How ESOPs Are Contributing Towards long-term Sustainability And Success At Rebel Foods?
Rebel Foods strongly believe that by granting employees ownership in the company, they can foster a sense of ownership, motivation, and commitment among the team.
To align with the vision, Rebel Foods has announced an ESOPs liquidation program for existing holders and also distributing ESOPs. With this round of distribution, Rebel Foods has tapped over 5000+ employees in 350+ kitchens and corporate offices and the total ESOPs value held by Rebel employees now reaches USD 65 Million (INR 550 crores). Ankur Sharma, Co-Founder at Rebel Foods will help us dive deeper on how by introducing this initiative, he claims that it will help in contributing towards long-term sustainability and success.
1. As Rebel Foods is the first food tech company to offer ESOPs liquidation program, describe in detail about the ownership culture at the company and what rewards and recognition practices does the company have in place to recognize and retain its workforce?
Rebel Foods has fostered an ownership culture that empowers employees and recognizes their contributions towards the company's long-term success. From our humble beginnings with Faasos, our vision expanded to fill the gap in the food delivery market, leading us to establish a network of over 4000+ internet restaurants and 350+ kitchens in 70+ cities, making us the world's largest internet restaurant company.
We believe that every employee is an owner in the company, and this philosophy has been instrumental in fostering a sense of belonging and shared mission among our stakeholders. To cultivate a culture of entrepreneurship, we encourage employees to think like owners, identify opportunities, and drive innovation.
Our Entrepreneur in Residence (FER) program further strengthened this approach, empowering employees to make decisions, take risks, and experiment with new ideas. Several individuals who participated in the FER program have grown with the company and have become co-founders including me. Since then, Rebel has continued to empower and encourage its employees for better growth.
To recognise and retain our workforce, we have implemented various practices. Performance-based compensation ensures that employees are rewarded for their contributions. Employee appreciation programs, growth and development opportunities, quarterly reviews, feedback and suggestion mechanisms, and open town halls provide platforms for communication, transparency, and recognition. Additionally, we prioritize team-building activities and employee well-being, fostering a sense of loyalty and commitment among our workforce.
Through these measures, Rebel Foods nurtures an ownership culture that values employees as key contributors to our success and ensures their recognition, growth, and satisfaction within the organisation.
2. Elaborate on the ESOPs journey at Rebel Foods and what according to you are the factors that have fostered employee engagement and commitment towards the company's long-term goals.
The journey of ESOPs has been a long, righteous one and a long-time dream at Rebel Foods. We started with the ESOPs program at a very early stage, to provide meaningful incentives to their employees. Initially, we started with performance-based ESOPs to align employee interests with company goals.
As we move forward, ESOPs have been embraced as a catalyst for positive change, fostering a more inclusive and prosperous future. Hence, last year we announced a $10 million employee stock ownership plan (ESOP) liquidation program for 150+ employees. As we grew rapidly, expanding our presence and scaling operations, the ESOPs program also evolved. At Rebel, we believe that every employee is an owner in the company and ESOPs are the right way to instil a sense of ownership and share the rewards of success. By continuously refining and expanding our ESOP program to include more employees across various roles and levels within the organisation. Today, we have become the first food-tech company in India to offer ESOPs to 5000+ kitchen and corporate employees across multiple geographies in 350+ kitchens. With this round of distribution, the total ESOPs value held by Rebel employees now reaches USD 65 Million (INR 550 crores).
We are a people's company that follows the approach of customer-first philosophy and believes in the fact that it is the team that sticks and works together that wins. We as a team have gone through challenges and failures which in turn have only strengthened our bond and united us for a common Rebel goal. Overcoming failures has been the cause for celebration for us as we collectively learn from failures, create a culture of continuous improvement and encourage a growth mindset. This shared learning experience helps foster a sense of togetherness and mutual support which helps in creating a sense of unity and collective purpose, fostering collaboration and teamwork.
3. According to you, what are the measures taken by the company to ensure inclusivity and equal participation in their ESOP program, and how has this contributed to their long-term sustainability?
We aim to acknowledge the efforts and reward all employees to strengthen the sense of ownership across the organisation. To make every employee an owner of the company, we have distributed ESOPs to 5000+ employees in 350+ kitchens across India, UAE and the UK.
With the ESOP program, we allow a chance for long-term wealth creation for Rebels employees, by making them owners and sharing the Rebel Spirit, we aim to cultivate a culture of entrepreneurship and empower our workforce for shared success. This alignment of interests fosters a collaborative and united approach to achieving long-term sustainability.
4. Having seen the success stories of other companies with strong ESOP programs, Is there are any specific success stories or examples within your organisation that demonstrate the direct positive impact of ESOPs on our long-term sustainability and success. Could you share any noteworthy instances where ESOPs have made a significant difference in the company's growth and profitability?
Ans: We have witnessed numerous success stories that highlight the direct positive impact of our ESOP program on our long-term sustainability and success. One noteworthy instance is when several of our early employees who participated in the ESOP program were able to reap substantial financial rewards last year and this year during our annual liquidation program. Our employees who benefitted have been across offices and positions, showcasing the value and potential of our ESOPs in driving both individual and company growth. This ownership culture has had a significant impact on our long-term sustainability and success. It has fostered a deep commitment among employees, leading to increased motivation and performance which we have noticed so closely.
Additionally, by aligning interests and providing a long-term perspective, ESOPs have played a pivotal role in retaining top talent, promoting collaboration, and driving innovation. This, in turn, has again directly contributed to our company's growth immensely.
5. Discuss any challenges or obstacles Rebel Foods faced during the implementation of the ESOP program and how they were overcome, leading to long-term sustainability and success.
Implementation of ESOPs was a long-term vision and culmination of years of hard work, dedication, and perseverance. The journey to achieve this vision is often marked by obstacles, setbacks such as Covid19, industry slowdown, and moments of doubts like evaluation and adjustment, cultural shift, communication, legal compliance etc.
By employing these strategies, comprehensive planning, regular evaluations, clear communication, employee training and support, and compliance with legal and regulatory requirements we could effectively manage obstacles during the implementation of ESOPs. Today, it stands as a cornerstone of our organisation making us all proud.
6. Considering the competitive landscape in which Rebel Foods operates, In your opinion how will the ESOP program at Rebel Foods enhance the ability to recruit skilled professionals and build a strong team from a long-term perspective?
ESOP program at Rebel Foods has played a vital role in enhancing our ability to build a strong team from a long-term perspective. The prospect of ownership and sharing in the company's success
serves as a powerful incentive for attracting top talent. Skilled professionals are drawn to the opportunity to be more than just employees; they become true stakeholders in our journey.
The ESOP program not only helps us recruit talented individuals but also fosters long-term commitment and loyalty. When employees have a direct stake in the company's growth and financial success, they are motivated to stay with us for the long haul. This leads to a stable and dedicated workforce of skilled professionals who contribute their expertise to drive our growth.
Furthermore, the ESOP program acts as a powerful performance incentive that helps to empower our employees, enhance our talent acquisition capabilities, and build a solid foundation for long-term success at Rebel Foods.
7. Diversity and inclusion are valuable in any organisation. In your opinion, How do ESOPs promote diversity within the workforce and ensure that employees from all backgrounds have equal opportunities to benefit from the program?
At Rebel, we steadfastly uphold a principle of complete equality among our employees, ensuring that inclusivity is ingrained in our very essence. We have an environment where every employee, irrespective of their background, can thrive and benefit from our shared success. Hence, our decisions whether its ESOPs, or policies have always been inclusive.
The recent ESOPs distribution program has covered kitchen staff, delivery riders, runners, administrative teams and corporate staff, C- level executives across India, UAE, and the United Kingdom. This inclusion helps ensure that diverse perspectives are heard and valued, contributing to a more innovative and inclusive work environment.
Embracing diversity and inclusion is not just a moral imperative, but also a strategic advantage for any organisation hence, we at Rebel have a transparent culture with equal opportunities for all employees and a culture where feedback and suggestions are valued and evaluated every quarter.
8. Financial stability is a significant factor for employee satisfaction and loyalty. According to you, how do ESOPs at Rebel Foods contribute to the financial well-being of employees and their long-term commitment to the company's success?
We recognise that financial stability plays a crucial role in driving employee satisfaction and fostering long-term commitment to our company's success. As mentioned before, our ESOP program is a key component of our commitment to the financial well-being of our employees and cultivating their dedication to our organisation.
Through our ESOP, we offer our employees the opportunity to become co-owners of Rebel Foods. By granting ownership shares or options, we empower our employees to directly benefit from the growth and profitability of our company. This means that as our organisation succeeds, so do our employees, creating a win-win situation.
The ESOP program not only provides our employees with a path to accumulate wealth but also offers a vehicle for long-term financial growth. As the value of our company appreciates over time, the shares or options held by our employees gain value as well. This was evident when we conducted a USD 10 million ESOP liquidation program for eligible employees in 2022. Our commitment to the annual liquidation program is to prioritize the financial well-being and empowerment of our employees by regularly offering them the opportunity to convert their vested shares into tangible wealth. This potential for wealth creation allows our employees to build a secure financial future for themselves and their families.
9. Every employee is an owner at Rebel Foods, what are the mechanisms that allow employees to provide feedback, share ideas, and actively contribute to the company's growth and success. How does the concept of every employee as an owner promote a collaborative and innovative work environment?
At Rebel Foods, we have an environment that promotes collaboration, transparency, and accessibility among employees with its open culture; through open communication, open physical layout structure, shared spaces and more. We are strong believers of Rebel Values and often evaluate the need for projects and their success based on them.
By providing employees with avenues to express their thoughts and suggestions, we are able to build a storehouse of knowledge and experience. And this in turn has created many disruptions in the industry, recently as Rebel Foods acquired the franchise rights for Wendy's online and offline presence in India, EatSure launched India's first smart foodcourt. We credit these disruptions to the Rebels who have made this a success.
Additionally, the YER (Your Experience At Rebel) survey that happens every quarter plays a crucial role in understanding employee perceptions, gathering feedback, getting new ideas and driving positive changes within an organisation. This facilitates continuous improvement efforts, enhances employee engagement, and contributes to a more productive and satisfied workforce.
The ownership culture tends to unlock the full potential of employees and drive the organisation towards growth and success with innovative ideas and disruptive moves.
