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November 2015 BizNewOrleans.com
Editor’s Note
One Down T
he smiling faces you see before you are just two of the staff members at Biz New Orleans that I have the pleasure of working with every day. Maegan O’Brien is our wonderful sales manager and Antoine Passelac is our very talented art director. This photo was taken at a little soiree we had last month to celebrate the people behind the scenes who have made the first year of Biz happen — from the talented contributors, to the sales staff and advertisers, to the management. In this, the month of giving thanks, I’d like to publicly proclaim my gratitude for Maegan and Antoine, and all of the Biz New Orleans team. As we begin our second year, I can honestly say there’s no other group of people I’d rather work alongside. Thanksgiving marks the beginning of the holiday season, and that means food, family and friends. When it comes to food, there’s no city like New Orleans, which is why we felt it was time to call attention to the prevalence of successful local grocery stores in this city. The oldest, Langenstein’s, is close to a century old and still kicking, and at 45 stores and climbing, Rouse’s shows no signs of slowing down. Fall also signals the start of the Broadway season. I know this intimately as, in a former life, I did marketing for Broadway at the Orpheum Theatre in Omaha, Nebraska. Omaha’s metro area has a population of just under 900,000 and only has three big theatres. Contrast this with the New Orleans metro area, which boasts about 1.2 million residents, but vastly more entertainment options — even before the recent wave of historic theater openings. Can we support them all? Journalist David Lee Simmons examines the issue. Finally, I am excited to announce that our amazing photographer, Cheryl Gerber, who has been with us since the beginning, just released her latest book, “New Orleans: Life and Death in the Big Easy.” An incredible collection of local photojournalism, the book also features a forward by Lolis Eric Elie and an essay by Chris Rose. I encourage you to go grab a copy. Happy reading.
Kimberley@BizNewOrleans.com 4
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novemBER 2015 | volume 2 | issue 2
Publisher Todd Matherne Editorial Editor-in-chief Errol Laborde Managing Editor Kimberley Singletary Art Director Antoine Passelac Photographer Cheryl Gerber Web Editor Kelly Massicot Assoc. Multimedia News Editor Leslie T. Snadowsky Contributors Danielle Dayries, Robert Edgecombe, Rebecca Friedman, Pamela Marquis, Clayton Mouney, Chris Price, Peter Reichard, Jennifer Gibson Schecter, Erin Shaw, David Lee Simmons, Keith Twitchell, Melanie Warner Spencer, Bonnie Warren advertising Vice President of Sales Colleen Monaghan Sales Manager Maegan O’Brien Maegan@BizNewOrleans.com (504) 830-7219 Account Executive Caitlin Sistrunk Caitlin@BizNewOrleans.com (504) 830-7252 Account Executive Courtney Andrée Courtney@bizneworleans.com (504) 830-7225 PRODUCTION Production/Web Manager Staci McCarty Production Designers Ali Sullivan, Monique DiPietro, Traffic Coordinator Jessica DeBold administration Chief Executive Officer Todd Matherne President Alan Campell Executive Vice President Errol Laborde Vice President of Sales Colleen Monaghan Director of Marketing & Events Cheryl Lemoine Administrative Assistant Denise Dean Distribution Manager John Holzer Subscriptions Manager Sara Kelemencky Subscriptions Assistant Mallary Matherne
110 Veterans Blvd., Suite 123, Metairie, LA 70005 (504) 828-1380 Biz New Orleans is published monthly by Renaissance Publishing, LLC, 110 Veterans Blvd., Suite 123, Metairie, LA 70005; (504) 828-1380. Subscription rate: one year $24.95, two year $39.95, three year $49.95 — foreign rates vary call for pricing. Postage paid at Metairie, LA, and additional mailing entry offices. POSTMASTER: Send address changes to Biz New Orleans, 110 Veterans Blvd., Suite 123, Metairie, LA 70005. Copyright 2015 Biz New Orleans. No part of this publication may be reproduced without the consent of the publisher. The trademark Biz New Orleans is registered. Biz New Orleans is not responsible for unsolicited manuscripts, photos and artwork, even if accompanied by a self-addressed stamped envelope. The opinions expressed in Biz New Orleans are those of the authors and do not necessarily reflect the views of the magazine or owner. 6
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Contents
88
50
40
Features
From the Lens
40 Families Feeding Families
78 Great Offices
Native grocery chains stand strong against
Henry Shane, chairman
national stores.
of Favrot & Shane Companies.
50 The Second Act
88 Why Didn’t I Think of That?
With the wave of new theater openings,
will the market be strong enough to fill seats?
96 Behind the Scenes
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November 2015 BizNewOrleans.com
NOLA’s only house call doctor
The Gourmet Butcher Block tackles Turducken.
On the Cover Brother and sister Donny Rouse and Ali Rouse Royster shop local at the company’s Baronne Street location. Photo by Jeff Johnston
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Contents
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64 84
Columns
20 NOLA By the Numbers
City rankings nationwide
22 Dining Biz
The sci-fi future of food
24 Tourism Biz
NOLA cemetaries are a big draw for the living.
26 Sports Biz
Perspectives
News
28 Film Biz
60 Insurance
18 Calendar
Is the golden era of the Saints ending?
HB 829 — a boost for local filmmakers.
30 Entrepreneur Biz
Junior Achievement is hard at work on
the next generation of innovators.
32 Biz Etiquette
Questions from local young professionals answered
34 Tech Biz
10
How secure is your business?
November 2015 BizNewOrleans.com
Coverage holes can really cost.
64 Maritime & Ports
A look at waterway safety.
70 Banking & Finance
Refinancing: Should you do it?
74 Guest Viewpoint
Developing and guarding your personal brand
Upcoming events not to miss
36 Biz Bits
Industry news
84 Biz Person of the Month
Q&A with first Nola Women in Tech winner, Crystal McDonald
94 Around Town – Events
Industry gatherings
BizNewOrleans.com November 2015
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Publisher’s Note
Giving Back
H
ere at Renaissance Publishing, we take pride in our efforts to ensure that we give back to our community. We do a lot to support the non-profit community — whether it is sponsoring their events via marketing exposure, purchasing tickets and tables, or raising funds for different causes in the area. Last month, Biz New Orleans’ sister publication, St. Charles Avenue magazine, hosted its annual Wine, Dine & Design event — a tablescapes showcase at the Audubon Tea Room. The event raises money for Operation Homefront, an organization that helps families of our service members and wounded warriors. We worked with very generous sponsors like the Whitney Bank, New Orleans Saints, Bryan Subaru, Trashy Diva and Bollinger Enterprises. Together with more than 20 table designers, we sold event tickets and raised nearly $50,000. The entire staff of Renaissance Publishing is proud to support such a great organization and I want to especially thank Bev Church and the entire St. Charles Avenue team for their leadership in this outstanding effort. You can learn more about Operation Homefront at OperationHomefront.net. In this month of Thanksgiving, we are very thankful for everyone’s generosity. Todd Matherne
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November 2015 BizNewOrleans.com
Meet the Sales Staff
Colleen Monaghan Vice President of Sales (504) 830-7215 Colleen@BizNewOrleans.com
Maegan O’Brien Sales Manager (504) 830-7219 Maegan@BizNewOrleans.com
Caitlin Sistrunk Account Executive (504) 830-7252 Caitlin@BizNewOrleans.com
Courtney Andrée Account Executive (504) 830-7225 Courtney@BizNewOrleans.com
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Calendar Thursday, November 5
November 16-17
AMA New Orleans presents Culture Kitchen: Recipes for Building a Great Brand By Mike Ganino, restaurant marketing/culture expert 11:30 a.m. to 1 p.m. Location TBD AMANewOrleans.com
Innovation Louisiana 2015 Life sciences entrepreneur conference New Orleans BioInnovation Center NewOrleansBio.com/innovationla
Wednesday, November 18 Tuesday, November 10
4th Annual Louisiana/Gulf Coast IT Symposium 7:30 a.m. to 5 p.m. Sheraton New Orleans Hotel SimmonsWhite.com
Jefferson Chamber of Commerce State of Jefferson 11:30 a.m. Crowne Plaza New Orleans Airport Hotel JeffersonChamber.org
Wednesday, November 18 Jefferson Chamber of Commerce Prosper Jefferson Seminar Series — Sales 9 – 10 a.m. JEDCO Conference Center JeffersonChamber.org
Tuesday, November 10 Port of New Orleans’ State of the Port Luncheon 11:30 a.m. to 1:30 p.m. Marriott New Orleans Downtown at Convention Center IFFCBANO.org
Thursday, November 19
Thursday, November 12 ABWA Crescent City Connections Monthly Luncheon “The Louisiana Film Industry and Local Businesswomen: How to Get a Piece of the Action” 11 a.m. to 1 p.m. Ralph Brennan’s Heritage Grill ABWANewOrleans.org
Saturday, November 14 2015 New Orleans Neighborhood Summit 9 a.m. to 2 p.m. Dillard University — Professional Sciences Building Nola.gov/summit
AMA New Orleans presents Data Driven Marketing By Jake Finkestein, founder of Method Savvy 11:30 a.m. to 1 p.m. Location TBD AMANewOrleans.com
Friday, November 20 Jefferson Chamber of Commerce Business & Breakfast 7:50 a.m. New Orleans Marriott Metairie at Lakeway JeffersonChamber.org
Saturday, November 21 HBA of Greater New Orleans’ 75th Anniversary Gala 6:30 to 9:30 p.m. New Orleans Lakefront Airport HBAGNO.org
We’d love to include your business-related event in next month’s calendar. Please email details to Editorial@BizNewOrleans.com.
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Columns | NOLA By The Numbers Ranking (Out of 381 Metro Areas) 45
Population
235
Median Income
116
Poverty Rate
82
Poverty Rate (Under Age 18)
140
Percent of Residents Ages 25+ with College Degree or Higher
110
Percent of Residents Ages 25+ without High School Degree
1
Percent of Students Enrolled in Private School
126
Median Home Value
71
Percentage of Renters Spending >35% of Income on Rent
How We Stack Up A look at the New Orleans regional market in context
T Robert Edgecombe is
an urban planner and consultant at GCR Inc. He advises a wide range of clients on market conditions, recovery strategies, and demographic and economic trends.
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o a certain extent, it’s futile to compare New Orleans to other places. A point of regional pride is that we defy comparison and categorization, that our way of doing things— our culture, our commerce, our vibe—is emphatically not like that of any other place. And in many wonderful respects, that’s certainly true. Nevertheless, it’s always helpful to know how our region measures up to others. Jobseekers, corporate leaders, investors, and the just plain curious are making increasingly informed decisions about where to put down roots, and as locals, we can find some unexpected insights about our hometown. The recent release of the U.S. Census Bureau’s 2014 American Community Survey, which compiles results of questionnaires sent to households throughout the country, provides a good lens through which to view a few key quality-of-life indicators in our area and to compare them to others in the United States. (For reference, the New Orleans
November 2015 BizNewOrleans.com
metropolitan area, according to its official designation by the Census Bureau, is made up of Orleans, Jefferson, St. Bernard, Plaquemines, St. Charles, St. John the Baptist and St. Tammany parishes.) In terms of population, our 2014 metro area population of 1.25 million is roughly equivalent to Richmond, Virginia (1.26 million), and Raleigh, North Carolina (1.23 million). Out of the 381 metropolitan areas in the country, New Orleans ranks 45th. Our region’s income levels, meanwhile, trend somewhat lower. The New Orleans metro area’s 2014 median household income of $46,784 ranks 235th out of 381, comparable to that of Dayton, Ohio, and TampaSt. Petersburg, Florida. The highest median income of $96,481 in the country belongs, not surprisingly, to San Jose-Santa Clara, California, and the lowest to Brownsville, Texas, whose median household income is $32,093. Highlighting a subject of increased scrutiny, however, our area ranks high in terms of
the percentage of households earning $100,000 or more (131st) and also the percentage earning less than $35,000 (122nd). Indeed, a Bloomberg study released last year indicated that New Orleans ranks second only to Atlanta in measures of income inequality. The New Orleans area is also a reasonably expensive place to live. Our median home value of $174,200 ranked 126th in 2014, comparable to Lawrence, Kansas, and Albuquerque, New Mexico. (The region with the lowest median home value? That’s Brownsville, Texas, at $76,200.) According to the Department of Housing and Urban Development, our median rent for a two-bedroom house or apartment is $1,013, roughly the same as Providence, Rhode Island, and Stockton, California. And the New Orleans area ranks 71st out of 381 in terms of the percentage of renters who spend 35 percent or more of their income on rent, similar to Sacramento and San Diego. The area’s educational landscape shows a mixed picture as well. Our educational attainment levels show the metro area appearing near the top third on both ends of the spectrum. On the one hand, 28.9 percent of our area’s residents ages 25 and older have earned at least a bachelor’s degree, ranking 140th in the nation, comparable to Eugene, Oregon, and Reno, Nevada. Conversely, however, we rank 110th among metro areas in the percentage of this population who never finished high school (13.7 percent), about the same as Greensboro, North Carolina, and Tuscaloosa, Alabama. And even as we make strides in improving the quality of public education, the percentage of our K-12 enrolled in private school (26.2 percent) is the highest of any metro area in the country, with Walla Walla, Washington a distant second. There are, of course, countless ways to compare our metro area to others, and there are too many nuances in the data to do it justice here. But still in all, yardsticks do help us understand how we’re doing and can challenge our assumptions about our area’s quality of life and prospects. And down the road, they help us measure how we progress with our collective resolve to improve our unique part of the world. n
Sources: U.S. Census Bureau Population Estimates Program, U.S. Census Bureau American Community Survey, U.S. Department of Housing and Urban Development
BizNewOrleans.com November 2015
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Columns | Dining Biz
Boy Oh Boy, the Future’s Gonna Be Great A look of the non-human side of the future of dining.
W
Peter Reichard is a native New Orleanian who has written about the life and times of the city for more than 20 years, including as a former newspaper editor and business journalist.
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ell I, for one, am disappointed. I grew up believing we’d have flying cars by now, that we’d all be walking around in shiny jumpsuits and that we would have landed an astronaut on Mars years ago. It’s true that we can have face-to-face conversations with people via handheld telecommunication devices, that we watch TV on flat screens and that, a la George Jetson, we spend so much time in front of computers that we can suffer from “push-button finger.” But where are the robot waiters? And why can’t I go to a restaurant and push a button and get what I want? Why must I still be forced to interact with human beings? As it happens, some people are working on that part. At a wildly popular new restaurant in San Francisco called Eatsa, you can walk in and order and
November 2015 BizNewOrleans.com
pay for your food in a glowing white booth on a touch-screen terminal. No human interaction required. When your order comes up, it appears behind a transparent LCD screen that goes black when the food is deposited. You tap the screen and pull out your food. Presumably, it has been placed there by a human on the other side. But maybe – just maybe – it was a robot. One can at least pretend. This is but a glimpse of what various experts say the future of dining may hold. Picture it: No people to deal with at all. You won’t even have to worry about using another human to keep you company. Every table will contain a USB jack so you can keep your iPad (or your iWhatever, as the case may be by then) juiced up to entertain you while you eat. And you will eat healthier. As you peruse the digital menu embedded under your smart-
tabletop, nutrition information will pop up alongside each choice. The government will likely require disclaimers for various foods, such as French fries or raw oysters, and the U.S. Surgeon General’s face will pop up to give you the federally mandated spiel – i.e., “This food may cause blah blah blah and, in rare cases, death.” You might even be able to upload your medical profile to see if beef Wellington is right for you. Your food will come out in five minutes or less because, in the future, prepared foods will be so good that only those with a somewhat refined palate will know the difference. Forget about asking for another napkin or more ketchup. Sensors will alert staff, whether man or machine, or a combination thereof, that these items must be replenished. No waiting for your table to be bused. A press of a button or a voice command will take care of it all. While the restaurant of the future may do away with countless employment opportunities for hard-working Americans, it will appeal to a fragment of our social consciousness by taking all of the waste from our table and composting it or turning it into animal feed or Soylent Green. In fact, we may even eat things previously considered trash or inedible parts because, ya know, sustainability. Even as it deprives us of human interaction, the restaurant of the future will constantly remind us of its services to Mother Earth. Because flying cars no longer appear imminent, there will still be drive-thru lanes. We will still have to speak into a little box to place our orders, but voice-recognition technology will give us the confidence that no human error – indeed, no human being – is possible. No longer will you need to go through the rigmarole of fishing around in your purse or wallet to pay the bill. You’ll simply speak to your phone (or the microchip implanted somewhere convenient in your body) as to how you want to pay and how much. The restaurant will recognize your phone and give you some points toward a future purchase. Don’t worry about the tip, though, because – yep – no humans, no tips. You’ll save 15 percent to 25 percent on every meal, depending on how parsimonious you currently are. Of course, if you really think about it, there is something slightly grim about what the futurists are saying about restaurants. To quote George Jetson, “Jane, stop this crazy thing.” n Illustration Thinkstock
BizNewOrleans.com November 2015
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Columns | Tourism Biz Kicked off by All Saints Day, November is one of the best months of the year to visit New Orleans’ famous cemeteries. Shown here are just a few of the unique tombs at Metairie Cemetery.
Cities of the Dead New Orleans’ cemeteries give visitors an unparalleled historical and architectural experience.
F Jennifer Gibson Schecter was
once a tourist in New Orleans herself and is now proud to call NOLA home. Prior to New Orleans, she wrote for publications in the Midwest and New York City. She advises travelers to ask their cab/pedicab/ gondola driver for their favorite restaurant and taking a chance.
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ew cities have New Orleans’ range of tourist attractions, and even fewer draw a crowd to their cemeteries. Here in NOLA, we have a certain comfort with death. Our cemeteries are home to beautiful sculptures and cultural practices that honor our deceased. All Saints’ Day on Nov. 1 is a stark contrast to the revelry of Halloween night. During this Christian holy day, the glitter and fake blood are cleaned off and replaced with church hats and “Sunday best” clothing. In New Orleans, All Saints’ Day is a time to honor the dead and pay respects by visiting tombs and sprucing up the place. The timing happens to make November one of the best months of the year to visit our
November 2015 BizNewOrleans.com
famous cemeteries. Because of our water table, our “Cities of the Dead” consist of stone crypts and mausoleums, so the dead are “buried” above ground. Some are centuries old and still maintained by the same families. In time for All Saints’ Day, family and friends clean up the tombs, bring fresh f lowers and often picnic at the cemetery, sharing stories of their dearly departed. As for the graves that are no longer maintained by living relatives, nonprofit organizations like Save Our Cemeteries work year-round to “preserve, protect and promote the historic cemeteries of New Orleans through restoration, education and advocacy.” Save Our Cemeteries
recently partnered with another historic attraction, the Pitot House museum, along with the Louisiana Landmarks Society, to offer a special tour on 19th-century mourning and interment customs called “Mourning In Louisiana.” The tour features both Pitot House and St. Louis Cemetery No. 3, including a tour of burial customs and historic figures in St. Louis Cemetery No. 3, along with a display of 19th-century mourning attire and other period necro-artifacts and textiles from a private collection on loan to Pitot House. “We are excited to once again work with the Louisiana Landmarks Society on this special dual tour of the Pitot House and St. Louis Cemetery No. 3,” says Amanda Walker, executive director of Save Our Cemeteries. “It will provide the public with an intriguing look at life during the 19th century with respect to death and funeral practices.” “Mourning in Louisiana” tours will be conducted from 1:30 p.m. to 3:30 p.m. every Friday in November through Nov. 20. Save Our Cemeteries also offers various cemetery tours throughout the week. With more than 15 cemeteries in town, visitors may choose from nearly 40 tour companies when they want to explore our cities of the dead. Walking tours, bike tours, haunted tours, group tours, private tours, daylight tours, nighttime tours… it’s clear the demand for cemetery visits is high. Of course it’s better to visit a cemetery now, while you are still alive to tell the tale. n Photo Cheryl Gerber
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BizNewOrleans.com November 2015
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Columns | Sports Biz
Requiem for the Saints Without major changes, the golden era of New Orleans football will be over.
A
chris price is an award-winning journalist and public relations principal. When he’s not writing, he’s avid about music, the outdoors, and Saints, Ole Miss and Chelsea football.
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lthough the New Orleans Police Department won’t line up on horseback, shoulder to shoulder, and march in lockstep from the Girod Street end zone to the Poydras Street end zone to clear the Superdome field like they do on Bourbon Street when Carnival comes to a close, they may as well. It’s looking pretty bad — the party may soon be over. The New Orleans Saints have enjoyed the best 10-year span in their history, but the start of the 2015 season has been a rude awakening: The window of opportunity to win a second championship may have slammed shut. It is time for the Saints to explore all options moving forward. From the front office to the coaching staff to the last man on the roster, no one should consider their position safe. General Manager Mickey Loomis and head Coach Sean Payton were masterful in building their first few rosters. But after winning the
November 2015 BizNewOrleans.com
Super Bowl, they mortgaged the team’s future to make championship runs while Brees was in his prime. Unfortunately, the team hasn’t had another Super Bowl appearance since, and they’re underwater now that the bill is due. Because they entered the past two league years in the financial nightmare of being tens of millions of dollars over the salary cap limit and contractually obligated to pay millions to players no longer on the team (“dead money”), the Saints started this season with 25 players who weren’t on the team last year, including 17
who had never played a down in the NFL. The team has $30.9 million in dead money going against this year’s salary cap and $14.8 million toward the 2016 cap. The draft is the cheapest and easiest way to build a team. But too many of the Saints’ picks have been misspent on players whose talent didn’t meet expectations. The team traded its No. 2 pick in 2011 and No. 1 pick in 2012 to move up in 2011 to get Heisman Trophy-winner Mark Ingram. They lost their No. 2 pick in the 2012 and 2013 drafts as punishment for the bounty scandal. Most sobering is that Brandin Cooks is the only remaining pick from the 2014 draft class on the roster. Without draft picks significantly contributing to the team, management has been forced to fill the roster with lower-priced journeymen, backups and undrafted free agents who have proved to be a notch — or several — below the talent they replaced. If the Saints are going to get out of this financial trap, they need to start rebuilding now, and it has to start with Brees, who has a $26.4 million salary cap figure this year. His pay increases to $27.4 million, almost a fifth (18.3 percent) of the team’s total salary pool. It’s just too much for one player when the rest of the roster needs desperate attention. Unless his injured shoulder proves to be a major issue, expect the team to try to negotiate a contract extension that will lower his annual salary and keep him a Saint for the remainder of his career. The gutting of talent on the roster over the past few seasons has been heart wrenching for fans to experience. If the team can agree to a new contract with Brees, escape the salary cap noose, and rebuild talent and depth across the team, the Saints may have a shot at another championship. If not, it’s time for the Saints to make major changes to their roster of management, coaches and players. n
Top five potential cap savings figures for 2016 By removing a handful of players, the Saints could better spend to improve talent across the roster. These are the top five potential cap savings figures if these contracts are terminated by June 1.. Player
2016 Cap #
2016 Dead $
Cap Savings
Drew Brees
$27.4 million
$7.4 million
$20 million
Dannell Ellerbe
$5.9 million
$1.4 million
$4.5 million
Thomas Morstead
$4.45 million
$1.2 million
$3.25 million
David Hawthorne
$4.51 million
$2.26 million
$2.25 million
Marques Colston
$5.9 million
$2.7 million
$3.2 million
Total
$48.16 million
$14.96 million
$33.2 million Illustration Antoine Passelac
BizNewOrleans.com November 2015
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Columns | Film Biz Local photogapher and filmmaker, Kendra Jones Morris, on location in Haiti after the country’s devastating earthquake.
A Win For Locals The passage of HB 829 is about much more than a cap on incentives.
I Kimberley Singletary is the
managing editor of Biz New Orleans magazine. A 20-year Southern California veteran, she has been surrounded by the film industry for most of her life and is thrilled to be covering its emersion in her newly adopted home.
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n the wake of the $180 million film cap there was a lot of talk, and fear, about how the changes would affect the industry here in Hollywood South. But there is one group that has every reason to be excited about the passage of HB 829 — local independent filmmakers. One such filmmaker is Kendra Jones Morris. A resident of New Orleans for the past five years, Morris has been a lot of things in her career — a photographer, an actor, a social entrepreneur — but she says that thanks to the passage of HB 829, she is planning to add film director to that list. Created to favor local projects, HB 829 lowers the minimum amount that has to be spent on a film for it to qualify for tax incentives from $300,000 to just $50,000 if the director of the film can
November 2015 BizNewOrleans.com
prove that he/she has lived in Louisiana in the last two years. “That’s a return of 30 percent on the dollar,” Morris says. “Money that actually comes back to us fast enough that we can apply it to post production costs.” Morris and her husband, Keith Alan Morris, have worked together on four completed films — “Flying Tiger,” a 2003 family film; “Better King,” a 2007 film about an underground fight club; a Hallmark movie called “Rodeo and Juliet” in 2014; and a family/faith based film called “Runaway Hearts” that was just sold this year. Keith Morris also started, and currently runs, the film program at Dillard University. “This will be our fifth movie together,” Kendra Morris explains. “It’s called ‘The Other Professionals.’ It’s a
female action movie where the lead takes on human traffickers on the streets of New Orleans.” Morris says she has a script and a crew — Dillard students from her husband’s program. “Since we started making films together 12 years ago we’ve always had a connection with the local college,” she says. “We love to provide them with an opportunity for a real hands-on education.” Of course choosing local crew also serves to fulfill another requirement of receiving tax credits under HB 829, which requires that the total jobs on a production be held by at least 75 percent Louisiana residents (defined as someone who has lived in the state consecutively for at least 12 months). The Morris’ project also has an additional benefit for investors — it was written by Keith Morris, a Louisiana resident. According to an addition to the original bill, if the total base investment on a local film reaches over $300,000, and that film uses a screenplay that was written by a Louisiana resident, or a Louisiana based company that employs at least three fulltime Louisiana residents, each investor is allowed an additional 15 percent tax credit. Kendra Morris is all set to maximize the tax credits offered and make a film that she describes as “something that brings attention to a social issue, but does it in an entertaining and sellable way.” All she’s missing now is the funding to make it happen. “We’ve found funding for our projects in the past through networking and grants,” Morris says, noting that she’s optimistic that, thanks to HB 829, the film will get made. “This bill, it’s such a positive way to continue highlighting what New Orleans has always been good at — cultivating artists,” she says. “There’s so much great crew here and now we are really advancing local work. It’s all about local people telling local stories.” n
BizNewOrleans.com November 2015
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Columns | Entrepreneur Biz The 2014-15 winner of Junior Achievement’s “Trust Your Crazy Ideas Challenge,” Maygan Miguez, a freshman at St. Mary’s Dominican High School.
Start Them Young Junior Achievement invites student to trust their “Crazy Ideas.”
H Keith Twitchell
spent 16 years running his own business before becoming president of the Committee for a Better New Orleans. He has observed, supported and participated in entrepreneurial ventures at the street, neighborhood, nonprofit, micro- and macrobusiness levels.
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ow many entrepreneurs’ first business was a lemonade stand in front of their house? The data may not be in just yet, but that hasn’t stopped Junior Achievement (JA) of Greater New Orleans from launching its “Trust Your Crazy Ideas” challenge for students in the metro area. In 2014, only its second year, 1,900 students participated. And potential financial backers have already approached last year’s winner. Junior Achievement is partnering with the Idea Village and the Brees Dream Foundation to help the program — which runs each year from August to March — reach even more students in 2015. Any school in the metro area can participate. The program begins with a seven-lesson, teacher-taught curriculum
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that shows students how to produce a business plan, and local professionals volunteer to help participants finalize their plans at the end. “We prepare them with skills that will be valuable across many situations,” said new JA President Larry Washington, who noted that the program also teaches marketing, budgeting and business ethics. “We are encouraging social responsibility while we are encouraging entrepreneurship.” JA reviews the business plans; the top 20 plans (which can be produced by individuals or teams of up to four students) qualify for the next round. Winners are announced at a press conference featuring Saints quarterback Drew Brees. After semifinalists attend a series of workshops at JA headquarters, where they are
mentored by real-life entrepreneurs, they pitch their ideas in front of 200 people at a Pitch Party night. The final four are announced a few weeks later at halftime during a Pelicans game. The final pitch is held on the last day of Entrepreneur Week (held this year in March), which has the added advantage of exposing the participants’ ideas to some pretty heavy financial hitters. All the finalists receive cash prizes, as well as their schools. (The participants’ funds are held until they go to college, and then sent straight to their schools to help pay for tuition.) In reality, though, all participants are winners. “The challenge is about more than creating a business plan,” said Brees recently. “It is designed to educate, motivate and inspire students by giving them valuable communication and presentation skills that will help them in every aspect of life.” “Beyond entrepreneurship, the program simply exposes them to potential futures,” added Liz Lund, education projects manager. “It encourages them to stay in school.” Many of the business-community coaches continue mentoring the participants after the program is over, helping develop life skills and lessons. And this year, the program is adding a day of volunteerism to teach the students the value of giving back. The “Trust Your Crazy Ideas” challenge is hopefully the breeding ground for the next generation of New Orleans-area entrepreneurs, but it is also much more than that. As Brees observed, “It’s all about inspiring the kids!” For more information about the “Trust Your Crazy Ideas” challenge, and to sign up to participate, visit TrustYourCrazyIdeasChallenge.org. n
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Columns | Biz Etiquette
Emails and Cocktails A roundup of basic business etiquette questions from local young professionals
D Melanie Warner Spencer is editor of
New Orleans Bride Magazine. Her writing has appeared in the Austin American-Statesman, the Houston Chronicle, the Chicago Tribune and Reuters. Spencer’s ever-expanding library of etiquette books is rivaled only by her everready stash of blank thank-you notes. Submit business etiquette questions to Melanie@ MyNewOrleans.com.
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uring a recent business etiquette presentation at a New Orleans-based public relations firm, many of the attendees were in their 20s and 30s, and they were at varying stages of their careers. Most of us don’t get business etiquette training before entering the professional world, so it’s important to seek it out in books, online, through workshops, and from columns like this one. If your company offers training, take advantage of it. Meanwhile, some of the questions asked by these young professionals were edited or combined for brevity.) Can I open an email with “Hey” if a client does it? If you’ve worked with the client for some time and have a less formal style of communication, it’s fine to use casual language, but wait until they initiate it. Otherwise, err on the side of formality. Email is more casual than a letter, but in business, it’s still not completely informal. Begin with “Good morning” (or
November 2015 BizNewOrleans.com
whatever time of day you are sending it), and the person’s name. Make sure to use a formal greeting — for example: Mr. Smith, Ms. Grant or Capt. Hernandez — for new clients or when you’re not on a first-name basis yet. Let them initiate the use of just first names. When engaged in a rapid exchange, it’s OK to drop the greeting and cut to the chase, but again, wait for the client to do it. What’s the appropriate closing for an email? It seems like a formality, but it is also a style. Close with any of the following: • Regards, • Best wishes, • Best regards, • Warmly, • Thank you, (Thanks and many thanks are also good) • Sincerely, • Cheers, The level of warmth or humor depends on the business you work in or if you deal with international clients. For the latter, stick with
formal. American culture is far more casual than other parts of the world. If a client emails late at night, do I have to respond? Communication is key, so get started on the right foot by letting clients know when you normally answer emails and calls. If you are in the middle of a high-priority project, discuss correspondence and response time to avoid misunderstandings. Otherwise, note that many people work odd hours to catch up or because that’s when they have a chance without the distraction of colleagues, ringing telephones or when working from home, children, pets and other family-related diversions. They usually don’t expect a response overnight. Always use your judgment and learn to prioritize. If a client offers me wine at lunch, can I accept it? Also, if a client is visiting New Orleans from another city and wants to go out on the town to soak up the party vibes, how do I handle it if I’m tasked with entertaining? New Orleans is, of course, different than most parts of the country (and the world, for that matter). Both the social and business mores are much more relaxed here in many ways, especially when it comes to alcohol and professionalism. That said, always check your company’s policy. It doesn’t matter how laid-back it is in the Big Easy if your company policy is no drinking during work hours or with clients. If it’s not frowned upon, limit yourself to one drink at lunch — especially if your client is hosting you — consume it slowly and drink a lot of water. If you want to say no because of personal reasons or company policy, decline politely and don’t dwell on the subject. When scheduled to entertain outof-town clients, enjoy one or two drinks with them, then offer up a few suggestions of fun and safe places to go and politely excuse yourself. If they push you to stay, let them know you have an early work day tomorrow and wish them a festive night. The most important thing is to avoid being “overserved” and losing your composure in front of your clients. When in doubt, bow out. n Photo Thinkstock
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Columns | Tech Biz
Proactive vs. Reactive Data security: Is your business really protected?
M Clayton Mouney
is the president of ThinkIT Solutions, a recognized leader in managed IT services that delivers high-end solutions. He oversees administration and daily operations for all facets of ThinkIT’s technical services business. During the last 14 years, Mr. Mouney spearheaded the development of ThinkIT’s key internal procedures and strategic operations.
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ost homes and businesses have alarm systems to protect valuables from being stolen. If someone were to break in, the alarms would sound, triggering a procedure instilled to prevent the criminals from continuing to break in and stealing valuables. Ponder that scenario for minute. What most business owners do not know is that data can be protected with the same philosophies of protecting equipment — virtually. It is imperative for businesses to consider the importance of their data and ask themselves: Why isn’t protecting that information a top priority? To that end, when business owners are asked what is the most important element to the success and longevity of their business, besides the employees, most answer with operational aspects: inventory, processes and procedures, and clients. While these are all very important to a business, perhaps the most important component of a business’s longevity is the data and intellectual property. This is the information that businesses rely on for day-to-day tasks. Sensitive client information lists,
November 2015 BizNewOrleans.com
pricing, procedures, accounting systems, you name it … just about everything is located within the data. At the end of the day, inventory and equipment can be replaced but virtual data cannot. PROTECTING AND SECURING Just like with a building’s security system, IT systems need to focus on preventing breaches and monitoring activity. In the case of prevention, IT departments can implement a DVR-type technology to show when an incident occurs with the ability to rewind to see where and how the breach occurred. The one area that is often missed is the logging and monitoring of the network. Most data breaches occur without anyone knowing because the systems are not actively setting alarms. So, with each moment that goes by, sensitive data is leaking out unknowingly. Preventing is only as good as what is known. Just like the old saying goes, “it’s not a matter of IF you get compromised, it’s a matter of WHEN.” With that said, wouldn’t it be best to know exactly when an incident occurred so you can stop it immediately...not several months later?
Businesses should consider implementing a layered approach to security consisting of six essential security steps: n Prevention – this is often unique to each business and industry that may have its own regulations and requirements that must be considered and ultimately implemented; n Security Information and Event Management (SEIM); n Asset Discovery; n Vulnerability Assessment; n Threat Detection; and n Behavioral Monitoring. Disaster Recovery Businesses should also have backup and disaster recovery solutions that include offsite storage. If the data is compromised in any way, a business needs to be able to restore from backup and keep things running. Many companies in the Gulf region make the mistake of only considering backups and disaster recovery plans during hurricane season. Businesses need to consider these important strategies at ALL times. A disaster can happen at any time. Two months ago, a water-heater pipe burst at my own business location and the office flooded with over an inch of water. Fortunately, we did not need to rely on the system protections in place because we caught the flood prior to it reaching our equipment. Because we practice what we preach, the day the office flooded was a lot less stressful than if a good disaster recovery solution was not in place. The Changing Landscape of IT Provider Relationships It is now common practice for technology providers to only work with businesses if they agree to a solution before the providers perform any work. What good is a backup solution if you can’t see what it is doing? This can be achieved through monitoring and logging. Companies and their IT departments need to make sure they are receiving alerts and actively monitoring their systems for successful backups. They also need to ensure the data backup is in sync at an offsite location. Perhaps most importantly, a company should never assume everything is working properly. Technology providers are often baffled that protecting a company’s data isn’t a business owner’s top priority. Every business should review both their security solutions and backup systems frequently. As the old addage goes, “knowing is half the battle.”n Photo Thinkstock
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Biz Bits - Industry News Around town We’re now in our 20th year of helping small food producers grow their businesses through forging relationships with a strong community of shoppers and restaurants. Shopping locally for food at the Crescent City Farmers Market directly impacts our local food economy and encourages small food-based businesses to grow. - Kathryn Parker, executive director of Market Umbrella/the Crescent City Farmers Market. The market supports more than 75 small businesses, and has increased direct access to fresh, local produce for over 100,000 New Orleanians annually.
MBDA Announces Grant Competition The U.S. Department of Commerce Minority Business Development Agency (MBDA) recently launched a search for a prospective partner to operate an MBDA Business Center in New Orleans. MBDA is looking for an organization to deliver business consulting services to minority-owned firms beginning April 1, 2016, providing them with increased access to public and private sector contracting opportunities, financing, and capital investments. New Orleans will be one of 29 MBDA centers around the country. Successful applicants will be those that have experience in assisting minority firms with obtaining large scale contracts and financial transactions; accessing corporate supply chains; facilitating joint ventures, teaming arrangements, mergers and acquisitions; conducting export transactions; and performing minority business advocacy. Applications are due December 3, 2015. For more information, visit Grants.gov or MBDA.gov.
Carnival Cruise Lines Partners with Saints The official cruise line of the New Orleans Saints, Carnival Cruise Line has signed a multi-year agreement with the NFL franchise that includes in-game activities, promotions and ads at the Mercedes-Benz Superdome, support for the Saints’ children’s literacy program, and onboard “Saints Sailgate Sailaways” — football themed deck parties. Carnival is currently the largest cruise operator in the city, operating two year-round ships out of New Orleans that together carry 400,000 guests each year.
Port of New Orleans Signs Agreement with Central Ohio On October 12, following months of discussion and planning, the Board of Commissioners of the Port of New Orleans and the Central Ohio River Business Association (CORBA) signed a memorandum of understanding aimed at establishing a working alliance to enhance cooperation and grow new business between the region and the Port. The two-year agreement, with annual renewal option, lays the groundwork for joint marketing activities, data interchange, regional market studies and cross training opportunities with the goal of developing new business and streamlining customer service between the Port and CORBA. “The Port of New Orleans and the entire Lower Mississippi River historically has strong ties to business and industry throughout the Central Ohio River region,” said Port President and CEO Gary LaGrange. “Today’s agreement solidifies our efforts to work together to enhance cooperation and foster a new generation of business for both parties. It’s a win-win for all.”
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Small Business Optimism in Louisiana Remains Stagnant
Recent Openings
The National Federation of Independent Business’ Small Business Economic Trends Report shows that national small-business optimism showed little improvement from August to September. The monthly Optimism Index improved 0.2 points to 96.1, well below the 42-year average of 98. Dawn Starns, state director of NFIB/Louisiana, said these finding are representative of Louisiana. “The percent of owners citing the difficulty of finding qualified workers as their Single Most Important Problem increased and is now third on the list behind taxes and regulations,” said Bill Dunkelberg, NFIB’s chief economist.
Business First Bank Moves to New Orleans Business First Bank, the largest community bank headquartered in Baton Rouge, has opened its first loan production office in New Orleans. “As Louisiana’s leading businessfocused community bank, it is time for us to contribute actively to the renaissance under way in the New Orleans area,” said Jude Melville, president and chief executive officer of Business First Bank. Lifelong New Orleans resident Christopher Keene has been appointed president of the bank’s New Orleans market. The new office is currently open and operating at 1 Clubhouse Drive, but the bank is in search of a more permanent location. “As Louisiana’s leading business-focused community bank, it is time for us to contribute actively to the renaissance under way in the New Orleans area,” said Jude Melville, president and chief executive officer of Business First Bank.
Ship Tech Services This summer, Ship Tech Services — a startup that provides maritime, environmental and industrial cleaning services for ships, barges, tanks and other vessels throughout the Gulf Coast — opened for business in St. Bernard. The company immediately added 15 jobs to the local economy and has the potential to add 10 more within a year. Offices are located at 8328 Lafitte Court in Chalmette. “We appreciate the efforts put forth by St. Bernard Economic Development and LED to help us leverage an incentive package for our company to make a significant investment in the Parish and state,” said Ship Tech Services Managing Member Michael J. Faulk.
East Baton Rouge Ranks Highest in Growth of Local Economy New York financial technology company SmartAsset has released its four-year GDP growth ratings for Louisiana. The findings are as follows
Rank County
Business Growth
New Building Permits GDP Growth (per 1,000 ($ in millions) homes)
Municipal Bonds (per capita)
GDP Growth Index
1
East Baton Rouge, LA
-0.8%
$139
5.5
$4,153
0.38
2
Jefferson, LA
-1.6%
$133
1.3
$86
0.37
3
Orleans, LA
1.5%
$98
3.9
$1,217
0.27
4
Lafayette, LA
3.2%
$94
13.0
$270
0.26
5
Caddo, LA
0.4%
$73
2.5
$639
0.20
6
Saint Tammany, LA
4.4%
$70
12.4
$0
0.19
7
Ouachita, LA
1.0%
$49
7.0
$595
0.13
8
Calcasieu, LA
-1.2%
$48
8.1
$755
0.13
9
Rapides, LA
-2.9%
$36
5.3
$382
0.10
10
Terrebonne, LA
2.7%
$34
5.8
$97
0.09
GLO Airlines New Orleans-based GLO airlines launches this month with daily, non-stop flights from Louis Armstrong New Orleans International Airport to Little Rock, Arkansas, Memphis, Tennessee and Shreveport, Louisiana. The airline — founded by local entrepreneur Trey Fayard — is geared toward business travelers and operates a 30-passenger Saab 340B aircraft. Current promotional flights start at $163.
We’d love to include your business-related news in next month’s Biz Bits. Please email details to Editorial@BizNewOrleans.com. BizNewOrleans.com November 2015
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November 2015 BizNewOrleans.com
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BizNewOrleans.com November 2015
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Homegrown Grocers Thrive 40
November 2015 BizNewOrleans.com
New Orleans’ independent markets are standing strong against national chains. By Rebecca Friedman | Photography by Cheryl Gerber
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W
hen it comes to grocery stores, New Orleans is what Langenstein’s President H.D. Lanaux calls “an odd duck.” Unlike other major cities, which tend to be dominated by national or regional chains, New Orleans has long remained a staunchly independent grocery market. “You see the Langenstein’s, the Zuppardo’s, the Robért’s, the Rouses — New Orleans has been very good to the grocers of New Orleans in that they support the local guys,” Lanaux says. But as outside players like Whole Foods, Trader Joe’s, and Fresh Market expand their presence in the area, local stalwarts are raising their game to stay competitive. “After Katrina, we were definitely an undersaturated market, and we were not a target for out-of-state competition because of the uncertainty of New Orleans coming back,” says Marc Robért III, general manager of Robért Fresh Market. Now we are on the radar of national companies like Whole Foods, Trader Joe’s… so the way we differentiate ourselves in the market matters.”
Rouses’ expansion fueled by a ‘local’ orientation For many businesses, emphasizing local products from local producers is a somewhat recent trend. That’s not the case for Rouses, however, says Managing Partner Donny Rouse. “We’ve been selling local produce and local seafood forever, since day one,” he says. “My grandfather was a farmer, so we were selling his produce. But nobody advertised it, nobody talked about it. Now people want to know where their food comes from. They want to know how it’s handled. The consumer is getting more educated.” 42
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Offering local products doesn’t just satisfy customers; Rouse says it also gives Rouses a competitive advantage. “We know the local fisherman, farmers and grocery manufacturers. That gives us an edge in getting those products before the national companies do.” Competing against national chains is nothing new for Rouses. Their first stores in Houma and Thibodaux went head-to-head with chains like Delchamps and National. The secret to the company’s success, the family believes, is not only the selection of local products but also a deep understanding of local markets. “We know what people like to cook,” says Rouse. “We know what people like to eat, and we know what people like to buy around certain holidays. We’ve been on the Gulf Coast for over 55 years, so we’ve learned this market, and we know it better than anyone.” As a family-owned business, Rouses also has the ability to be nimble in terms of strategy and decision making, something that comes in handy when operating a network of more than 50 stores — and counting — across Louisiana, Mississippi and Alabama. “We can make decisions and change things immediately,” notes Rouse. “We don’t have a big corporate process or a board of directors to go through.” Some of the company’s biggest strategic decisions involve opening new locations, an area where Rouses has been aggressive in recent years, with no signs of slowing. “I’m excited about expanding everywhere,” says Rouse. “I get excited every time I find a location, whether it’s right here at home or somewhere else along the Gulf Coast.” The company is currently preparing to start construction on a new location in Baton Rouge, one of many areas where Rouse sees room for additional growth. “In every market, I have a half-dozen locations where I can
Previous Page: While most major cities are dominated by chain markets, New Orleans supports a strong collection of local grocery stores, the oldest of which being Langenstein’s. Shown here is the store’s Metairie location. LEFT, TOP and BOTTOM: “I think over the next five years we’ll probably lose one of the national grocery stores...and I think it will probably be down to us, Walmart, some independents and maybe a couple of specialty grocery stores,” says Rouses Managing Partner Donny Rouse. Pictured here are views of the Rouses at 701 Baronne Street, including its rooftop garden.
put a supermarket. But I can’t build 50 stores in one year. It’s which location do I like more than the others? Which ones project better for the long term?” With its store network continuing to expand, the company has invested heavily in technology to help maximize operating efficiency. According to Managing Partner Ali Rouse Royster, “We’ve always been pretty forward on technology. A lot of that was due to my dad. We have programming staff here, and we can adapt and create systems and software that do exactly what we want them to do. We’ve tried to stay at the forefront of that to be more efficient, which is huge in grocery because of your low, low profit margins.” With their continued record of success, Rouse feels confident that the family business will remain a dominant player in the New Orleans market, despite the increasingly competitive landscape. His prediction: “I think over the next five years we’ll probably lose one of the national grocery stores... and I think it will probably be down to us, Walmart, some independents and maybe a couple of specialty grocery stores.” What advice would the Rouses offer other New Orleans-area business owners? “To stay long term, you have to enjoy what you’re doing, and you have to continually learn about your industry — what’s next, what’s new and what other people are doing around the country, not just here,” says Rouse Royster. “You’ve got to be involved yourself – no one can do it better than you can,” adds Rouse. BizNewOrleans.com November 2015
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Robért Fresh Market carves out its niche When Robért Fresh Market opened 20 years ago in Metairie, owners Darlene and Marc Robért positioned the store as a specialty service provider. According to their daughter, Marcelle Robért Connick, the store’s marketing manager, they offered “prime meats, organic produce and specialty hard-to-find items because at the time, all there was specialty-wise was the little Whole Foods on Esplanade Avenue... Our mission, although it’s become increasingly competitive, is still the same.” “The key factors for us are customer service and understanding ‘local’ — and every facet of that,” adds her brother, Marc Robért III. What products do people want in New Orleans? Costco opened without carrying Camellia Red Beans, and they were publicly shamed. It’s about understanding that local component and having those things available.” According to Robért, he often hears the following from customers: “‘I can get 90 percent of what I want from you, but I do have to go to Whole Foods to get this other 10 percent.’ So we’re trying to serve that niche. What do you need? Let me get it in for you. We’re trying to be that one-stop shop for everybody in our neighborhoods.” Robért’s prides itself on being a destination for ‘foodies,’ stemming from the family’s own passion for eating and drinking. At its Robert E. Lee location, Robért’s has just unveiled one of the state’s largest selections of craft beer, a development spurred by the family’s personal tastes. Says Connick, “It kind of started because Marc and my husband kept saying, ‘You’ve got to get this beer in!’ and before you knew it, we didn’t have enough space for all these beers.” 44
November 2015 BizNewOrleans.com
LEFT and RIGHT: “Costco opened without carrying Camellia Red Beans, and they were publicly shamed,” says Marc Robért, co-owner of Robért Fresh Market. “It’s about understanding that local component and having those things available.”
They chose the Lakeview location as the site of this venture based on local customer demand for higher-end items. “This is definitely a neighborhood that is willing to spend a little more money on nicer things that they appreciate, whether fair-trade certified coffee or organic produce,” says Robért. But if this sounds like a local version of Whole Foods, Robért is quick to correct that notion. “They still need value somewhere, and we can offer that. We will always carry Coca-Cola, Lay’s potato chips… but we are not going to let those vendors be what we’re all about.” The business is poised to expand within the New Orleans market, with a new location planned for St. Claude Avenue and Elysian Fields, slated to begin construction in 2016. The company has also made major infrastructure investments across its three locations over the past 18 months, and is supplementing the family’s expertise with outside talent, including former executives of Whole Foods and other stores. For the family, operating a grocery store in New Orleans is a unique experience. “You can’t open a store in any other city, I don’t think, and get the same passion about the tradition of cooking and eating,” says Connick. “Eating is just fun here.”
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Dorignac’s Food Center puts on a fresh face In an effort to refresh its image, Dorignac’s Food Center’s 55-year old building is undergoing a major facelift. The storefront boasts a new façade, with glass replacing large sections of brick to bring in natural light and greet shoppers with a view of the bakery department. The renovation extends inside the store as well, with new f looring, lighting, deli and cafeteria, as well as an expanded produce department. But they were careful to maintain the Metairie landmark’s distinctive character, including its iconic sign. Says President Ronnie Dawson, “We didn’t want to change our philosophy, customer service — everything Dorignac’s is known for — but we needed to make the building more attractive to people who are new to the marketplace, and to our very solid customer base who have grown up in the store.” That also meant erecting a screen to illuminate the building at night with colors commemorating LSU, the Saints, or Mardi Gras, depending on the occasion. To meet the demands of new shoppers, Dorignac’s, like many of its peers, has increased its organic and prepared food offerings, adding to its already broad selection of products. “We try to make sure we have everything,” says Dawson. That desire is ref lected in the advertising slogan: “Yeah, We Got Dat,” which touts the store’s reputation for stocking hard-to-find items. Dorignac’s is also using technology to modernize its approach, developing a social media advertising presence and offering shoppers the ability to use mobile devices to get discounts in the store or check out with Apple Pay. But while Dawson pushes the store to be “on the cutting edge of that piece,” he acknowledges the importance of excelling in the more personal aspects of customer service. “Our stockers know where products are, we have a bagger 46
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Dorignac’s Food Center is currently undergoing a large renovation aimed at improving the aesthetics of the 55-year-old building at 710 Veterans Boulevard.
for every cashier,” he says. “We try to keep that environment as friendly as possible for our customers.” Most importantly, Dawson believes the city’s independent grocers bring an asset that no national chain can offer. “We are here. The money stays in the community. Most of us are homegrown. The ownership is in the store on a daily basis, and people appreciate it — we have a face and a voice. That’s what our customers want.”
Local Grocery Standouts: n
n
n
n
Rouses Beginnings – first store opened in Houma, Louisiana in 1960 by Anthony J. Rouse Sr. Current leadership – Third generation of the Rouse family: Managing Partners Donny Rouse and Ali Rouse Royster. Number of locations – 45 stores in 3 states (Louisiana, Mississippi and Alabama) Langenstein’s Beginnings – The small Uptown corner grocer was started by Michael Langenstein and his two sons, George and Richard, in 1922. It is the oldest full-service grocery store in New Orleans. Current leadership – H.D. and Trey Lanaux. Number of locations – 2, one Uptown and one in Old Metairie. Robért Fresh Market Beginnings – Marc and Darlene Robért opened the first location on the corner of West Esplanade and Transcontinental in May 1994. Current leadership – Marc and Darlene Robért Number of locations – 3: one Uptown, one in Metairie and one in Lakeview Dorignac’s Food Center Beginnings – Joe Dorignac opened the first store in the Lower Garden District in 1947. Current leadership – Ronnie Dawson, president, and Becky Fillinger, operations manager Number of locations – 1 (currently undergoing renovations) on Veterans Memorial Boulevard in Metairie
Now in its 95th year, Langenstein’s has stood the test of time. Most recently, Owner and President H.D. Lanaux says the store has adapted to the demand for organic food and ready-to-eat meals, and has incorporated a lot more technology into the store.
Langenstein’s maintains its long tradition of service Owner and President, H.D. Lanaux, credits a strong customer orientation for Langenstein’s continued success – the business is now in its 95th year. “We take it to heart to do our best for our customers, and I believe they see that,” he says. “It’s trying your best to keep meat well stocked, maintaining stores, and meeting [customers’] needs as far as food requirements. That’s one of the backbones of our business. We were all brought up to think like that.” While the service remains consistent, there are some changes evident in the stores. In addition to a move toward organic and ready-to-eat meals, Lanaux also notes the shift to incorporate technology into store operations. “It’s a lot more technical and computer driven – numbers analysis, space management, all of
those things. Space management has always been a concern of grocers, that’s part of the business. The Uptown store – there’s not an inch up there that’s not used. When I first started, there wasn’t a computer. Everything was done hands-on — from payroll to pricing with old sticker guns and labels. Now I’m sitting in my desk and my store manager has a computer with three screens. It has gotten very analytical, but I leave that part to them. I like the downstairs, meeting with salesmen and talking to customers.” Looking ahead, Langenstein’s plans to open its third location in early November, in River Ridge. Once that location is up and “running like a clock,” additional expansion remains a possibility. “There’s nothing in the works whatsoever,” says Lanaux, “but we might turn around and start looking for other opportunities if they present themselves.” n
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encore performance Historic theaters return to life just as New Orleans’ economy enters its post-Katrina second act. By David Lee Simmons
50 November 2015 BizNewOrleans.com Photo Jamey Shaw
The latest reopening of the Orpheum Theater this past September is a prime example of the balance owners struggle to strike between retaining the charm of the space and ensuring it is state-of-the-art. BizNewOrleans.com November 2015
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ith pomp and circumstance, one by one New Orleans’ historic downtown theaters have reopened, some with grand reopenings, complete with A-list entertainers, eager audiences and a steady stream of new revenue that might just fulfill the long-held vision of a revitalized Canal Street and/or theater entertainment district. First came the Joy Theater (December 2011), followed in dizzy succession by the Civic Theatre (September 2013) and the Saenger Theatre (September 2013) and then, more recently, the Orpheum Theater (September 2015). Over in the Treme, the Historic Carver Theater — which at the time of Hurricane Katrina served as a medical center — reopened in April 2014. With an infusion of state tax credits, federal aid, a growing population and the general honeymoon vibe of the post-Katrina recovery period, many of these theaters have come back stronger than ever. Tickets to Saenger’s Broadway theater programming, for example, almost always reach sold-out status. The smaller Civic, armed with the New York-based Bowery Presents booking agency, draws topflight comedy and indie-rock acts. And the Orpheum, though just a few weeks back in the game, has drawn huge crowds, celebrating the triumphant return of the Louisiana 52
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Philharmonic Orchestra as well as a visit by the popular alt-rock band Wilco. After that, it gets spotty. The Joy Theater, though the first to reopen, still seems in search of its footing (and branding) as it’s tried out a few different booking strategies before settling into a mix of live music, cabaret theater and special film screenings. The Historic Carver Theater, which hadn’t provided entertainment since the 1970s, has already undergone a series of management changes. If all five theaters can keep up the momentum — recognizing their brand, booking acts shrewdly, and consistently drawing crowds — this rebirth of historic theaters could indeed represent a renaissance of downtown entertainment that transcends what emanates from the French Quarter. As more residents flock to the city’s urban core, which includes more housing, retail and hospitality options, more entertainment makes for a perfect match. “A great downtown has special amenities right at the heart of the city, whether that be a symphonic orchestra and other live music, or theater,” said Kurt M. Weigle, president and CEO of the Downtown Development District. “These theaters provide us more of those special amenities downtown. (Their presence) has a strong, attractive quality. It’s filling an important role for us downtown.”
“These venues, which not only are expensive to operate but also to maintain, will be the canaries in the coal mine for the health of the New Orleans economy.” -Michael Hecht, president and CEO of GNO, Inc. Michael Hecht agrees. As the president and CEO of Greater New Orleans, Inc., which promotes economic development, Hecht sees the return of the historic New Orleans theaters as a leading economic indicator — but one that can cut both ways. To Hecht, their return underscores the optimism of locals and visitors of the post-Katrina “boom” economy still in progress. He sees their resurgence as representing a “going back to the future” to reclaim a part of New Orleans’ unique culture. Hecht says they also serve to validate the targeted tax incentives that helped bring about so much housing in the area. A lot of factors of this growth, he says, “are indicative of the re-urbanization across the country. Young people are more inclined to move to the city instead of the suburbs and Photo Cheryl Gerber
Left: Among other things, the Saenger Theatre is home to Broadway in New Orleans. Above: Reopened in September 2013, the Saenger underwent a $52 million renovation.
take advantage of these venues.” But the buildings’ return represents the flipside to that good vibe, Hecht cautions. “These venues, which not only are expensive to operate but also to maintain, will be the canaries in the coal mine for the health of the New Orleans economy,” Hecht says. “As we continue to add companies and great talent from around the country, we need to keep building a middle class that has more disposable income. If, in the post-Katrina environment, as the recovery money goes away that the economy flattens, these theaters are going to be one of the indications of that happening, because this is where that disposable income goes.” In the best possible sense, the renovated theaters have set a very high bar across the board. Even a venue as simply constructed as the Joy Theater looks lovely, sophisticated and inviting. Guests who have returned to the Saenger have had a hard time focusing on the shows and not gawking at the redone interior, complete with the return of those ornate chandeliers — the results of a $52 million renovation that was years in the making. And then there’s the recent renovation of the Orpheum, with its $13 million price tag, Photo Courtesy of Saenger Theatre
backed by the ownership team of Tipitina’s owner Roland von Kurnatowski and Dr. Eric George. (Von Kurnatowski’s wife, Mary, literally became a hands-on participant in the renovation work, even handling some of the painting chores.) “We wanted to restore what this place was and is and not change it,” Roland von Kurnatowski says. “Being involved in the process on a daily basis and sticking to the integrity of what the Orpheum offers … it’s such a beautifully, remarkably appointed and designed space … it was a really remarkable experience.” Management for virtually all of the theaters spoke to walking that fine line between retaining the original, historic charm of the spaces while updating with modern sensibilities to create a complete experience. So while the lobby of the Orpheum reflects its original design, a modern LED poster touting upcoming shows wouldn’t feel completely out of place.
“We’ve learned that New Orleans loves certain bands, but not at $45 a ticket, at $35 a ticket,” -Bryan Bailey, co-owner, CIVIC THEATRE
Focused vision
While management of the respective theaters say they don’t look at one another as competition, they know they’ll each have to recognize their mission and audience to survive and keep these huge venues humming at a profitable pace. The Saenger Theatre, for example, is at its best when booking its touring Broadway shows but also finding the right market for high-profile music, comedy and family acts that best suit the 2,700-seat venue. David Skinner, who manages the Saenger and the Mahalia Jackson Theater (reopened in 2009) through the ACE Theatrical Group, pointed to a shift from outside to inside booking as a key to finding the right fit for the venue. About three-quarters of the booking is now contracted through Nasvhille-based promoter Mark Perthel. While they’ve been more successful, Skinner notes, they haven’t necessarily gotten smarter at booking, and have to analyze a range of factors on a given act. “In the entertainment industry, there is no more difficult market to try to understand than New Orleans,” Skinner says. “Anybody in this business will tell you that New Orleans is a head-scratcher. We never have figured this market out. But being in the promotion business today, we feel we have a better grasp on it than anyone else.” BizNewOrleans.com November 2015
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The Civic Theatre, which at its best can host 1,100 guests, took a little while to find its niche, but through Bowery Presents, has become a go-to venue for popular indie-rock bands as well as comedic acts. On any given night you can catch singer-songwriter Shakey Graves ($20 a pop) go big and see Damien Rice ($40), or wait for John Waters’ Christmas show ($35-$50). “We’ve learned that New Orleans loves certain bands, but not at $45 a ticket, at $35 a ticket,” says Civic Co-owner Bryan Bailey. “We definitely know we have limitations there, and you have to be respectful and mindful of that. We’re not afraid to say that if an artist needs a certain amount and we don’t feel our community can afford the ticket price, we’ll say, ‘Look, maybe you should go for a larger venue where you can meet your ticket price.’”
Many things to many people
With such large venues and high stakes, versatility is everything. That’s why Orpheum Theater General Manager Kristin Shannon points to her theater’s ability to present the classical sounds of the LPO on one night, the rocking folk of Wilco the next — their early slogan was “From Bach to 54
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rock” — and the screenings of the New Orleans Film Festival on yet another night. To keep people coming back, Shannon aims to offer visitors an enjoyable (but affordable) experience. This translates into a craft-cocktail menu curated by T. Cole Newton of the popular Twelve Mile Limit bar and food from Host Pfeifer of Bella Luna Catering. If you want M&Ms, fine. Or, you can sample “kickedup concessions” that include chocolate-covered pretzels or savory popcorn. “You have to have service and you have to have a modern take,” says Shannon, who persuaded Von Kurnatowski to build a kitchen in the Orpheum in a space initially reserved for offices. “It’s the idea that we’re going to take care of you. We’re trying to give you a show before the show, and things you won’t get from other shows.” And when the nights are otherwise dark, there will be something going on — from a Carnival ball or a wedding reception to a corporate gig. “New Orleans is an interesting market in that there are so many destination events going on,” says Bailey. “There are conventions, there’s private business coming to
town. There are all these activities happening outside the Convention Center. You take that and factor in that New Orleans is unique architecturally, and it’s a fairly small footprint of a city given how many activities there are. “In New York and L.A., there are so many event venues available,” he continues. “If you do music in New York, you’re not thinking about being all things to all people. In New Orleans, there aren’t that many venues, and certainly not that many that have such a beautiful place like we have, and one that’s not only the oldest (theater) in the city, but has been updated to handle these events.”
Lessons learned
Not all of these rebirths have gone as smoothly as the management would have liked, and it’s taking time for everyone to find their groove. For the Civic, the painful lesson was with acoustics. At first, the space’s sound quality varied wildly at concerts, forcing ownership to go back and cough up an extra $400,000 to make the experience more consistent in quality regardless of the artist. Bailey makes no excuses for the error. “We didn’t have an acoustician as a consulPhotos by Stephen Young
Left and Center: Since its rebirth in September of 2013, the Civic Theatre has specialized in top-flight comedy and indie-rock acts. Right: The Joy Theater led off the string of theater openings in December of 2011.
tant on the front end,” he said. “We had sound people, and we ran tests. That was a mistake. It cost us more in the end to get it right.” For the Joy Theater, it was a matter of finding its identity. Early on the booking rhythm seemed erratic; one month would see a smattering of shows, and another month you wouldn’t see a new show advertised on the marquee for weeks. “They tried to make it more of a theater venue and host theatrical performances, but based on it being an old movie theater it was difficult to do those, so we did movies and live music events,” said Andrew Portwood, who came on as the Joy’s production manager in the summer of 2013. “We see the city thriving with live music, film and comedy, and we kind of rebranded ourselves in 2013. We still do local and national touring productions as far as plays, but (now) it’s a lot of music and film events. It’s a good blend of everything as far as iconic theater performers and one-man Photo Cheryl Gerber
“You have all these venues that primarily aren’t competing, but are more complementary. They’re not a competitor: They’re a sister or a brother.” -David Skinner, manager of the saenger and Mahalia Jackson Theatres shows, but most lean toward music and film.” That’s why the Joy has been the place to see such cabaret shows as Broadway performer and “The Good Wife” star Alan Cumming, comedian Sandra Bernhard, and regular showings of local films like the documentary “Big Charity.” “The goal is to always be improving, and making the experience better for the concertgoer,” Portwood said. “And that’s the approach here — from staffing, to everything really — keeping the building clean and the sound up to date, and the technology up to date. The only thing we run into as far as a challenge is how
to park people here downtown, and the ease of getting everyone into the venue.” Before anything else, though, a theater has to be run properly, from the booking of shows to the showing of the books. This is why the situation at the Carver should be cause for concern for at least the Treme community — if not, perhaps, the so-called burgeoning downtown theater district. Just four months after a new management team — operations manager Shelley Everett and sales director John Ernst — started refocusing the theater’s programming, the pair was gone. (In fact, Ernst let me know of his firing just days after our interview.) Everett, a personal friend of owner Dr. Eugene Oppman, says she left after Oppman directed her to fire Ernst and then refused to continue sitting on the board of the Carver’s recently formed foundation. This was the first of a few curious moves. An attempt to reach Oppman for comment led to a phone call from Lucky Johnson, a former Carver employee and a local New Orleans entertainer, who’d mounted several productions of his musical tribute “Walking to New Orleans.” Johnson, saying that he was speaking for Oppman, offered to discuss the Carver, BizNewOrleans.com November 2015
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but when he was told the questions included the apparent management turnover, Johnson said Oppman would call back and abruptly hung up the phone. Soon after, a message on the Carver marquee read, “Under new management.” This could represent a third iteration of management for the Carver, which, as Oppman told me in a NOLA.com | The TimesPicayune interview before its April 2014 opening, was going to be “challenging.” “We’re kind of off the beaten path, and we’re in a neighborhood not everyone feels comfortable going to,” Oppman said in that interview. “But I’m confident and we’re going to do the best we can. It’s not going to be a walk in the park.”
Buildings for the future
The management uncertainty at the Carver might be an anomaly when it comes to the reborn New Orleans theaters, but it’s indication that it only takes one misstep to compromise a large venue with equally large expenses. Moving forward, these historic theaters literally can’t afford to make mistakes. 56
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Recent reports suggest that while New Orleans’ population continues to grow — a reversal of the pre-Katrina era — the rate of increase is slowing down. While New Orleans’ housing market goes through this boom cycle (and rental prices continue to soar), most housing booms eventually are followed by crushing busts, and wages aren’t necessarily keeping up with those rising prices. Recent research released by The Data Center point to wage gaps as one of the bits of bad news compared to the economy’s other successes. That’s where Weigle gets concerned. He’s seen growth in three key sectors: the biomedical, digital-media and arts-based businesses. But there’s room for improvement. “What makes me nervous about the trajectory of the next 10 years is not particular to downtown; it’s that we have to keep our eye on the ball in creating more middle income and more well-paid middle income jobs,” Weigle said. “With real estate prices creeping up to $3 per square foot, we need folks who can afford to pay those rents. The good news is, we’ve got a positive track record the past several years. We just need to expand that.”
Since its reopening in April of 2014, the Historic Carver Theater has undergone a series of management challenges.
The theater operators insist that all they can do is focus on their own mission, their own brand, and hope the customers keep coming. They also hope that their respective sizes are varied enough that there are plenty of potential acts to book for each given space. The Saenger is the largest, at 2,700 seats, followed by the Orpheum, at about 1,800, and then the Joy, at 1,200, the Civic at about 1,100, and the Carver at about 800. While there’s some overlap, the operators believe there’s plenty of bookings for everyone to survive, and even suggest opportunities to send acts to one another when they don’t see the right “fit.” “You have all these venues that primarily aren’t competing, but are more complementary,” said the Saenger’s David Skinner. “They’re not a competitor: They’re a sister or a brother.” n
Photo Cheryl Gerber
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Perspectives A closer look at hot topics in three southeast Louisiana industries
60 Insurance
64 Maritime & Ports
70 Banking & Finance BizNewOrleans.com November 2015
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Perspectives | Insurance
Mind the Gap When it comes to insurance, holes in coverage can be costly. By Pamela Marquis
O
ne can obtain insurance against the possibility of alien abduction, or “change of heart” insurance in case you get abandoned at the altar. And then there’s Rolling Stone Keith Richards’ middle guitar finger — it’s insured for more than $1.5 million. Today it would be close to impossible to find anyone who hasn’t purchased some kind of insurance. Whether it’s for life, home, car or business, insurance gives us financial security against catastrophic and dreadful events with policies that cover our risks and help us recover. An agreement developed in early Babylonian law is commonly recognized as the first prototype of an insurance contract. It resembled “bottomry,” a loan secured by the master of a ship, and it provided an interest rate on the loan, as well as an additional 60
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premium charge in exchange for potential loss of the ship and cancellation of the debt. Nowadays, however, the masters of today’s businesses need to take a close look at the following:
Worker’s Compensation Worker’s compensation insurance protects a company from legal complications when an employee is injured on the job. This type of insurance provides benefits such as medical care for the injury, indemnity wage benefits, vocational rehabilitation services, and/ or death benefits. According to Jeff Schwaner, vice president of Stone Insurance, one misconception is that you only need worker’s comp on those employees who file a W-2 tax form. “If you hire someone on a one-time basis to deliver your product PhotoThinkstock
Questions you (and your insurance agent) should ask when hiring contract employees Most industries employ contract employees of some type. When doing so, follow these tips from Gillis, Ellis & Baker to ensure a smooth and mutually successful relationship. 1- Ask for and check references. “Heard they were good” is not enough. 2- Develop a written contract that will govern the relationship. 3- Ask the contractor to provide a copy of their current certificate of insurance outlining active coverages. 4- Loop in your insurance agent to review both the contractor’s insurance certificates and the written agreement that outlines the relationship.
to a client, and there is an accident and they don’t have their own workman’s comp policy, you will be held responsible,” says Schwaner. “Employers should have workman’s comp on everyone they employ to protect their employees, but to also protect their future earning power. If you are held responsible for a costly accident, you could easily go bankrupt and be put out of business.”
Auto If a business uses company vehicles, it needs commercial auto insurance. If you do not have company vehicles, but employees drive their own cars on company business, you should have nonowned auto liability to protect your company in case the employee does not have insurance or has inadequate coverage.
General Liability Insurance Every business needs to have liability insurance. The policy provides both defense and damages if an owner, employees or products or services cause or are alleged to have caused property damage or bodily injury to a third party. Commercial general liability also enables a business can continue operations while it faces real or fraudulent claims of certain types of negligence or wrongdoing. “General liability insurance is the most broad insurance your business can buy, and it’s generally the first insurance most businesses get, but that’s really just a start,” says Ryan Daul, producer with the family-owned insurance company Daul Insurance. “It’s important to then look at additional specific risks to your business and focus on getting coverage for those too.” BizNewOrleans.com November 2015
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to an already existing insurance policy and covers beyond the regular policy. Generally, it is sold in increments of $1 million and is used only when liability on other policies have been depleted.
Insurance for Contractors
Product Liability Insurance Companies that manufacture, wholesale, distribute and retail a product may be liable for its safety. Product liability insurance protects against financial loss as a result of a defective product that causes injury or bodily harm. The amount of insurance you should purchase depends on the products sold or manufactured. For example, a company that sells candy would most likely have less risk than a company that sells fireworks.
Commercial Property Insurance Generally, the definition of “property” is broad and includes lost income, business interruption, buildings, computers, company papers and furniture. Property insurance covers everything related to the loss and damage of company property due to a wide variety of events, such as vandalism, fire, smoke, hailstorms, wind and riots.
Home-Based Business Insurance
There are also insurance policies that cover a business when it is outsourcing work or working for others. Keeping work in-house gives an owner complete control over the production or services provided. When working with subcontractors, freelancers or independent contractors, a business owner loses, in part, some of the direct control over his/her business operations. “This risk can be managed by careful selection of safety-conscious contractors on the front end and a well-crafted contract that clearly spells out the parties’ expectations and duties,” says Megan Guy, executive counsel and producer with Gillis, Ellis & Baker Inc. “Insurance, both yours and the contractor’s, can support some of these obligations.” Almost all businesses require that subcontractors have their own insurance and other requirements before they can qualify to bid on jobs. For example, the McDonnel Group, a Louisiana-based general contractor, has a subcontractor/supplier qualification form on its website. “This helps subcontractors and suppliers understand what they need to do business with us,” says Christie Watts, human resource director for The McDonnel Group. “We are also very open to helping businesses — and especially disadvantaged businesses — navigate our guidelines so they can qualify.” As a subcontractor or vendor you will almost always have to submit proof of insurance to a contractor. “Certificates of Insurance are routinely required by contracting parties because they provide a summary of the insurance coverages, limits and effective dates,” says Guy.
Contrary to popular belief, homeowners’ insurance policies do not generally cover home-based business losses. According to the National Bureau of Labor Statistics, more than 66 percent of the estimated 20.7 million people who work at home are self-employed and run a home-based business. It’s further estimated that more than half of home-based business owners are underinsured. A typical homeowner’s policy usually only covers damages up to $2,500 on the premises of the home-based business. In addition, your homeowner’s policy won’t typically cover liability arising from your business. For example, if a FedEx driver falls and breaks a hip when delivering an important package, you might not be covered.
Personal Umbrella Insurance Business owners may also want some additional coverage, on top of insurance policies they already have. Personal umbrella insurance is an extension
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PhotoThinkstock
Things your agent should be on the lookout for: Do the contractor’s insurance coverages provide additional insured status and waivers of subrogation, which stop the contractor’s insurer from seeking reimbursement from you after paying a claim to the contractor? n
n Does the contract you will be signing contain provisions that will defend, indemnify and hold you harmless from and against any claims that arise out of the contractor’s negligence? n Do subcontractors hired by the contractor have similar insurance coverage and will those coverages extend to the business owner? (It should, and you should ask for it). n If the project involves renovation or new construction, who is providing the insurance for the building itself during construction — the owner or contractor?
Professional Liability Insurance Professional liability insurance or errors and omissions insurance is applicable for any professional firm such as lawyers, accountants, consultants, notaries, real estate agents, hair stylists and social workers. “This is designed to protect against liability as a result of errors and omissions in performing professional services,” says Guy. “For example, those involved in drafting, designing, or preparing and working with plans and specifications, are all likely to have professional liability exposures.” The John Hancock Tower, a 60-story skyscraper in Boston designed by the I.M. Pei & Partners architectural firm is a perfect example of a time when this kind of insurance was needed. When it was built in the 1970s, the building had a major issue; the windows kept falling out and crashing to the pavement. This was due to unanticipated, repeated thermal stresses to the panels. Ultimately, all 10,000 of the building’s windows needed to be replaced at a cost of $5 million. Without professional liability insurance, the company would have taken a big financial hit.
Other Coverage Each business is different and has different insurance needs besides the coverages already mentioned. There are many options that can better fit your business’ needs such as pollution, cyber or data breach, and marine insurance. You might also consider a business owner’s policy or a BOP. Often, BOP’s will include business interruption insurance, property insurance, vehicle coverage, liability insurance and crime insurance. Generally, a business owner can save money by choosing a BOP because the bundle is less than the total cost of all the individual coverages and can be tailored specifically to your business. The cost and amount of coverage of policies vary among insurers. You should discuss your specific business risks and the types of insurance available with your insurance agent or broker. So how much coverage is enough? “That is akin to asking, ‘How high is up?’” says Guy. “However, as a general rule of thumb, a business should maintain enough insurance to satisfy its contractual obligations and reasonably protect its assets at risk.” n
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Perspectives | Maritime & Ports
Shown here are two of the Port of South Louisiana’s rescue vessels, the Responder (front) and the Accardo (back).
Let It Flow Safety is paramount in keeping the ports and waterways open, and the economy churning. By chris price
A
little less than two decades ago, the eyes of the country focused on New Orleans and an unfolding disaster. With just 10 days left in the bustling Christmas shopping season, a 700-foot freighter lost power under the Crescent City Connection, careened into the east bank wharf, and crashed through the Riverwalk Marketplace, packed with holiday shoppers. In the initial moments after, authorities reported bodies floating in the water. It was a nightmare come to life. There were no deaths. The bodies turned out to be store mannequins, but the crash awakened government authorities and the public to the potential dangers of life on the Mississippi. What if the ship had hit a chemical plant or oil and gas facility, and toxins were spewed into the air and water supply? 64
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On any given day, hundreds of ships, boats, and barges, carrying people and cargoes of bulk agriculture, including more than half of the country’s grain exports, oil, gas and petroleum products, coal, chemicals, phosphate, and frozen poultry, traverse Louisiana’s lower Mississippi River. Each vessel on the river has the ability to have a major, even crippling, impact that ripples outward to the state, national and international levels, should an accident happen. As expected, safety on our local waterways is of paramount concern. In order to keep river traffic and cash f lowing, several risk management protocols and practices and constant technological upgrades are used in combination to prevent economic rough waters.
Photo courtesy of the Port of South Louisiana
Louisiana’s port system — primarily centered in the lower Mississippi River corridor — supports almost 73,000 jobs.
Closing Costs It is rare for traffic to stop on the Mississippi, but accidents have forced it to close in the past. In 2005, an oilrig supply boat collided with a ship on the lower Mississippi River. The ferry sank, causing several crew deaths, and blocked the main shipping channel. For several days river traffic came to a standstill, preventing more than 100 commercial vessels and cruise ships from reaching their ports of call on time and causing a domino effect of delivery delays and cost increases. When the river stops, the meter starts for stakeholders in shipping-related businesses and industries. “Each day the Mississippi River is closed costs the nation’s economy an estimated $300 million a day with those figures growing exponentially after the third day due to supply and demand,” said Port of New Orleans President and CEO Gary LaGrange. “The Mississippi River is America’s gateway to the world. It serves 33 states and three Canadian provinces — 14,500 miles of inland navigable waterways. The lower Mississippi River is responsible for moving more than 60 percent of the nation’s grain, 20 percent of its coal and 20 percent of its petroleum products.” The 230 miles of the meandering Mississippi River on either side of New Orleans are home to the world’s largest port system. Collectively, the five deep-water ports on the lower Mississippi River — New Orleans, South Louisiana, Baton Rouge, St. Bernard, and Plaquemines – handle more tonnage than any other port in the world, providing billions of dollars in annual economic Photo Cheryl Gerber
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The Port of South Louisiana undergoing a rescue exercise with the U.S. Coast Guard.
impact and supporting hundreds of thousands of jobs. Nearly 12,000 ships, including 6,000 oceangoing vessels, travel the lower river corridor annually, carrying 500 million tons of cargo and 700,000 cruise passengers. In a 2012 paper prepared for The Ports Association of Louisiana, The Economic Impact of the Ports of Louisiana, LSU economist James A. Richardson said the combined economic impact of the state’s ports, providers of port and vessel services, businesses operating within the ports, and cruise ship operations, most of it centered in the lower Mississippi River corridor, includes almost 73,000 jobs created and supported, personal earnings of $3.96 billion, and state and local tax collections of $517 million per year with approximately $289 million going to the state government and $228 million going to local governments. When connected industries are included — agriculture, oil and gas, petrochemical and coal products, chemicals and related products, food and related products, paper, wood, and fabricated metals — which rely on the ports to assist in moving their goods, Richardson said the figures jump to almost 400,000 jobs and personal earnings of close to $20 billion.
Insurance Issues Companies try to manage their risks as best they can on a normal basis but can struggle in a crisis. A river closure could drive businesses without proper coverage into dire straits, said Jerry W. Lowrimore, a producer for First Insurance. “They have to start with coverage for loss of life and property and environmental damage, but they also need to look at whether they want burden insurance coverage or will self-insure in the 66
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case of a closing. In that case, there are extra expenses for fuel, the crew, dock workers. And if they’re moving perishable items, they need spoilage insurance. Those costs can add up quick.”
River Pilots The three state and federal river pilot organizations that guide ships on the river are important insurers of safety. Shipping companies hire river pilots because they have knowledge of the river’s hairpin turns, strong changing currents, shifting sandbars, traffic density, local weather conditions and thick fog routinely encountered on the river that foreign ships’ captains lack. “One accident could bring the f low of a multibillion-dollar industry to a sudden and prolonged stop,” said Associated Branch Pilots President Michael R. Lorino Jr. “River pilots spend their entire careers on very specific portions of the river, so their local knowledge becomes invaluable to ships entering the river from all over the world.” Because lives are in their hands, as well as the fate of damage to the environment and maritime commerce of our state, safety is a primary concern. Each pilot group sets its pilots’ qualification regulations; however, they generally involve Coast Guard licensing, an apprenticeship, continuing education, emergency ship handling procedures and drug testing.
National Security Because of its strategic location, economic importance and draw as a tourist attraction, New Orleans and the lower Mississippi River have the potential to be targeted in a terrorist attack. “The Department of Homeland Security has classified the Photo courtesy of the Port of South Louisiana
PhotoThinkstock
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A peek inside the control room of the Port of South Louisiana’s Maritime Security Operations Center (MSOC).
region’s five major deep-water ports as the Lower Mississippi River Port-Wide Strategic Security Council (LMRPWSSC), a Tier I port area due to its importance in national and international trade and its key impact on the nation’s economic security,” said Matt Gresham, director of external affairs at the Port of New Orleans. DHS grants helped establish the Lower Mississippi River Vessel Traffic Service (VTS), created to improve safety and heighten security against potential risks. With local river pilots, the Coast Guard operates the VTS around the clock to identify and track vessels moving on the river. Every vessel that enters the river has an Automatic Identification System onboard, which provides the ship’s and crew’s identification, vessel type, and cargo, as well as real-time updates on its location, speed, course, draft and pilot on board. Additionally, VTS aids pilots’ situational awareness by providing information on hazardous cargoes and weather conditions, sudden emergencies, and oncoming vessels hidden behind a bend or in fog or darkness.
Ancillary Services Moving other vessels safely through the shipping channel to their destinations is the responsibility of companies like Bisso 68
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Towboat. In 1999, Bisso built the first ASD Tractor Tug for assisting ships in and out of place on their docks. “These ASD Tractor tugs are the safest and most-efficient means of assisting ships into and out of berth,” said Bisso president Scott Slatten. “We took delivery of our fifth ASD tractor tug earlier this year and just commenced construction on our sixth, with delivery scheduled for fall 2016.” The port system of Southeast Louisiana is already the largest in the world, and it is expected to continue growing. As the expansion of the Panama Canal nears completion, the port systems on the Atlantic Ocean and Gulf of Mexico are gearing up for increased trade from Asia and the Pacific. More cruise lines are looking at New Orleans as a homeport for their ships. Last year, Chiquita Brands returned to New Orleans after a 40-year hiatus, and container shipping along the river will continue to expand as the new Mississippi River Intermodal Terminal ramps up production. That means traffic on the river will increase, and keeping it open for business will require further diligence to protect the backbone of the region’s economy. n
Top 15 U.S. ports ranked by tonnage Four of the five deep-water ports on the Mississippi River below Baton Rouge are tops in the nation in tonnage transfer. Rank Port Total short tons (In millions) 1 South Louisiana...........................252.07 2 Houston......................................... 238.19 3
New York and New Jersey............ 132.04
4
New Orleans................................... 79.34
5
Beaumont, Texas............................. 78.52
6
Long Beach, Calif............................ 77.39
7
Hampton Roads, Va........................ 76.73
8
Corpus Christi, Texas...................... 69.00
9
Port of Los Angeles......................... 61.82
10
Baton Rouge.................................. 59.99
11
Plaquemines Parish...................... 58.28
12
Texas City, Texas.............................. 56.72
13
Mobile, Ala....................................... 54.89
14 Lake Charles.................................. 54.38 15
Huntington-Tristate, W. Va............... 52.91 Source: American Association of Port Authorities
Photo courtesy of the Port of South Louisiana
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Perspectives | Banking & Finance
Low Fi Tuning into loan refinancing to reap the benefits of today’s low rates By Melanie Warner Spencer
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istorically low interest rates have many consumers considering refinancing on their business, home, school and car loans. For example, according to Freddie Mac, the federal home loan mortgage corporation, as of its weekly survey data released Oct. 8, the average rate for a 30-year fixed-rate mortgage is 3.76 percent, and it goes down — hitting the lowest rate at 2.55 percent for a 1-year adjustable-rate mortgage. Compare this rate to this time last 70
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year, when rates were hovering around 4.04 percent for a 30-year FRM, according to Mortgage News Daily. Biz New Orleans connected with Mark Higdon, attorney at law with GC Lending Services, Inc., Richards Higdon Huguet & Campani Law Firm, and Team Title, LLC., to learn more about how to take advantage of the low rates, who should refinance and when, and to get tips on the best course of action should you decide to do it.
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Biz New Orleans: Are you seeing an increase in activity for refinancing loans right now? Mark Higdon: Yes, we have seen a considerable uptick in the refinancing of loans. The main reason for this is that interest rates have been at historic lows for quite awhile now, and people have taken notice due a general knowledge through word of mouth, the media and a wealth of advertising by banks and mortgage companies. Biz: Would you say more people are interested in refinancing business loans, cars, school loans or home loans? MH: We see more people interested in financing home and business loans, because that is what we do. That is not to say that the other loans are not being refinanced at the same rate, but student loan rates have been low for awhile, and auto loans generally don’t have as large a balance as a home loan or business loan. Thus, people seem to be more interested in refinancing the higher loan amount loans, since those offer more savings and can allow for the cashing out of money by using equity in the properties.
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Biz: Who should consider refinancing and why? MH: There are many reasons to consider refinancing. n lower interest rates; n get rid of private mortgage insurance (PMI); n consolidate higher-interest debt, pay for tuition, buy a second home, invest in other property, etc. if (they) have equity in their property n [refinance] into a shorter term and thus save on interest by paying the loan off early n escape an adjustable-rate mortgage by securing a fixed-rate mortgage n merge loans into one such as a second-home mortgage or a home-equity loan, which may allow (them) to pay one low mortgage rate n remodel to increase the value of their property n move from a recourse loan (one with personal guarantees) to a non-recourse loan (one without any personal guarantees and one where the only security a lender is holding is the property itself ). Biz: Who should hold off and why? MH: Folks that don’t plan on staying in their home or plan on selling their commercial property within less than one to two 72
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years are probably not going to recognize the benefits due to the cost of refinancing not being recouped over time. Also, refinancing a 30-year loan back into another 30-year loan may not make sense if the interest rate they are currently paying is relatively low, as this may cost more in interest over time compared to what you may save. Biz: What challenges are most people facing with their refinancing? MH: Since the stock market and mortgage crisis several years ago, stricter guidelines have been put into place with regard to getting and refinancing a loan. Prior to such, getting approved for a home loan or refinance for instance was relatively easy. In the old days, lenders could work off of lax underwriting standards, but those days are gone. Today, verifiable documentation of income is paramount and strict debt-to-income ratios must be adhered to by lenders and their underwriters. Further, a good credit score is crucial. Biz: What advice can you offer to make the process easier? MH: A borrower should ensure that they pay their bills timely so that their credit score is good. They should strengthen their balance sheet by paying off or keeping a low balance on credit Illustration Jrcasas
Three Things to Know When Refinancing a Mortgage Refinancing a mortgage is not one-size-fits-all. There are myriad choices and much of it depends on the borrower’s existing loan. Ross Miller, president of Miller Home Mortgage, LLC in Metairie, is a big proponent of conventional financing through entities such as Freddie Mac and Fannie Mae, but says consumers should do their research and work with their financial planner and loan officer to determine the best course of action, if any. “The three things people should know when they want to refinance are their own goals, the cost to achieve them and what are their expectations,” says Miller, who offers the following advice:
Know what you want to accomplish. Is it a lower interest rate? A lower monthly payment? A shorter term? Or maybe cash back for a particular purpose? You should have a plan going into the refinance and stick to it. Review the cost to accomplish your goal. Does it make sense to pay points up front to obtain a lower interest rate? How long is it going to take for you to break even? Should you take a higher interest rate but do a no-cost refinance? By the way, there are not any free refinances. They all have cost, it just depends on whether you pay it in the loan amount, out of pocket or in the rate. Have appropriate expectations. Lowering your interest rate from 4.75 percent to 3.75 percent is not going to save you $500 per month in most cases. Expectations from each borrower are different. If you are looking for a $200 monthly savings, that may be doable on an average loan amount but you may have to take a longer term. If you are looking for a shorter term, then usually you are going to have a higher payment. Just have your expectations in line.
card and consumer debt and saving as much money as possible. Keeping detailed records and keeping them updated is crucial for a business, so that P&L (profits and losses) and balance sheet statements can be readily available if you are a business, and the same goes for an individual with regard to saving W-2s, tax returns, bank statements, 401(k) and other investment account statements. Biz: Do you have any other tips? MH: Borrowers should assess their situation as discussed above. Will they be staying in their property long enough to recoup the cost of refinancing? Does the rate and term make sense? Borrowers should shop around and do their homework. Rates and terms can vary significantly from lender to lender. Further, a borrower may be able refinance without closing costs depending on the borrower’s situation and the lender – look for incentives from a lender. Biz: Is there anything else you’d like to add? MH: There is a lot of information on the Internet that any borrower can research, which will provide a standard list of the pros and cons of refinancing. A borrower should look at as much information as possible, assess their situation and, if they know any, talk with people in the industry to become as educated as possible in order to make the right decision about whether or not it makes sense to refinance. n BizNewOrleans.com November 2015
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Guest Viewpoint
I’m a Brand, You’re a Brand Professional success lies in how you market yourself. Danielle Dayries is the CEO/owner of the locally-based outplacement firm, DMD & Associates, Inc. Her firm is engaged by companies worldwide to deliver outplacement programs that empower those effected by a reduction in force to get back to work quickly, while helping companies protect their brand and limit legal exposure.She is a board member of several Society of Human Resource Chapters, speaks throughout the United States about career transition topics and is published in multiple publications.
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he talented comedian, actor, writer, producer and singer Steve Martin once said, “Be so good they can’t ignore you.” This theory expands much further than the entertainment industry. Rather, it is an excellent goal for any individual who wants to grow their professional life and build a successful career. You may think branding and marketing are for the public relations and communication departments; however, you will never be considered for a job opening or special project lead if no one knows your name. If people remember you, what they know about you and how they talk about you is all part of your personal brand. Certainly having a resume and an accomplished work history is important, but your personal brand — how people identify you — is the selling point in your career success. Personal brand expert Dan Schwabel gives one of my favorite definitions: “Personal branding is all about discovering what makes you special, and then communicating it to the right people, through the right channels.” Building an effective brand, sharing your brand, and then continually strengthening and protecting your brand are the three steps to lead you on the path toward increased salary and personal job satisfaction. Photo Thinkstock
1. Build Your Brand Before you can build your personal brand, you must know what your existing brand is. You may ask yourself, “How can I know what it is if I have not built it yet?” While you may not know what it is, others have already been creating it for you. How you act, present yourself and treat others and how hard you work all reflect people’s opinions of you, which is in fact your brand. Ask a trusted superviser, mentor or colleague to describe how others perceive you. Leverage this information and the following checklist to start planning how you will refine your brand. n Define your professional goals and how you will accomplish them. n Use this career map to identify the key elements of your personal brand. n Create a brand statement that details how you want to be known and what you want to be known for.
consistency. Use the same name, picture and personal tagline when registering for different sites to assure people recognize your profile. About.me is an excellent way to link your different profiles, blogs and websites. You can personalize this page to reflect your brand image as well as track activity. n Consider starting a blog or creating a personal website to showcase your work. This allows you to build your reputation as a subject-matter expert, which is important to maintain after you have landed your dream job. Link your social media profiles with automatic cross posts to make this easier. In addition, reaching out through blogs and other communication outlets opens the door to grow your professional network with other bloggers. n Update these other communication tools to help you highlight the brand you want to communicate: business cards, résumé and cover letter, work portfolio, and wardrobe.
3. Strengthen and Protect Your Brand
2. Communicate Your Brand Although you might have built a great personal brand, it is only useful if you are able to effectively communicate it to the professional world. To communicate your brand, you need to: n Ensure that your supervisor, boss and other executives in the company are aware of your unique talents as well as the value you add to the corporation. Do this by maintaining regular communication on your progress on projects and the results that you deliver. n Start paying attention to your daily interactions with those around you, including colleagues, clients, and even friends and family, consciously aligning these interactions with your personal brand goals. n Remember the timeless saying that your actions speak louder than words. At work, volunteer for extra projects and take on new responsibilities that are in line with the talents and traits you want to showcase. n Social media has enhanced the way companies market their brands and connect with their customers. You can implement this same technique to network and market yourself to employers. The key to creating a strong brand image through social media is Photos Thinkstock
To climb the corporate ladder you need to market yourself and your brand image. This includes maintaining a professional appearance and behavior at all times. As a result of increased technology, especially social media outlets, the lines between your personal and professional life often blend together. “There is no professional or personal anymore,” says successful entrepreneur and businessman Peter Shankman. “There’s simply your brand, and it’s up to you to determine whether your brand is affected positively or negatively.” The following steps will help you strengthen and protect your personal brand: n Continually update your brand, and your professional achievements will grow. Maintain records of projects you have worked on, as well as the quantifiable results of these projects. This proof is what you will need to present when you are ready to ask for a promotion or raise. n Protect your reputation by regularly monitoring your social media accounts, website, blog posts and other communication outlets. Review pictures, comments and posts to assure they are appropriate and professional. Your brand should be a positive reflection of you. Building, improving and maintaining your personal brand takes a great deal of work. Managing your brand is a continuous process. It is not easy, however; taking the time to align your career goals and how you want others to perceive you is a proven way to help you confidently ask for a raise or bravely go outside your comfort zone to pursue a new opportunity. Ultimately, your personal brand will help you achieve your career dreams. n
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PUBLISHER’S NOTICE: All real estate advertised herein is subject to the Federal Fair Housing Ace and the Louisiana Open Housing Act, which make it illegal to advertise any preference, limitation, or discrimination because of race, color, religion, sex, handicap, familial status, or national origin, or intention to make any such preference, limitation, or discrimination. We will not knowingly accept any advertising for real estate which is in violation of the law. For more information, call the Louisiana Attorney General’s Office at 1-800-273-5718.
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L U X U R Y
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Great Offices
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Ruling Rentals Henry Shane, chairman of Favrot & Shane Companies, surrounds himself with bits of whimsy as he sits at the wheel of an apartment empire. By Bonnie Warren | Photography by Cheryl Gerber
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s chairman of Favrot & Shane Companies, Henry Shane has steered his businesses in the last 46 years toward ownership of 9,500 apartments and an array of shopping centers, selfstorage facilities and office buildings. Step inside his office, in a contemporary building hugging a huge plant-and-treefilled atrium in Metairie, and you will immediately be in touch with this unique businessman, active civic leader and collector. His personal collections range from art and sculpture to old radios and toys — he owns 160 vintage cars and over 10,000 collectibles housed in a museum-like space. “I smile when people question me about my collections and simply explain that the child within me is very much alive and well,” he says. Rest assured that Shane and his office are not boring. “How do you like this tightrope walker?” he asks, pointing to a wire strung above his desk topped with a tiny figure perched on a wheel that he rides from one side of the room to the other. “It reminds me of my earlier career when I was adventuresome, that it sometimes felt like I was a tightrope walker,” he says, and then he points to the other side of the room: “And this is a model of the fins of a 1959 Cadillac, one of my favorite cars.” He quickly adds that he just bought the original Mercedes Benz owned by Chris Owens, the legendary Bourbon Street entertainer. Shane’s playfulness and talent for embracing life keep him active and young at 78. But there is nothing grand about his relatively small office, which opens onto a 10-by-18-foot greenhouse.
“This is all the space I need,” he says as he sits in a George Rodrigue chair, a gift from the now deceased famous artist. “I have 120 of George’s paintings and enjoy sitting in the unique chair.” With paneled walls and a pair of mirrors, the space also includes Hunt Slonem paintings, a wall of old radios, the first cellphone he ever used and a somewhat scruffy leather chair across from his desk. “Somebody asked why I didn’t re-cover the chair,” he says. “I said, ‘What for? It looks great to me.’” Shane then leans over to show off his cuff links. “These are from my $20 cuff link collection — so called because most of them cost less than $20. When somebody recently suggested they would like to give me a pair of nice cuff links as a gift, I said, ‘OK, just be sure they don’t cost more than $20.’”
Seriousness and fun seem to go hand-inhand with everything Shane does. Outside his office door, visitors can view a wall of honors and awards he and the company have received. Some of the accolades include the Outstanding Public Service Award from the Alliance for Good Government, the Award for Outstanding Dedication and Service to the Citizens of Jefferson Parish by the Jefferson Alliance for Good Government, and the Community Leader of the Year from the Jefferson Chamber of Commerce. Shane also served as president of the National Apartment Association and was inducted into its Hall of Fame in 1989. There are mentions of his Junior Achievement Business Hall of Fame designation, The Young Leadership Council’s Role Model honor and Our Lady of Holy Cross College’s Brother
LEFT: The atrium of the Favrot & Shane headquarters in Metairie features walkways, fountains, ponds, trees and lush foliage. ABOVE: Henry Shane with his classic 1964 Jaguar XKE convertible — part of his collection of 160 vintage cars. BizNewOrleans.com November 2015
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1: The reception area features framed magazine clippings and photographs of past projects. 2: Shane’s office adjoins a greenhouse — adding a special outdoor dimension for his enjoyment. 3: A large conference room includes a granite table and black comfortable chairs. 4: Glenn Carriere and Warren Dickerson (left to right) look over plans for a new project.
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Andre Award. He is also proud of the work he has done with the Jefferson Economic Development Committee and East Jefferson General Hospital. Next to Shane’s office is a sleek boardroom, featuring a granite conference table and comfortable black chairs. The space embraces outdoor views with a bank of windows showing off lush greenery. Of course, Shane adds some whimsy to the room: “This is my jazz band,” he says, as he activates a remote-control collection of tiny jazz players on the table. 80
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Shane says the most exciting project for him is the current one, speaking about Bella Ridge, a 500-unit gated community in Jefferson Parish set to add 264 units by the end of 2015. Bella Ridge features private parking on the same level of each residence in the luxury apartment building, thanks to a three-story wrap around parking structure, along with some creative amenities. “It will even have a ‘Bark Park’ for our furry friends and bike rentals,” he says.
“It has been a good 46 years for the company,” he says, noting that the company started with Tim Favrot as an architectural firm. A graduate of Tulane University with a master’s degree in architecture, he enjoys telling the story of how he got into in the apartment business. “My father was a carpenter, and I was looking for a way of providing some income for his senior years,” he says. “I came up with the idea of building him a house to rent. When I saw how quickly the house rented, I thought, ‘I am onto something,’ and immediately began building rental duplexes.” Shane says the company has managed to amass 9,500 rental units because once they began building apartments, they never sold anything. “At the end of our first 10 years, we had 2,000 rental units and we have been building ever since,” he says. Shane doesn’t skip a beat as he shares the secret of the company’s success. “We are constantly upgrading everything. We like to say there is no such thing as an old apartment in the Favrot & Shane portfolio. You would be surprised to see how handsome some of our oldest properties look today. I believe you can never stop improving what you have.” Shane says that the market for rental residential property is stronger than ever. “According to the United States Census Bureau, home ownership in the country continues to fall,” he says. “Last year registered close to a 50-year low, with 64 percent of Americans owning a home, compared to 69 percent 10 years ago. The challenging economics of home ownership and changes in market preferences are both contributing to rising apartment occupancy. We see a constant demand for rental property.” He says he doesn’t expect the market to
slow down anytime soon. “Because the fastest growing segments of the population in the next decade will be young professionals and empty nesters, the trend toward apartment living is expected to continue. While homeownership used to be the ultimate American dream, today many people prefer to have the more carefree living style of renting.” Today, the multifamily units in the Favrot & Shane collection are managed by 1st Lake Properties, which lists its largest concentration of properties in Jefferson Parish, with additional operations in Baton Rouge, Mandeville, Covington and Slidell, as well as in Ridgeland and Picayune, Mississippi. “We have 375 employees working for 1st Lake Properties and a large number of subcontractors who do regular work for us,” he says. Shane points with pride to the training programs within the company and the many community service programs employees have embraced over the years “In the spirit of giving back to the community, our employees have been involved with a number of charitable events throughout the years including Second Harvest Food Bank, blood drives for the Blood Center, clothing drives for charities including the New Orleans Mission for the homeless, and the Coats for Kids Foundation.” Then he smiles and adds, “We do not forget about our furry friends, with several of our properties having special pet food drives for ARNO (Animal Rescue New Orleans).” Shane is quick to give credit to his management team, which includes James P. Favrot, president and the son of the late company co-founder H.M. “Tim” Favrot; and his two daughters, Stacey Shane Schott, a senior vice-president, and Michele Shane L’Hoste, president of 1st Lake Properties. “We have a strong company that is a good employer and offers excellent benefits,” Shane says. “We also offer an outstanding in-house training in aspects of our operations.
Giving Back Meantime, Shane is proud of his community involvement as well. He
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donated three major sculptures — “Blue Dog” by George Rodrigue, “Mother Cluster” by James Michalopoulos and “Toucans” by Hunt Slonem — to the beautification of Veterans Memorial Boulevard, and he is planning to obtain 20 sculptures for the city of Kenner. He recently donated a vintage car for a raff le to raise funds for the Ogden Museum of Southern Art, one of his favorite nonprofits, and he has opened his museum and home, a replica of famous Nottoway Plantation in White Castle, Louisiana, for nonprofit functions.
“It’s all about giving back to the community,” Henry says. “I am ever grateful to the community that has made us, and as I sit in my office surrounded by things I love, I am ever mindful of the countless thousands of people who have helped to make it all possible. I never forget my humble beginnings as the son of a carpenter, a good man who worked hard and loved his family. He always hoped I would amount to something, and I believe I lived up to his expectations.” n
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Q&A - Biz Person of the Month
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Another Technological T First A chat with Crystal McDonald, first-ever winner of the Ada Lovelace Woman of the Year in NOLATech Award. By Erin Shaw - Photos by Cheryl Gerber
uesday, Oct. 6, 2015, marked an important milestone for the New Orleans tech industry. On this date, for the first time ever, New Orleans women in technology were finally formally recognized for their work in what has become known as the “Silicon Bayou.” The first Ada Lovelace Woman of the Year in NOLATech Award went to Crystal McDonald, co-founder and CEO of a local online marketplace for hourly-wage jobs called GoToInterview, in a sold-out event at the LookFar Startup Hub, a hybrid software development/accelerator company based in New Orleans. The award also serves as a celebration of Lovelace, widely recognized as the first computer programmer. Of more than 20 candidates, including programmers, founders, executives and researchers, a panel of five judges chose to honor three winners, including McDonald and two runners-up: Staacy Cannon, founder and CEO of Grok and Banter, and Ashley Guidry, an engineer who works for NASA. Judges included Adele Tiblier, vice president of marketing at TurboSquid; Carol Markowitz, executive director at NOCHI; Hand Torbert, principal at RLMcCall Partners and EIR at Idea Village; Max Gaudin, COO at Operation Spark; and Tara Allegra Adams, foundation director at Dinner Lab. Biz New Orleans caught up with Crystal McDonald after the ceremony to ask her a few questions about her journey to becoming this year’s most celebrated women in the NOLATech world.
Crystal McDonald, co-founder and CEO of a local online marketplace for hourly-wage jobs called GoToInterview, took home the first award recognizing women in technology in the Greater New Orleans area on October 6. BizNewOrleans.com November 2015
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Biz: What is your background and how did you get started working in tech?
Crystal McDonald: I’m originally from Houston, Texas. My mother is an educator and my father is an engineer. Both were great at their craft, but they both had their own entrepreneurial ventures as well. My mother has a knack for design and ran an interior design business and my dad’s first love was music, so the musician in him opened up a bar that featured live music. My parents taught my siblings and I to create a business around the things that we loved. So we did. I started my first business when I was 11. It was a babysitting business for all of the moms on my street. Over the years, other ventures followed, including MBA admissions consulting and wedding planning. Biz: How did GoToInterview come about?
CM: My co-founder (Todd McDonald) and I were in the fast food business and experienced hiring challenges. We needed a way to access and vet candidates quickly. We created GoToInterview to solve that problem. We got out of the fast food business and into the people business, leveraging technology to help us address the issue in a streamlined, efficient way that benefits employers and job seekers. Biz: What does this award mean to you personally?
CM: Ada Lovelace was a true visionary. She magically orchestrated math, science and poetry to create the foundation for computer 86
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programming as we know it today. I am honored and humbled to be the recipient of this award. It’s so much bigger than me — it represents the women and girls who boldly push themselves because they’re smart and capable — especially in the math and sciences. It’s for the women who came before us and cleared a pathway so that women today can achieve everything that they dream and are destined to achieve. This is for us all. Biz: Since Ada Lovelace’s time, women have struggled to be fully recognized in the technical and scientific world in particular. What struggles have you faced on your journey and how have you overcome them?
CM: Ada Lovelace proved almost 200 years ago that women are incredibly smart and capable of doing anything men can do. Arguably, in some cases we do it better! Being a woman in tech has its typical challenges. Some say you can’t do it all. They assume that because you’re married, because you’re a mother, that you’re less committed to your work. I don’t subscribe to that school of thought. I love my family and my work – I can do both. I navigate these struggles by just delivering. Biz: Women often have to work harder to be taken seriously when it comes to technical professions, but more and more women are being celebrated for their technical and business acumen today. How have you seen things change in a positive way since you started working in this industry?
CM: I recently read an article that stated,
The award ceremony was held at Lookfar’s Startup Hub, decorated by New Orleans artist, Emily Thomas.
“The next iconic founders will be women.” There are more women executives and CEOs of venture-backed companies than ever before. Newsflash: Women have always been amazing! The progress in celebrating the abilities in technical skill and business acumen is long overdue, but welcomed nevertheless. The showstoppers that we see today, like Elizabeth Holmes, who has taken Theranos (diagnostic testing) to a $10 billion valuation in 12 years, or Sheryl Sandberg, who in the wake of personal tragedy still inspires over 24,000 circles of women across the globe to “Lean In” to impact their jobs and communities, is nothing short of remarkable. We’ll continue to see the recognition of these accomplishments and the achievements of others as we continue in this journey. It’s really exciting! Biz: Who are your greatest mentors and heroes?
CM: My greatest hero is my grandmother. She successfully raised five children as a single mother and worked long hours daily; sometimes two jobs, to ensure that her children had everything they needed. She never complained. My grandmother taught me the value of family, hard work and perseverance. Her spirit is laced in everything that I do.
From the runnerS-up:
Ashley Guidry NASA engineer
Biz: What inspires you to do what you do?
How do you keep things fresh and creative? CM: We are in the people business. We help people get jobs. When people work they have better overall quality of life as it relates to health care, housing, transportation, food and education. That’s what inspires us — that’s what gets us up in the morning. Plus, this work is fun! To innovate and create through GoToInterview has been one of the most fulfilling endeavors that I’ve taken on. I keep things fresh by changing my work space often. It’s almost impossible for me to sit still. I usually change work locations two or three times a day. Sometimes I’m inside my office, other times I sit outside and take in the smells and sounds to inspire creativity. I always listen to music for motivation and inspiration. Biz: Where do you see the tech industry heading in the next decade? How do you see women’s roles in this booming industry growing and expanding?
CM: More women are going to college today for business and STEM than ever before. We will continue to see this manifest in the workforce as well. Women have so much to offer — the world is just seeing the tip of the iceberg for what we can really do. Biz: What is the most stereotypically “techy” thing about you?
CM: I sleep with my laptop and phone next to me. It’s the last thing I see before I go to sleep and usually the first thing I see when
Created from her need to vet candidates quickly while working in the fast food industry, GoToInterview.com brought McDonald into the tech world and she says she couldn’t be happier.
I wake up. Of course, I have an app for just about everything. Biz: What is the least stereotypically “techy” thing about you?
CM: I still carry a day planner. I keep all of my appointments electronically, but sometimes I just need to see it on paper. I have a true appreciation for handwritten letters and thank you notes. It’s an art that’s losing its way in today’s world. I guess I’m just old school in that way. Biz: Tell us about the fun side of the tech world.
CM: Can you say disruption, anyone? Uber came into our lives just 5 years ago and has changed the face of ground transportation globally as we know it. Seeing this kind of innovation in our lifetime and knowing that you can achieve it too is incredibly exciting to me. I just love it. Biz: What is your favorite part about what you do?
CM: I really appreciate the process of identifying a problem and creating an innovative solution to solve it. Sometimes it’s hard to see the value in the process – the hard lessons, disappointments and challenges that surely come, but that’s what makes you better, that’s what makes you great. That’s the best part of being on this journey. n
“I noticed the first positive change [for women in tech] in college, when more women were majoring in engineering year after year. We are still vastly outnumbered, however, in the field. I think the industry has been ready to accept women for some time now. I know when I started working in the industry, most of my colleagues were excited to be working with a female. They were eager and curious about what I had to bring to the table. It was a good change for them and a sign of progress for our culture. I was well received and welcomed to the tech industry without much hesitation. This tells me that the industry is just waiting to embrace more women in tech fields. Now is the time for more women to take advantage of this opportunity. Companies are actively seeking to diversify their workforce, as this has been deemed a great advantage for collaboration, so now’s the time for women to get involved in the industry and start leaving their mark.
Staacy Guidry Founder and CEO of Grok and Banter
Seven years ago, I did not love what I was doing and I had to work really hard to be taken seriously. Today, I work really hard because I love what I’m doing. If I’m not taken seriously by someone, I don’t waste my time with them. Just being a part of New Orleans and geeking out on something I love alongside other phenomenal women with the support of the entrepreneurial community — I’m afraid if I pinch myself I will wake up. The awareness that Chris Reed and Lindsay Fox from LookFar are creating now by celebrating women in NOLATech is laying the foundation that will eventually level the playing field. There are women like Julia Ballard, Kristen McEntyre and Jen Medberry who have been pushing through some of the boundaries a woman in tech and a woman in NOLATech have to navigate. They, and others, have made it easier for those of us stepping in now. It was exciting to see the growing community of women in NOLATech at LookFar’s Ada Lovelace event — nominees, judges, sponsors, writers and supporters. BizNewOrleans.com November 2015
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Why Didn’t I Think of That? | Creative Businesses Taking Hold in Southeast Louisiana
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Bringing Back the Black Bag New Orleans physician Mark Berenson does healthcare old school — and he may just be on to the wave of the future. By Kim Singletary - Photography Cheryl Gerber
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ou have a horrible bug of some sort. You don’t know what it is, but you know that just the thought of getting out of bed, getting dressed, and driving to an urgent care or emergency room feels completely out of the question. What do you do? You call Mark Berenson, New Orleans’ only house call doctor. “Today’s healthcare is centered around the doctors, around everyone really, except the patient,” Berenson says. “By going to someone’s house to care for them, I’m doing what’s best for the patient. I get to see their environment — get a more complete picture of how they live — and really get to take the time to sit down and talk to them. Berenson says a typical visit lasts about an hour. “It’s inappropriate to see a patient for five, 10, 15 minutes,” he says. “Nobody wins.”
In 2013, Berenson was called home. His father was dying. “He had a neurodegenerative process with multiple system atrophy. So I went back to be with him and make sure he had everything he needed.” Berenson says he was surprised at what he found. “There was nobody really taking care of him. No doctor that came to see him. We saw the hospice doctor one year after my dad went on hospice — it was the week before he died. At one point I remember I just looked at my dad and said, ‘I’ve been your son for 40 years, but now I’m going to be your doctor, because no one else is.” Spurred by what he saw as an untapped market in the hometown he loved, Berenson soon moved back to New Orleans and in October 2013, he opened his own practice: NOLA Doc.
Carving his own path
“I actually got my first patient completely by chance,” he says. “I was renting out some property I had purchased back in med school at Tulane, and this guy called me and said he couldn’t come see my house because something was wrong with his foot — it was red and swollen. I told him I was a doctor and if he came by my house I’d look at his foot. He’s still my patient today.” From there, Berenson says it was slow going for a while. “My mother has worked as a real estate agent here for 45 years, so she basically knows everyone,” he says. “For the first three months, basically every patient I saw came from her.”
A New Orleans native, Berenson spent all of his years in training and medical practice in Northern California, working as a hospitalist and emergency room physician. “In 2010 I joined a colleague from residency who had opened a fee-forservice practice in a few offices,” he says. “I’d join him for half a day each week as a week to keep my non-hospitalist brain in tact. It was the first time I had ever accepted money for my services directly.” Six months later, his friend couldn’t make a house call and asked Berenson to cover. “I grabbed the doctor bag and I did it, and pretty soon I was doing two or three a week in addition to my regular work.”
A doctor in search of patients
Just two years ago, New Orleans native Mark Berenson went from hospitalist and ER doctor in California to New Orleans’ only house call doctor. BizNewOrleans.com November 2015
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From two or three calls a week, Berenson slowly began to see one patient a day, then two, then five. The real game changer came when Berenson decided to reach out to local hotels. “I’d grab 200 business cards and my wife, Brooke, and I and our dog, Scrapper, would just pick a street in the Quarter and we’d walk the whole length of it, stopping at every hotel along the way,” he says. “At each hotel I’d stop and talk with the people in charge and tell them who I was, what I was doing, and drop off 10 business cards. I think they were a little surprised to see a doctor out marketing like that. But I had the time and it just felt right. They needed to see my face, to know that I’m here.” That type of face-to-face, quality interaction is exactly what Berenson was selling. “I learned that if a hotel had a sick guest they’d either call 911 — for everything, whether it warranted an ambulance or not — or they had a doctor they called who just saw people over the phone.” Berenson says he did a lot of work educating hotel management about why neither of those options was best for all parties involved. His teaching seems to have worked. Berenson says hotel guests now make up 90
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Unlike your typical in and out doctor visit, Berenson typically spends about an hour with each patient in their home.
House Calls: The Future of Medicine?
about 50 percent of his practice, with the other half coming from locals, many of whom are elderly or chronically ill.
Back in the 1930s, 40 percent of patients were seen in their own home by physician house calls. By the 1980s, that number had dropped to 1 percent.
It’s in the bag
Thanks to a growing population of long-term care and assisted living patients, however, the American Academy of Family Physicians (AAFP) says they are seeing the number of house calls increase — from 1.4 million visits in 1999 to 2.3 million in 2009 — and expect the trend to continue.
But what can a doctor do without a fully staffed and stocked clinic or emergency room? It turns out, a lot more than you’d think. “My little black Samsonite bag is basically an ER department on wheels,” Berenson says. “I can do everything — IV fluids, suture, splints, antibiotics — the only thing I can’t treat is chest pain or stroke symptoms. Anything that needs to be monitored like that goes straight to the ER.” Berenson even works with an imaging service that can come right to someone’s house to take x-rays or get an EKG. “I also dispense medicine, often saving the patient a trip to the pharmacy. When I do write a prescription, I do it electronically. There is no paper in my practice, with the exception of the prescription of controlled substances, when it is required.”
Among some of the reasons for the growth are that house calls: lower medical costs — by keeping more patients out of the ER
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are appealing to both patients and family members, who now don’t have to take time off work to transport a loved one to an office visit
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n Enable doctors to get a more complete and accurate view of a patient’s lifestyle and issues that may affect their health.
The numbers So what’s the cost to bring a doctor into your home? “Many of my visits, especially the first visit, are about an hour,” Berenson says. “For that I charge $250. For half an hour it’s $195. I’m cheaper than an emergency room visit, that’s for sure.” Patients pay Berenson at the time of his service. He then emails them the bill in case they want to send it in to their insurance for reimbursement. “I’ve gotten really good with knowing the diagnosis and procedure codes for reimbursement,” he says. “I’d say way less than 50 percent of my patients attempt to get reimbursed, but of those that do, the ones with a really good PPO plan, can get 100 percent back.” Berenson says with deductible climbing, many people are paying out of pocket no matter where they go for treatment. With him, at least, they don’t have to leave their home. He also wants to clarify that he is not a concierge practice — a practice where a patient pays an annual fee to have a doctor on retainer, much like some do with a lawyer. 92
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“There is no membership fee with me,” he says. “I’ve seen those range from $1,500 to over $10,000 a year.”
Pushing back against a broken system While house call medicine is still certainly an anomaly — as far as Berenson knows he’s the only doctor of his kind, not just in New Orleans, but in all of Louisiana — he says he is starting to see some growth in the field. “I know there’s a couple of docs in San Francisco and at least one in Los Angeles, Denver and I think Dallas,” he says. “And I’m sure there’s got to be more doctors like me, doctors that don’t want to be seeing 40 people a day. Now I can practice medicine in the way it was meant to be practiced. I can be thoughtful, take some time. Be truly accessible to the people who need me, without all the bureaucracy.” A visibly relaxed and happy person, Berenson says his career change fills a need both in the healthcare market, and in himself. “I’ve never done the mainstream thing I guess,” he says. “And I can tell you, this is the best doctor job I’ve ever had.” n
“My little black Samsonite bag is basically an ER department on wheels,” Berenson says. “I can do everything — IV fluids, suture, splints, antibiotics — the only thing I can’t treat is chest pain or stroke symptoms. Anything that needs to be monitored like that goes straight to the ER.”
Home Care Cuts Millions in Medicare Spending Study results reported in June of this year by the Centers for Medicare & Medicaid Services found that the first performance year of the Independence at Home Demonstration — a program that provides chronically ill patients with primary care in their home — resulted in a savings of over $25 million in Medicare expenditures. The Independence at Home Demonstration was created by the Affordable Care Act as a method to reward doctors based on quality, not quantity of care. In its first year, 17 participating practices served over 8,400 Medicare beneficiaries. For more information, visit CMS.gov.
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Events Tulane Business Forum
N.O. Chamber 3rd Quarter Luncheon
September 17th, 2015
September 18th, 2015
Hilton New Orleans Riverside
The Roosevelt Hotel
Entitled “Changing Landscapes: Business Leaders Taking Action,” this year’s Tulane Business Forum featured a keynote address by Thomas L. Ryan, president and CEO of Service Corporation International in Houston, Texas.
Presented by the New Orleans Chamber and EO of Louisiana, this luncheon featured a keynote address by James Kane, author of “The Loyalty Switch” and “Virtually Loyal.” The speech was entitled, “Our Beliefs About What Makes Someone Loyal are Often Wrong.”
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1. Anne Donovan, Andre Champagne and Catherine McRae 2. Warner Thomas 3. Chris Bonura, Scott Cunningham and David Kearney 94
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1. Chris Reade, Jeff Handy and Lindsay Fox 2. James Kane 3. Saysih Afework, Paul Matthews and Maurice Constantin Photos by Cheryl Gerber
Jefferson Parish Mayors Luncheon October 9th, 2015 Hilton New Orleans Airport
5th Annual Economic and Real Estate Forecast Symposium October 12th, 2015 Loyola University
The highlight of this event were the updates by the mayors of Grand Isle, Gretna, Kenner, Lafitte and Westwego.
This year’s four-hour event examined New Orleans’ real estate market 10 years post-Katrina.
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1. Daniel Goynes, Kelsey Scram and Kelly Daul 2. Gretna Mayor Belinda Constant 3. Todd Acomb, Larry Dale, Ryan Daul and Isaac Joseph Photos by Cheryl Gerber and Jeff Strout
1. Jerry Bologna 2. Brenda Bertus 3. Quentin Messer
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Behind the Scenes
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Photo by Jeff Johnston