fairness” to staffers, said Daniel Thomason, 29, the dining room manager at the Lucky 32 in Cary.

“This company is so flexible helping people deal with all of their issues,” Thomason said.

Just this week, he said, a young server came up to him and told him that her babysitter had quit and consequently she wouldn’t be able to make her morning shift.

“Ultimately we made this whole situation work so that this young lady could be with her child” that day, he said.

Quaintance, who said he has no plans to retire and likely will “die in the saddle,” is looking forward to running a business where the interests of all the staffers are fully aligned.

“I feel like I have a new toy,” he said. “This is going to be really fun.”

Quaintance-Weaver Hotels and Restaurants are Now Employee-Owned

QUAINTANCE-WEAVER HOTELS AND RESTAURANTS ARE NOW EMPLOYEE-OWNED

By Rilwan Balogun
Time Warner Cable News | November 17, 2016

GREENSBORO — When Greg Moody came to North Carolina, it was suppose to be for a few weeks.

“I’m from Atlanta, Georgia,” Moody said. “I came here during construction and I installed drapes.”

After construction at the Proximity hotel was completed he drove to Georgia and packed his car up with everything he owned.

Then drove back to Greensboro to work at the Proximity because of the atmosphere.

“Opening day of the hotel they held hands like they did today and I was so excited about that, that I became a part of the team,” said Moody.

And he’s been there ever since. “I wake up in the morning exciting about coming to work,” Moody said.” Every morning I’m excited about coming.”

Thursday that excitement changed, “I always felt like i was part owner,” Moody said. Now he is, along with 605 other employees.

“We wanted to come up with a way that was sustainable for the company to stay grounded on it’s current values,” said C.E.O. Dennis Quaintance.

At the Proximity hotel and the other Quaintance-Weaver properties there’s an employee trust that bought 100 percent equity into the business and over time employees have access to that trust without spending any money.

“The trust’s mission and purpose is to protect the interest of the staff members,” Quaintance explains.

Dennis and the co-founder will still oversee the daily operations but more than 600 of his colleagues will own a piece of Quaintance-Weaver.
Now the man that help put up the drapes is a partner.

“Just to know I was a part of the construction and now I’m part owner, that’s really a great feeling,” said Moody.

For These Workers in Greensboro, They Don’t Have to Fight The Man – They are The Man

FOR THESE WORKERS IN GREENSBORO, THEY DON’T HAVE TO FIGHT THE MAN — THEY ARE THE MAN

GREENSBORO — You don’t have to fight The Man if you are The Man.

Thousands of workers across North Carolina are finding that out as they learn to think like owners as a growing number of companies share profits and stock with them.

Your company not with the program? Don’t worry. There’s room for more, according to a new report by the Budget and Tax Center, a progressive agency in Raleigh.

Employee stock ownership plans and other types of programs allow workers to even the gap between their earnings and management salaries, improve their companies through pride of ownership and build substantial retirement accounts.

“It makes me feel good to be in an organization where you can be genuine with your brothers and sisters,” said Cassandra Brown, the executive director of housekeeping for Greensboro-based Quaintance-Weaver Restaurants & Hotels, which began an employee stock ownership program in 2016.

The Budget and Tax Center, report says that $4.4 billion was paid to worker “cooperatives” involving at least 100 companies and 750,000 current and former workers, according to 2013 data.

Employee ownership programs vary widely. Some are retirement programs that deposit shares into accounts based on a company’s annual profits. Others give workers a strong influence through a democratic structure.

But the majority of companies will never make a move toward such programs and that will hurt the economy statewide, according to the report.

That’s because thousands of small- and medium-sized businesses across the state are facing a “silver tsunami” of aging owners who could die or retire without succession plans, according to Patrick McHugh, who wrote the report. Such companies often face bankruptcy or simply families unwilling to take over management after an owner dies.

But employee ownership helps companies succeed and preserves communities, he said.

“When a company is locally owned and locally controlled it makes it far less likely that a company pulls up stakes and moves,” McHugh said.

Many smaller companies with fewer than 1,000 employees operate private versions of employee stock ownership plans, where a small group of workers share direct ownership.

One of Greensboro’s most prominent examples is Quaintance-Weaver. With about 600 employees, the company created a trust in 2016 that collects and distributes “retirement units” to workers who qualify.

Through the trust, the company’s owners, including Chief Executive Officer Dennis Quaintance, were able to sell the management company to the trust, which took on debt to pay them. An independent company set the value for the company that manages the O. Henry Hotel, the Proximity Hotel and a group of restaurants.

Quaintance-Weaver still owns the company’s real estate, so the income comes from the company’s ongoing operations.

Unlike a 401(k), the workers don’t contribute a dime. Still, the ownership is tax-protected until a worker reaches retirement age.

Most of the employees, like Brown, are happy with the new program. But Quaintance says the real proof will come when they receive their first contribution statement later this year.

“How our colleagues feel about this is going to evolve over the next few years,” he said.

For Quaintance, the program reassures him that his brand of management — paying close attention to employees and guests — won’t vanish when he retires. It protects the company from outside ownership that might simply toss out the culture he has developed through the years.

Over in Morganton, they’re trying something similar. Molly Hemstreet started Opportunity Threads to give workers the chance to buy portions of the company and help determine its future.

The small company has 23 workers who cut and sew apparel, a skill that had all but vanished when textile jobs were moved offshore. But at Opportunity Threads she said it is thriving, partly through the commitment of workers who help guide the company’s daily operations.

Hemstreet said the company is still governed by executives, but the workers have a potent voice, voting each year on how profits will be distributed.

“It’s a very powerful change,” Hemstreet said. “It’s hard to sit at a sewing machine, but if you’re more efficient and more responsible for the company being successful, you’re going to have a different attitude.”

That sentiment is echoed at the Mast General Store, which is based in the mountain town of Valle Crucis. The company operates seven stores, including one in Winston-Salem, and employs 500 people.

Company President Lisa Cooper said 230 of those workers belong to the company’s retirement-ownership program.

Although Cooper and her family don’t plan to give up ownership or management of the company, the program gives workers an alternative to a 401(k).

“There is a sense of loyalty and ownership being part of it,” she said. “Over the years when the stock market hasn’t seen increases in the 401(k) program, having two options has been a win-win. I think it’s pretty certain we’ve always seen an increase in our stock value.”

Deb Lazenby, the community relations manager for several Mast stores, including the Winston-Salem location, walked among the dozens of old-fashioned candies, nostalgic foods and high-tech camping gear.

“We all work together,” she said. “We’ll pitch in, whatever it takes. You’ll never hear anybody say, ‘It’s not my job.’ ”

Quaintance-Weaver’s hotel-restaurant operation has new owners — its employees

QUAINTANCE-WEAVER’S HOTEL-RESTAURANT OPERATION HAS NEW OWNERS — ITS EMPLOYEES

by Taft Wireback
November 17, 2016

QW is now Employee Owned

GREENSBORO — The company that operates the O.Henry and Proximity hotels, Lucky 32 in Greensboro and three other restaurants now is owned by the employees who make the beds, clean the rooms, cook the meals and serve the food.

Chief Executive Officer Dennis Quaintance told a room full of his energized colleagues Thursday morning that he and his partners in Quaintance-Weaver Restaurants and Hotels had passed the baton of ownership to an employee stock ownership plan that is, essentially, a retirement fund for the people who work there.

“I cannot imagine a situation where our interests could be more aligned,” he told the standing-room-only gathering of staff members in the Proximity’s Weaver Room. “I’m emotional because this is one hell of a situation. It’s just amazing that we have this opportunity together.”

Quaintaince, 59, began this hotel-and-restaurant operation 28 years ago with Greensboro businessman Mike Weaver by opening the popular Lucky 32 restaurant on Westover Terrace. His wife, Nancy King Quaintance, joined the team several years later.
They added the two hotels and several restaurants over the years, and the Quaintances said Thursday that they will continue to lead the management team under the new business structure.

“In fact,” Dennis Quaintance said, “I’ll probably die in the saddle.”

Quaintance said the only way he would leave the helm would be if he stopped “skipping to work” most days out of enthusiasm for his job or if someone were to submit “objective feedback that I’m not the optimal person to play this role.”

An employee stock ownership plan gives a company’s employees a tangible stake in the company, building retirement benefits that they can convert to cash in later years. All employees, including management, are part of the plan and they reap its benefits in “retirement units” each year.

Those units each are revalued on the company’s annual profits and divvied up among employees based on their salaries. “Highly compensated” managers have caps on how many retirement units they can receive in any one year.

Such so-called ESOPs employ about 10 percent of the nation’s workforce in companies such as the Publix supermarket chain and Kohls department stores.

Across the United States, about 7,000 companies operate in an ESOP format. Their advantages include increased employee productivity, much less turnover and several types of tax advantages for both the 600-plus staff members at Quaintance-Weaver and the company itself.

ESOP expert Keith Butcher explained some of the plan’s many complexities to his audience, but he said he would be satisfied if the staff members left with the “general gist that this is a pretty good thing and a great opportunity.”

“It simply allows the company to be owned by a trust to the benefit of all the employees,” said Butcher, whose company based in St. Louis helped Quaintance-Weaver with the ESOP conversion. “It’s not a get-rich-quick-tomorrow plan.”

Quaintance told his new partners that he and the rest of the company’s leadership team pursued the ESOP to ensure the organization Quaintance-Weaver employees have built would remain intact with the same goals and values.

Quaintance-Weaver employees are eligible to participate in the new plan if they are older than 18 and work for the company more than 1,000 hours yearly. Their benefits are vested after three years on the job.

The new ESOP plan includes workers of all types at the two hotels, the Green Valley Grill at the O.Henry, Print Works Bistro at the Proximity and the Lucky 32 Southern Kitchens in Greensboro and Cary.

“You don’t put any money into it,” Quaintance said. “You gain participation just by working here.”

His audience was upbeat and seemed to appreciate the plan’s potential to, quite literally, enrich their lives in years to come. People who leave before retirement still retain their retirement account, which begins converting to cash payments five years after they depart.

Green Valley Grill server Morgan Gneiser said that before Thursday’s meeting, staff members only knew the meeting’s focus would be on a new companywide benefit. Speculation was rampant and focused mainly on the possibility it was a 401-K retirement plan, Gneiser said.

The ESOP plan seems likely to increase her loyalty to the company, where she has worked six years, said Gneiser, a Greensboro resident who is pregnant with her first child.

“I don’t know about through to retirement — that’s a long way away — but definitely for quite a few more years,” she said. “It’s just a great thing.”

The company’s main assets are its staff members, their skills and hard work and their institutional knowledge. As had been the case before the ESOP conversion, the hotel and restaurant buildings will continue to be owned by a real-estate partnership involving the Quaintances, Weaver and several others .

In an interview earlier Thursday, Quaintance noted that he was making the ESOP announcement nine years “almost to the day” since opening the elegant Proximity along Green Valley Road, which he built with so many environmentally-friendly features that it became the nation’s first hotel and restaurant to receive highest honors from the U.S. Green Building Council.

And Nancy Quaintance added that it had been nine years before that when they opened the nearby O.Henry, a modernized re-creation of its North Elm Street namesake — an architectural gem that had fallen into disrepair before its demolition in the late 1970s.
“Every nine years, we do something really cool,” Nancy Quaintance said of the company’s newest twist.

“We have a really long gestation period,” her husband said.

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