Me-n-Ed's Pizzeria, a Central Valley staple since 1958, has launched an employee stock ownership plan, making its workers part-owners of the company. Photo illustration by Israel Meave

The parent company of the Central Valley’s most popular pizza chain is now fully employee owned.

Fresno-based Milano Restaurants International, which owns Me-n-Ed’s Pizzeria, Me-n’-Ed’s Victory Grill, Blast & Brew and Piazza del Pane, announced Friday a newly established employee stock ownership plan, or ESOP. It enables employees to earn shares of company stock over time as tax-differed retirement wealth.

The Ferdinandi family is transferring 100% of Milano’s stock to the ESOP. CEO John Ferdinandi and Chief Operating Officer Tom Ferdinandi — sons of founder Tom Ferdinandi Sr. — will remain in their executive roles.

Employees were informed Thursday.

CEO John Ferdinandi said each of their employees is a trusted team member, and they want them to know they “own and operate” their own business in a tangible way.

“This structure will only make the Company even more efficient, innovative and responsive to meet our customers’ needs,” John said. This is about more than ownership; it’s about creating a culture where every team member feels invested in our shared future.”

In 1958, Tom Ferdinandi Sr., and his partner, Jim DeMera, bought Me-n-Ed’s locations in Hanford and on Blackstone Avenue in Fresno. By the mid-1980s, they had grown the pizzerias from the original three locations to over 20. According to the company’s website, they have more than 60 company-owned-and operated restaurants and more than a dozen franchise-owned restaurants in California and Arizona.

Tom said they want their employees to benefit as they continue to help the company grow.

“Legacy was a critical factor in selecting this transaction, but equally important was ensuring that anything we did as owners would also help our employees succeed,” Tom said.

Advising Milano for the transaction was AmbroseAdvisors, a national investment banking firm specializing in employee-ownership transactions.

AmbroseAdvisors Senior Managing Director Phillip Chou said Milano’s shareholder vision was to secure a sustainable future for the company to benefit the stakeholders while empowering the workers who keep the operation running.

“Through employee ownership, they have created an opportunity for dedicated workers to build their future wealth, achieve financial security, and share in the success they help create. When implemented effectively, employee ownership strengthens businesses, rewards hard work, and uplifts entire communities,” Chou said.

These sort of transactions typically involve selling the company to an ESOP trust. The company finances the purchase of the shares, and as it generates profits, the loan is repaid and shares are allocated to individual employee accounts.

Under this arrangement, participants can sell vested shares at market value when they leave the company. They can receive cash if they sell at retirement age or roll it into an Individual Retirement Account if they are not.