Stephen Frabitore wants to recruit and keep the best staff possible for Tupelo Honey Café, his nationally known restaurant in downtown Asheville. That’s why he took a step that’s rare among restaurants and other small businesses: He offered health insurance for his 47 employees.
But even though he picked up half the tab for his employees, Frabitore found that too many of his workers still couldn’t afford the premiums.
“Our employees are very important to us,” he said. “But we can’t just write a check for $60,000,” the amount it would take to provide full coverage for all his staffers.
Now, Tupelo Honey is trying something different to fully fund health benefits for its staff. The restaurant has launched an e-commerce Web site, with all of the profits dedicated to funding a health maintenance organization for employees who work at least 25 hours a week. The restaurant will make the plan available as soon as the site generates $60,000 in profits.
The Web site will feature Tupelo’s brand of fair-trade coffee, an exclusive blend of Costa Rican beans processed by Asheville Coffee Roasters. The restaurant will also offer its local honey and signature jams, jellies, honey butter and rosemary peach lemonade. Customers can also buy Tupelo Honey Café merchandise such as hats, mugs, shirts and other items made locally, Frabitore said.
Frabitore said he offers the benefit to reduce employee turnover and keep a well-trained staff on hand.
“We live and die with every plate we serve and every customer we meet,” he said. “Our standards are very high, and we want the customer greeted like a member of the family. In order to do that, we have to have a properly trained staff.”
Veronica Ripp has worked as a line cook at Tupelo Honey for the past six months. “I’ve grown up in the restaurant industry, and in order to have good coverage, you had to forgoone paycheck a month,” she said. With her student loans from culinary school coming due, Ripp has had to drop her individual insurance coverage. But she would love to be covered if Tupelo Honey’s new Web site could foot the bill.
“I’m hopeful that the Web site will work out, and I hope that there are other business owners as generous as Steve has been,” she said. “He’s taking profits he could have and putting it back in our pockets, and that’s very rare.”
Roya June, executive director of the Asheville Independent Restaurant Association, agreed. As small businesses with many part-time workers, few restaurants can afford to offer any health care benefits. “Members have come to us and asked is there anything we can do as an association, but to the best of my knowledge, we can’t buy into a policy as an association,” June said.
She said she hopes new health care reforms proposed by the Obama administration or at the state level might allow such group coverage.
The real issue is the cost of health care, Frabitore said. “I’m proud that my business can support almost 50 individuals and their families, but even if the Obama administration gives me a tax credit, that’s still $35,000 coming out of my pocket,” he said. “This restaurant pays well, and our servers make strong tips, but they still can’t afford the health care. There’s only so much we can charge for our food, so we have to find a different avenue for our employees.”
To check out the Tupelo Honey online store, visit www.tupelohoneycafe.com.
Source: Asheville Citizen Times
