20 for the Next 20: Daniel Arita, American Floor and Home

After years working his way up in the family business, he now leads the expansion of the employee-owned company as president.

Daniel Arita
President, American Floor and Home

The first day was bumpy. Daniel Arita was 14, starting his summer gig in the accounting department at the carpet company founded by his father, David. Daniel promptly got fired and was moved to a warehouse job.

But Daniel was happy to be there, and over the years, worked his way up, learning everything from installing carpet to managing the sales floor. Today, he’s president of the company, American Floor and Home.

Arita received a business degree from Point Loma Nazarene University in California and has also attended many coaching courses, including with Glenn Furuya of Leadership Works and Dale Carnegie. He and his dad are fans of such development courses, both for themselves and for their employees.

“He learned from me all the things he shouldn’t do,” says David Arita. “I sent him to a lot of training and conferences, though, and he has a great memory so what he learns, he maintains. He’s great with suppliers and customers alike, and cares about issues of sustainability with what we sell.” And the elder Arita passed on some of his own business skills as well. “Some advice does boomerang back at me. … Daniel will say, ‘Hey, Dad, remember what you told me?’ ”

Daniel Arita serves on the board of Aloha United Way. His wife, Torey, is an emergency medicine physician, and the two share a daughter and a son. In honor of American Floor and Home’s 50th anniversary this year, Arita launched a “We Love Local” initiative to support other local businesses and to foster connections between them.

In 2013, American Floor and Home was sold to its employees. Arita says: “My goal is to grow the stock price as high as it can be for the employee-owners. The way to do that is diversifying in other industries that connect with what we are doing.” He’s helped the company expand into kitchen and baths, cabinets and other remodeling areas.

Arita is proud of the company’s high employee retention rate, which he says is closely monitored. “When I started, we didn’t have the retention rate we wanted. We changed our process to hire based on our values, which are humble, hungry and people-smart. It means we are bringing on the right candidates. We also go over our employee surveys every year, incorporating changes based on the feedback. Being employee owned, being more transparent, and not micromanaging people, it all makes employees want to stay.”