NEW ORLEANS —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
While many restaurateurs have returned to business across the Gulf Coast and the hospitality industry there has rebuilt, the region’s bread-and-butter conventions and leisure travel have yet to make a comeback. And the fabled Crescent City, which once boasted a population of 460,000 New Orleanians, now has barely 250,000 residents to provide a local customer base. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
Frank Brigtsen, chef-owner of the famed Brigtsen’s in the River Bend area of New Orleans, said, “A friend the other day asked how things are going, and I said, ‘We’re doing just enough business to keep our heads below water.’” —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
He laughed, but added, “It’s kind of like snorkeling in business.” —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
Reduced sales, higher payrolls and skyrocketing insurance costs continue to make business in New Orleans and the Gulf Coast region difficult, even emotionally draining, for slump-weary operators. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
“In general, restaurants are struggling,” said Brigtsen, who evacuated New Orleans before the storm and even considered not returning. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
Ralph Brennan, the former National Restaurant Association chairman whose family’s roots are deep in New Orleans dining, said during a recent trip to drum up tourism: “The market is not there. The market has been impacted badly. We lost a good chunk of our local business and convention business, and tourism is way off.” —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
Jim Funk, president and chief executive of the Louisiana Restaurant Association, said restaurants elsewhere in the state are doing pretty well. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
“Our sales are up near pre-Katrina,” he said. “However, the challenges are higher costs, labor shortages. But they are a resilient group of people and have been able to do some amazing things since the storm.” —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
An LRA survey of reopened foodservice businesses as of Aug. 7 showed that about 69 percent of Orleans Parish’s prehurricane tally of 2,116 outlets had reopened, as had 94 percent of Jefferson Parish’s 1,557 establishments. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
“Although the foodservice industry has not come back 100 percent two years later, it is clear that this industry has played a vital role in the recovery effort,” Funk said. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
Also sounding an upbeat note, chef-restaurateur Brigtsen observed: “The heart and soul of New Orleans is alive and well. We’ve still got some cuts and bruises that need to heal and get better, but the people in New Orleans are strong and committed and full of spirit. We’re fighting hard for it every day. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
“From a business standpoint, we have major challenges. We are seeing fewer visitors, both in leisure tourists and conventioneers. We also have fewer locals. On the back end, we are dealing with much higher operating costs, particularly payroll and insurance. In general, the restaurants are struggling. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
“Time will help. None of this will happen overnight. It’s difficult to look long-term. We have a void in the city because of the locals who have left. In small increments, it is being filled. A lot of the people who left were middle-class and professional people. I’m talking about doctors and things like that. We’re seeing a much younger crowd discovering us. We are depending on the younger generation to fill the void.” —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
In Brigtsen’s assessment, however, “the question is one of time.” —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
“How long can small businesses like mine hold on?” he asked. “That’s the real question.” —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
Two years after Katrina, Brigtsen said, his sales are at about 85 percent of what they were before Katrina. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
“This year, it is actually down a little from last year,” he said, “so that’s not a good trend. [However,] we are blessed that most of our staff came back. We’ve had a little bit of turnover and a few new good faces in the kitchen.” —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
Other operators have said that their payrolls are up anywhere from 20 percent to 30 percent over pre-Katrina levels. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
“I have to pay my staff market value,” Brigtsen said. “These guys and gals are facing their own challenges as individuals because of the higher costs of living, especially around rent. The price of rental units has risen 50 to 100 percent. If you were making $10 an hour and paying $600 a month and now you are paying $900 or $1,000 a month, as employers we have to help these people.” —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
Outside organizations and even range manufacturers have helped employees subsidize their rents, Brigtsen said. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
“That kind of generosity and understanding touches us deeply,” he added. “The money is important, of course, but the fact that somebody cares about us is what really helps. These are the people rebuilding New Orleans.” —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
Even the often-criticized insurance industry garnered some praise in Katrina’s aftermath, though complaints lately have worsened. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
“I had business interruption insurance, and they were wonderful,” Brigtsen said. “They did renew me the second year at a slightly higher price and a cap on the insurance. This year, they were going to renew, but it was much more expensive and the coverage was not good at all, such as no wind and hail damage coverage and no power failure coverage. I understood their position. It was their way of politely pulling out of the market, basically.” —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
Brigtsen has ended up paying $28,000 a year for less coverage than he was able to obtain for $12,000 before the storm. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
“We question ourselves everyday about whether this is what we should be doing and if we’re willing to go through this,” Brigtsen said. He and his wife, Marna, “still have days that are a tremendous roller coaster of emotions, from tears to tingles of pride when something good happens. The psychological effect on all of us is still playing out. It’s like survivors of a shipwreck in a lifeboat.” —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
The shipwreck metaphor is especially apt in New Orleans’ largely devastated Ninth Ward neighborhood. However, chef-owner Leah Chase of the noted Dooky Chase said she is close to reopening her restaurant there. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
“The rich New Orleans cultural experience that has existed for hundreds of years is alive and well,” said Stephen Perry, president and chief executive of the New Orleans Convention and Visitors Bureau. “We want to remind everyone that New Orleans also is a city where soul proved waterproof…a place of hope, resilience and life.” —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
This year, the city has hosted more than 1 million visitors for Mardi Gras, music festivals and some conventions. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
Airlines have added new flights to Louis Armstrong International Airport, and Southwest Airlines has announced service expansions for later in the year. Several hotels, such as the Ritz-Carlton, have refurbished their properties in the wake of the hurricane. Harrah’s Casino opened a 450-room hotel near its gambling property in late 2006. John Besh, owner of Restaurant August and Besh Steakhouse in the casino, earlier this year opened a European bistro called Lüke in the city’s Central Business District. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
New Orleans, of course, is not alone in the slow rebuilding process. Where Hurricane Katrina hit especially hard in Mississippi, especially in Gulfport and Biloxi, hospitality businesses have returned. In Biloxi, of the 13 casinos that were damaged or destroyed, 11 have rebuilt and opened. A post-hurricane law change allows the casinos to be built on land rather than on barges, which had limited their size. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
Retail food establishments before and after Hurricane Katrina
| Pre-Katrina | Aug. 2007 | Pct. reopened | |
| Orleans Parish | 2,116 | 1,462 | 69 percent |
| Jefferson Parish | 1,557 | 1,465 | 94 percent |
| St. Bernard Parish | 219 | 86 | 39 percent |
Foodservice is helping to lead the economic resurgence in New Orleans. The hospitality industry ranks only behind the Port of New Orleans for income and is the largest employer in the city, with 55,000 people working directly for restaurants. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
The message Gulf Coast operators want to get out is that they are ready and seeking tourists and conventions. —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
Funk of the LRA said, “There’s a perception around the national that New Orleans isn’t open for business. But we are open.” —Almost exactly two years after Hurricane Katrina swept through Louisiana and Mississippi as one of the most devastating natural disasters in U.S. history, restaurant operators are still wading through the mess left in its wake.
