Local Business in New Orleans

New Orleans has adopted laws for short-term rentals in the area and that pertains to bed and breakfast properties as well. To understand the city’s bed and breakfast laws, let’s start with the city’s definition of a bed and breakfast. 

A bed and breakfast in the city of New Orleans can be defined as an owner-occupied residential structure originally constructed as either a single-family or a two-family structure. The structure can easily be converted into a single-family structure which provides sleeping rooms for overnight paid occupancy of up to seven nights.

There are variants on the different structures seen and permitted throughout the city. Some bed and breakfast homes have no more than 2 sleeping rooms. Some bed and breakfast homes hold 3 to 5 sleeping rooms which require proof of liability posted on the premises. Historic bed and breakfast homes can have between 3 and 9 sleeping rooms. The additional requirements of historic homes are: 

• Approval from the Historic District Landmarks Commission
• The property must be at least 3,000 square feet
• The home must be a minimum of 50 years old

If running a bed and breakfast, determine your zoning to make sure a bed and breakfast property is permitted in your area. Using the New Orleans Zoning Lookup tool, now known as the city property viewer map.

A mayoralty permit is needed for bed and breakfast property, but owner-occupancy must be proven before a permit is issued. A food permit is not required to serve food at the bed and breakfast. In addition to paying for a permit, taxes on the business are applied as well.

There are various bars and restaurants in New Orleans, especially on the historic Bourbon Street. The city is a hotspot for tourism and is one of the very few places where open alcohol is allowed outside on the street. The age of getting in bars has been 18 years and up for a long time which attracts more people. Many have debated whether the age should be changed to 21 like the legal drinking age.

The change in the age limit has been considered in the past to tackle the problem of underage drinking. Bars and restaurants normally require the 21 and up crowds to wear wristbands given by the bar to identify who can purchase alcohol.

The New Orleans City Council considered this and honestly if they went through with the age limit change, tourism would have gone down long before the global pandemic. Many college students visit the area or even go to school here. They most likely come to New Orleans because the bar age limit is like a perk in the area.

Being that bars and restaurants in New Orleans are so abundant, it may be easier than it seems to risk going out of business. There were some restaurant closings back in 2017 due to a tough summer season. This negatively impacted investors in these businesses and some were impacted merely by the lack of necessary paperwork.

If running a bar or restaurant business in the New Orleans area, take a few things into account to survive amongst the abundance of competition.

 

Keep All Paperwork Up to Date and Stay on Top of the Business Numbers

If any business is being run improperly it can always come back to bite later on. Keep all necessary files in a safe place and update them regularly. Make sure all information that needs to be reported to the Louisiana Secretary of State. 

Have Something Unique to Bring to the Business that Separates It from the Others

There are countless bars and restaurants in New Orleans that tourists and locals have grown to love. Since competition is steep, the establishment should offer something visitors will remember the bar or restaurant for. This could be an amazing signature dish that the surrounding competition doesn’t offer or signature drinks that the party-goers will appreciate.

Good Price Points

Many prefer to travel on a budget and most college crowds are often on limited funds. Establishing good price points could keep patrons consistently at a bar or restaurant especially when the pandemic ends. 

Have Unemployment Insurance Policies

In addition to the hurricanes that can hit New Orleans, scenarios like the pandemic can devastate a restaurant business if not prepared. If a restaurant closes temporarily then expect the employee wage claims to come in. Even if the business gets too slow where hours are more limited to employees, unemployment insurance can be a preventative measure so the bar or restaurant won’t fail.

Small Local Business Events

The city has events that could be very useful resources to New Orleans businesses especially if it’s a startup business.

Startup Weekend is an event where developers, designers, marketers, product managers, and startup enthusiasts come together to launch startups in a little over 2 days! The event is normally held during Global Entrepreneur Week which takes place in November every year.

Throughout the weekend six teams are devoted to different areas of a startup which include customer development, validation, practicing lean startup methods, and building a minimum viable product. 

Representatives from each startup are ready to pitch in front of a live audience and a panel of judges. Each is allowed five minutes to pitch and it’s followed by a 5 minute Q&A with the judges.

Office of Economic Development to Host Business Information Sessions

The Office of Economic Development holds business information sessions, designed to connect local entrepreneurs and business owners with useful tools and resources to grow their businesses. 

These sessions are held quarterly to allow interested entrepreneurs and business owners to learn about more business opportunities. All sessions are open to the public and individuals can attend any sessions. 

Chamber Connection

The St. Tammany West Chamber holds an event known as the Chamber Connection. Top local businesses are recognized which were voted by the community. The West St. Tammany Chamber has conducted these business appreciation awards for over a decade for the cream of the crop local businesses in New Orleans.

Client Success Spotlight

Our firm has had the pleasure of working with many business owners in New Orleans and we have helped them and witnessed them doing great things. They are all thriving businesses that value advice can be learned from.

Budget Bytes

Bethany Moncel, a Louisiana resident of 16 years, started her blog Budget Bytes in 2009. Her mission is to reach people who are struggling with their budget and are mostly depending on the commercial food world. 

With easy step-by-step guides, realistic recipes, and detailed price breakdowns, she teaches her followers how to feed themselves without spending big bucks. Bethany started as an aspiring dietician. While working in food service, she started Budget Bytes and went back to school to become a microbiologist.

Unlike most food bloggers, Bethany offers price breakdowns that explains how much it will cost to make the recipe and how much each serving costs. She went on to publish her first book in 2014 which was one of her biggest accomplishments. 

Problems did arise as her biggest issue was other people stealing her content. People have stolen her photography and some just simply copy and paste and make money from it. Sometimes sending notices can be time-consuming and not worth it financially. However, Bethany will consider going that route should a large entity steal content.

Roulaison Distilling Co.

Roulaison Distilling Co. was founded by Andrew Lohfield and Patrick Hernandez, located in the Broadmoor area of New Orleans since 2017. The name “Roulaison” has deep roots from the 1890s, coming from an old French-Creole word relating to sugarcane harvest. Andrew and Patrick pride themselves in creating a rum that embodies the rich history of New Orleans and it’s local rum culture.

To separate themselves from other rum distilleries, Roulaison Distilling Co only uses alembic pot stills and 100% Louisiana molasses. The founders came into the business mainly functioning as CEO and CFO but split up responsibilities depending on the demands of the business. 

Grande Krewe

While many tourists prefer a cocktail to go, those who explore the city off the beaten track will discover a hidden gem for fine wine and spirits, Grand Krewe. Four friends, who are two married couples and business partners, formed Grande Krewe in July 2015. Roy and Carol Arriola, Bob Heaps, and Jane Cooper launched the business based on their shared passion as they had skills in other industries.

Opening a liquor store in New Orleans may seem like a no-brainer but Grande Krewe stands out with its special selection of wines and spirits that are unique. They are not easy to get anywhere else in the city. At Grand Krewe, you’ll find everything from rare champagnes and red wines to Japanese whiskey.

The team has also worked hard to draw more people in with special events such as Champagne Fest, dinners at Compere Lapin, and guided scotch tastings. The business experienced a surge in visitors after initially opening.

At the beginning of their journey, the four partners had to navigate through the difficulties of getting approvals for the business through the city of New Orleans. While going through the process, there was a zoning ordinance change in the city. To make things more difficult, their store had to be completely built out before the state would grant the actual liquor license.

Thanks to patience and persistence they stood through obstacles and created a successful business in New Orleans. They have set the bar for those offering wines and fine liquors in the area.

Luxe Limousines

New Orleans is a well-known hub for vibrant culture and year-round celebrations. The city is not only a go-to destination for Jazz aficionados and food lovers. The city is a common location for family reunions, weddings, and bachelor parties. 

Will Lizardo started Luxe Limousines in 2011 and has built a top-notch transportation service catering to the multi-faceted culture of New Orleans. Despite competitive transportation services such as Uber and Lyft, Luxe has established itself as a unique limousine service that provides customers with a superior experience. 

Will caters to sports fans, lawyers, business people, and many more. A professional driver transports clients dressed in a black suit and tie to wherever they please with drinks on board.

The number one priority was making customers happy. According to Will spending a fortune on online advertising is less effective than positive word-of-mouth.

Podesta Wellness

Podesta Wellness is more than just a place to get massages and therapy. It’s a holistic spa that focuses on more functional medicine. Professionals look at the root causes of everything by using biology, genetics, current chemistry, the colon, the brain, hormone access, and how all of those systems relate to each other. 

Dr. Arwen Podesta, owner and founder of Podesta Wellness, is a psychiatrist specializing in holistic, integrative, and addiction medicine. She also has a background in forensic psychiatry. 

Podesta Wellness started back in 2012 as an office-based psychiatric practice that incorporates holistic medicine, including nutrition, massage therapy, psychotherapy, acupuncture, and more. Dr. Arwen’s goal is to be at the forefront of offering the best treatment possible that’s independent of insurance and hospital-driven care.

Arwen’s word of advice to other business owners is to seek a business strategist. Every professional should focus on what they are good at and let other people do what they are best at.

Emily Sullivan Events

Emily Sullivan is a former wedding makeup artist that got to experience the coordination side and decided to start a business holding wedding events and more. Her team breaks up roles based on the individual needs of the client, including decor setup, transportation, logistics, or scheduling the second line.

Emily’s business grew so quickly that she didn’t have a solid foundation in place. Therefore, several years later she had to go back and build that foundation. Foundational things include: 

• Team planning
• Budget planning
• Pricing
• How many events she wanted to coordinate each year

Burnout became an issue for Emily which almost made her throw in the towel. She was working around the clock, trying to micromanage her team, and didn’t have the right people in place. After all, she realized that and had to start over with a new team. Fortunately, she was able to clean the slate, rebrand, and start over.

Although there are challenges that come along with logistics and politics in New Orleans, Emily simply loves living and running her business in the city.

New Orleans Southern hospitality and openness to newcomers is without a doubt a key motivator to start a business in New Orleans. Our clients are proof that it can be done, and especially with our help.

Tips for Local Businesses

Do Not Extend Credit to Regulars

Sometimes running a local business may cause a business owner to let their guard down a bit, due to customers they consider regulars. However, you have to run a business still and certain issues that come along can be avoided.

As attorneys, we can work with business owners to collect debts but it’s best to not extend credit. Draft contracts can be created to protect you, demand letters could be sent for payment and a lawsuit can be filed, but it’s still a hassle for business owners to go through. The truth is that all those actions could be taken but it’s impossible to collect the debt from someone who does not have the money. 

Banks are a bit different because they assess risks and go from there. However, a business is not a bank. Most businesses aren’t running a credit report or reviewing clients’ financials. If a business gets paid for a service or particular project, they should ask to be paid in advance or if funds can be in escrow. We can promise that if a local business doesn’t extend credit, they won’t need to pay a lawyer to collect those debts that could follow.

Managing Customer Expectations

Many of our clients whether former or current can tell you that making customers happy is the main thing to grow the business. Keeping them happy includes meeting or even exceeding their expectations. 

Failing to do so can build bad rapport and the trust is broken. A story of our local power company did just that in response to a hurricane.

This area of the country is no stranger to intense hurricanes and weather conditions. When Hurricane Issac hit there was a power outage in various areas of the city. Trees fell and wires became disconnected throughout the city. After several days residents became irate and still no power. 

New Orleans residents are very aware of the results of a hurricane but the communication from the power company was the real issue. The day after the power went out a couple of text messages were sent out. They stated that they were going to assess the damage once conditions were safe enough; and that they have thousands of workers ready to restore power.

The following day another text was sent out stating they have workers arriving in New Orleans and that they would assess the damage soon. The initial message of them assessing the damage as soon as it’s safe enough was helpful. People knew to be patient and wait for the winds to die down. The second and third messages were displaying poor expectations from management.

The power company boasted about how many workers they had and how they were ready to assess electrical damages. Instead of responding realistically to customers that already anticipated several days of a power outage, they set an expectation it would be done shortly.

Whether you run a large utility company or solo practice law firm, managing client expectations is important. If you set the bar so high that you cannot deliver then customers will be upset. There is no advantage to setting an expectation a business cannot meet. And if the expectation is met then great because the business was expected to do so. Therefore there is no extra win in setting high expectations for customers.

And there you have it, here’s a bit of insight on New Orleans local business and how a business can grow here. Experience the city and get a feel for what locals and tourists love.