Brunch has become an American staple. Every weekend, gaggles of breakfast-goers indulge in mile-high pancake platters and meat-centric grazing boards, all washed down with a specialty mimosa. This surge in demand has introduced a new competitive edge to the brunch game. Citrus, a Virginia Beach mainstay, continues to jockey for its position as the best brunch joint, and its new employee-owned business model has given the eatery a fresh perspective on how to compete.
Citrus was founded in 2005 by Lance and Cheri Shores. The dynamic duo spent several years building the Citrus brand and perfecting its beach-inspired dishes. Two locations and nearly two decades later, the Shores’ business was flourishing. Their home life, however, took a difficult turn. A cancer diagnosis encouraged the couple to take a step back from Citrus and focus instead on Cheri’s health. The Shoreses did not want the community to lose Citrus, however, nor sacrifice its quaint and unique vibe. So, rather than turning the business over to an outside investor, they sold the company to those who help Citrus thrive day in and day out—its employees.
“Traditionally small businesses are passed down to children or family members, but [several businesses] close because there isn’t a [next of kin] to assume responsibility. That was the case here,” explains Ebony Williams, Citrus’ new president and CEO. “Lance and Cheri really thought of their employees as family, so transitioning to an employee-owned model seemed like the next natural step in continuing their legacy.”
Williams assumed her role as president in August 2022 when the sale between the Shoreses and Teamshares, the employees’ sponsor, was finalized. With an extensive background in finance and business management, Williams has taken Citrus to new heights and has instilled in her employees a fresh excitement about the brand. “A lot of our employees are excited about the change, and most importantly, they are appreciative of their feedback being heard. In traditionally-owned businesses, the owner makes all of the decisions, but here, our employees are the decision makers. They are involved in everything that goes on, so it is fun for them,” says Williams. “They also receive a financial benefit that directly hits their pockets.”
In short, Teamshares is a conglomerate sponsored by venture capitalists that purchases small businesses from retiring owners. Upon the purchase, Teamshares issues 10% of its shares directly to employees. Full-time and part-time employees alike then receive dividends on a regular basis as the company grows. “We also buy back shares from Teamshares so that we can ultimately become a larger percentage of employee-owned,” explains Williams. “Our goal is to be 80% employee-owned in 20 years.”
Williams claims that company knowledge is paramount to employees’ success as owners. “We have staff meetings every month. This is our opportunity to bring everyone [from both locations] into the fold on business and financial knowledge,” Williams explains. “Our employees understand Citrus’ balance sheets and profit and loss statements. We truly want them to understand that they have a direct impact on bottom line, be it through their servicing quality, food waste management or how well we manage together.”
Also, part of employees’ ownership duties is to get creative. Citrus staff is wholly responsible for weekly specials. From hotcakes to cocktails, they brainstorm recipes and work in the test kitchen before officially rolling out the limited-time offering on Citrus’ famed chalkboard menu. Their culinary creativity recently resulted in a menu overhaul that Citrus debuted last month.
“We have a lot of competitors, so I rely on my staff to best predict what the locals like and what’s trending,” says Williams. “At the end of the day, our goal as owners is to ensure that every table is touched and every customer leaves happy every single time.”
