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Editor’s Note

Just Do It

F

ried chicken from a gas station? No thanks. That ranks up there with sushi on an airplane. Not happening.

At least that’s what I thought before I tried it.

I got my first taste of Krispy Krunchy Chicken recently when they served as one of the vendors at New Orleans Magazine’s Tops of the Town event January 22.

It was not only good, of all the amazing vendors at the event that night, I admit that Krispy Krunchy’s table was the only one I shamelessly returned to at least three times.

And apparently I’m not alone in thinking so. Since 1989, this convenience store chicken chain, founded in Lafayette, has grown to well over 2,000 locations nationwide. With 300 in Louisiana, you’re bound to have one nearby. I tell you, the honey butter biscuits alone are worth tossing any preconceived notions aside and just going for it.

And on that note, if you’ve been “just going for it” a bit too much during carnival season have I got a business for you – only if you’re really serious about getting in shape though.

City newcomer Iron Tribe Fitness isn’t your typical gym. They aren’t interested in signing you up for $50 a month whether you ever go or not. They’re going to hold you accountable, they’re going to give you plenty of personal attention, and, most importantly, they’re going to get you in shape. With membership limited to just 300, though, you had better move fast.

With Mardi Gras over, it’s now time to switch into Jazz Fest mode. Our April issue will look at the business side of this musical institution, along with a glimpse into what’s new at the Louis Armstrong International Airport – the first impression so many tourists will have of our fine city as they arrive ready to rock.

As always, we’re here to serve you, so don’t hesitate to send any ideas, events and openings our way – Editorial@BizNewOrleans. com.

Thanks for reading!

Kimberley Singletary

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BizNewOrleans.com March 2015

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MARCH 2015 | volume 1 | issue 6

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 Carolyn Heneghan, Phil McCausland, Chris Price, Margaret Quilter, Peter Reichard, Judi Russell, Melanie Spencer, Keith Twitchell, Bonnie Warren advertising Vice President of Sales Colleen Monaghan Sales Manager Maegan O’Brien Maegan@BizNewOrleans.com (504) 830-7219 Account Executives Melissa Rehage Quijano Melissa@BizNewOrleans.com (504) 830-7225 Caitlin Sistrunk Caitlin@BizNewOrleans.com (504) 830-7252 PRODUCTION Production/Web Manager Staci McCarty Production Designers Monique DiPietro, Ali Sullivan Traffic Manager Erin Duhe administration Chief Executive Officer Todd Matherne President Alan Campell Executive Vice President Errol Laborde Vice President of Sales Colleen Monaghan Director of Marketing & Events Cheryl Lemoine Administrative Assistant Denise Dean Distribution Manager John Holzer Subscriptions Manager Sara Kelemencky

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. Postage paid at Metairie, LA, and additional mailing entry offices. POSTMASTER: Send address changes to Biz New Orleans, 110 Veterans Blvd., Suite 123, Metairie, LA 70005. Copyright 2015 Biz New Orleans. No part of this publication may be reproduced without the consent of the publisher. The trademark Biz New Orleans is registered. Biz New Orleans is not responsible for unsolicited manuscripts, photos and artwork, even if accompanied by a self-addressed stamped envelope. The opinions expressed in Biz New Orleans are those of the authors and do not necessarily reflect the views of the magazine or owner.

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March 2015 BizNewOrleans.com

Contents

72

32

Feature

From the Lens

32 Krispy Krunchy Chicken

60 Great Offices

This chicken is crossing all kinds of roads.

By Carolyn Heneghan

John Deveney, a man known for promoting other businesses, takes a rare moment to showcase his own stylish digs.

72 Why Didn’t I Think of That?

Iron Tribe Fitness wants to pump you up.

80 Behind the Scenes

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March 2015 BizNewOrleans.com

It’s crawfish season!

On the Cover Dan Shapiro and Neal Onebane the dynamic duo behind booming convenience store chicken franchise Krispy Krunchy Chicken.

Photo by Travis Gauthier

Contents

18

20 22

66

Columns

Perspectives

News

18 Dining Biz

44 Healthcare

16 Calendar

20 Tourism Biz

50 Insurance

30 Biz Bits

The worst ways restaurants turn customers away

Exciting days ahead for the Audubon Zoo.

22 Sports Biz

VooDoo arena football hopes for good juju.

24 Film Biz

Local nonprofit grooms the next generation of film professionals.

26 Entrepreneur Biz

The force behind the rise of local food trucks

28 Biz Etiquette

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Don’t let social media ruin your career.

March 2015 BizNewOrleans.com

Options for assisted living are growing

Worker’s compensation rates in the state have been cut in half.

54 Banking and Finance

The threat is out there. Are you protected?

Upcoming events not to miss

Industry news

66 Biz Person of the Month

Q&A with Tim Williamson, co-founder of The Idea Village.

74 Around Town – Events

Industry gatherings

BizNewOrleans.com March 2015

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Publisher’s Note

Business Annual Events & More…

A

s New Orleans transitions from Mardi Gras to festival season, the business community is squeezing in events to capture the spotlight and provide networking opportunities.

This month there are quite a number of business events you will not want to miss.

The Jefferson Chamber is hosting its Annual Gala on March 13 at the New Orleans Saints Training Facility. This is one of the largest gatherings of the business community - and when else do you get to party on the practice turf of the New Orleans Saints? Call the Chamber at 835-3880 for more information.

GNO, Inc. is hosting its annual luncheon on March 12 at the Hyatt Regency and the New Orleans Chamber has its quarterly luncheon on March 6 at the Downtown Sheraton. You can reach GNO, Inc. at 527-6900 and the New Orleans Chamber at 799-4260.

And finally, Biz New Orleans is kicking off Strictly Biz Nights. This month we have teamed up with the Greater New Orleans International Auto Show for a fun night on March 20 at the Morial Convention Center. For details, see our ad on page 48 and check out BizNewOrleans.com for more details.

For a list of more business events around the region, check out our calendar of events on page 16. And if you want to have your event listed, email us at Editorial@ BizNewOrleans.com.

See you around town!

Todd Matherne 12

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Meet the Sales Staff Colleen Monaghan Vice President of Sales Colleen Monaghan is a seventh-generation New Orleanian and member of the Mayflower Society, who loves her city with a passion. She is a UNO alum who has more than 30 years of experience in both publishing and the nonprofit sector. Colleen enjoys art collecting, traveling the world and living life to its fullest. She has been known to organize fabulous events, both for herself and many charities in the New Orleans and San Francisco areas. You can reach Colleen at (504) 830-7215 or Colleen@BizNewOrleans.com.

Maegan O’Brien Sales Manager, Biz New Orleans Maegan O’Brien was born in New Orleans and raised on the Northshore in Mandeville, La. She graduated from Louisiana State University in 2010 with a bachelor’s degree in finance, but marketing and advertising are her true callings. She currently lives in Old Metairie and loves traveling, wining and dining, and spending time with family and great friends. You can reach Maegan at (504) 830-7219 or Maegan@BizNewOrleans.com.

Melissa Rehage Quijano Account Executive, Biz New Orleans Melissa Rehage Quijano was born and raised in New Orleans. She graduated from St. Mary’s Dominican, attended both LSU and UNO, and received a paralegal degree in 1996. She worked for 10 years as a paralegal in various law firms in New Orleans and then operated her own successful wedding photography business for 11 years. In addition to being on the Biz New Orleans team, she enjoys spending time with her two teenage children, cooking, the beach, 30A, laughing with friends, dancing every day and music. She has a love for shoes and lipstick. Her heart and soul is her children and everything New Orleans. You can reach Melissa at (504) 830-7225 or Melissa@BizNewOrleans.com.

Caitlin Sistrunk Account Executive, Biz New Orleans Caitlin Sistrunk was born in New Orleans and raised in Covington, La. She graduated from Louisiana State University with a bachelor’s degree in marketing.

While attending LSU, Caitlin fell in love with both marketing and advertising. She is ecstatic to begin her career as a sales associate with our new magazine.

Caitlin loves painting, hanging with friends and cooking. You can reach Caitlin at (504) 830-7252 or Caitlin@BizNewOrleans.com.

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Calendar Friday, March 6, 2015 New Orleans Chamber of Commerce 1st Quarter Luncheon Featuring Keynote Speaker Stephen Waguespack, president of LABI 11 a.m. - 1 p.m.

Sheraton New Orleans Hotel 500 Canal St. NewOrleansChamber.org

Tuesday, March 10, 2015 New Orleans Chamber of Commerce Power Panel Breakfast “Power Up Your Network” 8 a.m. – 9:30 a.m.

Country Inn & Suites New Orleans French Quarter 315 Magazine Street NewOrleansChamber.org

Thursday, March 19, 2015 Women’s Business Alliance Monthly Networking Event 5 p.m. – 7 p.m.

Vive! In the Hotel Le Marais 717 Conti Street NewOrleansChamber.org

Friday, March 20, 2015 2015 Green Seminar – Marketing Sustainability presented by LifeCity New Orleans and the NOCC 11:30 a.m. – 1 p.m.

Chamber of Commerce Conference Room 1515 Poydras Street 5th Floor MyLifeCity.com

March 20-27, 2015 New Orleans Entrepreneur Week NOEW.org

Tuesday, March 10, 2015 ACG Monthly Meeting 11.30 a.m. – 1.30 p.m.

The Roosevelt Hotel 130 Roosevelt Way, New Orleans acg.org

Thursday, March 12, 2015 Greater New Orleans Inc, Annual Meeting Program starts at 11:45 a.m.

Hyatt Regency, Empire Ballroom 601 Loyola Avenue gnocinc.org/annualmeeting

Tuesday, March 24, 2015 Baton Rouge Area Chamber 2015 BRAC Shareholders’ Meeting Featuring Dr. John Elstrott, Chairman of Whole Foods Market 5:30 p.m. – 8:30 p.m.

L’auberge Casino Hotel Baton Rouge BRAC.org

Thursday, March 26, 2015 Crimestoppers 30th Annual Awards Luncheon 11 a.m. - 1:30 p.m.

Hilton New Orleans Riverside CrimestoppersGNO.org

friday, March 13, 2015 Jefferson Chamber Annual Gala 7:30 p.m. - 11:00 p.m.

The New Orleans Saints Indoor Training Facility 5800 Airline Dr., Metairie jeffersonchamber.org

Wednesday, March 18, 2015

friday, March 27, 2015 Jefferson Chamber LABI Legislative Issues Luncheon 2015 Featured Speakers: Stephen Waguespack, President, LABI 11:30 a.m. - 1:00 p.m.

Metairie Country Club 580 Woodvine Ave., Metairie jeffersonchamber.org

St. Tammany West Chamber LABI Luncheon – Co-Hosted with East St. Tammany Chamber 11:30 a.m. – 1 p.m.

Benedict’s Plantation 1144 North Causeway Boulevard, Mandeville StTammanyChamber.org

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We’d love to include your business-related event in next month’s calendar. Please email details to Editorial@BizNewOrleans.com.

BizNewOrleans.com March 2015

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Columns | Dining Biz

Dining at Malaise How restaurants repel customers

W

Peter Reichard is a native New Orleanian who has written about the life and times of the city for more than 20 years, including as a former newspaper editor and business journalist.

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elcome to Malaise.

Tonight, prepare yourself to be annoyed by many of the things that annoy diners nowadays. It starts with the recherché name of the restaurant: a state of being, rather than someone’s name. Why can’t restaurants have names like “Antoine’s” or “Galatoire’s” or “Bud’s” anymore? Oh well.

As you take your seat, you’ll notice that the table is too small.

So, for the entire meal, be careful not to knock over your drinks as more and more plates fill the inadequate space provided.

Yeah, you’re right. It is dark in here. You’ll barely be able to see your food. We have another dining room, called the “Fluorescent Room,” if you’d prefer to sit there.

What’s that? Oh, you can barely hear me? Yes, that’s because the music is way too loud and that thumping beat is inappropriate for proper conversation

or digestion. Also, we don’t use tablecloths, curtains or carpets, so it’s an echo chamber in here.

But it’s better to look good than to feel good, darling.

Speaking of which, how did this blood and gravy get all over my apron?

Now I’m going to disappear for an extraordinarily long time.

Look over your menus and wine list, but don’t bother asking me for advice. I don’t know what I’m talking about.

I’ll be back in half an hour with your water. Flat or still?

Ta-- … tap water?

Surely, you jest.

(Later …)

Here’s your water. Note that I’ve held the glass from the top, right where your mouth goes.

That way, you can ingest the germs from every plate I’ve cleared tonight.

Hey, look over at the next table.

That lady is actually a wealthy

executive who has taken her assistant out to dinner for his birthday. Get a load of her reaction as the waitress looks deep into the man’s eyes and, thanking him and him alone, hands him the check. Yikes.

Let’s take your order now. No, I’m not going to write it down. And yes, I am going to forget something.

Oh, the restroom? Follow the dirty mop-water smell down the hall to the left.

You’ll notice that it’s about as clean as the Superdome men’s room at halftime. No doubt that will lead you to wonder about our kitchen as you enjoy your entrée – which will arrive 60 seconds after your appetizer.

(Time passes …)

How are you enjoying everything? Just thought I’d check on you for the seventh time in the past 10 minutes, right when you put a bite of food in your mouth.

So, you’re ready for the check? OK, I’ll be back in a half an hour. I have a bunch of other stuff I’d rather do first. Like, first I’m gonna shoot Windex wildly at this table right next to you, so you can breathe in some of the chemical mist as you finish your microwaved — I mean, fresh – coffee. Then I’m going to give those other customers over there preferential treatment, OK? See ya. n NOTE: This miserable dinner is a composite of many gripes collected from friends, family, bons vivants and personal experience.

Photo Thinkstock

BizNewOrleans.com March 2015

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Columns | Tourism Biz Fun Fact Eighty-five to 90 percent of visitors to the Aquarium of the Americas are tourists, whereas the zoo is frequented primarily by visitors within driving distance.

in the position to obtain a few more orangutans and two more elephants, which it is hoping to do in the near future.

“We are not expanding the actual footprint of the zoo, we are just expanding inside the Zoo,” clarifies Rivarde. “For the Asian and elephant complex, a lot of the real estate we wound up securing was about an acre and a half from behind the scenes.”

Big Year for the Zoo In 2015, zoo goers will be treated to more than $17 million in renovations and upgrades.

A

Margaret Quilter is an Australian expat whose tales of adventures abroad have been published in international magazines. Check out her weekly blog, “Tourism Biz” at BizNewOrleans. com.

udubon Zoo has been busy shuffling things around and building new exhibits in a major reconstruction of the popular attraction that has been pulling crowds for over a century. Throughout 2015, the zoo will slowly unveil the redesign and introduce visitors to a whole new level of interaction with their beloved residents.

Watoto Walk Opened to the public in December 2014 at a cost of $250,000, the 3,000 square-foot petting zoo, located across from the giraffes in the zoo’s African Savanna, resembles a Kenyan Masai village with free roaming goats and sheep.

Kamba Kourse Just next door is the Kamba Kourse, a 44-foot tall structure featuring three levels of rope elements and an obstacle course geared to all ages. Opening March 1, 2015, the Kamba Kourse costs

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an extra $15 for adults and $8 for children. Audubon members receive a 10 percent discount.

“The Kamba Kourse is run by an outside contractor, so there are no construction costs to us, but it is a shared revenue,” says Larry Rivarde, executive vice president and managing director at Audubon Zoo and Park.

The Asian Domain The zoo’s most anticipated exhibit redesign is the $10 million reconstruction of the Asian Domain. Panya and Jean, the zoo’s resident elephants, will be welcomed into a new 42,000square-foot enclosure early this summer that includes shade trees, two pools and a barn that is designed to house up to four elephants.

Filling the elephants’ former digs, the orangutans will be moved from their current home in the World of Primates. The enlarged spaces put Audubon Zoo

Cool Zoo Expansion In the first week of April, the Cool Zoo splash park will receive a refreshing addition: a 750foot lazy river called “Gator Run” which will feature two sand beaches and three water cannons that can spray visitors as they float on inner tubes. This addition adds 44,000 square feet of space, bringing the Cool Zoo footprint to nearly 60,000 square feet.

The $5 million expansion will increase admission to the splash park from $8 to $12 for non-members and $6 to $10 for members.

“You will be able to see the elephants along the lazy river, and toward the back of the current Cool Zoo area will be a huge glass encounter where you are a couple of feet from the elephants,” Rivarde says.

Sea Lion Pool Eager to show off its five sea lions, two of which are pups that they acquired in 2014, the zoo will soon include a Sea Lion Pool in early spring once modifications have been completed in the upper and lower pools at a cost of $2 million.

Who’s Paying the Tab? Financed predominantly by State Capital Funding from the state of Louisiana, the reconstruction was augmented by private donations - either from fundraising events like Zoo-To-Do or through solicitation for certain projects.

“One of our goals is to increase revenue because 90 percent of our operating budget comes from self-generated revenue,” Rivarde says. “We also want to increase our attendance; we are always trying to get more expansive and diverse groups coming into our facilities, and any envelope we need to push to ensure that happens, we are always ready to do.” n

Photo Courtesy of Audubon Zoo

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Columns | Sports Biz

VooDoo Economics New Orleans’ arena football team looking to get its mojo working.

A

chris price is an award-winning journalist and public relations principal. When he’s not writing, he’s avid about music, the outdoors, and Saints, Ole Miss and Chelsea football.

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fter three losing seasons, each progressively worse, new New Orleans VooDoo General Manager Brandon Rizzuto hopes to conjure up the previous success the city’s Arena Football League team enjoyed. Responsible for securing corporate sponsorships and putting fans in the stands, he has a tall task ahead. But with a football-crazy city and one of the best names and logos in all of professional sports, he is confident of resurrecting the team’s initial glory.

“New Orleans is a football town, and the VooDoo fill the void left when the Saints and

the NFL aren’t playing,” Rizzuto says. “Arena football has been successful here before. There is no reason that it can’t be again.”

The VooDoo was one of the AFL’s brightest franchises when they began play in 2004. They ended their first two seasons among the AFL’s top attendance leaders with more than 15,240 per game. The city also had the league’s top television market for NBC’s Sunday afternoon games. But natural and financial troubles soon spelled doom for the team and the league.

The VooDoo did not field a team in 2006 due to Hurricane Katrina, but returned strong in

2007. With civic pride running deep, they set an AFL season-ticket record with more than 13,000 season tickets sold and led the league in average attendance with 16,645. League economic troubles the next year, however, caused Benson to cease the team’s operations.

With approximately $14 million owed to its creditors, the AFL suspended the entire 2009 season before returning in 2010.

The VooDoo’s current incarnation moved to New Orleans in 2012. But losses have piled like bones in a catacomb with the team going 8-10, 5-13 and 3-15 the last three years.

“I am working tirelessly to right this ship and to build and rebuild relationships among our fans and business partners,” Rizzuto says.

“There is a lot of work to be done, and that is the fun part.”

While season-ticket sales aren’t as strong as they were prior to 2007, Rizzuto says the team is focusing on technology, marketing and merchandising as ways to better connect with fans.

Price point is a major attraction to the sport when compared to the NFL. VooDoo season tickets run from $100-$800 apiece compared to $340-$3080 each for the Saints.

“You can bring a family of four to the game, enjoy food and get merchandise for under $100,” Rizzuto said. He’s using that as an opportunity to sell clients on the idea that they can reach new customers and maintain a consistent advertising campaign with football fans from April through August.

So far this year, the team relaunched its website, adding new features including an app and online store, which features clothing and accessories featuring the VooDoo’s logo, a likeness of Baron Samedi, a Voodoo loa or spirit.

The VooDoo begin the 2015 season with a three-game home stand, kicking off the regular season in The Graveyard against their division rival Jacksonville Sharks on March 28. The team will be led by Dean Cokinos, the fifth head coach in the club’s history.

Recognized as an expert in player evaluation, development and advancement, Cokinos’ overall regular season record as a head coach is 159-87 and 12-11 in the post season.

Cokinos sees the chance for immediate opportunity. “We can work this back up and get to the next level quickly,” he says. “And I think we can do that in one year.” n

Photo Thinkstock

BizNewOrleans.com March 2015

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Columns | Film Biz

Home Grown New nonprofit The COOL Cooperative aims to get kids excited about careers in the film industry.

O Kimberley Singletary is the

managing editor of Biz New Orleans magazine.

A 20-year Southern California veteran, she has been surrounded by the film industry for most of her life and is thrilled to be covering its emersion in her newly adopted home.

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n a gorgeous Monday afternoon about a month ago, I took a drive across the Crescent City Connection to meet with what could very well become some big players in the film industry in the future.

Not the near future, mind you, because, well, they’re all in the seventh grade.

My destination was McDonogh #32 Literacy Charter School in Algiers, where a group of approximately 15-20 seventh graders have been meeting after school Monday through Thursday since September to learn about film careers as part of a new program called The COOL (Creating Outstanding Opportunities Locally) Cooperative.

A six-year program, The COOL Cooperative will work with students from seventh grade through high school graduation to introduce them to a wide variety of film careers.

“We’ve focused our efforts on kids

that may not see many options, in terms of careers,” says Mark Shays, executive director of the 501c3.

“There’s about 110 different jobs in the film industry – good-paying jobs that don’t necessarily require a college degree. Our goal is to introduce these kids to all the options and see if something resonates.”

The COOL Cooperative has partnered with the Algiers Charter School Association and is currently offering the program to students at Martin Behrman Elementary and McDonogh #32. Next year plans are to expand the program to the remaining two schools in Algiers Charter and add an eighthgrade program.

For now, students meet at McDonogh 32 from 3 to 5 p.m. three days a week. During this time they learn about everything from broad film themes, to how to work as a team, to the individual job descriptions of various careers.

During shortened school schedules

on Wednesdays, the students meet at Algiers Technology Academy, where they are given access to top-of-theline Apple computers to work on their own screenplays.

Founder Felicia Stallard says the idea to form the organization came while producing her first feature film, a romantic comedy entitled “Love Me True” - currently in post-production.

She and writer/director Kirby Voss, chose to use college students and recent graduates for their crew.

“I know from experience how hard it is to get a job in the film industry,” Voss says. “We gave these people a way in and they were so appreciative.

It felt good, and they did a great job.

Afterwards we thought to ourselves, wouldn’t it be great if we could systematize this? So we have. Basically I’m creating the kind of program that I wish I would have had.”

According to Stollard, there’s plenty of opportunity for locals in the growing Hollywood South.

“I just got a call last week from a producer who had been approved for a $1.7 million budget, and he wanted to find local workers, both so he could take advantage of the tax credits and so that he could save on housing expenses he’d have to pay for workers coming in from other areas,” she says.

Martin Behrman student Aaliyah Bartley is excited at the chance to be one of those local film industry professionals someday.

“I’ve been in three school plays already, and so when I heard about the program I got excited about learning about what goes on behind the scenes in plays and movies,” she says.

Currently students are working on creating their own PSAs about bullying. They also just finished a music video.

“Aaliyah was awesome,” Stollard says. “She storyboarded everything, wrote it, directed it and got everyone in their places.”

“Yeah, directing is starting to grow on me,” Bartley says with a toothy grin.

For more information, including how you can donate, visit TheCOOLCooperative.org. n

BizNewOrleans.com March 2015

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Columns | Entrepreneur Biz The Food Truck Variety Show More than 20 food trucks are licensed in New Orleans. From New Orleans soul and comfort food to Vietnamese banh mi and Latin American to Middle Eastern cuisine, there’s something for every taste bud to love.

Those looking to satisfy a sweet tooth are also in luck; additional food truck offerings include crepes, ice cream and other desserts. There’s even Food Drunk, a truck that offers “alcohol-influenced cuisine.”

Keep on Trucking

For a complete listing of food trucks, as well as how you can book one for your next event, check out the Food Truck Coalition website, NolaFoodTrucks.com.

Love food trucks? Thank the New Orleans Food Truck Coalition.

W

Keith Twitchell

spent 16 years running his own business before becoming president of the Committee for a Better New Orleans.

He has observed, supported and participated in entrepreneurial ventures at the street, neighborhood, nonprofit, micro- and macrobusiness levels.

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hile business is by nature competitive, the spirit of collaboration runs through much of the entrepreneurial movement in New Orleans. Mentoring, sharing office space, collective resources – clearly, many local entrepreneurs ascribe to the “grow the pie” theory.

Speaking of pie, collaborative entrepreneurism is typified by the emergence of food trucks in New Orleans – since it took forming the New Orleans Food Truck Coalition for any one of these new businesses to succeed.

“I was at a food truck conference in August 2011,” recalls Rachel Billow, founder of the coalition and a proud new food truck owner at that time, “and in discussing food truck laws, New Orleans was mentioned as being very restrictive.”

When she and her partner, Benoit Angulo, attempted to get permits for their truck, La Cocinita, no one mentioned that no permits were actually available.

“The legislation covering food trucks dated from 1956, and included produce vendors, Lucky Dog carts, snowballs, you name it,” says Billow. “In reality, there was no opportunity for food trucks.”

Billow joined with fellow food truck entrepreneurs to form the coalition in spring 2012. They then worked with the administration and City Council to change the legislation. While they had to agree to certain restrictions, they scored a key victory in removing limits regarding proximity to restaurants.

Most importantly, food trucks now have a separate

designation, with 100 permits set aside just for them.

“Food trucks and restaurants coexist happily in many other cities,” she says. “They create the cluster effect that restaurants themselves ascribe to.”

Food trucks also create very distinct dining experiences: when several food trucks set up in the same area, it creates something like an outdoor food court. A sit-down meal with friends or business associates is entirely different than grabbing a bite to go sit in a park or bring back to the office.

“Food trucks also help fill the late-night food niche,” adds Billow, who cites the famous Calle de Hambre in her husband’s native Caracas, Venezuela, as a prime example of La Cocinita’s inspiration. “People in New Orleans definitely want late-night eating options.” n

Photo courtesy of NOLA Food Trucks

BizNewOrleans.com March 2015

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Columns | Biz Etiquette Insurance Portability and Accountability Act (in other words, employee health information, which includes, but is not limited to, for example, information about a coworker’s pregnancy).

Think Before You Post How to keep social media from hurting your career.

I 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.

n January, the Pew Research Center released data from its September 2014 study indicating multi-platform social media use is on the rise, with “52 percent of online adults now using two or more social media sites.”

Facebook continues to dominate, but Twitter, Instagram, Pinterest and LinkedIn each saw increases in user numbers.

With more than 71 percent of Internet users engaging on social media daily and often multiple times per day, it’s common practice for current or future employers to search the social media channels of employees and job candidates. And then of course there’s the fact that no matter how meticulous you are about keeping professional and personal business separated, chances are you have one or two colleagues, managers or clients in your social media friend or follower lists.

With those things in mind, it’s essential to remember a few key points of online etiquette that can make or break your career.

Policy issues First and foremost, read and educate yourself on your employer’s social media policy.

The depth, rules, restrictions and

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level of engagement will of course vary depending on the company or industry, but ignorance of the policy is no excuse for breaking it.

Paige Tomas-Suffel, digital and social media specialist for a Texas-based healthcare organization, says her company regularly monitors what is said about the organization and its affiliates.

“If an employee is found doing something less than savory on social media, human resources will meet with them to discuss how or if their behavior online meshes with our organization’s mission, vision and values statements,” says Tomas-Suffel. “If an employee is just complaining about having a bad day, not grounds for anything. We all have those days. If an employee is found to be complaining about his or her coworkers in a severe way, we look into it.”

Knowing your company’s policy and understanding that, regardless of your privacy settings, a post can be shared by friends, followers and in some cases by strangers can head issues off at the pass. Also, it may seem obvious, but don’t post anything that can be considered confidential, proprietary or that could violate the federal Health

About those privacy settings Aside from not having any social media accounts or not posting to your existing accounts, keeping on top of your privacy settings is an important, but not impenetrable, line of defense. Facebook, Instagram, Pinterest and Twitter, among others, each allow users to keep accounts invisible to anyone not on your approved friend or follower list. Facebook offers various levels of privacy, which often change, so familiarize yourself, learn who can see what on your page and make it a habit to periodically check your settings.

That said, it’s better to err on the side of caution and adopt the policy that if you wouldn’t want your boss to read or see it, don’t post it to social media. For example, if you are a bartender or a party planner, it’s probably OK to post photos of yourself at a social gathering with an adult beverage. Doctors or people who operate heavy machinery, however, might want to put down the wineglass for photo ops, even if you don’t plan to post the photo to your own social media account. Obviously, every company has its own culture and policies, so again, be aware of what’s acceptable and what is not.

Oversharing and the pitfalls of politics According to its 2012 multi-country study on the state of mobile etiquette and digital sharing, Intel reports nine out of 10 adults in the United States believe people are sharing too much information about themselves online. As a rule, it’s best to keep medical conditions and treatments, bodily functions, the sordid details of relationships, off-color jokes and memes, and political opinions off your various feeds.

During elections in particular, remember this other tidbit from the Intel study: 39 percent of U.S. adults say they choose not to associate with people whose opinions they disagree with online.

Yes, we enjoy the right of free speech in America, but that doesn’t mean there aren’t consequences when we exercise that right.

One of which is your employer’s right to fire you, especially in a right-to-work state such as Louisiana. When in doubt, be judicious, both in real life and online. n

Photo Thinkstock

BizNewOrleans.com March 2015

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Biz Bits - Industry News Around town

The impact on exploration activity in Louisiana will be much more subdued than in places where the shale plays are very active - North Dakota, Texas and Pennsylvania. Our Tuscaloosa Marine Shale is taking a hit, but there were few active wells there anyway. In the short run, there should be little impact on exploration in the deep waters of the Gulf where exploration companies have 10-year planning horizons and a relatively low, break-even price for oil.”

-Dr. Loren C. Scott, President of Loren C. Scott & Associates, Inc. and Professor Emeritus at LSU, shared his economic forecast at the Jefferson Chamber of Commerce’s Annual Meeting Luncheon at the Crowne Plaza New Orleans Airport on February 3.

Two Local Institutions Celebrate 175 Years This Month Antoine’s Restaurant - the oldest French-Creole fine-dining restaurant in New Orleans - and Abry Brothers - the city’s oldest continually operating enterprise - are both celebrating their 175th anniversaries in March.

The Southern Food and Beverage Museum is currently hosting a special exhibit entitled “175 Years of Antoine’s” to celebrate the culinary giant’s milestone. The exhibit will be on display through June 2015.

Abry Brothers, a commercial and residential construction company, will celebrate with a private anniversary party held at Antoine’s Restaurant on March 21.

Photos courtesy of Antoine’s Restautant and Emily Abry Barré

COMING SOON Local grocery chain Langenstein’s will open its third store this fall in River Ridge at the Trading Post Shopping Center – which will be redeveloped and renamed the Langenstein Center. Construction on the 47,000-square-foot shopping center and 25,000-square-foot store began in January.

Langenstein’s is currently located at 1330 Arabella in Uptown and 800 Metairie Road in Old Metairie.

Photo m2 studio

We’d love to include your business-related news in next month’s Biz Bits.

Please email details to Editorial@BizNewOrleans.com.

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March 2015 BizNewOrleans.com

Recent Openings

Healthiest Housing Markets A new study from SmartAsset ranked the healthiest housing markets in Louisiana. The following cities secured their ranking due to the relatively low number of days a home is on the market, the higher-than-average number of years residents live in homes, and the low number of homes sold at a loss.

Rank City

Avg. Years Living in Home

Avg. Homes with Negative Equity

Homes Sold at a Loss

Avg. Days on Market

Healthiest Markets Index

1

Metairie, LA

17.5

9.5%

12.5%

65.0

87.50

2

Kenner, LA

16.9

13.4%

9.9%

68.8

72.20

3

Westwego, LA

19.9

15.0%

28.1%

79.3

69.20

4

Gretna, LA

16.3

15.5%

25.3%

60.3

62.80

5

New Orleans, LA

13.9

11.3%

5.7%

65.4

58.30

6

Marrero, LA

18.8

14.6%

30.9%

97.2

58.00

7

Slidell, LA

13.9

14.9%

5.9%

116.3

53.70

8

Harvey, LA

15.8

14.9%

31.7%

81.1

48.70

9

Plaquemine, LA

18.6

3.7%

n/a

n/a

0.00

10

Franklin, LA

19.0

6.5%

n/a

n/a

0.00

Dat Dog in Lakeside Mall Local hot dog favorite Dat Dog made its first foray out of Orleans Parish on Feb. 1, 2015, with the opening of its fourth location inside Lakeside Mall.

Biba Isla Salon On Jan. 15, 2015, Biba Isla Salon opened at 322 Lafayette in New Orleans’ historic Warehouse District. Owned and operated by Biba Isla, a stylist whose ancestors have served as hairstylists in New Orleans since the 19th century, the salon features all-natural products handed down through generations. A portion of each service and tips is donated to St. Jude Hospital.

Local Companies Grabbing National Recognition Windsor Court The Windsor Court Hotel was named to U.S. News and World Report’s Best Hotels in the USA for 2015.

Windsor Court is the only hotel in the state to make the national list, and took the top spot as both the No. 1 hotel in Louisiana and in New Orleans. It was listed 168th of 172 hotels in the nation to make the cut. The top honor this year went to Rancho Valencia Resort & Spa in Rancho Santa Fe, Calif.

Nelson Wilson Interiors Houzz, a leading online platform for remodeling and design with more than 25 million monthly users, has awarded local interior design firm Nelson Wilson Interiors its “Best of Houzz” award for the design of a nursery for a private family.

Competition for the award included more than 500,000 home building, remodeling and design industry professionals. Founded in 2001, Nelson Wilson Interiors is located at 421 Central Avenue.

Martin Wine Cellar On January 30, 2015, local dignitaries, including Mayor Mitch Landrieu, helped celebrate the grand opening of Martin Wine Cellar as it returned to its original location at 3827 Baronne. The 14,000-square-foot store features wine, spirits, beer, cheese and gourmet foods and includes a 120-seat bistro/deli.

BizNewOrleans.com March 2015

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32

March 2015 BizNewOrleans.com

Last year, loc ally founded convenience purveyor Krisp store chicken y Krunchy Ch icken opened locations nati 508 new onwide, with average annu reaching 141 al sales growth percent.

By CA R O LY N H EN EG H A N fter pu mpi ng a fu ll ta nk of ga s, you st roll in venience store to the nearby to grab a dr in conk and a snack. the front door As you approa , br ig ht ly colo ch re d sig ns feat ur in greet you from g a happy su n the storef ront w indow s. You st store and are im ep into the med iately bom ba rded by the able scent of fr un m ista kied ch icken. Su dden ly, your cr snack and dr in av ings for a k change to a ha nker ing for Ca ch icken, and yo ju n-st yle ur select ions fr om the hot food that very need ca se fil l — a need you di dn’t even know Capita liz ing on you had. th is impu lse-bu y concept is ex what ha s mad actly e Kr ispy Kr un ch y Ch icken a succes and viable busi W ith about 90 sf ul ness model ov percent of its lo er the pa st deca cations housed ch icken compa de . in conven ience st ny ha s ca rved ores, the Sout a niche marke Louisiana root hern fr ied t that ha s si nc s. e ex pa nded fa r beyond its

Vice President Dan Shapiro an d Founder/Pres Founded in 1989 ident Neal Oneb , the convenien ane pose togeth ce store chicken including nearly er at a Krispy Kr franchise now bo 300 in its home unchy Chicken asts more than state. in Lafayette.

2,000 locations across the coun try, Photo by Travis Gauthier

BizNewOrleans.com March 2015

33

Founder/President Neal Onebane’s Cajun-style fried chicken recipe has caught on nationwide.

The company opened 50 locations in California alone in just a year and a half.

As the company’s founding state, Louisiana has the most Krispy Krunchy locations nearly 300 - followed by the rest of the South and Southeast, including Texas, Mississippi, Georgia, Alabama and Tennessee, in that order. Certain cities have a higher concentration of locations—Greater New Orleans has 39 stores and Baton Rouge has 20—while large metropolitan areas like Greater Los Angeles and Miami boast nine and eight respectively.

Between 1989 and when the company went national in 2006, Krispy Krunchy opened approximately 200 stores. From 2006 to 2014, that growth surged from 200 stores to 1,758 stores across the country, including one in the U.S. Virgin Islands, for an average annual growth rate of 97 percent. In 2014 alone, Krispy Krunchy opened 508 new stores - an average of about 10 per week.

Though the company is best established in the Southeast, other areas of the country are primed for growth. This includes the Northeast, particularly in the areas surrounding New York City. In California, Krispy Krunchy has opened an average of one to two locations a week, for a total of well over 50 stores in just a year and a half.

“In California, we’re the new thing, so growth out there is exciting and electric,” says Allison Shapiro, Krispy Krunchy director of technology and communications and daughter of Vice President Dan Shapiro.

Krispy Krunchy founder Neal Onebane owned eight convenience stores in Lafayette, La., where he began serving his Cajun-style fried chicken in 1989. At that time, more convenience stores were using pressure cookers to cook their chicken. Inspired by the successes of Popeye’s, Onebane decided to cook in fryers instead, and was inspired to design a hot food case with grates for the chicken. He started doing his own food photography and selling the breading and marinade he made to other convenience store owners. Eventually, in 1989, Krispy Krunchy was born.

By the early 2000s, the company had 34

March 2015 BizNewOrleans.com

grown to about 100 stores but was mainly positioned in Louisiana. Onebane began discussions with Dan Shapiro, who came from the corporate side of convenience stores.

While Onebane initially avoided expansion attempts, claiming distributors would not want to sell proprietary items - paper goods, chicken, etc. - to just one store, Shapiro was able to work out a deal to secure the Kansas and Missouri markets, which started the fire for a larger company expansion. Shapiro officially joined the company in 2006 as part owner and decided to take it national.

Typically a business owner - usually of a convenience store, or an executive overseeing hundreds of convenience stores - approaches Krispy Krunchy about integrating the chicken program into an existing store. Salespeople and a marketing team for Krispy Krunchy are then sent to scout the location, which must already have foot traffic. They also evaluate the store’s financials to determine whether a Krispy Krunchy could thrive in that store and meet the $20,000 monthly sales baseline.

Not just limited to convenience stores, locations have been added into food courts in shopping malls or universities and even the Wichita Zoo. Only occasionally will the company open a standalone store, and that is normally only in a rural town where Krispy Krunchy essentially becomes the McDonald’s of that area.

If an operator doesn’t have any kitchen equipment or printing and signage, the ini-

Donna tully

BizNewOrleans.com March 2015

35

An average Krispy Krunchy location – Operator numbers n

Average daily sales = $667

Average monthly sales = $20,000 (baseline for average location sales)

n

n

Average annual sales = $240,000

n

Average gross profit margin = 48 percent

n

Average monthly gross profit = $9,600

After expenses, average monthly net income = $5,000

n

n

Average annual net income = $60,000

If operator needs only a hot food case and graphics ($12,000 investment), annual profit would yield a 500 percent ROI after 1.5 months.

n

If operator needs to buy a kitchen as well ($35,000 investment), annual profit would yield 171.4 percent ROI after seven months.

n

tial investment is an estimated $35,000. If an operator has a kitchen in the location and only needs the hot food case and graphics, that investment is closer to $12,000.

As far as typical expenses, such as rent or mortgage and utilities, usually the operator already pays that for his convenience store, so they’re not additional expenses for an operator who wants to open a Krispy Krunchy in his store. From there, the operator begins selling Krispy Krunchy products and integrating those sales into his store’s monthly revenue.

“What we’re doing is increasing the ring on the cash register,” says Allison Shapiro.

“Customers might have just been coming in 36

March 2015 BizNewOrleans.com

for a pack of gum or soda, in the $2 ring. But now, after buying Krispy Krunchy, they’re in the $15 ring.”

Krispy Krunchy’s business model varies greatly from other fried chicken establishments, such as Popeyes or Raising Cane’s.

The company does not see these fellow fried chicken establishments as competitors because of their different methods of operations.

Operators of Krispy Krunchy locations do not pay franchise or royalty fees, or any percentage of their sales. Instead, the company

receives a percentage of the sales from items operators buy from associated companies.

This includes a percentage from Tyson, its exclusive chicken supplier, of all chicken sold, along with a percentage from proprietary items, such as side items, paper goods and breading, from distributors, the vast majority of which are with Sysco.

The more chicken and other food items an operator buys, the more money Krispy Krunchy makes. This model has thus far been successful for the company. In 2006, Krispy Krunchy’s annual sales were $12.6 million, while in 2014, sales grew to $155 million.

This setup makes accounting easier for both parties, as Krispy Krunchy only has to collect from about 40 distributors rather than 1,700+ stores. It also saves the operators money by not having to dip into store sales to pay monthly fees to the company.

Krispy Krunchy also sets up geographic protection for its operators. In an urban or metro environment, the company typically offers about 1 mile of protection. In rural areas, the standard is 3 miles, and in some downtown areas, it could be as little as blocks.

“We don’t want to hurt our operators, but we don’t want to limit ourselves,” says Dan Shapiro.

Krispy Krunchy menu items resemble a traditional selection of Southern and Cajun foods, all of which starts with the marinadeinjected fresh chicken. These include dark, mixed and white meat fried chicken, Cajun Tenders, the Krispy Chicken Sandwich, Cajun Catch Seafood, either Cajun Style Fish fillets or Krispy Shrimp, and buffalo wings, which

BizNewOrleans.com March 2015

37

come in Krispy, Traditional and Cajun Sweet & Sour.

Operators can personalize the sides they want to carry, which may include honey-butter biscuits, red beans and rice (most popular), jambalaya, fries, and the company’s latest addition, mac and cheese, among others.

The company has also expanded its sauces from one to eight flavors, including Sweet & Hot Mustard Sauce and Spicy New Orleans Ranch. The Sunrise Breakfast is another set of optional products, which includes food items like blueberry or tender biscuits and breakfast empanadas or burritos. All menu items are displayed on Krispy Krunchy’s two or threescreen LED menus with menu boards on the left and right screens and an optional video on the third center screen.

Operators also have the option to sell cooked and chilled Krispy Krunchy chicken, as well as the “You Buy We Fry!” offer where uncooked chicken is sold to customers who can either take it home or return it to the cashier or cook to fry in-store. A third option is Krispy Krunchy’s “Grab N’ Go bag,” which offers operators another outlet for selling leftover chicken that has surpassed the recommended holding time at regular price.

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March 2015 BizNewOrleans.com

Originally, Krispy Krunchy’s marketing efforts targeted operators with ads that mainly appeared in convenience store trade magazines and at food shows. The company only started marketing directly to consumers last year as it continued to solidify its strong growth and recognizable brand throughout the country.

In 2014, operators spent $3.4 million on graphics and branding materials to market to their customers. A starter marketing kit for a new store might include outdoor banners, feather flags, trifold menus, various decal graphics, aprons, shirts and hats.

From there, operators can invest in more marketing materials throughout the year, from decals for store windows and the hot food case to pump and table toppers.

Marketing materials and décor aim to attract customers and ensure a better in-store experience. These eye-catching graphics allow operators to enhance what might normally be little more than an empty storefront with neon beer signs.

With a marketing partner in nearly every state, Krispy Krunchy customizes marketing plans for each location to ensure operators use the right amount, types and placement

Tasting is believing, which is why Krispy Krunchy gave away approximately 40,000 pounds of chicken samples in 2014.

of products for a store’s location and current and target demographics. Part of this includes co-branding with the store’s existing products and marketing. Krispy Krunchy doesn’t prohibit operators from selling their own foods, instead encouraging them to integrate the two on menu boards. The company even encourages new product development by operators, such as the Krispy Krunchy Chicken Tenders Po-Boy. Handing out free samples is another key aspect of marketing for a new store or helping out a store in need. Samples are a full tender and a biscuit rather than a bite on a stick, which Krispy Krunchy offers operators for free. The company used about 40,000 pounds of chicken for sampling events in 2014 to promote its product, which it puts up against any competition.

“Dad always says our best ad is our product, and I completely agree,” says Allison Shapiro.

“We think that if you try it, you’ll come back.”

In addition to free sample events, Krispy Krunchy finds other ways to assist stores in reaching their full potential and higher sales.

BizNewOrleans.com March 2015

39

2014 Marketing Initiatives n Official fried chicken sponsors for WWL Saints Radio n ULTIMATE TAILGATE – Show us your #KRISPYGAMEFACE – First national campaign: Social media promotion where customers took photos of themselves with Krispy Krunchy products and posted them on social media for a chance to win prizes n THE BIG GAME SPECIAL – Buffalo Wings, 25 for $12.99

The company may send coupons to the neighborhood, supply free graphics or meet with the operator in person to discuss marketing and operations strategies and figure out how to improve performance.

“It’s a special interaction with operators,” says Dan Shapiro. “We thank them for their help and for being a great partner.”

Allison Shapiro joined the Krispy Krunchy team four years ago to reinvent the company’s online and social media strategy and branding through Twitter, Facebook, improved Google search rankings and other marketing strategies.

“We needed to get in the mindset that customers are on the computer looking for us,” says Allison Shapiro. “It’s a process, because everything is online these days.”

The company offers each location its own Krispy Krunchy website template that can display the menu, location, store hours and contact information plus a personalized website address. Through these sites and Google search, the company aims to make it easier for customers to find a Krispy Krunchy location in their area whenever they’re hungry.

Social media strategy includes posting facts and asking followers questions to increase engagement and visibility. Shapiro often retweets followers and other posts that tag or mention Krispy Krunchy.

Krispy Krunchy employs about 40 people to

40

March 2015 BizNewOrleans.com

provide on-site training at no extra cost. This includes a week of training just before the grand opening as well as check-ins throughout the year, particularly if an operator has new hires, new products or new marketing initiatives. Trainers demonstrate cooking and ordering processes, how to engage with customers and encourage them to try new items and how to come up with new promotions.

“It’s someone in there who gets dirty, who’s in there for a full week to show you that this can be successful,” says Allison Shapiro.

Far from throwing someone a manual and having them teach themselves, Krispy Krunchy’s hands-on approach is something they say separates them from competitors.

“Retraining is important, because we believe that it’s a good system and it works.

So if we keep showing them how to do that correctly, it’s successful for everyone,” says Allison Shapiro. “If they make money, we make money.”

Trainers often develop close relationships with the operators and employees at the stores they visit, and they own a part of the profits of those stores. For these reasons, Krispy Krunchy employs more trainers than any other position, and the company has a high retention rate for the position.

Krispy Krunchy has also benefited from the growth of convenience stores in the last few years. A recent Convenience Store News survey showed that 86 percent of store owners

expect increased sales in 2015. This is in part because they are capitalizing on lower gas prices, which allows customers to spend more money in the attached convenience stores.

An operation like Krispy Krunchy also saves people time by providing a food option when they’re already at the store to get gas or other merchandise. The Wall Street Journal recently reported a 3.1 percent increase in the number of meals served at convenience stores in the 12 months leading up to August 2014. This is compared to a 0.4 percent decline at restaurants in that time frame. These numbers position convenience stores, like those with Krispy Krunchy operations, as viable competitors in the dining industry.

Krispy Krunchy plans to continue the nationwide expansion it started nearly a decade ago, employing the strategy that is working for its operators and the company as a whole. The company kicked off 2015 with a bang, opening 12 new stores the first week and 17 the second.

Future growth will be particularly pronounced in the Northeast and Pacific Northwest, and by the end of the year, Krispy Krunchy plans to expand to the inter-mountain areas like Utah and Colorado as well.

Just after his Biz New Orleans interview, Dan Shapiro was heading to Boston to meet with an operator to figure out why that location isn’t doing high enough volume. “This guy’s gonna see the executive vice president and one of the owners of the company come to figure out his situation, of 1,700 locations that we have, to see how we can help,” he says.

“That personal touch is what really makes us successful.” n

BizNewOrleans.com March 2015

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42

March 2015 BizNewOrleans.com

Perspectives A closer look at hot topics in three southeast Louisiana industries

44 Healthcare

50 Insurance

54 Banking & Finance BizNewOrleans.com March 2015

43

Perspectives | Healthcare

Chateau de Notre Dame, one of the area’s oldest senior homes, offers a wide array of activities and outings for busy seniors.

Assisted Living Goes Beyond Bingo As demand increases, so do the amenities at local homes.

Y

ears ago, older people who needed help with daily living had few choices.

Some moved in with their adult children, while others had to enter nursing homes. Today, seniors have a plethora of options. For many, an assisted living community is the best of all worlds. Assisted living offers a wide array of services, including meals, outings, housekeeping and help with daily care when needed. But it also allows seniors to retain their independence, giving 44

March 2015 BizNewOrleans.com

them the privacy of their own apartments and the choice of how to spend their time.

Administrators at assisted living homes in the New Orleans area say they have seen the desire for their services grow as more people become familiar with the concept. Poydras Home on Magazine Street is a good example.

The home originally offered independent living as well as care for those needing nursing and memory support. A little over a year ago, the home added 22 assisted living

By Judi RUSSELL

suites. “It didn’t take very long to have the building filled,” says Faith Camet-Caluda, director of assisted living at Poydras Home.

“We still have a wait list.”

The story is much the same at Ville St. Marie, an assisted living home in Jefferson with 87 units. “We have had waiting lists nine months long,” says Aurora Alleman, general manager. “What has helped us is the housing market has turned around. That means seniors are more inclined to sell their Photo courtesy of Chateau de Notre Dame

Xxxx

house and use the money for assisted living fees. The cost of assisted living is not covered by Medicare or insurance.”

Assisted living has been part of Lambeth House since it opened in 1998, and it has continued to grow in popularity, says Scott Crabtree, president and CEO of the Uptown home. In 2013, Lambeth House added 61 assisted living apartments as part of a $20 million expansion. Crabtree, too, expects the market to grow as people in New Orleans become more and more accustomed to living in condos and apartments.

National company Sunrise Independent Living built a home in New Orleans before Hurricane Katrina. After it sustained serious flood damage, the company rebuilt in Metairie.

Sunrise offers various levels of care, including assisted living. Ryan Rogers, a regional director of operations for Sunrise, oversees the company’s homes in Louisiana and is bullish about the assisted living market here.

“Without a doubt, I feel the demand is going to exceed what we have to offer now,” Rogers says. New Orleans itself plays a role in that growth, he says; it’s a fascinating city with strong allegiance from its residents who are more likely to retire here rather than move to another state.

What seniors want Choosing the best fit from among the many assisted living homes in our area can be a challenge. Stephanie Braudrick is a regional manager for a national company called A Place for Mom, which helps families make this decision.

Her territory has included New Orleans, so she Photo Thinkstock

To promote more of a neighborhood feel, Vista Shores breaks each building into smaller sections, each with its own dining room, family room, exercise room and courtyard.

is very familiar with the options locals have.

“New Orleans is a very tight-knit, family oriented community,” Braudrick says. Local seniors want assisted living homes that aren’t too big, opting for smaller buildings with lots of homey features.

And it’s no surprise that one of the questions Braudrick hears most from New Orleanians is, “How’s the food?”

“One of the really important things is cuisine in the New Orleans market,” she says.

Mealtime is a good opportunity for residents to socialize with each other, and people are more apt to linger and visit over meals that feature local favorites, like red beans and rice and seafood.

Prospective residents also judge an assisted living home by its activity calendar, and the homes in turn work hard to offer the activities seniors want. Chateau de Notre Dame, one of the area’s oldest senior homes, is owned by the Archdiocese of New Orleans but accepts people of all faiths. One of its selling points is daily Catholic mass and recitation of the rosary, says Art Callegari, vice president of business development.

Outings are also popular, Callegari says.

Chateau has lunch and dinner excursions as well as trips to the National World War II Museum to take in the canteen show. Most homes supply transportation to grocery and drug stores, and some will take residents to BizNewOrleans.com March 2015

45

1 2

doctor appointments. People also like visits to casinos, concerts and movies.

To keep residents active and busy, most assisted living homes offer a daily menu of fitness activities (including exercise classes for those in wheelchairs) and arts and crafts classes. Lambeth House’s expansion included a holistic wellness center with aquatic therapy, fitness classes and a café. The home also brings in speakers and people to put on demonstrations in a variety of fields.

Assisted living residents generally like the freedom from cooking that communal dining rooms supply. But at Ville St. Marie, some 46

March 2015 BizNewOrleans.com

residents appreciate the full-size ovens each apartment has. “A lot of ladies like to bake, especially during the holidays,” says Ashleigh Alleman, marketing director. “They share with us, and themselves.”

In New Orleans, monthly fees for assisted living range from $2,000 to more than $5,000, according to how much help a resident needs.

Some homes require a buy-in, while others charge a monthly fee that generally includes meals, utilities, housekeeping and security.

Compared with other parts of the country, assisted living here is a bargain, Braudrick says. “In New Orleans, tremendous value is

1: A peek into a private living area at Poydras Home.

2: Vista Shores near Bayou St. John

brought to the table.”

As New Orleans residents made the move to the Northshore after Hurricane Katrina, the need for assisted living grew there too, says Richard Totorico, executive director of The Trace Senior Community in Covington. He opened The Trace five years ago and recently completed a major expansion; even with the additional apartments, he maintains a waiting list. The natural beauty of the Northshore, plus the presence of two hospitals, makes it a good choice for seniors, he says.

Photos Cheryl Gerber and courtesy of Vista Shores

Costs for assisted living are not covered by Medicare or private insurance and typically start at over $2,000 per month. Pictured, Vista Shores New Orleans

Making the adjustment After living in their own homes for decades, seniors can face some hurdles as they adjust to the communal life. If the older person is the one making the decision to move, the adjustment can be quick, says Sandy Hart, resident services director at Chateau de Notre Dame. “If someone isn’t ready to give up their house, and the family is pushing it, it’s a little more difficult,” she says.

It’s important, too, to let residents adjust at their own pace. “Some residents don’t want to go on outings, except maybe a scenic drive,” says Camet-Caluda of Poydras Home. “Others do. It’s more of an individual choice.” She advises families to give the adjustment period at least one month. “Change is difficult at any age,” she says.

David Schonberg, who owns five senior care homes in the greater New Orleans area including Vista Shores near Bayou St. John, says his research showed him that using what he calls “a neighborhood-based model” would be an effective way to provide senior housing. He breaks each building at his centers into smaller sections, each with its own dining room, family room, exercise room and courtyard. “Instead of eating with 60 people, you’re eating with 20.” Under this model, residents get to know each other better, as do their families, he says. He’s found that at his properties, which include homes on the Gulf Coast and in South Carolina, 95 percent of the incoming residents make excellent transitions within six to eight weeks.

Schonberg anticipates adding to his roster of assisted living homes.

“I think the demographic in the country will keep getting older, increasing the need for these types [of homes],” he says. “Maybe not today, but over the course of the next 15 years, absolutely.” n

assisted living in Louisiana Louisiana has about 48 assisted living centers. Monthly fees vary: n

Low $2,500

n

High $5,759

n

Median $4,030

In Louisiana, assisted living homes are regulated by the Department of Health and Hospitals. They are called “Adult Residential Care Providers.”

To qualify, they must care for two or more adults unrelated to the owner or director. They are required to provide:

48

March 2015 BizNewOrleans.com

n

A minimum of one room with a kitchenette and private bath.

n

Health-related services

n

24-hour supervision

n

Suitable activities

Source: SeniorHomes.com

Photo courtesy of Vista Shores

BizNewOrleans.com March 2015

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Perspectives | Insurance

A Good Kind of Fall Worker’s compensation rates in Louisiana have dropped by more than half in the past 20 years.

By Judi Russell

W

hen Louisiana Insurance Commissioner Jim Donelon talks about the state’s workers’ compensation insurance rates, he quotes the statistics as happily as a new parent recounts his baby’s height and weight: Rates have gone down more than 50 percent in the state over the past 20 years. In 2014, they were reduced

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5.1 percent, and were lowered an additional 2.4 percent for 2015.

Donelon credits the improvement in part to a strong push for workplace safety, rather than to new laws. “We’ve seen very little in the way of additional legislative reform, after a plethora in the ’80s and ’90s,” he says. A voluntary survey by the U.S. Bureau of Labor

Statistics showed that among 41 states and the District of Columbia, Louisiana had the second-fewest nonfatal injuries and workrelated illnesses.

That improvement is all the more remarkable given the number of high-risk jobs Louisiana’s workers perform in oil and gas exploration and at chemical plants, Donelon says.

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Despite a prevalence of high-risk jobs, Louisiana had the second-fewest nonfatal injuries and work-related illnesses among 41 states surveyed by the U.S. Bureau of Labor Statistics.

Workers comp rates are set by the National Council of Compensation Insurance, a central reporting agency. The best way for a company to lower its premium is to decrease the number of claims, says Mark Tullis, administrator at LCI Workers’ Comp in Mandeville. The problem usually isn’t one or two extremely expensive claims, he says. “It’s a frequency issue.” When rates go down, it doesn’t mean that every company’s premiums drop. Each company’s rates are adjusted to take into account the claims history. So employers who take steps to limit the number of accidents at work get the most benefit from lowered rates.

Tullis also credits increased education on the problems drugs can cause in the workplace. He says drug-testing programs have reduced the number of drug-related accidents at work, both in Louisiana and nationally.

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Perspectives | Insurance

A carrier who doesn’t teach and promote safety can’t succeed long term, says David Bondi, chief executive of LUBA Workers’ Comp in Baton Rouge. Many of his company’s 4,000 policyholders are small or medium-sized businesses, and they can’t afford to hire safety directors. They depend instead on safety education provided by their carriers.

Louisiana’s workers’ comp market also gets a boost from the number of carriers headquartered in the state. “Domestics keep the market stable,” says Mike DePaul, COO of LUBA. “Big nationals go in and out of the market [but] we are pretty steady.”

“In the past decade, we really did have lower and lower rates because of competition between carriers,” Bondi says. “When you do only workers’ comp, and primarily in Louisiana, you know what you’re doing,” he says. (LUBA has expanded, geographically, and now offers workers’ comp insurance in Mississippi, Arkansas and Texas.)

Domestics also help grow the state’s economy, Tullis says. “Most of the premium stays here,” he says, noting that local companies 52

March 2015 BizNewOrleans.com

It’s good to shop local - including for worker’s compensation insurance. Competition by local carriers helps keeps prices down.

also tend to be big supporters of the agency system, advertising in agency publications and sponsoring agency events.

Most of the companies LCI insures are small businesses, and they benefit from having so many insurers bid on their business, Tullis says.

Not always rosy In the 1980s, the Louisiana’s workers’ comp market was in crisis. A paucity of strong carriers, coupled with problems of fraud and waste, meant employers had trouble finding the coverage they needed.

In 1991, the state created a state fund, Louisiana Workers’ Compensation Corp.

(LWCC), as a “carrier of last resort.”

Around 20 state funds exist in the U.S., each with its own characteristics, says John Hawie, LWCC’s senior vice president and chief strategy and investment officer. In South Dakota, for example, the state fund

Fewer Injuries Translates to Lower Premiums Rates for workers’ compensation insurance in Louisiana were lowered by 5.1 percent by the National Council of Compensation Insurance for 2014. Rates will dip another 2.4 percent in 2015.

Fewer claims have made Louisiana second-best among 41 states and the District of Columbia in rates of nonfatal work-related injuries and illnesses, according to a survey from the U.S. Bureau of Labor Statistics.

In 2013, the arts, entertainment and recreation industry saw a decrease of 2.4 incidents per 100 full-time workers from the previous year.

Other sectors also improved:

Utilities – down to 0.9 incidents per 100 full-time workers Transportation and Warehousing – down 0.7 Construction – down 0.5 Manufacturing – down 0.4 Leisure and Hospitality – down 0.3 Source: Louisiana Workforce Commission

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writes 100 percent of the workers’ compensation business.

Today, LWCC is the state’s largest carrier. A mutual company, it is owned by the policyholders. In the past 10 years, the company has paid out more than $300 million in dividends to its policyholders, says Jeffrey Skaggs, senior vice president of policyholder services and agency relations. LWCC is obligated to take any applicant, such as a fireworks manufacturer, who might have difficulty finding coverage elsewhere. Since 1991, LWCC has lowered its rate by 55 percent, Skaggs says. Like other carriers, the company helps its clients post favorable safety reports. It has a safety trailer that tours the state, visiting LWCC’s larger clients.

After several years of falling rates, companies probably won’t see dramatic reductions in the future. Insurance Commissioner Donelon says he expects rates to remain f lat, or perhaps decrease slightly, going forward.

One health trend that could affect workers’ compensation rates is the country’s rising problem with obesity. About one-third of American adults are obese, and the American Medical Association has classified obesity as a disease. Insurance experts say that could mean people with primarily sedentary jobs, such as office work, could file workers’ comp claims, saying that their workplace is contributing to their disease of obesity. In addition, obese workers who sustain work-related injuries can be more expensive to treat, which will push up healthcare costs overall.

Employers can ward off these complications by offering their employees free or discounted gym memberships and by providing healthy choices at company cafeterias and vending machines. n

An Ounce of Prevention Reducing the number and severity of work-related injuries helps keep workers’ compensation rates down. The Louisiana Workforce Commission, which oversees workers’ comp in the state, has drawn up this list of steps employers should follow to ensure safety at work: Employers should write a policy stating their commitment to following a safety plan.

The safety plan should detail who is responsible for safety procedures at the workplace.

Employers should hold quarterly safety inspections and compile a report of the results.

Any job-related injury requiring medical attention should be investigated promptly.

Management should hold safety meetings at least quarterly.

Each employee should receive a copy of the company’s safety rules.

Each new employee, or current employee with a new job or new equipment, should receive safety training.

Companies should keep safety records for the required number of years.

Each work site should have a first aid kit and an employee trained to render first aid.

Companies should have a written emergency preparedness plan in case of fire, chemical spill or other disaster.

Source: Louisiana Workforce Commission

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Perspectives | Banking & Finance

Practice Safe Cyber If the big guys can get hit, nobody is safe.

By Phil McCausland

I

t’s been a year of cyber threats - from attacks on Sony to hackers stealing credit card information from The Home Depot. But these attacks are not unique to only major corporations—they are a threat to all businesses, whether you have 1,000 employees or five.

This is why it is integral for businesses of all sizes to consider safe cyber practices.

“I definitely believe that today we’re faced with the biggest threats that we’ve ever seen,” says Clayton J. Mouney, president of Think IT Solutions, a New Orleans company. “You just look at 2014, where we broke all kinds of records. It was the biggest year for the largest cyber security threats for the entire history of cyber security or technological threats.”

Combating hackers and potential cyber threats calls for alertness in company computer practices. As the risk of becoming a target grows as companies use more and more technological solutions, such as cloudbased storage, the first step to protection is realizing that nobody is too small.

“You have to start as an individual,” Mouney says. “Everyone as an individual has to think that cyber security and threats affect every54

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one. It’s not biased. If someone steals your credit card information, it doesn’t know who you are. It doesn’t know how much money you make or how little money you might make. It doesn’t know if you’re male or female. It just knows that they have a credit card and they want to take advantage of you.”

What are hackers looking for?

It’s important to know what kind of data might be sensitive. Hackers are looking for any possible information that they can flip into a quick profit, so know what your business has to offer and consider what information that might be.

“What people are looking for really can be anything, no matter what demographic or space your company is in, whether it is finance, groceries, or cosmetics,” says Matt Wallace, vice president of marketing for Venyu, a Baton Rouge-based data protection company. “You always have to protect your financial data. In the medical industry, protecting customer data is paramount, not only from a security aspect but also from a compliance aspect, where if you’re dealing with state and local

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Physical security Physical security is the easiest to address.

This simply involves knowing where sensitive data is stored and making sure away it’s kept away from prying eyes or slippery fingers.

Wallace advises companies not to use physical storage devices like external hard drives for critical data.

“We see a lot of breaches in the industry that happen and start that way, where a laptop gets stolen or compromised. Those are fairly easy things to head off,” Wallace says.

“You just batten down those hatches and access to the data is actually protected.”

“I definitely believe that today we’re faced with the biggest threats that we’ve ever seen” -Clayton J. Mouney, president of Think IT Solutions government or hospitals you have to deal with HIPAA.” Even ideas might be at risk.

“They [hackers] might even consider going after the proprietary information for your business,” warns Mouney. “If you’re a company that produces something, they might be interested in your patent information or just the proprietary information.”

How to fight back Though cyber threats are becoming more and more aggressive, there are very easy ways to stay safe. Think IT Solutions and Venyu offer simple tips to keep your information safe.

Make a plan As stated earlier, awareness is the first step. But along with awareness comes wellinformed planning that includes not only how to protect against an attack, but how best to cope if you are compromised. You don’t want to leave yourself or your business out in the cold while you’re trying to pick up the pieces.

“You have to start with a plan,” says Mouney. “That plan has to start with the idea that it’s not a matter of if we get compromised but when. You always have to finish that plan with a contingency beyond just protection.”

SECURITY INCIDENTS

Small = organization with less than 1,000 employees Large = organization with 1000+ employees Unknown

10,193

Safe email practices It’s easy to forget that emails are not encrypted and before any message arrives at its intended recipient, it has likely traveled through multiple servers and passed through a number of router switches, which allows easy access to hackers if emails are not encrypted.

“If you are emailing, we typically suggest that you use some type of PGP encryption or something to encrypt the email,” says William Sellers, senior innovation engineer at Venyu.

“At least do something to the file so you zip it up and use some type of password to open it up if it is sensitive.”

Passwords Passwords: we all have them. But we often don’t know how complex they need to be and would rather keep them simple as they can be hard to remember. The average person has to remember 10-15 passwords between work, social media, and their personal financial accounts. But that doesn’t mean that we need to simplify.

“We here at Venyu have forced a very complex password on all of our individuals that work here,” Wallace says. “There are tools you can use that will actually log your passwords for you. Tools like ‘LastPass,’ where you’re able to deploy very complex passwords that don’t make any sense at all—they’re just letters and numbers and characters.”

Employee Training Many of today’s threats come from untrained employees who need to be educated on not responding to suspicious emails and being wary of links or pop-ups that have not been solicited.

Though you might have the best possible safeguards, accidents can happen.

“You can have all the different layers of security in place - from strong firewalls, to virus software, to anti-malware software,” Mouney says, “and it could just come down to

5,819

Number of security incidents by organization size Total – 63.437

47,425

243

144

Number of security incidents with confirmed data loss Total – 1.367

980

2014 data from Verizon’s 2014Data Breach Investigations Report

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Perspectives | Banking & Finance one person in the office that doesn’t understand that there’s someone trying to get their information.”

Software protection Finally, software protections are paramount. Running virus detection and/or malware protection software is key to keeping computers clear of possible infiltrations.

“Then of course you have to actually keep up with all of the viruses and compromises that are out in the wild to make sure you’re not at risk for something,” Sellers says.

“The hardest part is knowing what’s out there to protect yourself, and that’s where we try to direct our clients to use tools or other third parties that will actually do that work for you.”

What banks are doing about it Banks are now taking a larger role within cyber security, as they have become easy targets for greedy hackers, DDoS attacks, ransomware and spearfishing. This has become particularly important as new consumer banking technologies are developed, such as banking apps for smartphones.

“We’ve moved away from secu-

rity being considered an afterthought to security being considered on the front end,” says Jeff Loupe, Whitney Bank’s Security Operations Manager. “Building security in from the very first phase of the project has really become a big focus area for banks in general.”

Loupe’s biggest recommendation is to limit how you use the computer you’re banking from, though he knows that isn’t always practical.

“But if you can, have a single function machine where you can check your bank balance from or do ACH transactions, wire transactions,” he says. “As specialized as you can get on a machine, that’s going to increase your protection and decrease your risk.”

On their end, banks are increasing the size of the information security teams and investing more heavily in the technologies that keep consumers safe while also tracking infections.

“They’re installing things on their end to determine if a machine that’s connecting to their systems in infected,” he says. “Instead of relying on the customer to stay clean and to maintain a machine that’s not infected, detection is more on the side of the bank’s systems.”

Don’t let yourself be beaten “You have to be vigilant,” Mouney says.

“You have to be willing to say, ‘I’m not going to be taken advantage of by someone who’s trying to outsmart me.’ We have to be smarter than the bad guys, and it’s hard because the bad guys are very smart.” n

Fast Facts: 92 percent of threats follow the following nine basic patterns 1,367 Breaches in 2013

63,437 Breaches in 2014

Denial of Service Attacks (0%)

Denial of Service Attacks (3%)

Point of Sale Intrusion (14%)

Point of Sale Intrusion (<1%)

Web App Attacks (35%)

Web App Attacks (6%)

Insider and Privilege Misuse (8%)

Insider and Privilege Misuse (18%)

Physical Theft and Loss (<1%)

Physical Theft and Loss (14%)

Crimeware (4%)

Crimeware (20%)

Payment Card Skimmers (9%)

Payment Card Skimmers (<1%)

Cyber-Espionage (22%)

Cyber-Espionage (1%)

Miscellaneous Errors (2%)

Miscellaneous Errors (25%) Verizon’s 2014Data Breach Investigations Report

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Photo Thinkstock

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.

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L U X U R Y

R E A L

E S T A T E

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Great Offices

Best Face Forward John Deveney, a man known for promoting other businesses, takes a rare moment to showcase his own stylish digs.

By Bonnie Warren | Photography by Cheryl Gerber

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nside his corner office on the second floor of his firm’s headquarters on Magazine Street, John Deveney, president of DEVENEY public relations and marketing, takes in the streetscape of the Lower Garden District and the steeples of St. Alphonse and St. Mary’s Assumption Catholic churches. “This is an amazing area that is experiencing a renaissance unmatched in recent history,” he says “We selected it because we wanted to be a part of the revitalization of New Orleans and this is a prime area for expansion.”

Today, the company operates across two floors of a recently remodeled historic building at 1582 Magazine, where it is making its mark for innovative approaches to marketing and public relations.

The space Deveney calls his own is a 16-by-23-foot office flooded with light courtesy of four windows that vary in height from almost 7 to 9 feet tall. “I instantly felt an energy here when I first viewed the building,” he says. “I could envision a dynamic office with space for a conference table that would seat eight and informal seating where our clients and staff would feel comfortable.”

The firm currently services more than two dozen companies.

“We have shaped our company with successful projects such as launching The Outlet Collection at Riverwalk,” Deveney says. “The Howard Hughes Corporation, a Dallas-based commercial, residential and mixed-use real estate development company, came to us looking for something creative and exciting. We delivered an overwhelmingly successful opening and many other services.”

Everywhere you look in Deveney’s office speaks to the innovative nature of the company. Even his 3-by-6-foot desk is fresh and different made from two reclaimed wood capitals topped with a matching wood base and glass top.

Prominently featured on the desk is an elegantly blown abstract glass column, Deveney’s award for “Communicator of the Year” from the International Association of Business Communicators Southern Region.

“My office has been the setting for many successful projects, such as the seminal meeting of LCMC Health, the nonprofit health system - which includes Children’s Hospital, Touro, Interim LSU Hospital, the soon-to-be-open University Medical Center, and New Orleans East Hospital. In July 2014 Greg Feirn, CEO, and Brian Landry, senior John Deveney, president of DEVENEY, selected the large second floor corner for his office. The company’s headquarters lie within a recently remodeled historic building on Magazine Street.

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vice president of marketing, public affairs and development for LCMC Health, sat right here as we outlined the proactive marketing strategy to take the health system to the next level.”

On either side of Deveney’s desk are two metal and wood shelving units joined by space for his computer and two special family photographs. As he walks over and picks up the small portrait, he explains, “This is my father’s passport photo that he took before leaving for Europe as a pilot in World War II.” Then he points to the large photo of a woman and two men smiling. “And this one is Mary Rose, my mother, and on the right is her brother Timothy O’Hara, and Charles Miller Sprinkel, his college friend, in my grandfather’s (Vincent O’Hara) bar in Palm Beach, Florida.”

Noting the wall of awards behind his computer, he points out his favorites, “I am the only person to ever be named a Fellow for both the International Association of Business Communicators and the Public Relations Society of America. Both awards were presented for lifetime achievement in the profession.”

“In the Bayou,” an Allison Stewart painting, hangs above the comfortable sofa across from Deveney’s desk. “The painting once hung in the American embassy in Panama as part of a program with the U.S. State Department,” Deveney says. His office also features a sculpture

by Joe Barth titled “Hippocampus,” a mythological sea-horse created for the 1984 World’s Fair. “This is the small scale model used to pitch the concept of the signature Wonder Wall that welcomed guests,” he says.

The mythology tribute continues with a winged lion (or griffin) print on the wall facing Magazine Street - a gift from the New Orleans Museum of Art. “It was given after our tremendously successful marketing campaigns for its two most successful blockbuster exhibitions: ‘Femme, Femme, Femme,’ following Hurricane Katrina, and the George Rodrigue exhibition,” he says. “The gift serves as a reminder of our progress overcoming challenges in the years following Katrina.”

The mid-19th-century building that hosts the communications powerhouse was originally a storefront with a residence above in a block of classic two-story row houses. The 5,470-square-foot floor plan that exists today includes two British-looking vintage phone booths that serve as soundproof spaces for quiet phone calls.

“Chris Costello, CFO of DEVENEY, is responsible for the remodeling,” Deveney says with pride. “He did an amazing job of taking all of the suggestions of our staff and melding them with our office workflow and business efficiencies to create a truly inspiring office building. Chris was instrumental in everything from the day-to-day project management to the overall vision of our new facility. His smart approach to design really shines through in every space in the building.” Deveney is also quick to credit interior designer Jodi Mortillaro for assisting Costello.

The building has been added to over the years, yet it still boasts many of the 31 original large windows, which provide an overflow of natural light for the mix of modern and classic décor. “The setting is a purposeful analogy for the savvy yet experienced team that works within, and the building’s high ceilings and open spaces naturally flow from one to another and create spacious, comfortable work environments,” Deveney says. “Chris also delivers on a more open environment, with 30 percent of our campus as functional outdoor space to work and relax. It was one of the many staff requests that he made sure became a reality.”

Deveney says that in the last 19 years his company has been on a steady upward trajectory and the office expansion is not the only thing that has evolved. “In recent years, services have expanded to include advertising, social media and digital marking. The company is made up of 26 dynamic employees offering considerable depth of experience.”

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1

2 1: The entranceway to the DEVENEY campus welcomes visitors with a courtyard featuring plants and fountains.

2: A unique outdoor area for working and relaxing features tropical landscaping and a seating and gathering area of white modern lounge furniture anchored by a bonsai tree. The area is cordoned off by walls of air plants strung like beads.

3: The Grand Hall offers open work spaces for digital, advertising and public relations executives.

4: John Deveney enjoying his airy abode.

5: The remodeled mid-19th-century building was originally a first-floor storefront with a residence on the second floor.

6: The well-lit creative division of DEVENEY opens onto a Magazine Street courtyard.

Deveney is pleased with his decision to keep his prior Chartres Street office that has been converted to an Executive Training and Crises Command Center, a dedicated space for presentation and media training and crisis management.

“Our expansion has shown that we need both locations,” Deveney says, quickly adding that his favorite space of both locations is definitely the one made just for him. “It is where you will usually find me.”n

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Q&A - Biz Person of the Month

More than 2,500 people gathered on Fulton Street last year to close out New Orleans Entrepreneur Week 2014 with The Big Idea, a crowd driven pitch extravaganza featuring emerging startups and a local celebrity judging panel. This year the entire event will take place on Fulton from March 20-27.

It Takes A Village Tim Williamson, co-founder of The Idea Village, discusses New Orleansâ&#x20AC;&#x2122; rebirth as an entrepreneurial hot spot and efforts currently underway to take things to the next level.

By Kim Singletary

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Photo courtesy of The Idea Village

S

andwiched between Mardi Gras and Jazz Fest, New Orleans Entrepreneur Week is a week-long festival (March 20-27 this year) that honors another kind of artistry. Instead of elaborate floats or award-winning music, NOEW celebrates the passion, tenacity and innovative thinking involved in forming and fostering a new business venture.

This year over 10,000 entrepreneurs, nonprofits, students, investors and corporations are expected to take part in eight days packed with more than 70 events and competitions designed to promote new ideas and further boost the city’s entrepreneurial spirit.

As the festival approaches its seventh year, Tim Williamson, co-founder and CEO of The Idea Village, producers of NOEW, took a moment to sit down with Biz New Orleans to discuss the emergence of what he calls an “entrepreneurial ecosystem” in New Orleans, what that means for the city, the big changes for NOEW this year, and what lies ahead.

Biz New Orleans: Tim, you’re listed as the co-founder of Idea Village. Who is the other founder?

Tim Williamson: There’s actually a group of us - Robbie Vitrano, Allen Bell, Darin McAuliffe, Sam Giberga, Sally Forman and Michele Reynoir. We were this group of people that all had a lot in common. We were all from here but we’d all moved away in the late ‘80s and came back in the late

‘90s to start tech companies. We were at the forefront of the industry movement in New Orleans back then; we were all competitors and all had gone to different high schools.

We used to meet at this bar called the Loa Bar. Originally we were meeting to create a conference – New Orleans and the Internet – but those meetings slowly diverged into

discussions on why the city was in such a downward cycle. We’d all come from working in other big cities – Boston, Atlanta, San Francisco – and coming back here, what we decided was that there was an evident problem with leadership. We figured the answer lay in getting entrepreneurial talent to come, or stay, in New Orleans and those entrepreneurs would create new jobs and wealth and eventually become the new leaders.

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“High schools are creating programs, major firms are teaching entrepreneurial thinking – we are essentially rebranding our city into an entrepreneurial hub.”

Biz: What did the entrepreneurial community look like 15 years ago?

TW: There really wasn’t one. This was a city with no venture capital, poor education, high crime and rampant corruption. There was no support network for entrepreneurs.

The first thing we did actually was have a $10,000 business plan contest. Our group was known then as the Loa Group, and we decided we would kick in a few thousand each and award it to the best business plan.

The day after we announced the contest, this local lawyer named Sam Giberga (he wasn’t part of the group at the time) called us up and said he wanted to donate $15,000 in legal services to the contest. He was the first in an outpouring of support. In the next month we received about $125,000 of donated goods and services – everything from website help, to a party at the House of Blues. It really blew us away – all the response.

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Biz: It sounds like that first contest showed that there was a real desire to create a support network for entrepreneurs.

TW: Yes. What we needed was a support system, an independent entity that could connect business, government and universities into a collaborative network – an entrepreneurial ecosystem – of course that term wasn’t around back then.

Biz: The Idea Village facilitated that network.

TW: It has. Fifteen years later I’m happy to say that we are attracting, and more importantly, retaining great talent. We have a very engaged broader community – lawyers, bankers, investors, universities – and we’re seeing entrepreneurism being driven down deep into our ethos. High schools are creating programs, major firms are teaching entrepreneurial thinking – we are essentially rebranding our city into an entrepreneurial hub.

Biz: You mentioned the goal of all this entrepreneurism was to create new leaders.

Are you seeing them emerge?

TW: I think we are, and they’re starting to pay it forward. Off the top of my head, I’d name Patrick Comer of Federated Sample, Jen Medbery with Kickboard, Brent McCrossen with Audiosocket, Robbie Vitrano of Naked Pizza, Dr. Sarah Mack with Tierra Resources, working to rebuild our coast, Matt Wisdom of TurboSquid and Kenneth Purcell of iSeatz.

Rhonda Abrams, USA Today columnist and bestselling business book author, took the stage as one of NOEW’s keynote speakers last year.

Biz: Before we get into what’s in store for NOEW this year, can you talk a bit about what else Idea Village does during the rest of the year?

TW: Sure. Our entrepreneur season actually kicks off in July and culminates in March with NOEW. Through our Idea Institute we provide education through over 70 workshops. We also provide one-on-one strategizing through our IDEAsessions, where entrepreneurs can meet for 90 minutes with entrepreneurial experts that will help them solve problems. We’ll be doing 125 of these this season. And then there are our accelerator programs - IDEAx and Capital - both are geared for small groups of around 10 participants at a time.

Biz: Let’s talk about this year’s NOEW. What’s new and different this year?

TW: Well first, we’ve moved everything to Fulton Street. For the first time we’re going to have a NOEW headquarters for the entire week. It’s going to be like a mini festival ground. We’re also offering over 110 entry slots for entrepreneurs to do pitches. That’s an 87 percent increase over last year.

This year NOEW is not just a culmination of the work of The Idea Village, we’ve also Photo courtesy of The Idea Village

Photos courtesy of My Trip Ariport.com and Livery Tours

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got 40 different partners – including JEDCO and St. Bernard Chamber – that will be having their own showcases and pitches. We’ve got 25 national investors coming to town.

That’s exciting.

Biz: There’s so much going on, what do you consider some of the highlights – the “don’t miss” events?

“…we need more talent and resources like management, bankers, and lawyers experienced with taking a $10 million company and turning it into a $100 million company.”

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TW: I’d have to say one is the Big Idea – the world’s largest crowd funding event.

That is the culmination of our festival – kind of like Mardi Gras day is for Carnival.

Last year we had more than 2,500 people come and help provide over $98,000 in capital to more than 15 companies – and that was during a torrential downpour. This year we’re expecting even more.

On the last day of the festival we’ve also got what I’d say is the premier showcase for the whole year – the Coulter Idea Pitch (named for successful investor and Founder of TPG Group, Jim Coulter). Pitches will be made from four companies seeking venture capital, and the winner will receive an allexpense paid trip to California to meet with some of the nation’s leading venture capitalists. This year the big four competing will be Bontriage, Your Nutrition Delivered, Servato and Haptech.

Biz: What does the future hold for New Orleans as an entrepreneurial city? What’s the next step?

TW: New Orleans has done such a great job of supporting this ecosystem, and I think the next phase is definitely to build a skill set to scale, meaning we need more talent and resources like management, bankers, and lawyers experienced with taking a $10 million company and turning it into a $100 million company. We’re starting to see some of this coming into our community now.

I’m also excited to see the strong network that has been formed begin to serve as mentors. We’re still young, so we all need patience, but the good news is we’re making tons of progress.

We may not be a city with the most capital or Fortune 100 companies, but what we do have is an incredible ability to connect.

We’re one of the best at that. I completely believe that we’re going to be one of the top hubs for entrepreneurism in the country, but we’re going to do it our way – New Orleans style. n

Photo courtesy of The Idea Village

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Why Didnâ&#x20AC;&#x2122;t I Think of That? | Creative businesses taking hold in Southeast Louisiana

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Breaking The Rules Iron Tribe Fitness strictly limits membership numbers and charges a monthly fee high enough to get your heart racing, but business is booming.

By Margaret Quilter | Photography by Cheryl gerber

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team-based workout that began in a 400-square-foot garage in Birmingham, Ala., has gone tribal in only six years, boasting a national franchise with 70 locations; its rapid growth is showing no sign of slowing down.

Simply defined, Iron Tribe Fitness (ITF) is functional fitness – everything that they do in a 45-minute workout is functional to real life – so there is no flipping industrial-sized tires.

“You want to be strong but also have good endurance; you want to be flexible and have good speed,” says Jim Strickland, manager and coach at Iron Tribe Fitness in Downtown New Orleans.

“How we achieve that is by having some form of weight training, some form of body weight exercise and some form of cardiovascular exercise in all of our classes,” he says.

Originally from Birmingham, Strickland already knew of ITF, but when he learned that Kate Jenkins and her husband, Kerry Jenkins, former offensive lineman for the New York Jets, Tampa Bay Buccaneers, and Louisiana State University, were opening up an ITF franchise in New Orleans, he jumped at the opportunity to be part of their tribe.

The decision to move ITF down to New Orleans came after Jenkins joined ITF in Birmingham as an athlete in 2012, within months he was hooked.

“I was 39 years old and I had gotten to a place in my life where I just did not feel good physically,” says Jenkins. “I was doing everything from going to the local big box gym, having a one-on-one personal trainer, to a whole gym in my house, still with all of that it was hard for me to stay motivated.”

Now as the Jenkins’ move toward opening up their second location in Metarie, and with a third location in the pipeline, they are often asked what sets ITF apart from other trending team-based workout programs like CrossFit and various Boot Camp style groups.

“Brand wide we are very intent on how we want to do it, and we are very focused on the athletes,” Jenkins says.

WORKOUT OF THE DAY ITF entered the New Orleans market in February 2014 with the Downtown location at 733 St. Joseph St. They committed themselves to taking on 15 new members per month until they reached their self-

Jim Strickland is manager and coach at Iron Tribe Fitness at 733 St. Joseph St. in Downtown New Orleans, opened in February 2014. The fitness chain currently operates 70 locations nationwide.

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imposed membership cap of 300 (membership caps vary slightly at each ITF location).

Jenkins explains that these caps ensure a small coach-to-athlete ratio. Once ITF gets to 150 athletes they have four full-time staff members, two coaches and two co-coaches, and a manager who also fills the role as a cocoach. Once they have 200 members, they will hire another full-time co-coach and the manager will move in to focus on the day-to-day operations of the gym.

“We chose 300 because it prevents us from getting too big and allows us to keep giving that individualized attention,” says Strickland. “Our coaches are very focused on our athletes and they know our athletes, and our athletes know what to expect every time they come.”

Becoming part of the tribe is a process that is designed to weed out those that are not 100 percent committed to changing their lifestyle habits.

“When people join we require a certain level of commitment,” says Strickland. “We discuss goals and any limitations. I want to know what has prevented them from reaching their goals in the past, so I can make sure this 74

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is a good fit for them. If they aren’t able to give me 100 percent commitment, then I won’t let them join.”

For those who get through the initial consultation, Strickland recommends one of three fitness packages - four-, eight- and 12-month programs in which the member attends classes three, four or five times a week.

The first four weeks of ITF is the one-onone program where members learn fundamentals, correct techniques, and nutrition.

They graduate into their individual program where they attend regular 45-minute classes that have two coaches to a maximum of 20 people.

The ITF company has a programming team that creates a different workout every day. So members who are traveling can drop in at any ITF, a unique feature that other group fitness enterprises don’t have.

“Everybody does the same workout but everything is infinitely scalable; we adjust the intensity, whether that’s power, distance or time,” Strickland says.

ITF also offers an added service - a nutrition program that serves 100 percent Paleo

Members are expected to attend classes three, four, or five times a week. Traveling is no excuse, as members can drop in to any Iron Tribe Fitness in the country.

meals for breakfast, lunch and dinner for a fee. Although the meal plan is not required, maintaining a food log is.

WEIGHING THE NUMBERS Strickland says the price tag attached to this fitness program ranges on average from $230 to $290 a month, depending on each athlete’s time commitment.

“In a new market, where people don’t know what Iron Tribe is, they will see $250 a month and just turn the page without even hearing what is in it for them,” says Strickland. “Even people who are making six figures are not used to paying that for membership so they have to talk to me and at least hear about Iron Tribe first before I tell them the price.”

Strickland continues to explain that the cost is part of the commitment.

“If they are committing financially then they are not going to waste their money,” he says. “If you break it down, your average

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personal trainer is $40 to $60 per hour, if you break us down it is about $15 an hour.”

IT’S FOUNDATION ITF was founded by Forrest Walden, a master franchiser who at one stage had built up to 55 personal training franchises that spanned across Alabama, Florida and North Carolina.

He sold that venture in order to fund his own startup, Iron Tribe Fitness, always with the intent to franchise. Walden moved the first ITF from his garage to a brick and mortar in February 2010 – within eight months he reached his 250 membership cap with a waiting list – six years later ITF spread nationwide.

With the odds working in ITF’s favor – 90 percent of small businesses fail, while 85 percent of franchises succeed – it is much more attractive and less risky for entrepreneurs to want to delve into an established business model than go out on their own.

Sixty of the 70 ITF franchises sold were to Birmingham-based residents, all of whom were once ITF athletes themselves, like the Jenkinses, who bought the rights to the New Orleans market.

“The franchise fee was $35,000 for the first 76

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store and then $17,500 for every additional store – but I am sure that has changed now,” says Jenkins.

Unlike other team-based workout gyms, ITF has strict standards ensuring a universal brand experience – from fitness-related programs to marketing plans to store buildout and equipment.

“They walk you through the whole process, right up until the day you open,” says Jenkins.

“They have a team that makes sure that when you walk into the space that it is an Iron Tribe store.”

The costs for the build-out and equipment start at around $300,000. With all this money invested into the gym, Jenkins says they only started turning a profit a few months ago.

RAPID GROWTH In 2014, ITF made the Inc. 5000 list of fastest growing companies in America – even with that recognition, they are trying to keep a lid on their rapid expansion by only working with 12 franchisees a year, ensuring they maintain a level of control.

Asked what has fueled their growth, Strickland says it is the personalized service

After creating his own fitness program and nutritional plan, Iron Tribe Founder Forrest Walden signed up 250 members - with a waiting list - in just eight months.

and sense of community.

“People don’t feel like a number because we keep it limited,” says Strickland. “About 75 percent of our athletes used to be members of another gym, and maybe 30 percent of them had a personal trainer; but they were bored, but it wasn’t energizing, fun and community oriented, plus it cost more, too.”

At ITF Downtown New Orleans – whose market is primarily business professionals, 35 to 45 years old (with 60 percent male and 40 percent female) – they are currently experiencing an 80 percent renewal rate.

“Creating a fitness community that is supportive and encouraging of each other is a mentality that people of New Orleans already have,” says Jenkins. “It has been the most fulfilling thing I have ever done, seeing people reach their goals and have more energy to pursue the things they are passionate about in life outside the gym.” n

Greg Abry, Abry Brothers Nicolas Bazan, LSU Neuroscience Center John Blancher, Rock-N-Bowl Yvonne Blount, Antoineâ&#x20AC;&#x2122;s Philip Brooks, Brooks Investments, Inc. William Burk, Burk Property Investments Joseph C. Canizaro, Chairman, First Bank and Trust, Founder Ralph Capitelli, Capitelli and Wicker Law Firm Joseph Carrere, Merlin Candies, Inc. Emmett Chapital, Chapital Cardiology Clinic LLC, Past President Mason Couvillon, Dardis Couvillon & Associates John Dardis, Dardis Couvillon & Associates Brandt Dufrene, First National Bank, USA Bill Ellsworth, Ellsworth, LeBlanc, & Ellsworth George Fowler, Fowler Rodriguez Frank France, Kehoe-France, Inc., Director David Gallo, Gallo Mechanical Contractors William Hines, Jones, Walker Steven Hubbell, Stokes & Hubbell Capital Mgt., Inc. Dan Jacob, N.O. Medical Mission Jack Jensen, TCI Trucking & Warehousing Services Ronald Karcher, Ronald L. Karcher Construction Co. Thomas Kitchen, Stewart Enterprise Victor Kurzweg, Consolidated Companies Mel Lagarde, HCA Delta Div. James Lewis, Landis Construction CO, LLC James LaPorte, Ericksen, Krentel & LaPorte, LLP, Vice President Robert Lupo, Lupo Enterprises Todd Matherne, Renaissance Publishing Robert Menard, P.A. Menard Inc.

Larry Merington, Stewart Enterprise, Membership Chair David Mutter, Doerr Furniture Jane Nalty, Director Michael Nolan, Fifth District Savings and Loan Assn.

Larry Oney, Risk Technology Institute/ Hammerman & Gainer Inc. A.J. Palermo, Canteen Corp.

James Pellerin, Pellerin Milnor Claiborne Perrilliat, Packard Truck Lines, Inc. Leon PochĂŠ, Riomar Agencies, Inc., Program Chair Peter Quirk, Walk Haydel & Associates, Inc., Director Louis Rodriguez, TCI Packaging Stanton Salathe, Salathe Oil Company, Director Jack Scariano, Scariano Brothers Dominick Sciortino, St. Bernard Drugs, Inc., President Henry Shane, Favrot and Shane Co., Inc. M. Gordon Stevens, New Orleans Steamboat Co. Frank Stewart, Stewart Capital, LLC Matthew Ungarino, Ungarino and Eckert, LLC Michael Vales, Vales Management, Inc. Scott Whittaker, Stone Pigman Joseph Wink, Wink, Incorporated/Universal Consolidated Services Robert Wooderson, Gibbs Construction

Chaplains: Monsignor Andrew Taormina Very Reverend Joseph Doyle Very Reverend Neal McDermott

Join these Catholic leaders and their spouses each month for Mass, dinner and a great Catholic speaker.

Events St. Tammany West Chamber of Commerce Northshore Rising Professionals Leadership Summit

ACG Louisiana Luncheon Friday, January 23, 2015 The Roosevelt Hotel, 130 Roosevelt Way, New Orleans

Thursday, January 22, 2015 Fleur de Lis Event Center, 1645 N. Causeway Blvd. Mandeville A half-day workshop featuring speakers Michael Hecht, president and CEO of Greater New Orleans, Inc.; Tereson Dupuy, inventor of FuzziBunz Diapers; and Carl Herrick, owner of Sandler Training in Baton Rouge.

Guest speaker Thomas Leonhard, Jr., HRI president and COO, spoke about HRI Properties’ current and future projects in the Greater New Orleans area at ACG’s January luncheon.

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1. Ashley Cangelosi, Erin Breaux, Amanda Peden and Cathy Williams 2. Carl Herrick 3. Pat Brady, Paul VanGeffen and Ryan Pearce

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1. Kenneth Lozano and Richard Cryer 2. Tom Leonhard 3. Chris Kenny, Grady Hurley, Tom Leonhard and Robert Brickman

Jefferson Chamber Annual Meeting

ACG Louisiana Luncheon

Tuesday, February 3, 2015

Wednesday, February 11, 2015

Crowne Plaza New Orleans Airport, 2829 Williams Blvd., Kenner

The Roosevelt Hotel, 130 Roosevelt Way, New Orleans

One of the Chamberâ&#x20AC;&#x2122;s largest networking and social events of the year, this event featured as keynote speaker economist Dr. Loren Scott, who delivered his economic forecast for the coming year.

Guest Speaker Peter Trahon, executive director of fraud investigation and dispute services for Ernst & Young, gave a speech entitled â&#x20AC;&#x153;Get Ahead of Cyber Crime at the ACG February luncheon. The speech addressed the three stages involved on the journey to cybersecurity maturity.

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1. Barbara Waiters, Lesha Coulon and Lauren King 2. Dr. Loren Scott 3. Roy Carubba, Lenny Kopowski and Penny Weeks

Photos by Cheryl Gerber

1. Sarah Schmidt, Aryone Talana Hickerson and Abby Boyd 2. Peter Trahon 3. Leonard Washington, Martin Rubio and Kris Martinez BizNewOrleans.com March 2015

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Behind the Scenes

Itâ&#x20AC;&#x2122;s Crawfish Time!

The first recorded commercial crawfish harvest was in Louisiana in 1880, when fishermen brought in 23,400 pounds - then valued at $2,140.

Today, 120 to 150 million pounds of crawfish are harvested annually, boosting the Louisiana economy to the tune of over $300 million a year. Shown here is a harvest at Savoy Farms in Church Point, La. 80

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