Atlanta Flooring Design Centers Inc drives growth and employee satisfaction through its Employee Stock Ownership Plan
Flexibility and accountability have been at the core of Atlanta Flooring Design Centers Inc’s (Atlanta Flooring) philosophy since its establishment in 1985. In line with this, the company attentively listens to clients’ expectations to deliver the excellent quality floor coverings they deserve. Fast forward nearly 40 years, Atlanta Flooring now stands as a leading commercial and residential flooring contractor in the Southeast, with 14 locations across Georgia, North Carolina, South Carolina, Alabama, Florida, and Tennessee.
Donny Phillips, President and Founder, explains that the company’s growth was propelled when it entered the homebuilding sector in 2009. “Before then, we specialized in commercial and retail projects, and had only dabbled in custom building. However, a year after surviving the financial crisis of 2008, we ventured fully into homebuilding business and grew exponentially thereafter. So, I love to tell people that after 22 years in business, I became an ‘overnight success’ in my 23rd
year,” he laughs.
Entering different markets did not prevent Atlanta Flooring from sticking to its roots in flooring. If anything, this strategic move empowered the organization to expand its portfolio and expertise. “In our early days, we solely focused on installing carpet, vinyl, and wood floors. As my knowledge deepened and became more sophisticated, we added ceramic tile to our portfolio of products 13 years in, and began offering rubber, raised, and other types of floors. Thus, since around 2000, our product offering has become significantly more diverse. At the same time in the mid-1990s, we began taking on more commercial projects in addition to our retail work, helping us to weather economic ups and downs before delving into the custom-building market.
“Upon entering the track home and single-family home market, we realized this side of the business grew quicker than the commercial or retail division. As a result, today, we are one of the most diversified flooring stores for our size. Indeed, we can handle large commercial jobs, multifamily projects, and the installation of flooring in circa 18,000 new single-family homes each year. We have also expanded our retail presence in Suwanee, adding two outlet stores to our portfolio, which will be a good way to cater to do-it-yourself customers and bargain hunters. It is safe to say there is not much in flooring that we do not currently cover, and we are very thankful that we had the foresight years ago to expand our business in that direction,” explains Donny.
Employee ownership
After such a fulfilling and rewarding period of growth, Donny chose to introduce an Employee Stock Ownership Plan (ESOP), thereby ensuring the company’s future is in capable hands. “I love the thrill of running a company and seeing employees succeed both professionally and personally, whether they got a new promotion or whether they bought a new car or got married. In essence, I enjoy being part of their lives and fostering a family atmosphere. With that said, Frank Winter, our Executive Vice President, and I sat down and debated it for around a year before deciding that the ESOP was the best path for us and for the future of Atlanta Flooring. This decision stems from our recognition that our employees helped get us reach our current position and thereby deserve to have a piece of the ownership. Moreover, we felt that a full purchase or buyout could negatively affect our valued employees’ future, so we avoided going in that direction. We were ready to implement the ESOP in early 2020 but when the pandemic hit, we had to focus all our efforts on keeping our employees and staying afloat. It was a challenging time, with high levels of turnover and resignations, but we hung in there and got through it,” he continues.
This experience cemented the idea that the ESOP would help Atlanta Flooring retain its employees and talent. “There was simply no other choice. Consequently, as we emerged from the pandemic in 2022 and 2023, we worked to have the ESOP in place by the end of 2023. Upon successfully accomplishing this goal on the 31st of December 2023, we officially became an employee-owned company,” adds Donny.
Continued expansion
Having bounced back from the challenges caused by the pandemic, Atlanta Flooring is now able to focus on its growth strategy. “Following the challenging turnover of 2020 and 2021, we decided to place a greater focus on training. With adequate training, employees usually feel more comfortable and equipped to do their jobs. While the ESOP and our appealing vacation and benefits policy, including insurance, are certainly reasons for our workforce to stay with us, we recognize that the next step is to make sure that they are the best trained in the industry. Prioritizing training not only benefits our employees, but also makes Frank and I better people, both as employees and officers of the company.
“In 2022 and 2023, we made significant efforts to improve our margins following the rapid cost escalations caused by the complications of the pandemic. This year, we have started strategically looking throughout the Southeast for a potential location to continue our expansion. We are planning to visit a couple of buildings in a new market where we can grow and continue to offer our high level of value and service,” Donny concludes.
Through devotion to its skilled workforce and excellent quality of service, Atlanta Flooring is well-positioned to continue strengthening more communities in America’s Southeast for years to come.