From: Erin Moran

Subject "Leadership Summit Update and Another Town Hall"

Date: 10/2/2015

Dear Colleagues,

As you know, the week before last, 70 of our leaders took part in USHG’s first ever Leadership Summit. It was an amazing opportunity to come together as One USHG Family, and all of this was possible thanks to the amazing teams that held down the fort while we were away – so a huge thank you to everyone for all you did to make this happen. You can check out pictures and videos of the experience on Inside.ushgnyc.com.

“Project Hospitality Included” Update:

One of the biggest topics we discussed at the Leadership Summit was USHG’s goal, that Danny named in his earlier email, to provide all of our teams greater professional and financial growth through all-inclusive menu pricing. We’ve started calling this “Project Hospitality Included” and, as a Leadership Team, we made the following decisions and Danny shared these points live in the last Town Hall:

  • Maintaining our commitment to raise the wages for our kitchen team, along with a clear career path for our culinary and porter teams

  • Increasing dining room positions to a minimum of $9/hour while implementing a revenue sharing program in addition to the hourly wage (more to come on what a revenue sharing program could look like, depending on the restaurant)

  • Improving the total compensation package for our management teams to provide more financial growth through career advancement

  • Reviewing total compensation for all employees, including 401K, training, paid time off (PTO), and any other benefits

  • Removing the gratuity line on our checks. If a guest insists on leaving additional gratuity, we will need to distribute it in compliance with the laws and we are still working through what this can look like

  • Targeting a price increase that is as “neutral” as possible for our guests. In order to do this, we will need to manage our businesses innovatively to ensure that we can do this responsibly and sustainably, and that will require all of your help!

  • Providing new training for all of our teams as well as seeking your ideas for efficiencies and revenue generation

  • Transitioning all businesses by the end of 2016  (except for Union Square Events where it is not applicable given their business model)

Next Steps:On behalf of all of us, I want to thank you for the open and honest dialogue at our Town Halls, as well as all of the incredible questions you’ve been asking. The response has been so great we wanted to set up another Town Hall, this time at the Home Office (24 Union Square East, 6th floor), on Thursday, October 15th at 3:00pm.  Thank you again, and I hope to see many of you at the Home Office on Thursday!

Erin