Editor’s Note
Is it Fall Yet? S
eriously. I’m done with summer. The school year has started. The Saints are playing again (see the Sports Column on p. 26 and Behind the Scenes on p. 96) and the 2016-2017 seasons of live theater around the city are almost underway. While I will absolutely wear my Saints shirt proudly on game days, I have to admit that my real excitement for fall is for live theater. Growing up, I was fortunate enough to have a friend whose dad worked in theater in San Diego and he got us free tickets to everything. Years later, I was thrilled to get a job in marketing with Omaha Performing Arts, which managed both the city’s Orpheum Theater and multimillion-dollar Holland Performing Arts Center. Between that and my mother’s love of dance, I’ve spent countless happy hours in theater seats laughing, crying (for an hour even after “Les Misérables” ended) and marveling at the talents of others. The ultimate city for live performance, New Orleans is privileged to have no shortage of theater venues, not least of which is the treasured Le Petit Theatre du Vieux Carre. Like this city itself, it is both a historical treasure and a startup at the same time. On another note, with Biz coming up on its two-year anniversary next month I’d like to know, how are we doing? What are you not seeing that you’d like to read about? Do you have a favorite recurring feature? As always, we welcome all feedback to editorial@bizneworleans.com. Happy Reading!
Kimberley@BizNewOrleans.com
4
SEPTEMBER 2016 BizNewOrleans.com
BizNewOrleans.com SEPTEMBER 2016
5
september 2016 | volume 2 | issue 12
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 Andrew Alexander, Robert Edgecombe, Steven Ellis, Pamela Marquis, Angela O’Byrne, Chris Price, Peter Reichard, Kim Roberts, Jennifer Gibson Schecter, David Lee Simmons Keith Twitchell, Melanie Warner Spencer,
advertising Vice President of Sales Colleen Monaghan Colleen@myneworleans.com (504) 830-7215 Sales Manager Maegan O’Brien Maegan@BizNewOrleans.com (504) 830-7219 Senior Account Executive Caitlin Sistrunk Caitlin@BizNewOrleans.com (504) 830-7252 Account Executive Carly Goldman Carly@BizNewOrleans.com (504) 830-7225 PRODUCTION Production/Web Manager Staci McCarty Senior Production Designer Ali Sullivan Production Designer Monique DiPietro Traffic Coordinator Terra Durio 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 Event Coordinator Margaret Strahan Administrative Assistant Denise Dean Distribution Manager John Holzer Subscription Manager Sara Kelemencky Subscription Assistant Mallary Matherne AABP 2016 Award of Excellence Best Feature Layout: Magazine | Bronze
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 2016 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
SEPTEMBER 2016 BizNewOrleans.com
BizNewOrleans.com SEPTEMBER 2016
7
Contents
80
40
48 Features
From the Lens
40 Thirsty for a Thousand
76 Great Offices
48 Le Petit Begins Again
80 Why Didn’t I Think of That?
Smoothie King’s road to 1,000 stores
After 100 years of theater, the beloved institution is reinventing itself.
Danos headquarters in Gray, Louisiana
The Motorsports Garage
96 Behind the Scenes
The Superdome field readies for the Saints.
8
SEPTEMBER 2016 BizNewOrleans.com
On the Cover Smoothie King owner and CEO Wan Kim and CDO Kevin King aim to reach 1,000 stores worldwide by the close of 2017.
Contents
26
22 Columns
20 NOLA By the Numbers
A look at short-term rentals
22 Dining Biz
How to (almost) eat your way around the world in NOLA
88
24 Tourism Biz
Restaurant Week returns Sept. 12-18.
26 Sports Biz
Vegas predicts another seven win season for the Saints.
28 Film Biz
Mission Media productions pitches a pilot.
30 Entrepreneur Biz
Tips on attracting investors to your startup
60 Real Estate & Construction
18 Calendar
64 Insurance
36 Biz Bits
The state of women in construction
Life insurance can be a tool for employee retention.
32 Biz Etiquette
68 Banking & Finance
34 Tech Biz
76 Guest Viewpoint
10
Is civility dead in America?
The new role of IT departments
SEPTEMBER 2016 BizNewOrleans.com
News
Perspectives
What local banks can offer startups
Why we should raise minimum wage
Upcoming events not to miss.
Industry news
88 Q&A
J. Stephen Perry, president and CEO of NOCVB
94 Around Town – Events
Industry gatherings
BizNewOrleans.com SEPTEMBER 2016
11
Publisher’s Note
Congratulations My Friend!
L
ast month the Entrepreneurs’ Organization of Louisiana (EO) held its annual meeting at Ruffino’s in Baton Rouge to begin its new fiscal year, pass the gavel to a new board of directors and honor a member with its annual Marshall Kline Award. The Marshall Kline Award was created in 2005 in honor of the late Marshall Kline, who was an active member of EO and president and CEO of Mandeville-based iBusiness.com. Marshall lived a life to the values of EO and each year the organization honors a member who has distinguished him or herself through the qualities the organization esteems. This year, that award went to my good friend Josh Loeske. Josh is a forum member of mine in EO and owner of Quality Sitework Materials (QSM). I met Josh in 2010 when he joined EO and soon after he was ready to go “all in” — joining the board, contributing to help other members grow and all the time working on his own business and family. The core values of EO are: • Thirst for Learning • Trust and Respect • Make a Mark • Boldly Go! • Cool – Once in a lifetime experiences Josh encompasses all of these values and more and I am proud to call him my friend.
Congratulations Josh! See you in Napa! Todd Matherne 12
SEPTEMBER 2016 BizNewOrleans.com
BizNewOrleans.com SEPTEMBER 2016
13
Meet the Sales Staff
Maegan O’Brien Sales Manager (504) 830-7219 Maegan@BizNewOrleans.com
Caitlin Sistrunk Senior Sales Executive (504) 830-7252 Caitlin@BizNewOrleans.com
Carly Goldman Account Executive (504) 830-7225 Carly@BizNewOrleans.com
Colleen Monaghan Vice President of Sales (504) 830-7215 Colleen@BizNewOrleans.com
14
SEPTEMBER 2016 BizNewOrleans.com
16
SEPTEMBER 2016 BizNewOrleans.com
BizNewOrleans.com SEPTEMBER 2016
17
Calendar Wednesday, September 7
Thursday, September 22
New Orleans Chamber of Commerce
2nd Annual ABWA Drive Leadership Conference
Power Breakfast sponsored by First NBC Bank 8 – 9:30 a.m. 1515 Poydras St. 5th Floor Auditorium
“Using Your Behavioral Style to Get Maximum Results in Your Business and Personal Life” Presented by Melissa Willis 1 – 6 p.m. NOLA Motorsports 11075 Nicolle Blvd., Avondale
NewOrleansChamber.org
ABWANewOrleans.org
Tuesday, September 13 New Orleans Chamber of Commerce Women’s Business Alliance Seminar with Goldman Sachs 10,000 Small Business and NAWBO 4 – 7 p.m. Café Reconcile 1631 Oretha Castle Haley Blvd., 2nd Floor
Thursday, September 22 GEB University- “How Life and Disability Insurance Can Save Your Business” 9 – 10:30 a.m. Gillis, Ellis & Baker Training Room 1615 Poydras St., Suite 700
NewOrleansChamber.org
Gillis.com/GEBUniversity.shtml
Thursday, September 15
Wednesday, September 28
AMA New Orleans Monthly Luncheon
Jefferson Chamber of Commerce
“Lagniappe in Action: Driving Word-of-Mouth through Customer Experiences” 11:30 a.m. Location T.B.A.
Prosper Jefferson Series: Leadership Management 9 – 10:30 a.m. JEDCO Conference Center 700 Churchill Pkwy., Avondale
AMANewOrleans.com
JeffersonChamber.org
Friday, September 30
Friday, September 16 Hispanic Chamber of Commerce of Louisiana
New Orleans Chamber of Commerce and EO present
Excelencia Gala 7 p.m. JW Marriott 614 Canal St.
3rd Quarter Business Luncheon with Keynote Speaker RJon Robins 11 a.m. – 1 p.m. The Roosevelt New Orleans Hotel Crescent City Ballroom 130 Roosevelt Way
HCCL.biz
NewOrleansChamber.org
Saturday, September 17 30th Annual YLC Role Model Awards Gala 7 – 11 p.m. Hyatt Regency New Orleans Hotel 601 Loyola Avenue YLCNola.org
Tuesday, October 11 6th Annual Economic & Real Estate Forecast Symposium “Moving Forward…Engines for Growth” Presented by Fidelity Bank & NOLA Lending Group 12:30 – 5 p.m. Roussell Hall, Loyola University nomar.org
We’d love to include your business-related event in next month’s calendar. Please email details to Editorial@BizNewOrleans.com.
18
SEPTEMBER 2016 BizNewOrleans.com
BizNewOrleans.com SEPTEMBER 2016
19
Columns | NOLA By The Numbers Memphis Charlotte Dallas Houston Louisville
1,550
1,204
753
Citywide Population 389,617 49th
442
Number of Airbnb Listings
Denver 216 Nashville 213 Portland 178
Ranking Among 50 Largest U.S. Cities
Airbnb in New Orleans, by the Numbers
1,018
Number of Residents Per Airbnb Listing (as of July 2016)
Atlanta 170 Washington, D.C. 155
10th
88
2nd
Population Per Listing
% of Hosts Listing Multiple Properties 23.6% 4th Number of Listings Per Host
Seattle 137
4,431
1.51 9th
Austin 128
Source: AirDNA, July 2016
San Francisco 113 New Orleans 88
Source: AirDNA, U.S. Census Bureau, New Orleans City Planning Commission. The author acknowledges Mindy Montague for her assistance in analyzing this data.
Miami 84 500
1,000
1,500
Short-term Rentals Are they unusually prevalent in New Orleans?
O 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.
20
ne of the most contentious issues facing city leaders in New Orleans is the prevalence of short-term rentals, where platforms such as Airbnb, VRBO, HomeAway, Craigslist and others allow users to stay in private residences during their visits to the city. Owners can offer an entire property, a spare bedroom or even a couch, providing an often much less expensive alternative to hotels and giving tourists increased access to neighborhoods outside of downtown and the French Quarter. Opponents of this practice contend that short-term rentals erode neighborhood stability and character, raise costs for full-time residents by shrinking the overall supply of long-term rental units, deprive the city of tax revenue, and flout lodging safety regulations. Proponents, meanwhile, argue that they provide affordable and comfortable alternative accommodations for visitors, boost the overall local economy, and generate legitimate income for individual
SEPTEMBER 2016 BizNewOrleans.com
property owners. As in many cities throughout the country, the city’s leadership has worked to forge consensus on an evolving set of requirements and restrictions. The issue has been studied in depth by the New Orleans Planning Commission and by advocacy groups, but the answer to an important question has always eluded me: Are short-term rentals unusually prevalent in New Orleans? The answer, at least by one measure, seems to be yes, and decidedly so. I analyzed the number of rentals offered through the largest short-term rental platform, Airbnb, in the 50 most populous cities in the United States, as reported by AirDNA, one of several websites devoted to reporting statistics based on Airbnb rentals. The data is from late July, which I can only assume provides a conservative count of local Airbnb offerings, given that this time of year is far from our prime tourism season. According to AirDNA, there were 4,431 rentals offered through
Airbnb in New Orleans, which ranks 10th among the nation’s largest cities. However, the overall number of rentals is comparable to Washington, D.C. (4,337), and Seattle (5,014), whose populations are nearly twice that of New Orleans, according to 2015 estimates from the U.S. Census Bureau. In fact, New Orleans ranks second only to Miami in the number of Airbnb listings per capita. There is one listing for every 88 residents in New Orleans, compared to one listing per 113 residents in San Francisco, one per 128 in Austin, and one per 137 in Seattle. There are other interesting insights from the AirDNA data as well. For example, 24 percent of the 2,941 hosts (generally property owners) who offer Airbnb listings in New Orleans are “multiple listing hosts,” meaning that they rent out more than one property and are less likely to be living on-site and more likely to be operating professionally or semiprofessionally on Airbnb. That percentage ranks fourth in the nation, behind Las Vegas (30 percent), Detroit (26 percent) and Memphis (25 percent). There are 1.51 listings per host in New Orleans, meaning that about 49 percent of listings are offered by multiple listing hosts, ranking eighth among the country’s largest cities. And, for what it’s worth, New Orleans Airbnb listings appear to be just above the middle of the pack with respect to visitor satisfaction; we rank 22nd in the percentage of listings receiving the highest “five-star” ratings and 16th in the percentage of hosts classified as “super hosts”—those designated by Airbnb as providing exceptional service. These measurements are, naturally, somewhat coarse, but they clearly indicate an uncommon density of short-term rental listings in New Orleans compared to other cities. This is a significant consideration for residents and city leaders for a couple of reasons. First, it is clear from the City Planning Commission’s study of the issue that shortterm rentals are prevalent in neighborhoods where a large percentage of renters are cost burdened. And secondly, it highlights the overall complexity, sensitivity and urgency of coming to grips with the “sharing economy” in a way that fosters entrepreneurship while also honoring and supporting the livelihoods and investments of lifelong residents and conventional businesses. n
BizNewOrleans.com SEPTEMBER 2016
21
Columns | Dining Biz La Boca Chef, Jared Ralls
Eat Your Way Around the World While there’s definitely room to grow, New Orleans has some strong international offerings. BY Peter Reichard
T
he latest census data continues to show that New Orleans proper, despite its well-earned reputation as a melting pot in the 19th century, really isn’t much of one nowadays. The percentage of residents who are foreign-born is only 6 percent in Orleans Parish, versus 13 percent for the nation as a whole. New Orleans, very strange to say, is more American than America. Now, if you want to see anything remotely Babel-like in these parts, you have to go to Jefferson Parish. There, the overall numbers match the nation, and Kenner in particular has become a popular place for foreign-born residents to settle. Occasionally, when I have the desire for some eastern European foods, I go to the aptly named Eastern European Foods on Williams Boulevard. No other place I know of sells Hungarian slab bacon, Croatian chocolates and Russian butter. And, trust me, all those things are very good. 22
SEPTEMBER 2016 BizNewOrleans.com
Similarly, a number of restaurants have the market more or less cornered on their particular national cuisine. Here are a few. Argentina: South Americans take meat very seriously. La Boca is a testament to this. And it’s the place you go for Argentinian food, which is to say steak, sausage and wine. Colombia: While Baru on Magazine Street serves Colombian food, among other things, only Mais Arepas on Carondelet is Colombian from head to toe. It’s also the only place you can order a bandeja paisa — a protein-packed Antioquian smorgasbord that happens to be Colombia’s national dish. That counts extra in my family, since my wife is Colombian. Germany: One of the most grandiose restaurants in New Orleans history was German: Kolb’s on St. Charles Avenue, off Canal Street. It’s long gone now. Today, Jagerhaus on Conti in the French Quarter alone bears the Deutsch burden. Is there any other menu in New Orleans that
features currywurst and three different schnitzels? Nein. Greece: Acropolis Cuisine on Veterans in Metairie is perhaps the last remaining whitetablecloth Greek restaurant in the area. For a thoroughly Greek feast, Acropolis is aptly named: It stands out, and it stands alone. Ireland: Irish House on St. Charles Avenue makes customers nostalgic for the old country even if they don’t have a drop of Irish blood. It also serves brunch on weekends. The wee ones like the bangers. Israel: Shaya on Magazine Street. Many a shofar has heralded this place, which offers something unique to the New Orleans area. Nobody can accuse Alon Shaya of failing to put Israeli food on the map here. Jamaica: Boswell’s Jamaican Grill on Tulane Avenue is understated, but there’s no question it’s authentically Jamaican. Owner Boswell Atkinson has been putting pepper on it for nearly two decades. Of course, there are other lightly represented cuisines in the area. For instance, there is only a smattering of subSaharan African restaurants, which is hardly enough to cover the range of flavors from Guinea to Ethiopia to South Africa. Given the novelty and popularity of Peruvian cuisine, there are surprisingly few Peruvian restaurants in metro New Orleans. As for the Pacific Islands, the tiki-in-cheek Latitude 29 covers a lot of territory on its menu, but the main focus is on the cocktails. And you wouldn’t know one out of every five humans is Indian by looking at the New Orleans restaurant scene. Some other interesting nationalities are altogether invisible. Where are the Russian restaurants? Where are the Persian restaurants? And, now that Milkfish no longer has a brick and mortar location where are the Filipino restaurants? And sure, English food is much tittered about, but who wouldn’t want fish and chips or some kind of buttery English pie-based entrée now and again? Or a nice pea soup into which to drop one’s monocle in surprise? Finally, Australia has a whole continent to itself. Does it not have a national cuisine to offer people on the opposite side of the world? As things stand, we’re left to conclude that jars of vegemite and Outback Steakhouse are the extent of it. In other words, opportunity might be knocking, mate. Or maybe the New Orleans area just isn’t international enough to muster such variety. n Photo Cheryl Gerber
BizNewOrleans.com SEPTEMBER 2016
23
Columns | Tourism Biz
Your Last Week on Earth Make it a good one during Restaurant Week New Orleans.
N 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.
24
ew Orleans is a place where we spend our lunches talking about what we plan to eat for dinner. We’re proud of our food and love it when visitors want to try turtle soup or beignets for the first time. For the past five years, a special week in September makes access to some of our greatest restaurants easier for tourists and locals alike. Restaurant Week New Orleans is the embodiment of the slogan “We live to eat.” It is designed to offer multiple-course, specially priced menus for lunch, dinner and brunch at restaurants in Greater New Orleans. To date, nearly 75 restaurants plan to participate this year. Spearheading the effort is the Louisiana Restaurant Association (LRA), which works in partnership with the New Orleans Convention and Visitors Bureau. Wendy Waren, vice president of communications at the LRA, explained the choice of
SEPTEMBER 2016 BizNewOrleans.com
September for the week: “This time of year was selected to drive diners to our restaurants given the decreased tourism traffic and schools being back in session.” And unlike Coolinary — its partner event that runs for the entire month of August — Restaurant Week is only September 12-18. This creates more urgency for diners to ensure they make their reservations and take advantage of the special menus. “My friends, co-workers and I are already planning our Restaurant Week meals,” Waren says. The purpose of Restaurant Week New Orleans is to “keep the city’s restaurants top-ofmind with consumers while also building an emotional connection with the local food-loving community.” The focus on locals to increase their patronage and word-of-mouth recommendations impacts the tourism industry as well. Visitors to New Orleans during
Restaurant Week can try more restaurants than possible at other times of year because of the affordable prix fixe menu choices. For many, dining affordability is key since food is a star attraction in this city. Restaurant Week creates instant affordability, especially considering the lunch menus. The result is additional support of the hospitality industry and tourists experiencing more of the food culture of our city. That culture is critical to our tourism industry and recognized internationally. New Orleans was recently named “Best City for Food in the United States” by Travel + Leisure in their World’s Best Awards 2016, beating out larger cities like New York, Chicago and San Francisco. The magazine’s readers noted the ease in finding restaurants offering delicious dishes, whether they crave our famous poor boys or classic ètouffèe. Who says all the food in New Orleans is the same? On the event website, users can sort participating restaurants by cuisine, neighborhoods and meals offered. The cuisine list includes 26 categories. Didn’t make it to Rio for the Olympics? Head to Fogo de Chào Brazilian Steakhouse. Want to learn the difference between “Contemporary Creole” and “Creole?” Eat lunch at Muriel’s Jackson Square and dinner at Tujague’s. As for neighborhoods, 11 are represented, including Jefferson Parish and on the Westbank. One of the most exciting aspects of Restaurant Week is that often chefs will use the temporary menu to try new items. “Many of our Restaurant Week participants feature Louisiana seafood and locally grown produce, and we encourage our restaurants to get creative with their menus,” Waren says. “If they’ve been wanting to test the waters on a new dish or menu, this would be a great time.” She adds, “The addition of brunch—a favorite New Orleans pasttime—gives restaurants who may be considering offering brunch a great opportunity to announce it and deliver their take to diners. This week is a chance for diners to try new restaurants or visit old favorites, to celebrate a special occasion or simply enjoy the best thing about New Orleans— the cuisine!” To browse participating restaurants and access reservation information for Restaurant Week, visit the website at CoolinaryNewOrleans.com/restaurantweek/ n Photo Thinkstock
BizNewOrleans.com SEPTEMBER 2016
25
Columns | Sports Biz
Same Old Saints Vegas predicts another seven win season.
T 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.
26
he Saints no longer have the fear of God on their side. That much is evident heading into the 2016 season, and happens when a team posts 7-9 records in three of the last four seasons. From rivals to bookmakers, New Orleans seems to be losing the esteem it built under head coach Sean Payton. The NFL Network’s ranking of the top 100 players in the league going into the 2016 season, as voted by current players, included only two Saints — quarterback Drew Brees, ranked No. 30, and defensive end Cam Jordan at 99. Odds makers aren’t expecting much change from the Saints. Westgate Las Vegas SuperBook predicts the Saints will win no more than seven games this season. New Orleans faces the fourthtoughest schedule in the NFL going into 2016. That’s not good news for a defense that gave up an NFL worst 29.8 points per game last year. Still, there is reason for hope.
SEPTEMBER 2016 BizNewOrleans.com
To start, Payton stayed on as head coach when he could have easily bolted. He must see something to remain in place here, rather than start over somewhere else. Also, quarterback Drew Brees is still a player who can take over and dominate a game. At 37, Brees remains one of the NFL’s best quarterbacks. He has been able to outrun injury and father time in New Orleans, but questions are being raised on how much longer he can do it. While he looks like he can remain among the top half of the league’s signal callers for the next few seasons, his age is, albeit slight, beginning to show. Brees alone can’t be expected to conjure up the magic that makes the Saints offense so precise. He has to have better support from the skill positions in order to keep the offense humming. Mark Ingram, Tim Hightower and C.J. Spiller, who will look to improve on a disappointing 2015, will lead the ground attack. With the losses of TE Benjamin
Watson, who signed a free agent contract with the Baltimore Ravens, and WR Marques Colston, who retired as the Saints’ all-time leading receiver, much will be asked of the team’s returning receivers — Willie Snead, Brandin Cooks and Brandon Coleman — along with newcomers Michael Thomas and Coby Fleener. They are hoping Fleener can develop into the threat at tight end that Jimmy Graham and Watson have been previously, and that the 2016 second-round pick Thomas will fill the void left by Colston. Upfront, the offensive line will be anchored by left tackle Terron Armstead and center Max Unger. They’ll likely be joined by guards Senio Kelemete and Tim Lelito, and right tackle Zach Strief. However, look for Andrus Peat, the Saints’ top draft pick in 2015, and Landon Turner, a 2016 undrafted free agent, to compete for time in new O-Line coach Dan Roushar’s rotation. The Saints defense hasn’t seemed able to jell in recent years, and they may be hoping the appointment of defensive coordinator Dennis Allen, the return of several starters along with added veteran leadership, and a lot of size upfront will improve the team’s weak points. The defensive backfield returns safeties Kenny Vaccaro and Jairus Byrd and cornerbacks Keenan Lewis and Delvin Breaux. Free-agent LB James Laurinaitis, a player as smart as he is physical, will play between Stephone Anthony on the strong side and Dannell Ellerbe on the weak side. Jordan and Bobby Richardson will bookend the defensive line, but the biggest additions to the team come at defensive tackle in top pick Sheldon Rankins and free-agent Nick Fairley. They will compete with John Jenkins and Tyeler Davison. If the line finds success, the Saints defense, especially against the run, could be significantly improved. Faith has been a requirement of Saints fans, and likely will be for their 50th season. I want to believe, but I think the lingering effects of salary cap issues and lack of success in free agency and the draft have depleted the roster of star power and overall depth. The Saints have nearly $29 million in dead money, salary paid to players no longer on the team going against this year’s salary cap, limiting the maximum they can spend on this year’s team from $155.27 million to nearly $126 million. Fortunately, New Orleans only has $1.3 million in dead money on the books for 2017 and a whopping $65 million available for a major talent upgrade without further mortgaging the team’s future. n Photo Thinkstock
BizNewOrleans.com SEPTEMBER 2016
27
Columns | Film Biz L to R: Devin Black and James Hulse of The New Orleans Mission; Stanley Roberts, former NBA star; and Steven Scaffidi of the New Orleans Mission visit during a filming session of Rock Bottom and Back.
Production With a Mission The New Orleans Mission pitches its first TV pilot with Mission Media Productions.
Y
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.
28
ou probably know the New Orleans Mission — it’s the largest faith-based private service provider to the homeless in New Orleans, serving over 25,000 people a year. What you may not know is that it recently launched its own production company, Mission Media Productions, in 2015 and is now pitching a new pilot television series entitled “Rock Bottom and Back,” to national faith-based outlets. “We had been doing a lot of our own promotional materials — little videos for Facebook and things, for a while when a veteran filmmaker, Steve Scaffidi, noticed that some of our people had some real talent,” says David Bottner, executive director of the New Orleans Mission. “He proposed that we take this and create a business model where we could train men and women in the business.”
SEPTEMBER 2016 BizNewOrleans.com
Early projects for Mission Media have included some commercials for local companies and a few music videos, but Bottner says the latest project may be a game changer. “At one of our galas last year, one of the silent auction prizes was for Mission Media to shoot a documentary,” he says. “Usually that would cost about $30,000 but the winning bidder bought it for $9,000 — Earl Heard, CEO of BIC Media Solutions.” Heard’s idea was to shoot a documentary based on the New York Times best-selling book, “Rock Bottom and Back” by Susan Mustafa. The film tells the stories of six individuals who have hit rock bottom in their lives and their journey to turn their lives around. Narrated by actor Danny Trejo (“Heat,” “Machete,” “From Dusk Till Dawn”), who himself was a former drug addict and criminal
before changing his path, the film includes the story of NBA superstar Stanley Roberts. “My story is actually one of the ones included as well,” adds Bottner. The DVD is currently available at RockBottomAndBack.com, and a special sold out screening of the film, which Mission Media hopes will turn into a TV series, took place at the Prytania Theatre on Aug. 18. Author Susan Mustafa attended the event for a book signing and a portion of the proceeds went to benefit the New Orleans Mission. The big payoff, however, would be if the pilot gets picked up. “Right now we have about 17 men and women working in the program, but if this thing succeeds, then the employment opportunities could go through the roof,” says Bottner. “Through Mission Media we’re able to teach people a skilled trade where they can actually go out and make an income that will help them turn their lives around.” Mission Media Productions currently operates out of two offices within the New Orleans Mission’s administrative offices at 1134 Baronne St., which were donated to the nonprofit by Gardner Realtors. While they wait to hear about their pilot, Mission Media remains busy every day. “We have our own series on WWL radio AM 870 and FM 105.3 called ‘Desperate Realit’ that runs every Saturday night from 10 p.m. to midnight where we go out into the city and rescue people live from the streets,” Bottner says. The series is the only one of its kind in the country. Only two members of the production company are paid employees — Scaffidi and Aaron Wegmann, who does the IT work, but Bottner says two mission residents have graduated to playing leading roles. “One of our graduates, Devin Black, is a phenomenal photographer and is serving as the editor and cinematographer of both ‘Rock Bottom’ and ‘Desperate Reality,’” he says. “Another, Kirk Lagrange, is serving as and editor for ‘Desperate Reality’ and is overseeing the mission’s social media and community outreach. He is also doing the cinematography for our series, ‘I am a Disciple,’ which tells the stories of some of the people who have gone through the mission.” n
BizNewOrleans.com SEPTEMBER 2016
29
Columns | Entrepreneur Biz
Perfect Pitch Tips for going after investment dough
T 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.
30
here comes a time in almost every entrepreneur’s life when s/he needs money. Absent a rich, crazy uncle or a winning lottery ticket, this means convincing a stranger to put up cash. Banks might seem like the obvious first option, and the current low interest rates are appealing. However, in the wake of the financial meltdown in 2008, the banking industry is highly regulated, risk averse, and, in the case of many institutions, still rebuilding their resources. This column has looked at several types of venture capital and investment firms in the past, and for many startup enterprises, these are frequently the best route to take. Now let’s look at the road map that will help you navigate that route. To do this, I recently spoke with Barrett Cooper, the
SEPTEMBER 2016 BizNewOrleans.com
chief operating officer of ERG Enterprises. ERG is a fully diversified investment company, working in everything from real estate to entertainment, oil and gas to health care. Cooper emphasized that his firm, like most investors, considers itself a partner in the ventures it backs. “A partner has more skin in the game than someone who just puts up the money,” he pointed out; as a consequence, along with the funds comes valuable experience and expertise that can be exceptionally useful to a new enterprise. “Most of our day is getting approached by people who have a business idea,” he said, adding that the initial pitch is truly make-or-break for most entrepreneurs. In this context, “a great idea, poorly proposed, gets you nothing, but a good idea, properly proposed, can get you everything.”
Fundamentally, before you ask someone to invest in you, you should invest time in researching your potential funding sources. What kinds of businesses have they invested in previously? What dollar ranges do they typically operate in? How do they typically structure their deals? According to Cooper, this last question is the key to a successful pitch. Most investment firms value more equity over a preferred return status. “Initially, most revenues are going to be reinvested in business anyway,” he pointed out, “so preferred return status has little meaning. We’re looking for the bigger, long-term payday. “Remember that your investor has needs and priorities too,” he adds. “Our money wasn’t just found, it was hard-earned. Don’t treat us like a cash cow. Once you take someone’s money for your business, treat them like your top priority.” Cooper stressed that the only reason investors are going to fund a project is because they think they can make money from it. “They’re not in it for you to make money, but too many proposals are structured in such a way that the entrepreneur is going to realize a high return and the investor is not.” Those proposals, he stated unequivocally, do not succeed. Cooper also recommended that proposals be very, very focused: detailed but concise, with no f lowing prose or worse, layers of bovine excrement. Describe what your product or service does, why there is a market for it, and how you will get it to the market. Don’t dive down into technical details, personal histories and the like. Finally, show where the big payoff comes. Generally, this means selling your company, ideally in about five years. As Cooper observed, “you can’t project what the future will hold. Something that is in demand now may be obsolete in 20 years.” For many entrepreneurs, this is a very difficult reality to face. Their idea is their baby, and they can’t stand to see it leave the nest. “Separate yourself from your idea,” Cooper urged. “Recognize that your investor is your partner, and the objective is to make money. Structure your proposal from that perspective, and you have a good chance of success.” n
Photo Thinkstock
BizNewOrleans.com SEPTEMBER 2016
31
Columns | Biz Etiquette
Rudimentary Behavior Finding hope amid America’s crisis of civility
A
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.
32
few months ago, a fellow meeting participant took a personal call without leaving the room and consistently engaged in text exchanges throughout the gathering. Countless times, I’ve been in meetings or on phone calls with individuals who interrupt me and/or others repeatedly and without apology. These situations occurred right here in the historically polite South and are indicative of a sweeping, nationwide lack of civility. It turns out I’m not the only one noticing a decline in the practice. According to “Civility in America,” the ongoing poll by Weber Shandwick and Powell Tate with KRC Research, “Nearly all Americans, 95 percent, say civility is a problem, with 74 percent saying civility has declined in the past few years and 67 percent saying it is a major problem today. In the online poll conducted among 1,005 adults 18
SEPTEMBER 2016 BizNewOrleans.com
years and older during the second week of January this year, 70 percent also say that incivility in this country has risen to ‘crisis’ levels, up from 65 percent in 2014.” It’s easy to blame a decline in civility on a variety of factors — this being an election year, the media, parents, kids, technology, the patriarchy, feminism, information overload and a host of other probable causes. My guess is that each one played its part, but finger pointing only serves to make things worse. Whichever way you slice it — whether in personal dealings, online or in business — our culture needs a time-out. It might seem like an ill of modernity, but concerns over civility go back to ancient Greece and Rome. The June issue of Town & Country Magazine features the ominously titled (and R.E.M.song referencing) piece, “Is This the End of Civility As We Know It?,” by Daniel Mendelsohn. The
writer traces “the connection between good manners and good citizenship” to arguments by Aristotle and, a century later, Cicero, pointing out that for his efforts, the latter’s “attempts to preserve the Roman republic and its civil society … ended up getting him assassinated.” So much for civility. Humans are, of course, nothing if not complicated creatures capable of both virtuous and horrific acts. Just peer into your office kitchen’s refrigerator — an allegory of human behavior. Philosophers, religious leaders, mothers and etiquette columnists the world over have spent lifetimes trying to get you people to act right. Is it time for us to wave the white flag in defeat? Have the jerks won? While I agree, incivility is at an all-time high, rather than pegging it as a crisis point, I’m holding out hope that we are at a tipping point. Call me naïve, but I believe in the inherent goodness of mankind and maintain that if enough of us operate with empathy and compassion, we can get back to a place in which the majority operates with respect to our fellow humans. The tricky part is that everyone thinks someone else is the problem. The “Civility in America,” survey asserts, “Americans tend to absolve themselves from contributing to the coarsening of society, saying uncivil behavior is more prevalent the farther they get from home.” If that were true, we wouldn’t be having this discussion. You could say our inaccurate perceptions of our own “correctness” and of ourselves are a product of “myside bias,” which according the University of Pennsylvania Positive Psychology Center is “the pervasive tendency to search for evidence and evaluate evidence in a way that favors your initial beliefs.” Open-mindedness is the opposite of myside bias and is considered a beneficial trait. We can open our minds via travel; surround ourselves with people who hold different points of view; respectfully listen to those points of view; let go of our incessant need to always be right; and be present and learn self-awareness. Sometimes the simplest solution is the best solution and as cultural divisiveness and uncivil behavior continue to rise, I keep returning to a concept that can certainly be applied at the office during meetings and other interactions, but it also is an effective tool (or better yet philosophy) for all facets of life. In “The 7 Habits of Highly Effective People,” Stephen Covey writes: “Seek first to understand, then to be understood.” n Photo Thinkstock
A STUNNING COLLECTION OF 50 TRADITIONAL (AND SOME NON-TRADITIONAL) LOUISIANA RECIPES. AN ABSOLUTE MUST HAVE FOR YOUR KITCHEN, OR THE PERFECT GIFT FOR A LOUISIANA FOOD LOVER.
$16.95
TO ORDER VISIT
LOUISIANACOOKBOOK.COM Now in its second printing!
BizNewOrleans.com SEPTEMBER 2016
33
Columns | Tech Biz to arise once every year or two, now non-trivial IT decisions are seemingly a constant. Sometimes it’s a fundamental question of architecture (on premise, private cloud, public cloud, SAAS, all of the above?), but often it’s more like deciding whether the latest newapp.com that the boss is talking about is worth pursuing. App vendors have become good at removing direct cost as an obstacle in the decision process, putting even more importance on a thorough analysis of the true costs and benefits. Individually, such decisions may seem minor, but collectively they are precisely the difference between an improvement or a decline in productivity.
The New Role of IT Demands have changed in this cloud-based world.
A
Steven Ellis
has spent the last 16 years working at the intersection of business and technology for Bellwether Technology in New Orleans, where he serves as the company’s vice president.
34
s the cloud and other developments continue to change the ways small businesses deploy and use technology, IT departments must adapt. Long gone are the days when most IT environments looked the same — a few Windows servers in a closet and a Windows PC on every desk — when all the IT department had to worry about was keeping everything running smoothly year after year. Now we see a variety of different approaches and an overwhelming number of available applications. As a firm believer in technology’s ability to make a meaningful difference in a typical small business’s operation, I view the availability of options and fast pace of change as a great opportunity, but the potential for wasted time, poor implementation and security vulnerabilities means that they are also a threat. The IT department’s job is to take advantage of the former and avoid the latter. At the same time, the cloud
SEPTEMBER 2016 BizNewOrleans.com
tends to reduce certain technical demands on IT, as cloud providers take on more of the responsibility for underlying infrastructure, a trend that is likely to continue. Combining these factors, I propose that the effectiveness of an IT department is no longer determined primarily by its ability to manage and support purely technical things, but by its ability to apply technology to make substantial improvements in the business. Accordingly, the skills to look for in an IT department should expand beyond technical configuration, administration, troubleshooting and support to include broader abilities like sound decision making, an understanding of business processes and keeping up with change. Sound Decision Making A key facet of the IT department’s new role is to guide the organization into making good decisions. Whereas important and thoughtful IT decisions used
Understanding of Business Processes The good news is that there are many new applications that have real benefit and are worth using when implemented well. The degree to which IT can automate business processes and improve efficiency for small businesses is astonishing. I perceive a shift from a time when IT systems were tools that helped us perform back office and other functions to a time when IT systems perform those functions automatically with our input and guidance. But to make such a vision reality, the IT department needs more than a surface understanding of the way the business works. To improve a process in a substantial way, IT needs to understand where it’s inefficient and what can realistically be done about it. Keeping Up Central to my distinction between the old way and the new way of doing things is the notion that the new entails much more change than the old. Part of the perceived and actual problem with IT departments historically has been a resistance to change. Change means risk, and change means work, so the tendency often is to avoid it. When the non-obvious, incremental improvements offered by technology were modest and somewhat sparse, this attitude was relatively harmless, even appropriate. But now that the opportunity for improvement is large and quickly evolving, that attitude is irresponsible. Experience is good and necessary, but in the new IT world, a desire to learn and willingness to adapt are even better. n Photo Thinkstock
BizNewOrleans.com SEPTEMBER 2016
35
Biz Bits - Industry News Around town
The tsunami of new taxes on employers enacted in the last several months have signaled a significant change in Louisiana’s business climate, a change that will negatively impact investment in new businesses, expansions of existing businesses and job growth. —Dan S. Borné, president of the Louisiana Chemical Association, speaking at a meeting of the Rotary Club of Baton Rouge on July 20.
STEM Wages in St. Tammany Doubled Over 10 Years Wages in professional, technical and scientific fields in St. Tammany Parish: 2005: $137.76 million 2015: $295.26 million (114.3% increase) Total wages in the parish 2005: $2 billion 2015: more than $3.8 billion (85% increase) Number of businesses in the parish 2005: 6,261 2015: 7,802 (24.6% increase) Source: St. Tammany Economic Development Foundation’s (STEDF) annual summary of local economic data for the past decade. To view the complete summary, visit stedf.org/10year.htm.
Louisiana parishes where individuals have the most purchasing power Source: SmartAsset
36
Cost of Living
Median Income
Purchasing Power Index
Ascension
$41,210
$70,207
82.01
2
Cameron
$38,651
$64,129
79.87
3
Saint Tammany
$39,466
$61,942
75.55
4
Livingston
$37,489
$57,478
73.80
5
Saint Charles
$38,753
$57,785
71.78
6
Terrebonne
$33,727
$49,932
71.27
7
Saint James
$36,239
$53,259
70.74
8
West Feliciana
$36,968
$53,967
70.27
9
Bossier
$36,734
$52,754
69.13
10
West Baton Rouge
$34,269
$49,202
69.11
Rank
County
1
SEPTEMBER 2016 BizNewOrleans.com
New Machine for UNO’s Health Science Learning Lab The growing human performance and health promotion program at UNO recently received a $75,495 grant from the Louisiana Board of Regents that will be used to purchase a dual-energy X-ray absorptiometry machine — a tool used to measure bone density useful for those studying osteoporosis and obesity in high-demand fields like physical therapy and athletic training. UNO will be the only public institution in the area with such a machine.
UMC Celebrates First Anniversary
Recent Openings
August 1 marked one year since the opening of University Medical Center (UMC) New Orleans. Shown below is the hospital’s first year by the numbers.
Tulane Neuroscience Center July 5 — Patients with brain, spine and nervous system disorders can now receive care on the fifth floor of the Tulane Medical Center (1415 Tulane Ave.) at the Tulane Health System Neuroscience Center.
Tulane Multispecialty Clinic Northshore July 11 — The newest Tulane Multispecialty Clinic opened at 1305 West Causeway Approach in Mandeville. The clinic offers access to pediatric gastroenterology, pediatric nephrology and pediatric pulmonology services.
Med Vet Medical & Cancer Center for Pets July 18 — MedVet New Orleans and MedVet Southeast joined forces to open a 22,500square-foot facility dedicated to around-the-clock emergency veterinary care for dogs and cats at 2315 N. Causeway Blvd., in Metairie.
Tulane Medical-Surgical Unit August 8 — Tulane Medical Center celebrated the opening of the newly renovated 7 East medical surgical unit. The opening marks the completion of the first phase of a year-long construction project to renovate and improve several areas of the downtown campus.
Lafitte’s Landing Seafood House August 9 — Lafitte’s Landing Seafood House opened at 1700 Lapalco Boulevard in Harvey. It is the newest restaurant from New Orleans restaurateurs AJ and Anna Tusa.
We’d love to include your business-related news in next month’s Biz Bits. Please email details to Editorial@BizNewOrleans.com. BizNewOrleans.com SEPTEMBER 2016
37
38
SEPTEMBER 2016 BizNewOrleans.com
ADVERTISEMENT
Close your next deal at one of these business-friendly bistros.
Crossroads Restaurant and Bar
Broussard’s Restaurant
225 Decatur St. | (504) 310-4961 houseofblues.com/neworleans/crossroads
819 Conti St. | (504) 581-3866 Broussards.com
Feed Your Senses of flavor and music in a setting that’s always in full-surround sound — where families and friends, along with foodies and groupies, intersect for the ultimate dining experience. A delicious harmony of inspired comfort classics and soulful cuisine, our dishes are sure to make your taste buds sing! Courtyard dining available. Nightly entertainment.
Broussard’s Restaurant & Courtyard has been serving classic New Orleans dishes with a twist for 96 years. Conveniently located in the heart of the French Quarter, Broussard’s is now offering their annual Summer Special. Try our 3 course $19.20 Pre Fixe menu. Whether it’s for brunch or dinner, choose to dine in the majestic main dining room or in our palatial courtyard. Broussard’s — a local dining tradition since 1920.
Riccobono’s Peppermill Restaurant
Criollo
3524 Severn Ave., Metairie La 70002 | (504) 455-2266 RiccobonosPeppermill.com
214 Royal St. | (504) 681-4444 CriolloNola.com
For over 40 years the Riccobono family has been serving classic New Orleans and Italian fare to locals and visitors alike. Timeless classics like Shrimp Creole, Trout Amandine, Veal Parmigiana, Oysters Riccobono and much more. Consistently rated as one of the top dinning destinations of Metairie. Private dining facilities available for meetings and events. Join us for a meal to remember. Open for Breakfast, Lunch and Dinner.
Criollo Restaurant, located in the heart of the French Quarter, features a menu that highlights the blended flavors and cultures of New Orleans. Criollo’s ingredient-driven, seasonal menu is designed to offer creative dishes inspired by culinary traditions and an appreciation of today’s contemporary tastes. The open kitchen creates an air of excitement as patrons can watch the chefs creating culinary masterpieces. BizNewOrleans.com SEPTEMBER 2016
39
40
SEPTEMBER 2016 BizNewOrleans.com
Thirsty for a Thousand Aiming to reach 1,000 franchise locations by 2018, Smoothie King CEO Wan Kim and brand-new CDO Kevin King are aiming for world domination.
By Kim Singletary
Differentiating themselves from fast food smoothie purveyors like McDonald’s and Dunkin Donuts, Smoothie King’s focus has always been less on taste and more on performance — advocating their “Smoothies with a purpose.” BizNewOrleans.com SEPTEMBER 2016
41
“Like many college students, I wasn’t eating very well. smoothies were a great way for me to get nutrition in a very convenient way.” Wan Kim, owner and CEO
Kim says the purchase of the 10-year naming rights to the New Orleans Arena in 2012 elevated the brand both locally and nationally and demonstrated his commitment to “be different.”
B
y the end of 2017, the Smoothie King franchise is set to open its 1,000th location. It’s a goal owner and CEO Wan Kim had in his head when he first purchased the Covingtonheadquartered company from founder Steve Kuhnau in July of 2012. “People thought I was crazy,” he laughs. “The company had grown to 600 stores after 40 years in business and here was this crazy guy coming along saying he was going to add another 400 stores in only five years. I guess it wasn’t easy to believe, and I guess it still isn’t.” Ambitious as the undertaking is, Smoothie King is on track to meet its goal — Kim says the company is on target to open its 850th store by the end of this year, leaving 150 for 2017. In order to assure the deadline is met, Kim recruited a heavy hitter to the Smoothie King team in June, bringing in Ohio native Kevin King as chief development officer.
42
SEPTEMBER 2016 BizNewOrleans.com
King’s career has included an 11-year stint working at Papa Murphy’s. The Vancouverbased take-n-bake pizza chain was the fifth largest pizza company in the nation in 2015, with over 1,400 locations. During King’s time with the company, he helped Papa Murphy’s more than double its unit numbers. Included in Smoothie King’s 1,000 franchise locations will be 110 international units. This year that will include the company’s first location in Dubai – opening this month — and units in Trinidad and Tobago. Kim has first-hand experience in what it takes to run an international Smoothie King franchise. He opened and ran the first such undertaking in the company’s history in 2003, during its 30th year in business — a Smoothie King in Seoul, South Korea. A native of South Korea, Kim was first introduced to smoothies while attending school at Boston University. “Like many college students, I wasn’t eating very well,” he says. “Smoothies were a great way for me to get nutrition in a very convenient way.” His first introduction to Smoothie King was while getting his MBA at the University of Irvine in Southern California. In 1998, Kim returned to Korea where his father ran a $200 million business that manufactured electronics for companies like Sony and Samsung. “I am the oldest son, so the understanding was that I would eventually run the family business,” he says. “But after three years working for my father I was finding it was a lot harder than I had expected. My father had lost his father in the Korean War when he was only eight and, understandably, he was a person who didn’t want to take risks. I, however, was a passionate young man. It just wasn’t a good fit.” So, along with some friends, Kim started making investments into small technology companies. “In three years I had failed,” he says. “The investment was gone. The company was gone.” While he says his father expected him to return to the family business, Kim says he was determined to find his own way. Photos Courtesy of Smoothie King
“I learned that making investments and waiting is not my thing,” he says. “The management side was more what I was looking for.” When someone advised him to “do what you like,” Kim says he thought back to smoothies. “I was drinking them every day in school, so I thought maybe Koreans would also appreciate them.” So Kim approached Smoothie King founder Steve Kuhnau and pitched his idea. “It was a big risk — for them and for me,” Kim says. It also turned out to be more work than he could have imagined. “We had to do a lot of educating,” he says. “Fortunately, we were able to secure a prime location in a very high traffic area of Seoul kind of like Times Square. So we did a lot of sampling. Along with the samples we’d hand out this card that explained what a smoothie is and why it’s better than just drinking juice and what nutrition it has. They would drink and read at the same time and they would get it.”
“Every smoothie is made with a purpose... Our smoothies help people achieve a goal, whether that’s to increase wellness, lose weight or serve as a meal replacement.” Wan Kim, owner and CEO The sizes of the products, and even the products themselves were altered thanks to information from focus groups. “We’re just used to smaller sizes in Korea,” Kim says. “So instead of 20, 32 and 40-ounce sizes, we offered 12, 16 and 20. The taste profile is also different. Things are less sweet in Korea so we altered the smoothies to fit that.” From 2003 to 2007 Kim says his team was relentless, and so were the hours. “It was a lot of long days in those early years,” he says. “If somebody went home at 10 or 11 p.m. they’d be apologizing for leaving early. I was sometimes meeting with vendors — I’m not kidding — at 1 or 2 a.m.” While typical franchisees don’t have to worry about things like research and development, purchasing and distribution, Kim did. “Even the store design, we didn’t have the same materials available so we just did our best to mimic it.” By 2010, Kim’s tireless efforts had paid off. The Smoothie King brand had a 94 percent recognition in Korea. “Once we had that kind of recognition, expansion was easy,” he says. As the profits rolled in, however, other companies took notice. “McDonald’s, Starbucks, Dunkin Donuts — everyone started Photo Courtesy of Smoothie King
The company has a strong presence in Texas and Florida (seen here is a store in Arlington, Texas), and growth efforts are currently being focused on the East Coast.
offering smoothies, so then the challenge became how to differentiate ourselves in the marketplace,” he says. The answer, Kim says, lay in something Kuhnau had told him when he first started working with the company. “Steve told me that he never thought about taste first,” he says. “Every smoothie is made with a purpose. For instance “The Hulk” smoothie has 1,000 calories. Steve created it for a friend of his that was going through chemotherapy and needed to gain weight. Our smoothies help people achieve a goal, whether that’s to increase wellness, lose weight or serve as a meal replacement.” Smoothie King currently has 60 different offerings, with more constantly in development in the company’s lab near Clearview Mall in New Orleans where a four person staff is entirely dedicated to product development. Recent additions have included vegan smoothies, a coffee high-protein offering and even a King Cake smoothie that was introduced this past January. BizNewOrleans.com SEPTEMBER 2016
43
Smoothie King currently features 60 different smoothies, with recent additions including a line featuring Chobani® Greek Yogurt (right) designed as meal replacement options, and Vegan Smoothies (left), along with a new Immune Builder line and Coffee High-Protein smoothies.
Should We St ay or Should We Go
After opening 110 stores in Korea, Kim was approached by Kuhnau in 2012 who was ready to sell the business. With backing from Standard Chartered Private Equity and the National Pension Service of the Republic of Korea, Kim purchased Smoothie King for $58 million. Kim originally looked at moving the company’s headquarters out of state. “I wasn’t from the southern region, so I had no connection here and I was originally looking at Dallas,” he says. “It’s very business friendly and has good transportation, good tax rates and a big airport. It’s also No. 1 in the food and beverage industry, so it would be easy for recruitment. When I moved here, though, I saw the importance of being local, of making that commitment. My family and I (Kim has a wife and three children) really love it here.” Not long after moving the headquarters from Covington to Metairie (where Kim lives), Kim decided to really demonstrate his commitment to the area in a big way— 571,000 square feet to be exact. On Feb. 6, 2014, the New Orleans Arena (the home court for New 44
SEPTEMBER 2016 BizNewOrleans.com
Orleans’ NBA Franchise, the Pelicans) was officially renamed the Smoothie King Arena. “The agreement to purchase the 10-year naming rights was actually made really quickly and easily,” Kim says. “The deal, however, took about a year in total because of the eight months the NBA took to go through every one of our ingredients and make sure they were athletically friendly.” He says the purchase has had a lot of intangible benefits for the company. “I think it definitely lifted our branding, not just locally, but nationally, and guests just see us differently,” he says. “I had said when I bought the company that we will be different. I think after that, people really knew I meant it.” To really make the impact he’s reaching for, Kim knows he can’t go it alone. He says that in less than three years he’s personally conducted more than 200 interviews to fill various C-level positions. King is his most recent hire. “We’re a 43 year-old brand now so of course there’s things that we do just because that’s how we’ve always done it,” he says. “We’re trying to go to IPO in two years, so Kevin is here to help in making sure that everything is in place.” Photo Courtesy of Smoothie King
BizNewOrleans.com SEPTEMBER 2016
45
Smoothie King Timeline 1973 - Steve Kuhnau founds the first Smoothie King store in Kenner
1989 - Company begins to franchise – first company of its kind to franchise
2003 - First international franchise opens in South Korea. 2012 - Wan Kim purchases Smoothie King for $58 million. Headquarters moved from Covington to Metairie 2014 - Company secures 10-year naming rights to New Orleans Arena
2015 - Smoothie King ranked No. 1 by Entrepreneur magazine in the juice bar category for the 23rd year in a row 2016 - First franchise opens in Dubai
After helping Papa Murphy’s double its units during his 11-year tenure with the company, CDO Kevin King is tasked with making sure Smoothie King hits its 1,000 franchise goal.
Anot her King A native of Columbus Ohio, King’s career has been dominated by a less health-focused consumable: pizza. After five years at Dominos, 13 years at a pizza chain called Donatos (headquartered in Ohio) and a stint in retail branch development at Chase bank, King moved outside of Portland, Oregon to work with Papa Murphy’s.
“Good sites of course are going to have high traffic, a population that is middle to upper level income-wise and has a lot of young singles and families,” -Kevin KING, CDO “As chief development officer there, I did a lot of franchise development and sales, as well as real estate and construction, so when I got the call from the recruiter for this position it sounded like a good fit,” he says. Unlike with pizza, King says the company’s offering fits in well with the healthy, active lifestyle that the younger generation, especially, is embracing. The company currently has a presence in 33 states, the Caymans and the Republic of Korea. King’s job is to continue to expand the Smoothie King brand worldwide. “Jamba Juice is No. 1 right now, but we hope to catch them in the next 12 months,” he says. “Their footprint is really stronger in the southwest, so we don’t overlap very much.” King says the natural focus for growth is in areas with proximity to New Orleans. “Baton Rouge is a huge market for us,” he says. “Texas is also great 46
SEPTEMBER 2016 BizNewOrleans.com
because it’s close so the brand recognition is higher. We also have a big presence in Florida.” King says St. Louis, Nashville and Atlanta have also worked well and the company’s footprint is growing in the Carolinas and Virginia. He says ideal franchisees for Smoothie King have a solid business background, but not necessarily in retail, are involved in their community and ideally practice a healthy and active lifestyle. The company also offers veterans a 20 percent discount off the initial franchise fee. “Good sites of course are going to have high traffic, a population that is middle to upper level income-wise and has a lot of young singles and families,” he says. With the first stores opening in Dubai and Trinidad this fall, King says it helps that Kim has walked the same road. “He knows the challenges that are involved with franchising internationally and he can empathize with them,” he says. “But he challenges them, too.”
Furt her Down t he Road “We’re doing market planning now, looking at what is possible in terms of growth,” Kim says. “We think about 2,500 to 3,000 franchises in the U.S., which will include more of an intense focus on the East Coast in places like D.C., Maryland and Virginia.” In 2015, Smoothie King was again ranked No. 1 in the juice bar category by Entrepreneur magazine — the 23rd year in a row. From Jan. 1 to June 30, the company reported a 12.4 percent increase in same-store sales. Kim says he’s happy to see that the market for healthy products and offerings is just getting bigger and bigger. “The younger generation now are telling us how important it is,” he says. “And we’re listening.” n Photo Greg Miles
BizNewOrleans.com SEPTEMBER 2016
47
With new staff, a new website, a new season and a loyal following, Le Petit Théâtre du Vieux Carré steps into its second century at the historic theater at 616 St. Peter St. in the French Quarter. 48
SEPTEMBER 2016 BizNewOrleans.com
The 100-year-old Startup After some rough years, Le Petit Théâtre readies to pull the curtain on a new start. By David Lee Simmons | Photography Jeff Johnston
BizNewOrleans.com SEPTEMBER 2016
49
Y
ou could make the case that no other performance space in Managing Director Katie Hallman and Artistic Director Maxwell Williams are New Orleans works from such a strong cultural foundation two Northern transplants looking to revive Le Petit. and yet faces more challenges than Le Petit Théâtre du Vieux Carré. The space that once held the title of the nation’s people have to come. And, a year and a half after taking over, they’re oldest continually operating theater (thanks, Katrina) with serious still working to figure out the magic sauce to make Le Petit thrive in an brand recognition in a city now filled with revitalized old theaters is uncertain market and a changing French Quarter. heading into its second century with as much “It’s our job to provide a variety of programuncertainty as excitement. ming,” says Williams, who came to Le Petit “It’s our job to provide a variety That’s why, on the eve of the theater’s in spring 2015 from Connecticut’s Hartford 2016-17 season — marking 100 years of only of programming. As long as it’s Stage, where he spent three years as associate slightly blank history — Le Petit still views curated well, and as long as we artistic director. “As long as it’s curated well, itself as a startup. and as long as we hold it to a high standard, I hold it to a high standard, I think think we can widen our appeal.” New management has been brought in — including artistic, operations, develop- we can widen our appeal.” But that programming will have to speak to ment and bookkeeping. Excel spreadsheets a consistent and cohesive brand that reassures Maxwell Williams, its prospective ticket buyers that there’s such a were created from scratch. Programming was revamped and reconceived. But when the Artistic Director thing as a Le Petit identity in a historic theater lights dim and the curtain rises for the season space that will continue to bring in donor, grant opener — the Tony Award-winning musical, and other forms of support. (Le Petit gets about “Pippin,” on Sept. 16 — there will be a pretty big weight on the little 60 percent of its revenue through ticket sales, and 40 percent from outside theater of the French Quarter. support.) At places such as Rivertown Theaters or Tulane’s Summer Lyric, No one feels that weight more than Artistic Director Maxwell you’re guaranteed a well-polished Broadway musical. With Southern Rep, Williams and Managing Director Katie Hallman, two Northerners you’ll see the newly developed theater works, often with a local angle. At who came to New Orleans from different paths to achieve the same The NOLA Project, you’ll see hip, edgy, often site-specific works featuring goal. Whether in person or on the phone, you can see or hear the pres- some of the city’s top young talent. And with Anthony Bean Community sure in their voice. They realize Le Petit can’t just put on a show. The Theater you’ll see some of the best in African-American productions. 50
SEPTEMBER 2016 BizNewOrleans.com
BizNewOrleans.com SEPTEMBER 2016
51
Le Petit knows it has to hit a kind of sweet spot in terms of programming — with variety, sure, but with a focus, while also opening itself up to outside productions to better maximize the earning potential on nights when the space is otherwise dark. That could mean a music act, like the scheduled cabaret show featuring Liz Callaway in August or the recent confirmation of Cecile Monteyne’s seasonal “You Don’t Know the Half of It” comedy improv shows. The 2016-17 Le Petit schedule itself is a mixed bag, with shows that one might think could be staged elsewhere in the city — like the musical “Pippin,” say, or Terrence McNally’s recent work, “It’s Only a Play,” which closes the season next June. Then there’s “Jelly’s Last Jam,” the musical about New Orleans’ own Jelly Roll Morton, which curiously doesn’t get much stage time in the Crescent City. But it does speak to Williams’ desire to add more diversity to Le Petit’s programming, which was hinted at in the July co-production of “The High Priestess of Dark Alley.” Both Williams and Hallman agree that, as with any company setting great expectations, the customer has to feel like they’re being treated to an experience they won’t get anywhere else — so sometimes, the devil is in the details. “Whether they come once or five times, I hope they found some comfort in knowing, ‘This is the kind of setting I’ll see … even the playbill is important,” says Hallman, who moved to New Orleans in 52
SEPTEMBER 2016 BizNewOrleans.com
2014 after serving as director of concert operations for Manhattan Concert Productions in New York City. (She moved here with her playwright husband, Cavan, before taking the Le Petit job.) “You can learn to expect it and you can rely upon it, and that’s a comforting feeling.” There was a lot of work, and a lot of trust building, before this 100 th year could become a reality. First, the management had to restructure the books and figure out a whole new infrastructure of theater operations. Barbara Motley, the former Le Chat Noir owner, brought in her financial expertise while serving on the board as treasurer. Old friendships had to be renewed, new friendships made, and grant funding explored. It’s been a rough few years, especially after Katrina, for Le Petit, which fell into nearly $1 million in debt and was forced to sell half its property to the Dickie Brennan & Co. for a reported $3 million in 2012. (Brennan subsequently opened the restaurant Tableau, across the courtyard from the main stage.) Artistic director Cassie Steck Worley, who’d also served as board president, was forced out in 2014 — not long after an embarrassing scheduling snafu forced them to drop “Joseph and the Amazing Technicolor Dreamcoat” and scramble to fill in the gap. (They did, with a successful showing of the locally produced “Under the Boardwalk,” originally staged at Rivertown Theaters.)
BizNewOrleans.com SEPTEMBER 2016
53
The sale of that chunk of the theater, while helping to pay off debt and provide needed renovations, still left some longtime supporters sore. Then there is the matter of a board of directors that had wrestled with its own mission of how to be effective without meddling and when to hire and then trust a new management team. Barbara Motley has seen it from both sides. With a deep background in the business of the performing arts, she’d spent a year filling in as the head of the Contemporary Arts Center in the early 1990s so it wouldn’t have to close as it sought a new path. She later opened the popular and revered — but not necessarily lucrative — Le Chat Noir in the late 1990s. After years of delighting audiences but staring at a rough bottom line, Motley finally closed the beloved space in 2011. (One of its spiritual progeny, the Mid City Theatre, has since come and gone.) Motley suggests caution as the board moves forward with the new team to ensure everyone knows their role. “The board had to let go of the idea that they had to operate the theater, and step into the role of governance,” notes Motley. “The key is, can you let go? Last year was a year of letting go. It was the steady drumbeat of the board meeting: ‘best practices, best practices, best practices.’ That wasn’t an easy year for Max and Katie. They had to get their heads around the finances and set up the structure to move forward. And they were dealing with a board that was used to asking micro and macro questions. I think it was about Max learning about the city and about what a season should look like, and where the new works might be located.” Motley also sees a bright future for Le Petit, if, that is, the new team can strike the right balance of a theater committed to serving the community both with its own presentations, and others. “There’s potential at Le Petit, not only to sell tickets, but also to use the down time in our season,” she says. “It’s an interesting, fun challenge. What I did at Le Chat was what to do on those nights. You’re a good theater citizen and providing a good space. Part of our mission in being good leaders and collaborators will be to figure out how to let others use our stage.” Le Petit may have had its rough patches, but it still benefits from a pretty loyal following, especially in its donor base, as Crystal Gross learned when she came on board as development director after about eight years at WWOZ. “Le Petit has a core group of supporters, The Drawing Room Players, which currently number at about 65,” she says. “These donors support the theater financially by going above and beyond season tickets. They are philanthropic-minded individuals who love the arts and have a very warm place in their hearts for Le Petit.” Longtime supporters are key to a historical theater like Le Petit, and it took their donations to help fund recent improvements such as a new sound system and seating. “They want to see Le Petit thrive,” Gross adds, “and are enthusiastic about the centennial season.” Municipal and state support for the theater almost seems nonexistent — typical of a national climate of non-support of the arts — but Le Petit is trying to find grant funding where it can and where it previously hasn’t looked. Nationally, management points to a recent $10,000 gift from the Shubert Foundation, a strong supporter of live theater, and their hope to get more help through the Louisiana Economic Development Live Performance Tax Credit Program (on life support during the current budget crisis). Hallman notes that Le Petit received a “stability grant” last year from the State Arts Council. This kind of incremental growth, even for such a venerable place, is tough when you’re acting like a startup, and that’s reflected in Le Petit’s budget, which has crept up from around $850,000 in 2013-14 54
SEPTEMBER 2016 BizNewOrleans.com
After falling into nearly $1 million of debt, Le Petit was forced to sell half its property. The land was purchased by Dickie Brennan & Co. for a reported $3 million in 2012 and has since been transformed into the restaurant Tableau, across the courtyard from the main stage.
and is projected to be a little over $1 million for 2016-17. Part of that increase is due to the fact that the staff structure was expanded and new employees have been added. As someone who has a strong history with Le Petit but now produces his own shows, Rivertown Theaters’ Gary Rucker also has a unique vantage point on this kind of growth. His fond memories of some of the great musicals produced at Le Petit are tempered by watching a struggling theater trying to regain its footing after having pulled off something similar himself. The programming has to both fit the theater’s focused vision, he notes, while also drawing in maximum crowds in an uncertain market. After all, “Pippin” could be a Rivertown Theaters production just as “It’s Only a Play” could be at Southern Rep. But Rucker knows what rebranding and re-launching are all about; after all, he and partner Kelly Fouchi used their Theatre 13 company to take over the defunct Rivertown Rep — and clean out all its baggage — in 2012. Now, he says, Rivertown Theaters’ shows play to packed houses and revenues have increased each year.
BizNewOrleans.com SEPTEMBER 2016
55
“When Kelly and I took over Rivertown Theaters, it was in pretty dire straits, and we had to do a lot to pull it out of the ashes,” Rucker says. “And every year we’ve learned a lot about how to make it a good business. I don’t think Le Petit has had a team in there long enough to figure out that learning curve. I think the team that’s in there now is at the beginning of the process of where we were four years ago.” As artistic director, Williams faces his own set of challenges. There’s the idea that live theater is dying, a notion that continues in the shadow of a national trend, and yet people still seem to find a way to attend local theater. But then there’s the changing landscape of the French Quarter, a place once dominated by locals but which increasingly fights off the reputation as a Disneyland for tourists with a shrinking sense of local (or higher) culture. The theater sits on prime real estate — even if it did shrink by half — with its view of Jackson Square and a welcome spot for foot traffic. If Williams can figure out a way to get the kind of magnetic pull of music venues like House of Blues or (more to the New Orleans culture) Preservation Hall, there might be a steadier flow of ticket buyers. He also needs to figure out why a show belongs in the space, and who he’ll bring in to produce the show. Should the shows be dominated by local actors and directors? Should he bring in outside talent and risk alienating a tightly knit theater community? When he partners or collaborates with other groups, like The NOLA Project, how deep should that collaboration be? How much money can they make by renting out the space? With every rental or co-production, someone else gets to dip a hand in the cookie jar. 56
SEPTEMBER 2016 BizNewOrleans.com
Le Petit’s annual budget has crept up from $850,000 in 2013-14 to a projected figure of just over $1 million for 2016-17, in part due to an expanded staff.
But the first step has to be to fill the house, and slowly but surely, Le Petit is getting busier. Williams notes that just two years ago, the space was used 76 nights out of the year. Last year, it was 85. For 201617, they’re shooting for 150. Still, Williams can be forgiven when he says, quite frankly, “I only just moved here in March of last year, so it’s been, I don’t know, 15, 16 (years). Sometimes it feels like a decade, sometimes it feels like just yesterday.” But with that pressure also comes a ton of enthusiasm. These are outsiders, sure, but experienced outsiders. And they may have been put through the wringer, but they’re young and have the energy. As many challenges as Le Petit faces, the new team still seems ready for the curtain call. “Our specific vision is not yet set in stone,” Hallman concedes, “but our steps toward finding solid footing in a vision that acknowledges the theater’s deep history while moving into the future are in motion. Much of last year was dedicated to getting our business house on order, getting our professional staff rebuilt, and testing the waters artistically. “With not-for-profit theaters, deciding who you want to be is a process,” she concludes. “We believe in the power of live theater in New Orleans, and for New Orleans, and we are thrilled to be an active and historic part of this community’s live performance landscape.” n
BizNewOrleans.com SEPTEMBER 2016
57
Perspectives A closer look at hot topics in three southeast Louisiana industries
60 Real Estate
& Construction
64 Insurance
68 Banking & Finance BizNewOrleans.com SEPTEMBER 2016
59
Perspectives | Real Estate & Construction
Women in Construction The tide is starting to turn in the only industry where female employees account for less than 10 percent of the workforce. By Kim Roberts
A
cross the country, as well as locally, over the past decade women have made strides infiltrating what are considered to be male-dominated jobs in the workplace. They are making their presence known and are pushing for equal positions, pay and treatment. Many industries are letting more women into their ranks, and construction companies seem to slowly be following suit. According to a survey conducted by the Bureau of Labor Statistics (BLS), women make up 46.8 percent of total employment across all 60
SEPTEMBER 2016 BizNewOrleans.com
industries, but only account for 9.3 percent of construction employees. The study goes on to state that plenty of factors exist that create barriers for women entering the field, keeping the percentage of females in construction lower than other industries. Included are ideas that girls may grow up seeing the field as a male-only career and women who are interested in construction may often become deterred by sexism and the fear of not being taken seriously. Fortunately, however, times are changing and the industry Photo Thinkstock
“It is not uncommon to be the only woman at a meeting or job site, but I look at it as a pro and not a con.” -Melissa Gibbs, director of business development for Gibbs Construction landscape is now peppered with female mentors and role models, including in Southeast Louisiana. “I grew up in the business, watching my parents start and grow Gibbs Construction, and I have seen a lot of changes over the years in the industry,” says Melissa Gibbs, director of business development for the commercial and industrial construction design-build specialist. “I have definitely noticed a significant increase in the number of women in the construction industry in recent years. This could be attributed to the construction management and construction technology programs offered at colleges and universities now, and it is refreshing to see so many females enrolled in these classes. Women are viewing construction as a viable job option, and today it is not uncommon to see women in lead roles, as the project manager and the owner. Gibbs says the field is still far from balanced, however. “On the other hand, it is not uncommon to be the only woman at a meeting or job site, but I look at it as a pro and not a con,” she says. “Being the only female will make you stand out — you will be noticed for your skills; it is a positive. There are still some old-fashioned men in the industry, but we as women have the opportunity to surprise them and showcase our talents and make an impact. The industry is changing and it is encouraging for the younger generation to know that they can work in any industry they want; there are all sorts of jobs available in the construction industry, both with and without college experience.”
A Roller Coaster Industry According to the U.S. Department of Labor, the number of women employed in the U.S. construction industry has grown substantially — by 81.3 percent from 1985 to 2007 — however, due to a loss of over 2.5 million construction jobs from 2007 to 2010, there has been a sharp decline of women working in the industry. Within that short period of time, more than 300,000 women workers left the industry. While only 9 percent of U.S. construction workers were women — a relatively small percentage compared to other industries — there were still over 800,000 women workers employed in the industry in BizNewOrleans.com SEPTEMBER 2016
61
2010, including managerial, professional, administrative and production employees. Of those, approximately 200,000 were employed in production occupations, such as laborers, electricians and plumbers. “Construction jobs for women today go way beyond desk work,” says Millie Munsch, CIT, the incoming president of the National Association of Women in Construction (NAWIC). “We play multiple roles in the industry. This is a totally accessible field for females. We have accountants, engineers, owners, architects, electricians — the entire spectrum of the profession is open and represented by us. It is not just a man’s world anymore — you can see more and more women entering the industry and making a difference. There are so many construction jobs locally that there is plenty of room for everyone to work.” NAWIC is a national association with 127 chapters across the country and 36 members in its local chapter. The local chapter raises awareness for women in construction by offering business and education opportunities, as well as networking and leadership activities. They also have mentor and community outreach programs geared toward school-age females.
“Construction jobs for women today go way beyond desk work.” -Millie Munsch, CIT, incoming president of the National Association of Women in Construction
For some, like Lauren Marshall, diversity/community relations coordinator for Woodward Design + Build, the journey into the industry was not direct. “The construction industry was not my chosen path,” she says, “but when I decided to go to work with my now husband 14 years ago, it led me on a journey to my current career that is extremely satisfying.” The Marshalls were part of a joint venture team, Parsons Aviation Louisiana, tasked with managing over $236 million in capital facilities improvements at the Louis Armstrong New Orleans International Airport. “The airport project required DBE (disadvantaged business enterprise) participation as well. As a novice in both construction and DBE areas, I focused on learning as much as I could from the professionals I worked with — in addition to my role as office and document control manager. Learning about the construction industry from the program management side I believe was an easy fit for me. I was always accepted and respected. I enjoyed, and still enjoy, getting to know the subcontractors we work with and the ones I hope to work with.” When Marshall learned that Woodward was looking for someone to start up its DBE Participation Plan, she felt it was a natural fit. “I decided if I was going to be spending more time with contractors that I wanted to understand not just their needs as DBE firms, but what it takes to bid, win and perform successfully, and fortunately everyone agreed,” she says. “I work daily with our estimating team, which has guided me in this industry.”
62
SEPTEMBER 2016 BizNewOrleans.com
“Don’t let the gender issue stop you if you want to be in this industry. Be prepared to work hard — harder than some of the guys at first — but it will be worth it.” -Malin Maitrejean, owner of MALIN Construction Closing the Pay Gap According to a 2014 report from the National Women’s Law Center entitled “Women in Construction: Still Breaking Ground,” research indicates that women hold 47 percent of all wage and salary jobs, but only 2.6 percent of all construction industry jobs. It goes on to state that construction jobs are lucrative, with top plumbers earning more than $84,440 a year, close to twice the median pay nationwide ($49,140). The median hourly wage for construction occupations was $19.55 in 2013, roughly double the wage for female-dominated jobs such as home health aides, housekeepers and child care workers. While women still fight to earn equal pay with their male coworkers across the board, the gender wage gap for many construction occupations is actually smaller than other industries. According to the U.S. Census Bureau’s report on annual median earnings by sex, full-time female employees made about 79.5 percent of what male employees made in 2014. In the same year, female construction workers made about 93.3 percent of what male workers made. Also, more and more women are getting involved with the entrepreneurial side of the industry. According to the U.S. Census Bureau, 152,871 women-owned construction firms were confirmed in 1997, and 10 years later, that number climbed to 268,809. “It is difficult to say whether men and women are compensated equally in this industry locally, in some cases yes, and some no — it really depends on the company you work for,” says Malin Maitrejean, owner of MALIN Construction, which specializes in retail, commercial and multifamily projects. “Since I opened the doors in 1997, there are more and more women that I cross paths with than I did back when I started. Don’t let the gender issue stop you if you want to be in this industry. Be prepared to work hard — harder than some of the guys at first — but it will be worth it.”
Seeing Past the Stereotypes Stereotypes and perceptions about the industry are part of the reason that construction is not a career path most women tend to consider. But in reality, the industry offers the diversity and excitement that many women are looking for from their career. “The construction industry has really opened up over the past 25 years,” says Paula Peer, principal at New Orleans-based Trapolin-Peer Architects. “You are seeing more women leaders in the field. There is
“Over the past 10 years, I have really seen a shift in the industry; it has become more progressive.”
a real diversity in the industry. The challenge oftentimes in an industry like this one is, as a woman, you have to earn respect. You have to put in the work. It is easier today to break into this industry as a female. There are definitely more opportunities available. “We are a 30-person firm and I’m proud to say we are 50/50 gender represented,” she adds. “The key is to look past gender and look at the whole person, their skill set, experience, education and what they can bring to the table. At the end of the day we are looking for talented team members. The more diverse the better.” The construction industry can be the ideal place for women who want to be part of an exciting and growing industry with the possibility of impacting the next generation of women. While working in a male-dominated industry, women often have to overcome stereotypes and preconceived notions. Kellie Mathas, with Crystal Clear Creative and Imaging, a local design, event and brand strategy company that recently updated the pelicans practice facility and is currently working on both the Saints practice facility and 50th anniversary upgrades to the MB Superdome, said that as a whole the industry is accepting of females, but every so often the preconceived ideas come through. “One time I was on a conference call with a client who was insistent on hiring the “A” team for his project. He wanted the ‘guy’ that designed the Pelicans space. And I cleared my throat and said, ‘I’m the guy,’ ” she said. “He didn’t miss a beat and hired me. Sometimes clients are surprised at first to see a female is behind the ‘sports-related’ projects, but we get the job done. I think that in some instances, a female can bring more detail to the commercial spaces.” “Females are very much a part of our work culture and industry,” says Rebecca Cooley, vice president of modular interior construction at AOS Interior Environments. “We have had female leadership at AOS throughout our history. We work with women in the field on a daily basis. Over the last 10 years, I have really seen a shift in the industry; it has become more progressive.” For women interested in working in the construction industry, Gibbs offers a little advice. “You many feel uncertain or unqualified, but everyone feels that way at a new job,” she says. “It’s normal. Project an image of confidence and people will respond. Ask questions, participate, and most importantly prepare for the job you want.” n
T H E PA R A M O U N T A T S O U T H M A R K E T D I S T R I C T | H U M P H R E Y S & PA R T N E R S A R C H I T E C T S , L . P.
-Rebecca Cooley, vice president of modular interior construction at AOS Interior Environments
W O O D WA R D D E S I G N B U I L D . C O M 800 650 6443
BizNewOrleans.com SEPTEMBER 2016
63
Perspectives | Insurance
Want to Retain Good Employees? Life insurance may be the answer. By Pamela Marquis
64
SEPTEMBER 2016 BizNewOrleans.com
R
ecent research from Glassdoor — a website where employees and former employees anonymously review companies and their management — found that 57 percent of people report benefits and perks are among their top considerations before accepting a job, and four in five workers say they would prefer new benefits over a pay raise. “Employees are the biggest asset a company has, so better benefits help employers attract and retain valuable employees,” says Nora Vaden Holmes, a State Farm insurance agent who runs her own office in Metairie. While more than 50 specific benefits and perks are listed at Glassdoor — including such perennial favorites as health insurance and 401(k) or retirement plans— some companies are now offering more progressive ideas. For example, Netf lix offers one paid year of maternity and paternity leave to new parents. Airbnb gives its employees an annual stipend of $2,000 to travel and stay in an Airbnb listing anywhere in the world. And Twitter provides three catered meals a day, on-site acupuncture and even improv classes. According to the Bureau of Labor Statistics’ 2010 National Compensation Survey, 60 percent of firms with fewer than 100 workers offered health benefits. On average, those companies covered 80 percent of employees’ premiums for individual policies and 65 percent for family policies. Just more than half, 52 percent, set up retirement plans and 44 percent offered life insurance. “The loss of a key employee, simply leaving employment with you, can be devastating, especially if they leave you and go to your biggest competitor,” says Jack Duvernay, vice president of employee benefits with Eagan Insurance Agency. “There are numerous tools out there to entice or ‘put a golden handcuff’ on those employees to stay with their employer.” While creative benefits can be appealing, a core offering in an enticing benefits package has consistently been life insurance, and September happens to be Life Insurance Awareness Month. According to LIMRA, a financial industry research organization, as many as 132 million Americans rely on life insurance to protect their financial security. Major reasons given for owning life insurance include covering burial and other final expenses, helping to replace lost income and helping to pay off a mortgage. “Employees become our work family and you can have peace of mind knowing an employee’s beneficiary or family can have funds available upon the employee’s death,” says Holmes. According to the 2016 Insurance Barometer Study — a part of the September Awareness Life Happens campaign — one in three households would have immediate trouble paying living expenses if the primary wage earner died. In addition, half the households in America would feel the financial impact from the loss of their primary wage earner in a year or less. In fact, more than 40 percent would feel the impact within six months, including nearly 40 percent of households with an annual income of $100,000 or more. If you consider adding life insurance as a benefit for your employees, there are many things to consider when choosing the right providers who can best guide you through your choices. “Always, always, always contact an independent insurance representative,” advises Duvernay. “When I say independent, I mean one that is not captive, or inf luenced by one provider.” He also believes that an independent insurance agent typically works through a brokerage general agent, who has access to most every life insurance provider on the market.
BizNewOrleans.com SEPTEMBER 2016
65
“They are well seasoned in not only making great product recommendations, but also assisting the independent agent in the sales process if necessary,” he says. But some recommend going with a company with a long history such as State Farm Mutual Automobile Insurance Co., the parent company of several wholly-owned State Farm subsidiaries. Holmes believes that there are many advantages in choosing a company that has proven financial strength such as State Farm. “It’s good business sense to choose to do business with a company that will be there when you need them,” she says. “Our Fortune 500 ranking was in the Top 50.” Brad Hammer, an insurance and financial service manager for Fassbender Insurance says there are many options for the consumer. “An employer or employee can buy life insurance as an individual or through a group plan,” he says. “This can be done through local life insurance agents; Internet-based websites, professional associations or affinity groups. But make sure you do your research and make sure your insurance company is rated with a credit rating agency such as A.M. Best Co., Standard and Poor’s, Moody’s or Fitch Group.” Hammer also strongly suggests having a solid plan. “Business owners need to look at what risks they might incur over a period of time,” he says. “If a plan is not in place, the costs to correct will be substantial. Know your risk and plan on it.” Once you have the right providers, the next step is to determine what kind of life insurance you need. “If available, most companies offer group life insurance policies for their employees in the form of term insurance, and some offer permanent policies as well as whole life, universal life, and variable life,” says Hammer. “The business owner also can protect the business and themselves with key person, business succession, business continuation and buy/sell agreements between the owners.” According to Duvernay, one of the more common life insurance 66
SEPTEMBER 2016 BizNewOrleans.com
options is a restrictive endorsement bonus agreement. “The employer provides the employee with the amount of the life insurance premiums on a permanent life insurance contract,” he says. “The employee names his or her own beneficiary of that policy. We always like to include a good long-term care or chronic illness rider on these contracts too. This policy is designed to be paid in full within a given number of years, such as 10 years or at age 65. The agreement that is signed by the employer and the employee outlines that the employer will continue to pay the premiums for this policy, as long as the employee remains employed at that place of business.” The next question is how much insurance is enough to make sure the business and its employees are protected. One thing Duvenay suggests is that a business owner consider who the key revenue drivers are within their company and do everything possible to protect the business from the loss of those sources of business revenue. “It may be a top salesperson, a construction job estimator, a person who developed and maintains all the most important customer relationships, etc,” he says. “If that person leaves employment with your firm, then that revenue is lost. If that person dies unexpectedly, you have an immediate loss of revenue to the company, unless you are fortunate enough to have someone of the same skill set that can take up that person’s responsibilities, along with their own. Key employee life insurance is one of the most common forms of life insurance that business owners demand.” Another thing to consider is that premiums are generally tax deductible. According to Hammer, employers that provide group term life insurance to employees can deduct premiums paid for coverage if the company is not the beneficiary. He says usually group term life premiums may be limited to the cost for $50,000 of coverage. “Many employers would rather provide this benefit to their employees instead of paying it in taxes to the federal government,” says Holmes. Photo Thinstock
What are the benefits of offering group-term life insurance? n
Tax deductible premiums
n
Desirable benefit to help attract and keep employees
n
Valuable life insurance protection provided at a low group rate
n
Employee has the right to name and change beneficiaries
n
Death benefits paid income tax free
n
One-year level premium rate
n
Conversion privileges upon termination of coverage
n
Accidental death, dismemberment and loss of sight protection
Like so many industries, the insurance industry is experiencing some exciting new trends. “The addition of living benefits riders to new permanent life insurance contracts is probably the most exciting and consumer beneficial trend to come along in years,” says Duvenay. “Many of your major life insurance carriers are making available either longterm care or chronic illness riders to attach to your new permanent life insurance policies. In the past, insureds have only been able to provide benefits to their beneficiaries in the way of a death benefit, which was honestly, not too exciting to discuss. Today, an insured is in essence still naming a beneficiary in the event of his or her death, but the insured themselves can also benefit from the policy if they ever have a cognitive impairment or have the loss of at least two activities of daily living, by ‘accelerating’ the death benefit early to pay for their own care, which is most often very expensive.” Holmes also sees some remarkable trends emerging in her line of work. “The ‘new’ term insurance — called Return of Premium Term — is exciting,” she says. “This policy is where the insured receives all of their premiums paid back at the end of the term,” says Holmes. “It is a great compliment to whole life or universal life insurance to meet the needs of someone who can’t afford the permanent insurance option. Young couples like the idea of getting their premiums back in a lump sum after 20 to 30 years after their kids are grown and being able to use the funds to pay off their home, pay off college debt or contribute to their retirement nest egg.” n
Photo Thinkstock
BizNewOrleans.com SEPTEMBER 2016
67
Perspectives | Banking & Finance
Funding the Dream A look at what local financial institutions have to offer small business. By Andrew Alexander
D
iscovering one’s passion and how to channel it into a business is often times the easy part in the process of creating a small business, but finding the proper funding channels can be the deciding factor of whether a f ledgling business sinks or swims. This summer, First NBC Bank announced a new partnership with the Louisiana Chapter of Entrepreneur’s Organization (EO). Part of a global business network of more than 11,000 entrepreneurs in 150 chapters and 48 countries, the Louisiana Chapter includes almost 60 members, all of which take in a minimum of $1 million in annual sales. For those that haven’t yet 68
SEPTEMBER 2016 BizNewOrleans.com
reached that level, the EO offers an accelerator program to help them along. “The partnership with First NBC started in about February or March and will continue for the next three years,” says Mark Lewis, strategic alliance chair for the Louisiana EO. “They are one of our exclusive strategic partners and we’re excited to have them committed to working with our members.” Lewis says that the partnership is a good fit because “while some bigger banks have a lot of rules that prevent them from thinking outside the box, First NBC is able to look at other ways to evaluate the growth and success of a business. Photo Thinkstock
“With SBA loans, we’re able to work with small down payments and do longer terms than conventional loans.” Donald Peltier, vice president of SBA lending at Fidelity Bank
Sunay Patel, owner of Jefferson Fiberglass is one of the EO members that have worked with First NBC. Patel was living in Dallas and looking to purchase a business in Harvey with his brother. “Jefferson Fiberglass is a 50-year-old manufacturing company with great employees but it didn’t have great cash f low,” Patel says. “My brother and I both had perfect credit, were experienced business people and could inject enough capital and had plenty of collateral. The only hitch was the cash f low. We would tell each bank that as we came in and they would all say, “no problem,” but it was. None of them would take the chance. Fortunately, First NBC was able to see the complete picture. Six months later, we already have positive cash f low.” Donald Peltier, vice president of SBA lending at Fidelity Bank, works with startups every single day.
“Rather than touting or pushing banking products, our bankers actively listen and seek ways to help clients find solutions.” Jeffery Ehlinger Jr., EVP, market area president at First Bank & Trust “The biggest needs for this group are typically money for lease hold improvements, equipment and inventory and working capital,” he says. “With SBA loans, we’re able to work with small down payments and do longer terms than conventional loans.” Photos courtesy of Donald Peltier and Jeffery Ehlinger
BizNewOrleans.com SEPTEMBER 2016
69
A full service bank with 18 locations on the Northshore, Southshore and Baton Rouge, Fidelity has strong relationships with local small business development centers, including LSBDC at Southeastern University in Hammond and the UNO Small Business Development Center in Metairie. “Those programs help entrepreneurs create business plans and then funnel them to banks like us,” he says, “where we can also offer things like business checking accounts, merchant services for credit card processing and business credit cards and lines of credit.” Peltier says he’s definitely seen an uptick in small business customers over the past few years.
“A lot of our giving has been focused on growing small businesses and growing the small business ecosystem in this region.” Erika Wright, senior program associate of global philanthropy for JPMorgan Chase & Co. “Compared to just three to five years ago, there’s been a real increase in startups here in Southeastern Louisiana,” he says. “Louisiana definitely has the entrepreneurial spirit.” One of the continuous themes with banks is that banking with small businesses is all about relationships and helping the community thrive. “Rather than touting or pushing banking products, our bankers actively listen and seek ways to help clients find solutions,” says Jeffery Ehlinger Jr., EVP, market area president with First Bank & Trust. “Over time, our bankers become trusted business advisors and they focus on creative alternatives to help their client launch, grow and prosper. The bank provides convenience for its business clients by offering innovative online banking and treasury products; which allows our customers to focus on the daily challenges of running their business.” JPMorgan Chase & Co. has made assisting local small businesses around the globe one of its top priorities with its “Small Business Forward” initiative, which “supports small businesses by connecting them to critical resources to help them grow faster, create jobs and strengthen local economies.” “Generating economic opportunity is what JPMorgan Chase does each and every day,” says Chairman and CEO Jamie Dimon on the SBF page of the company’s website. “Our support of small business is one more way that we add value for our communities. By helping regional economies build on their core assets to develop thriving enterprises, we are helping to create jobs and build a more prosperous society.” In New Orleans, JPMorgan Chase & Co. works with several non-profits to reach local entrepreneurs and help them achieve their business goals. “All businesses are essential pieces to improving economic opportunity, especially in New Orleans,” says Erika Wright, senior program 70
SEPTEMBER 2016 BizNewOrleans.com
The Importance of Small Business 24 million - full-time jobs the United States needs to create by 2020 to bring national unemployment back to pre-recession rates. n 99.7% of U.S. firms are small businesses (< 500 employees) n 28.2 million – total number of small businesses in the U.S. n 63% of net new private sector jobs since 1993 were in small businesses n 48.5% of total private sector employment is affiliated with small businesses Source: JPMorgan Chase & Co. n
associate of global philanthropy, Office of Corporate Responsibility for JPMorgan Chase & Co. “A lot of our giving has been focused on growing small businesses and growing the small business ecosystem in this region.” Wright oversees the Louisiana region for the company, which has worked to support industries aligned with ProsperityNOLA, a comprehensive development plan “designed to ensure the city’s vitality for its tri-centennial in 2018 and beyond.” JPMorgan Chase’s global philanthropy division has relationships with several non-profit organizations, including Good Work Network, Propeller, The Data Center and New Orleans BioInnovation Center. “On the global philanthropy side, while we’re not providing direct assistance or access to capital, we are supporting organizations that are working with small businesses and the entrepreneurs of the region,” Wright explains. The financial institution offers an open letter of inquiry process and encourages potential entrepreneurs to reach out. “If folks are interested in connecting with JPMorgan, they can go to our website and submit ideas or proposals to us,” Wright says. “We also make a point of being on the ground and in the community so that we’re kind of aware of different projects that are emerging.” n Photos courtesy of Erika Wright and Thinkstock
Step by Step Greg Jordan, area manager in the Southeast Region for Chase Business Banking, explains his company’s process of working with local entrepreneurs. The Idea “If they come in with an idea, we’ll sit down with them and we’ll try to map out for them what their idea is, what their particular business plan is.” The Business Plan “If they don’t have a business plan, we refer them to CDCs (Certified Development Company) that often help them to sit down and write the business plan. If they come in with a business plan, then we start the next step, which is trying to qualify them personally.” Qualification & Evaluation “When an entrepreneur has a business plan, and they’re looking for capital, we often have to rely upon their personal strength as a guarantor. We evaluate their personal financial situation, and try to look for resources and assets tthat might help us to approve them for some kind of a small line of credit, term loan or any kind of credit. From there — depending upon the strength of the guarantees that they bring, the strength of the company that they may have and the assets that they’ve incorporated that company with — we will determine how far we can go in helping them with accessing credit and what their capacity is for credit. As we evaluate their situation, that’s again where we try to determine if they’re eligible for some of these great SBA (Small Business Administration) programs.” Finding Capital “Many of our CDCs have several programs that are available for the startup entrepreneur looking for capital. As we work through their issues, we try to help them and guide them to the right places for capital.” The Follow-up “We try to help them get the capital that they need, and then we often require some of these startup companies to come in and visit with us consistently every month or two, where we can sit down and see how things are going with the execution of their game plan. As we stay close to them, watch them grow and look at their financials, we make comments as to how they can continue to make themselves bankable, we hold their hand through the process until they can get to the point where maybe they’re not reliant upon an SBA guarantee program anymore. At that point, their credit capacity increases as they move toward executing their business plan and they’re generating cash flow and getting themselves ready for the next step.”
BizNewOrleans.com SEPTEMBER 2016
71
Guest Viewpoint
Why We Should Increase the Minimum Wage Raising wages will help build strong local economies.
B Angela O’Byrne is the president of Perez, APC, an architecture, engineering and construction firm based in New Orleans. She is Louisiana’s 2016 Small Business Person of the Year and first runner up for National Small Business Person of the Year.
72
SEPTEMBER 2016 BizNewOrleans.com
uilding a successful business is not unlike building a physical structure. First and foremost, you have to start with a solid foundation. A business’s foundation is its employees. That’s why I believe in paying fair wages and why I support raising the federal minimum wage to a rate that people can actually live on. Our country’s minimum wage, which applies to Louisiana, has been stagnant for too long. July 24 marked the seven-year anniversary of the last time the federal minimum wage was raised. Since it was last increased in 2009, the minimum wage of $7.25 an hour has lost about 11 percent of its buying power. That means the money minimum wage workers in Louisiana — and 21 other states around the country — make covers only 89 percent of what it did in 2009. An annual minimum wage income of $15,000 was a shoestring budget seven years ago. Today
it’s flat out poverty, pushing hardworking people to depend on public assistance for basic necessities. Miring full-time workers in poverty makes no sense from a business perspective. Paying fair wages boosts consumer demand and spending, which drives job creation and forges stronger businesses and communities. Gradually increasing the federal minimum wage will create an economic ripple effect benefitting businesses large and small. Low-income workers most need to spend additional dollars, and they usually spend those dollars in the same neighborhood where they live and work. When workers have increased buying power, businesses sell more and the economy flourishes. Businesses prosper in a strong economy. What’s more, paying employees a living wage allows you to not only attract good employees, but also to keep them. There are Photo Thinkstock
Quick Facts n
The current minimum wage is $7.25.
n
It was last raised in 2009.
n A recent survey of 1,000 business executives around the country found 80 percent support raising their state’s minimum wage. n Both O’Byrne and Margo Walsh (Maine’s 2016 Small Business Person of the Year) have signed Business for a Fair Minimum Wage’s sign-on letter (businessforafairminimumwage.org) which calls for wages to be gradually increased to at least $12 an hour by 2020. n
The wage increase would affect more than 35 million workers.
significant costs associated with employee turnover. The transactional costs connected to hiring and training can take a bite out of the bottom line. But the time and money spent hiring and training new people is only one of the pitfalls associated with turnover. A revolving door of employees means you don’t have the added benefit of longtime employees with institutional knowledge who keep a business running smoothly and deliver good customer service. When employees earn a living wage they’re more productive. A poverty wage often means people are stressed by constant financial worry or have to work more than one job to make ends meet. I need my employees at the top of their game. If they’re worried about how to make rent or are exhausted from working a second job, their productivity is lower, which is reflected in my business’s bottom line. When you compensate employees fairly, they are more productive and they and their families are healthier and happier. Many businesses, especially smaller businesses, already pay above the minimum wage in order to attract and retain good employees. And contrary to what you may hear, most of the business community is not opposed to an increase — quite the contrary. A survey of 1,000 business executives across the country, conducted for state chambers of commerce by the firm of leading Republican pollster Frank Luntz, found that 80 percent of respondents said they supported raising their state’s minimum wage, while only 8 percent opposed it. Businesses across the country have signed Business for a Fair Minimum Wage’s national sign-on letter calling for an increase to the federal wage floor—from national corporations to small businesses such as mine, Perez APC. It’s clear to me that lawmakers in our state and nation aren’t listening to what business owners really want—policies that will give the economy a much-needed boost. A growing number of cities and states have increased their minimum wages over the past several years, and one study after another has contradicted opponents’ hue and cry that raising the wage will hurt business. Businesses prosper when there is more money circulating widely in the economy. Period. When Franklin Roosevelt called on Congress to enact a federal minimum wage during the Great Depression 78 years ago, he said increasing the purchasing power of workers is “an essential part of economic recovery.” Enacting a federal wage floor was intended to alleviate the poverty so many workers were suffering and stimulate consumer spending so that businesses could survive and grow. Roosevelt believed increasing the purchasing power of workers “who have the least of it today, the purchasing power of the Nation as a whole — can be still further increased, (and) other happy results will flow from such an increase.” Agreed. n BizNewOrleans.com SEPTEMBER 2016
73
PUBLISHERâ&#x20AC;&#x2122;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 Generalâ&#x20AC;&#x2122;s Office at 1-800-273-5718.
74
SEPTEMBER 2016 BizNewOrleans.com
L U X U R Y
R E A L
E S T A T E
BizNewOrleans.com SEPTEMBER 2016
75
Great Offices
The headquarters of Danos was designed by Louisiana native Greg LaCour, architect and principal of Gensler Architecture and Design of Houston. LaCourâ&#x20AC;&#x2122;s inspiration for the exterior was Oakley Plantation in St. Francisville.
76
SEPTEMBER 2016 BizNewOrleans.com
Family Values Family-focused oilfield service provider Danos takes a contemporary spin at plantation style
By melanie warner Spencer Photography by Chipper Hatter
B
rothers-in-law Allen Danos Sr. and Syriaque Curole launched a tugboat company in 1947. Today, that company is the global oilfield service provider Danos and is run by the third generation on the Danos side. When it was time to create a space for its new headquarters in Gray, Louisiana, the company’s leaders turned to Louisiana native Greg LaCour, architect and principal of Gensler Architecture and Design of Houston. “They are a family-owned company, and the father was handing the company over to the sons,” says LaCour. “The second impetus for the move was that they wanted to be closer to Houma. Third, they were out of space and wanted to create a whole new working environment that caught up with the times in terms of how work gets done.” The result is an approximately 60,000-square-foot veritable showplace that features brick, glass and a lot of steel on the outside, and wood for the interior. While the design is far from traditional, LaCour says he gleaned inspiration for the exterior from Oakley Plantation in St. Francisville. “The use of steel is a big thing for [Danos],” says LaCour, pointing toward the oil industry’s extensive use of the material. “The front porch is reminiscent — in an abstract way — of a plantation house with big white columns. Those columns are the steel. The slanted roof is a little more contemporary. On the back, there are louvers that protect from the sun. Where Oakley has the shutters on the second f loor, effectively that’s what we have done.” Modeling the design after a plantation house, albeit a very contemporary one, also made sense for some of the interior spaces, which employ residential touches. In fact, the family theme was incorporated quite literally into the overall design, inside and out. “The client sees the company as a big family,” says LaCour. “So, architecturally when someone is new to the place, coming in for an interview or to meet someone, they come in through the front door. Once you are ‘part of the family,’ you come in through the back door, through the kitchen. Family parks in the parking area, where the walkway leads you to the great room, which forces a common path for everyone to walk in — from the employers to the new employees.”
BizNewOrleans.com SEPTEMBER 2016
77
1
2
78
SEPTEMBER 2016 BizNewOrleans.com
The great room is a vast meeting space designed to resemble a family room. With a dramatic stairway, representative of a treelike structure, tall cypress tables and low-slung, tufted-leather sofas, the area encourages both small, casual meetings and larger, company-wide gatherings. “The platform on the stairs is where anyone speaking to the family would stand,” says LaCour. “People are below and all around the balcony. That’s the gathering space.” The platform under the stairs is crafted with rough-sawn pine, wood steps on a steel structure and a net-covered handrail, to represent fishing or waterways. “There are seven live oak trees on the property,” says LaCour. “We saved all of them. It’s an expression of nature. The table in the conference room was a cedar tree on the property. We tried very hard to save it. Rather than cut the tree down and throw it away, we brought it to Andrew Moran at Midcity Handmade in Baton Rouge.” Moran also made the cypress tables in the break room and the credenzas in the conference room, as well as additional items in the boardroom. While LaCour and his team created potential space for art, the majority of the wall space is left open, highlighting the architecture. Two installations serve as art while telling the story of the company.
3
4
5
“We worked with 2020 Exhibits to create the big wall maps,” says LaCour of the installation at the top of the staircase. “The client wanted to be able to show where they workd throughout the world. Below, on the ground f loor in the great room, is the history wall which bears the prices of oil over the years and events that have happened in the company.” Everything, however, seems to come back to the great room, which is the central and most striking space in the building. “It’s a space unique to this company that specifically expresses their desire to treat the entire company as family,” says LaCour. To create this nice, comfortable gathering space that feels like home reinforces the connection.” n
6
1- The great room is a vast meeting space designed to resemble a family room. With a dramatic stairway, representative of a treelike structure, tall cypress tables and low-slung, tufted-leather sofas, the area encourages both small, casual meetings and larger, companywide gatherings. 2- The Danos logo breaks up wall space with a clean graphic element. 3- Comfortable furniture groupings are placed on the balcony up the stairs and overlooking the great room for additional, casual meeting space. 4- “They were out of space and wanted to create a whole new working environment that caught up with the times in terms of how work gets done,” says LaCour. 5- While LaCour and his team created potential space for art, the majority of the wall space is left open, highlighting the architecture. Two installations also serve as art that tell the story of the company. 2020 Exhibits created the big wall map at the top of the staircase. 6- The table in the conference room was crafted from a cedar tree on the property that couldn’t be saved. Rather than cut the tree down and throw it away, it was brought to Andrew Moran at Midcity Handmade in Baton Rouge.
At A Glance Company Name: Danos Address: 3878 W. Main St., Gray, Louisiana Office Completed: Spring 2015 Architect: Greg LaCour, architect and principle of Gensler Architecture and Design, Houston Interior Designer(s): Gensler Architecture and Design Furnishings: AOS Interior Environments Square footage: Approximately 60,000 square feet Main goal: To relocate closer to Houma, increase space and upgrade the work environment Biggest Challenge: Creating an open office space and making the change a smooth transition Standout Feature: The great room — a comfortable, central gathering space for the company that features a residential flair
BizNewOrleans.com SEPTEMBER 2016
79
Why Didn’t I Think of That? Creative Businesses Taking Hold in Southeast Louisiana
W
hen 21-year-old Tulane University student and football player Michael George Lizanich II prepared to go back home to Scottsdale Arizona for the summer two years ago, he ran across a problem. “There was nowhere I felt safe parking my car while I was gone,” says Lizanich, who drives a Porsche. Asking around, he found other students that had the same frustration. “There’s nowhere I’d consider safe, and nothing that was even covered,” he says. A passionate entrepreneur who graduates in December with a bachelor’s degree in business management and a minor in legal studies, Lizanich found a niche to fill, and he has done just that — the first cars rolled into The Motorsports Garage this past February. Housed in a nondescript 7,500-square-foot warehouse in Harahan, The Motorsports Garage is an automobile concierge service that offers motor enthusiasts a safe, secure, climatecontrolled place to store their grown-up toys. “About six months in, we’re already pretty full,” says Lizanich, who anticipates reaching full capacity at his current location with 50 cars in the near future and will be adding a second location — a 7,000-square-foot warehouse a few blocks away — hopefully by the beginning of 2017. In addition to the cars of fellow students who are home for the summer or studying abroad, The Motorsports Garage is currently home to various classic automobiles, high-end sports cars and tricked out motorcycles. Much more than just a secure place to park, the facility operates as more of a vehicular nanny — constantly attending to the needs of each car. “Our custom packages start at $300 a month and that includes starting the car once a week, moving it every other week to avoid f lat spots on the tires, installing a CTEK battery trickle and a monthly dry wash,” he says. “We also have an on-site mechanic.” Catering to the luxury customer, Lizanich aims to please. “When someone comes to pick up their car I make sure it’s all warmed up and ready to go,” he says. “I literally roll out a little red carpet for them and have a bottle of water for them in my hand.” It’s clear that Lizanich is prepared to offer whatever it takes to keep clients happy. “We can help with anything — deliver your vehicle to you at any place and time, help with buying or selling vehicles, arrange for transportation, prepare vehicles for auction or car shows and even coordinate repairs and maintenance. We had a Ferrari that recently had to go out for service and the owner’s mechanic is in Atlanta. We shipped the car, did all the communicating with the service advisor, paid for the service and shipped it back. We took care of everything for the client. They didn’t even have to think about it.” The strong customer service focus means Lizanich is available to the business 24/7. While doing this interview, he was on call waiting for a special delivery — a 1967 Lamborghini Miura worth over $1 million. “We’re going to house it here before we send it off to the Pebble Beach Concours d’Elegance,” he says. “We could get the call at any moment to come get it, so I’m always on standby.”
80
SEPTEMBER 2016 BizNewOrleans.com
Tucked away in a local warehouse sits millions of dollars worth of luxury and exotic cars all under the care of a Tulane University student. Welcome to The Motorsports Garage. By Kim Singletary | Photography Jeff Johnston
well-kept secret
Michael George Lizanich II, owner of The Motorsports Garage, poses with one of his customer’s cars — a 1967 Lamborghini Miura valued at over $1 million.
BizNewOrleans.com SEPTEMBER 2016
81
Patrons range from classic collectors to luxury car owners, including some of Lizanich’s fellow Tulane students.
Businessman from Birth
The son of a real estate broker and investor and an interior designer — both business owners — Lizanich had a connection with cars long before he could drive one. “I was a baby model in GM Magazine,” he says. “They took a picture of me sleeping in a car. Growing up too, my dad was always part owner of local car dealerships.” In high school, Lizanich earned money buying and selling both candy and cars. When he arrived at Tulane on a football scholarship as a long snapper, Lizanich switched to running a dorm room cleaning service. “It was great, actually, because the football players moved into the dorms before everyone else so I just went around putting f liers on all the mirrors. I started out doing all the cleaning myself and then ended up hiring a few friends to help as needed.” Lizanich has always had an eye out for opportunity. “I’d go to The Boot — the local campus bar — right before they closed and buy up the last two pizzas,” he says. “And then when the bar closed, and everyone was still looking for a snack, I’d sell them for about $2.50 a slice.” During the holidays, he offered airport rides to students for a fee. “I also dabbled in the stock market a bit,” he says. The capital for The Motorsports Garage came from another side job — working as a jack of all trades at Pelican Coast Clothing.
82
SEPTEMBER 2016 BizNewOrleans.com
Making the Right Connections
With some capital in hand, Lizanich created a business plan in order to try and raise money from investors for The Motorsports Garage. “My friend set me up with a few meetings late last year but before I could even attend them I got an email from a local real estate developer — and fellow Tulane grad — Bret LeBreton,” he says. “He said he had a warehouse if I could fill it. After about four meetings we signed the partnership.” Lizanich says LeBreton has been an invaluable resource. “He buys and sells high-end cars and is a real car expert. We were looking at a car once and trying to figure out what year it was built. He just looked at the manufacturer data on the taillight and figured it out. He really is incredible.”
Dream to Reality
Marketing The Motorsports Garage, Lizanich says, has been a little tricky. “This is really a special niche kind of business where we purposefully kind of f ly under the radar,” he says. “Due to the nature of what we do, security is a huge issue so we don’t have a big sign out front and you can’t find our address even searching online. We really are operating almost entirely by word of mouth. We have cars here that belong to a lot of prominent New Orleanians…Not the Bensons though,” he says, smiling. “Not yet.”
BizNewOrleans.com SEPTEMBER 2016
83
When it comes to housing cars that can reach over $1 million in value, security is crucial. “In addition to a nondescript exterior, we have brick on all four sides, a new roof and cameras and an alarm system,” he says. “There is typically someone here for 14 hours of the day and even the owners don’t have access to the facility.” Insurance is also important. “We have garage keeper’s liability insurance that covers up to $250,000 per car,” he says. “For cars valued over that, the client is responsible for the difference.”
Around the Next Turn
Not yet a college graduate — he graduates in December — Lizanich is currently focused on growing his client base to finish filling up the warehouse and completing the interiors. “Luckily, my mom is an interior designer so she’s been helping me a lot remotely,” he says, pointing to an unfinished kitchen and entryway where he says will soon be home to a table and comfortable seating area. “I’m going for kind of a sophisticated man cave feel.” While business is going well, he says he’s anxious to improve the aesthetics of the warehouse space. “I look at this and I see white walls, white ceiling, white f loors,” he says. “Clean, clean, clean.” Always looking to expand his offerings, Lizanich says a valet service may be next. “I’m thinking of doing something where if an owner is enjoying a nice meal somewhere they can call us and we will come and personally park their car and stay with it as basically a security detail until they finish their meal.” 84
SEPTEMBER 2016 BizNewOrleans.com
The Motorsports Garage provides: Storage for anything with a motor in a climate-controlled, 24-hour secured facility
n
n
Use of a CTEK battery trickle
n
Regular starting and moving of vehicles
n
Detailing
n
Coordination of vehicle transportation, repairs and maintenance
n
On-site mechanic
n
Assistance with buying and selling vehicles
n
Vehicle transportation
n
Transportation to and from the facility
n
Auction and car show preparation
n
Other custom services available upon request
For more information, visit TheMotorsportsGarage.com
Long term, he is thinking expansion. “I would eventually like to add a second location out of state or license the name out to others,” he says. Not content to have just one successful enterprise, Lizanich is always focused on the next step. “This is a way for me to earn a steady income through something where I don’t have to be here all the time,” he says. “Ultimately, the goal is to get into real estate developing like my father. This is a way for me to do that.” n
BizNewOrleans.com SEPTEMBER 2016
85
86
SEPTEMBER 2016 BizNewOrleans.com
BizNewOrleans.com SEPTEMBER 2016
87
Q&A
“We plan to grow $350 to $450 million per year over the top line here in New Orleans. Our goal is to get to 1 million international visitors a year.”
88
SEPTEMBER 2016 BizNewOrleans.com
Photo Cheryl Gerber
NOCVB president for 14 years, J. Stephen Perry shares the ingredients that go into selling New Orleans to the world.
How the Tourism Andouille is Made By Jennifer Gibson Schecter
F
or every convention booked or family trip planned to New Orleans, there was likely a marketing campaign or online resource consulted that informed the decisions. Thankfully for New Orleans, the New Orleans Convention and Visitors Bureau (NOCVB) is working to keep those bookings up and develop new products to keep people coming back for more. The NOCVB is one of the largest economic development corporations in Louisiana. It carries the responsibility for brand management, marketing and sales, and is valued at over $7 billion in visitor spending annually in New Orleans. J. Stephen Perry, president and CEO of the NOCVB for the past 14 years, recently talked to Biz from an airport on his way to another meeting doing what he does best — advocating for the tourism and hospitality industry in New Orleans. Biz New Orleans: What does a typical day look like for you? There are times I wish I had a typical day. It seems like it is always a combination of things, and 80 percent of it changes with business, political and market circumstances. My day is filled with conversations with clients, filled with always at least once a day negotiations with a potential customer. There are always major public policy matters
that are being addressed, which involve conversations with the mayor, legislators and council members. They are frequent because of the broad range of what we deal with. And then there’s a lot of everyday firefighting. This past week an example would be the NBA decision to move the AllStar game from Charlotte, North Carolina, because of anti-LGBT legislation. New Orleans is in the running. We are doing four years of work in a week in terms of special event negotiations, the legwork and all the things you have to do. Biz: What’s new with the NOCVB? What’s new right now is our convention sales team is working around the clock trying to put together all of the accommodations, venues and details to determine if we can host the 2017 NBA All-Star game seven months from now. Our tourism team just finished hosting the first IPW (a large travel industry trade show sponsored by the U.S. Travel Association) in New Orleans in years. It was a tremendous success. We are in involved in airline negotiations, and busty creating the new website NewOrleans.com as a merger of the CVB and NOTMC (New Orleans Tourism and Marketing Corporation) websites. With our sales team of over 40 people we are constantly in motion around the country.
BizNewOrleans.com SEPTEMBER 2016
E
89
1 1
Biz: How much do you travel? I have traveled as much as 90 hotel room nights in a year and over 100,000 miles. I have traveled at other times significantly less. It depends upon the year, upon the meetings, upon the sales calls. We have offices in five foreign nations — in Toronto, London, Paris, Frankfurt and Sao Paolo. We are also reaching into Italy and Japan as we speak. We have part-time representation there. Biz: What impact do you project from IPW 2016 being held in NOLA? From the IPW alone and the increase in our marketing, we’re looking to add approximately $1 billion dollars to the top line over the next three years. We plan to grow $350 to $450 million per year over the top line here in New Orleans. Our goal is to get to 1 million international visitors a year. Biz: How are you going to accomplish that? By doing things like hosting IPW. We brought more new buyers than we have ever had. We had more international buyers than had ever attended an IPW show before. We are expanding our international marketing and our international airlift into the city. One of the new airlines has already been signed, the Condor f light from Frankfurt into New Orleans. There are ongoing negotiations for other European connectivity. 90
SEPTEMBER 2016 BizNewOrleans.com
Biz: How does the collaboration between NOCVB and NOTMC work? It works seamlessly. We are in the same space. They occupy space on the fourth floor of our building immediately adjacent to our marketing team. We work together closely and are now merging our websites so there is a single powerful website for New Orleans.
We have plans for over $1 billion in improvements, development, venues and facilities along the riverfront that will create an astonishing demand generator. Biz: How do you describe the economic impact tourism has on New Orleans? It’s the most powerful economic development force in the city. More than any other sector, New Orleans is depending upon the richness and the depth of its cultural economy not only for tax generation and quality of life for residents, but for spurring other economic development. It’s something
New Orleans’ booming tourism industry employs 86,000 people in a city of 375,000. The NOCVB is one of the largest economic development corporations in Louisiana.
often overlooked, that we’re the largest employer—reaching employees of every background and every neighborhood— employing 86,000 people in a city of 375,000. That’s an extraordinary number. The jobs reports show that while the oil and gas sector continues to struggle terribly, our sector continues to add jobs by the thousands, which is critical for New Orleans. Not only for those who need jobs but because when you have a job, you’re spending money and generating more taxes. So it’s really important. The other thing that people forget about is that the hospitality industry and cultural economy is so powerful in that it really carries the brand of New Orleans to the world marketplace. Biz: Do you ever have to fight negative connotations with the brand of New Orleans? You always have to fight the negatives we have had in the past 10 years — things like natural disaster and crime. There are loads of things that have to be dealt with and explained. New Orleans’ beauty is that it is an incredibly authentic and real city. Part of its charm is that it is, in fact, imperfect. Photos Thinkstock
BizNewOrleans.com SEPTEMBER 2016
91
Biz: What infrastructure would you like to see to better support our tourism industry? Much of it is underway right now. The development of the new airport terminal is critical to our long-term growth and attractiveness. Also, the reconnection of the city and the investment of the people to the riverfront. We have plans for over $1 billion in improvements, development, venues and facilities along the riverfront that will create an astonishing demand generator. The thing we would like more than anything else is to have the government treat the French Quarter as a true crown jewel. We would love to see more aggressive work being done on sidewalks, streets, lighting and infrastructure in the French Quarter so that it would be impeccably maintained. The final piece is that we support the development and expansion of the public safety infrastructure so that we have an adequate number of police and fire to protect this somewhat fragile, older city. Biz: Looking back, what have been the biggest challenges during your time at NOCVB? When I came it was the beginning of a monumental shift in the American convention 92
SEPTEMBER 2016 BizNewOrleans.com
business. During the ’90s and early 2000s, we really only had five competitors. Now we have 25 competitors. The expansion of the competitive marketplace has been staggering. The most impactful issue that I’ve dealt with in the entire 14 years was, without any question of course, Katrina because the entire tourism industry was decimated. The city’s infrastructure was smashed. And yet what is so astonishing is that from this great challenge our industry rallied to redevelop and we led the recovery of this city, economically and jobs-wise. It was a devastating moment, but an incredibly proud recovery. Biz: What has been your biggest achievement to date with NOCVB? I think the biggest achievement is managing the brand of New Orleans though the horrors of Katrina — preserving the desirability of New Orleans as a destination for conventions, special events and for leisure tourists. And for hitting all the right notes and implementing all of the most effective strategies that put us now on a path where the cultural economy and tourism are the shining lights in this city. Biz: What are you doing to prepare for the tricentennial? The tricentennial efforts are being led by the mayor and a commission he has put
together. We are working on a number of the committees and supporting the efforts every way that we can. It is not a tourism event, but it is an historical event about our history and our very nature. We’re there to support it, and we’re going to be doing lots of things. We have a tremendous base of business in 2018 and we will be one of the leading marketers for the tricentennial, both domestically and internationally. Biz: What are your plans for the future? The plans for the future always involve the development of new product. Developing new attractions, new venues, interesting and compelling hotels. Helping spur the cultural product for plays and performances. Taking our world class convention environment and creating new and unique attractions that make New Orleans compelling to corporations and associations. We want to continue to assist in the development of new fairs and festivals. We also want to connect in the most profound and deepest ways possible with the efforts of GNO Inc. and Idea Village so there is cross-pollination of all of the economic efforts in the city. Our goal is to continue to be and become an even greater player in helping solve social and other issues that confront our city, particularly in the areas of crime, public safety, the homeless and in terms of workforce and job training — especially the access of people from every neighborhood to a good, well-paying job. Biz: What is your favorite thing to recommend to tourists on a trip to NOLA? I tell them to explore. To literally open themselves up to experiences they’ve never had. I encourage them to walk — to let their eyes and ears be open in what I believe is the most sensory city in America. I always tell people to try at least one kind of food that you have never eaten. Soak up the architecture because there is no other place that looks like we do. I encourage them to learn. Travel is about experience and learning. Whether it is at Audubon, the World War II Museum, the Cabildo or Presbytere, I really think people owe it to themselves to explore new things and I suggest they take some of our wonderful tours. Whether it is seeing what a real swamp looks like, or taking a paddlewheeler tour and getting the perspective of New Orleans from the river itself, ghost tours, voodoo tours, literary tours… there are things to see here that will literally open your eyes. I always tell people to do something that will make your molecules rearrange a little bit. n
Photo Thinkstock
BizNewOrleans.com SEPTEMBER 2016
93
Events LCI Workers’ Comp and LCIA “Business Operations Strategies: Learning the Process for Change”
FestiGals Keynote Luncheon (6th Annual Girlfriend Getaway Weekend)
Friday, July 29
JW Marriott
Fair Grounds Race Course & Slots With over 100 years of combined experience, the OpEx Realization Group teaches businesses how to evaluate their operations and implement change.
Friday, July 29
Carla Harris, vice chairman of wealth management, managing director and senior client advisor for Morgan Stanley shared the wisdom she’s gained in her life and career at the keynote luncheon to this year’s FestiGals event.
1
1
2
2
3
3
1. Eric Beach, Romana Logan, Joshua Loeske and Lisa Jones 2. Bill Lewis and Mike Smith 3. Mark Tullis, Christina Buras and Nicholas Peddle 94
SEPTEMBER 2016 BizNewOrleans.com
1. Diane Lyons, Carla Harris, Susan Roesgen and Andy Black 2. Carla Harris 3. Sandra Dartus, Tammy Swindle and Mary Claire Landry Photos by Cheryl Gerber
ew Orleans Chamber Women’s N Business Alliance
St. Tammany West Chamber Northshore Rising Professionals
Thursday, August 4
Tuesday, August 9
Hotel Monteleone
Staybridge Suites
Approximately 50 women gathered at the New Orleans Chamber’s monthly luncheon last month to enjoy hors d’oeuvres and networking in the Criollo Lounge next to the Carousel Bar.
The chamber’s Summer of Service Luncheon featured nonprofits including the Cystic Fibrosis Foundation, Exchange Club of West St. Tammany, Habitat for Humanity and the National Alliance of Mental Illness.
1
1
2
2
3
3
1. Lynn McLean and Kya Robottom 2. Amber Cain, Brooke Troxclair and Leah Temple 3. Christine Rigamer, Ashley Falkenstein, Stephen Caputo and Ashley Doubleday Photos by Cheryl Gerber
1. Jacob Butcher, Jennifer Carter, Whitney Varnado and Ryan Pearce 2. Cassie Schartzmann 3. Leslie McGoey, Gary England and Danielle Wilczynski BizNewOrleans.com SEPTEMBER 2016
95
Behind the Scenes
A Stitch in Time For the Saints to hit the field each year there has to be a field to hit, which means three weeks of turf installation at the Mercedes-Benz Superdome. The infill mixture for the field includes over 80 tons of sand (equal to 3,400 average sandbags), along with material from more than 27,000 recycled tires. The turf is then stitched together and ready for action. Go Saints!
Photo by Jeff Johnston 96
SEPTEMBER 2016 BizNewOrleans.com