If I were running this business, what would I do differently? It’s a question most restaurant, café or bar staffers have probably asked themselves at some point in their careers. Last year, a group of Philly entrepreneurs came together to answer it for themselves.
In summer 2014, six Philadelphians began to take a serious look at developing a cooperatively owned and operated bar and restaurant. One has since left the venture, but five service industry veterans remain to run Spring Garden Street's
W/N W/N Coffee Bar: Will Darwall, Michael Dunican, Max Kochinke, Alden Towler and Tony Montagnaro.
The crew soft-launched the location at 931 Spring Garden in December of last year, and held a grand opening in late January 2015. Since then, the five coworker/owners have been experimenting with their model in a democratic government-by-consensus process (they have three additional employees who are not partners in the business).
Chatting with
Flying Kite about their first year in business, Darwall says the ownership model is based more on "sweat equity" than the capital brought to the venture (that capital was treated as third-party loans, and does not entitle the owner-investor to a greater share of the profits). Each of the five owners works multiple shifts each week cooking, serving, bartending, busing tables or performing maintenance.
"What worker/ownership gives us is equal legal ownership over the company, which means a right to participate in decision-making and a right to accrue profits from the business," he explains. "The way that we pay out those profits is proportional to how much work we all do, counting the hours up.
"We thought that coming together and working as a cooperative, we’d be able to create a structure where we could support each other…and use our collective creative energy and potential to come up with good solutions to the problems we faced, rather than feeling frustrated about things that we thought could go better."
W/N W/N's menu features local, sustainably sourced foods, with a focus on canning, preserving and pickling.
(Ed: Flying Kite recently held a meeting there and the food was phenomenal.)
The innovative business model extends to the customers: patrons can buy membership shares. They run $25, and each time the member buys something, 25 percent of their bill is deducted from that pre-paid fee – meaning that W/N W/N members infuse the business with $25 up front, and then receive that money back as they pay only 75 percent of the purchase price on any given item.
Darwall estimates that about 10 percent of the café’s customers have bought into the membership model, and that’s fine for now -- as the founders tinker with their business plan and assess what worked and what didn’t in their first year, they’ll continue to explore what kind of cooperative model might thrive going forward.
W/N W/N will be scaling back its food menu beginning in January, though food service will still be on offer. It currently opens at 5 p.m. Monday through Friday, closing at midnight every day except Friday and Saturday, when it’s open until 2 a.m. The doors open at 10 a.m. on Saturday and Sunday for brunch.
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Writer: Alaina Mabaso
Source: Will Darwall, W/N W/N Coffee Bar