The new normal could limit sitting at Acme’s oyster bar watching one of their famous shuckers. Photo: Ed Lallo/Lallo Photography
by Ed Lallo/Gulf Seafood News Editorial Director
Can you imagine no oyster bars crowded with patrons eyeing shuckers opening one perfect Gulf oyster after another? No music crowds pressed shoulder to shoulder in Austin venues. No crowded Bourbon Street restaurants overflowing with locals and tourists. There is a new norm coming to the Gulf and the country, and life will be different.
Walton, speaking at a recent Oysters South gathering in Wilmington, NC, believes efforts have to be focused on short term survival and long term establishment of a workable re-start strategy for restaurants. Photo: Ed Lallo/Lallo Photography
The economic collapse of the economy caused by Covid-19 has strained the current food supply chain for both agriculture and seafood, especially Gulf seafood. The majority of Gulf seafood is sold packaged for use in the nations restaurants and supermarkets seafood cases. Only oysters are almost exclusively sold to restaurants; restaurants that have reduced orders to next to nothing because of the “stay at home” mandates.
“As supermarkets rush to restock shelves with other seafood, the coronavirus pandemic has created chaos in the oyster supply chain, almost completely erasing sales to distributors and restaurants,” said Beth Walton, executive director of Oyster South and a board member of the Gulf Seafood Foundation. “To offset the steep decline in restaurant traffic, most other seafood is able to shift products once bound for restaurants into new sizes, packages and labels necessary for supermarket sales. Most oysters don’t have that luxury, certainly farm-raised oysters for sure.”
Walton, whose organization is a resource for oyster farmers throughout the Gulf and southeast Atlantic Coast, believes efforts have to be focused on short term survival and long term establishment of a workable re-start strategy for restaurants. For her the burning question is: How many of the restaurants serving oysters will once again reopen and what will they look like when they do?
Loss of Half of Nation’s Restaurants
Updated figures from industry analysts estimate more than 50% of the independent restaurants closed during the coronavirus outbreak won’t reopen. The National Restaurant Association has estimated industry revenue could be reduced by $225 billion in the coming three months and shed five to seven million employees.
Stan Harris says restaurants have benefited from the opportunity to partner with the oyster community to create a unique identity. There are few places in the United States where eateries feature oysters as much those in Gulf States. Photo: Ed Lallo/Lallo Photography
“Those estimates were prepared for our approach to the White House and Congress,” said Stan Harris, President and CEO of the Louisiana Restaurant Association (LRA) and a director of the National Restaurant Association. “There is definitely going to be a new normal for restaurants when they are allowed to open.”
The new normal could limit sitting at Acme’s oyster bar watching one of their famous shuckers. Harris says that until we know more about addressing the impact of the virus with a vaccine or other research becomes available, the pre-COVID dining experience we have been used to is going to change dramatically.
“People are going to be able to order raw oysters, they may not be able to congregate in front of the shucker without mitigation,” he said. “People from around the world love our food. One of the things I have said in the 10-years I have been doing this is it is not just how we prepare food in Louisiana; it is what we prepare that makes us unique. Oysters will continue to be a big part of that.”
Harris says restaurants have benefited from the opportunity to partner with the oyster community to create a unique identity. There are few places in the United States where eateries feature oysters as much those in Gulf States.
Lifting the ‘stay at home’ mandate won’t necessarily make any state’s dining economy roar back to life.
Stan Harris said that the National Restaurant Association is working to create “best practices” and guidance of how restaurants can return to operations through its ServSafe training platform. Photo: Ed Lallo/Lallo Photography
“Social distancing most likely will be necessary. Restaurants may be facing seating challenges as well as shorter hours,” he explained. “I have members that are entertainment venues, how will they be able to practice social distancing when they are designed for crowds?”
In an ongoing survey of LRA’s members, results found more than a third of the State’s restaurants are temporarily closed and almost five percent are permanently out of business.
“More than 60% of our restaurants have laid-off staff,” he said. “With 45% anticipating more layoffs in the next 30 days. Restaurants and the seafood industry are in the same boat. It is highly unlikely there will be a special funding program available specifically for our restaurants or fishermen, we have to take advantage of the COVID related government programs available to stay afloat.”
Harris said that the National Restaurant Association is working to create “best practices” and guidance of how restaurants can return to operations through its ServSafe training platform. Building trust with the guest that the operator is doing everything in their business to promote good sanitation practices, employee health monitoring and enhanced surface cleaning throughout each shift will become part of the recovery.
“Restaurants have to have available capital available to restart.” said Jim Gossen. He inspects the farm-raised oysters of Jules Melancon on Grand Isle, LA. Photo: Ed Lallo/Lallo Photography
“Restaurants need capital to purchase food, supplies and pay labor,” said Jim Goosen, president of the Gulf Seafood Foundation and owner of Jimmy G’s Restaurant in Houston. “Restaurants have to have available capital available to restart. This presents the significant challenge. One possible idea to assist restaurants get needed funds, as well as gear up the supply chain, is fund restaurants to feed the needy.”
He said that Chef Jose Andres of World Central Kitchen has been putting this idea into practice. His foundation has been paying restaurants to feed those in need, as well as first responders, hospital workers and restaurant employees.
“They came to New Orleans, but only one or two restaurants participated because of low reimbursement rates. If the federal government would work with foundations like World Central Kitchen then the concept could benefit a host of restaurants, as well as fishermen.”
In addition the Houston restaurateur strong believes tax incentives are needed to help the industry, as well as a time extension to the current Payroll Protection Plan program.
“We need federal and state tax deductions. If customers dining out can deduct 100% of there meals this would be a fantastic incentive to continue to fund employees through the restaurant as a percentage of past payroll,” he explained. “In addition the PPP should be extended out for long as it takes to use because some workers will not be able to return immediately because of customer restrictions being in place.”
Everything is on the Table
Mark Romig agrees that re-opening the city’s restaurants will be subject to a host of new protocols. The senior vice-president and chief marketing officer at New Orleans & Company, formerly the New Orleans Convention and Visitors Bureau, says the governor and mayor will most likely establish new protocols for the city that has been one of the hardest hit by the novel coronavirus.
“Everything is on the table,” said Mark Romig. “We have thrown out the old playbook and looking to create a new one.” Photo: Ed Lallo/Lallo Photography
“Everything is on the table,” said Romig. “We have thrown out the old playbook and looking to create a new one. One thing we know for sure is that our visitors like to eat oysters, so getting the Oyster Task Force involved makes a lot of sense.”
New Orleans & Company new tourist model will have visitors driving, not flying, into the city. Romig’s team is currently in the planning mode on campaign messaging to entice potential visitors within a few hours drive to come to the city after pandemic restrictions have been lifted.
“The face of convention and corporate travel is going to change. We have already lost numerous conventions and events to the virus, but we are looking as this as on opportunity to rebook them at a later date,” he said.
The voice for New Orleans tourism said he is willing to work with the oyster industry to get both organizations back on solid footing. “Our website has more than ten million visitors a year, I think it is key that we start promoting on social media how important oysters to our culture and our city.”
Conventioneers and tourists are a big part of who eats Gulf oysters, and no one serves more than Drago’s Seafood Restaurant. With five locations along the Gulf coast, the restaurant chain serves more than three million chargrilled oysters a year, as well as millions more in other menu items.
“There is nothing bigger than Louisiana seafood. You’ve got shrimp, you’ve got crab, you’ve got crawfish, you’ve got different finfish; these are all seafood that is indigenous to our area, but also popular and available in cities around country,” said Tommy Cvitanovich, Drago’s owner. “Oysters on the other hand are just as indigenous, but you have don’t have near per capita of oyster bars and oyster items, like an oyster po-boys and platters, on the menus of restaurants per capita in cities like San Francisco, New York, Chicago, Kansas City, Philadelphia or Miami.”
Conventioneers and tourists are a big part of who eats Gulf oysters, and no one serves more than Drago’s. Tommy Cvitanovich, owner of Drago’s says oysters are not only a vital restaurant item, but also an important part of the culture and heritage of New Orleans, the State and the Gulf of Mexico. Photo: Ed Lallo/Lallo Photography
Cvitanovich says oysters are not only a vital restaurant item, but also an important part of the culture and heritage of New Orleans, the State and the Gulf of Mexico.
“People come here to eat,” he told Gulf Seafood News. “But I tell you there is nothing more they like to eat than oysters. The love to belly up to oyster bar at Acme, or come to Drago’s for charbroiled, or Casamento’s for the raw oysters and Arnaud’s for the Oyster Bienville or Rockefeller; those are all huge trademark dishes for our way of life.”
Currently the New Orleans restaurateur has two of his five restaurants open for take out. He says because of the square footage of his restaurants he should be able to comply with any new health and safety protocols. He does worry for smaller French Quarter restaurants known for their intimacy dining.
“When Governor Edwards lifts the “stay at home” order, it is not like the faucet will be turned on full blast. You are going to have a lot of people concerned and worried about how safe it is to dine out,” said Cvitanovich. “If social distancing is put in place for restaurants it will take away half of my dining space so I am going to have to “turn and burn” tables to make it up. This could hurt my business because customers might say I am not going into Drago’s they are way to busy.”
Planning for Survival
As the country waits for the restaurants to re-open, Gulf oystermen and processors are planning their survival strategy.
“Right now we are operating at five to ten percent of what we would normally operate,” said Rodney Fox, owner of R&A Oyster Company in Irvington, AL. “We are still processing a few oysters to sold in retail markets, as well as freezing product for when this passes over.”
One of the biggest concerns for Rodney Fox, owner of R&A Oyster Company, is the availability of oysters for processing when the pandemic restrictions are lifted. Oyster being unloaded at the Empire, LA dock. Photo: Ed Lallo/Lallo Photography
Fox, whose company has had a crisis plan in place and is prepared to weather the storm financially, said that a majority of his business involves providing oysters to food service companies that deliver to markets outside of the South. “We sell to Sysco, U.S. Foods and Performance Food Group. They deliver our product inland to restaurants in cities like Oklahoma City, Atlanta, Memphis and up the East Coast into the Carolinas.”
One of the biggest concerns for Fox is the availability of oysters for processing when the pandemic restrictions are lifted. “What I am worried about is not having oysters when it does come back. For sure it will come back slowly. They aren’t going to flip a switch and everybody will be back working and oysters will be plentiful.”
The 40-year oyster veteran says he is worried that oystermen will rethink their strategy. “It takes big investments to be in the oyster business. After Katrina and BP the price of oysters were pretty good and oystermen continued to make that investment. Currently they are facing the fact that there is a lot of product that they can’t sell,” he said. “When it gets going again, I think a lot of them will question whether to make those future investments that take two or three years to get a return.”
With the restaurant industry facing a new normal, Fox said that one strategy the oyster industry might research is expanding marketing to supermarket and retail chains like Costco. “The problem is that unlike other seafood, oysters have a very limited shelf life and have to be eaten fresh. You would have to change a mindset that has always been ‘you go out to consume oysters’ instead of bringing them in.”
Ryan Bradley has talked with numerous processors, dealers and fishermen. He realizes there is really a high risk in losing a number of these to the “shelter in place orders” caused by the virus. Photo: Ryan Bradley
Ryan Bradley, executive director of Mississippi Commercial Fishermen United and a Gulf Seafood Foundation board member, has talked with numerous processors, dealers and fishermen. He realizes there is really a high risk in losing a number of these to the “shelter in place orders” caused by the virus. “We are trying to come up with ways to help facilitate direct marketing and sales, from pop-up events to social media based advertising. All Gulf seafood is on very shaky ground and we are trying to keep it on life-support.”
Louisiana Oyster Task Force member Brad Robin of St. Bernard Parish agrees there will be a new normal following the lifting of the “shelter in place” order.
“It seems as oystermen we are in a continuous fight against one kind of virus or another,” he said. “Right now it is important to conquer the coronavirus, then deal with the others. Our lives, and those of others, are the most important thing we can take care of right now.”
According to Louisiana oysterman Brad Robins the public will not have to worry about the safety of the oysters when they reach the restaurants. Robins explains the importance of the Louisiana Oyster Task Force at a booth at a recent Louisiana Fisheries Forward Summit. Photo: Ed Lallo/Lallo Photography
According to the seasoned oysterman the public will not have to worry about the safety of the oysters when they reach the restaurants, all his boats are currently in lock down and crews are not being allowed onboard.
When the boats do return to the water, Robins says that a protocol needs to be put in place to test the crews. “We need to work with the Governor, or the Department of Health, to make sure that our employees are virus free so the public can have confidence when eating an oyster.”
To get the public back inside restaurants, he feels they first need to go outside.
“The recovery will be slow. It is imperative we assist our chefs and restaurants because without them we would not be here,” said the oysterman. “It is important to get locals back first. To do this I think we will need a big media event, something like an oyster po-boy the length of Bourbon Street with a different chef or restaurant taking six feet to represent social distancing. If people around the country see locals eating this great seafood, they will get hungry and come.”
Robin’s says he has the where-with-all to weather the current storm, however he fears the face of the industry will change with both oystermen and processors reassessing their commitment to invest in its future.
Raz Hallili, sitting on bags of oysters, said the Gulf oyster industry is one of the main sources for oysters in the country. PPhoto: Ed Lallo/Lallo Photography
“There is no doubt about it, this is going to be a slow recovery. There is no magical switch you turn on and everything goes back to how it was overnight,” said Raz Hallili, general manager Prestige Oysters in Texas. “The entire oyster industry needs to work with our restaurant partners to benefit our consumers. We need to do whatever it takes to get the restaurants back in business, and our oysters into the mouths of waiting customers.”
Hallili, a board member of the Gulf Seafood Foundation, said the Gulf oyster industry is one of the main sources for oysters in the country.
“Although the restaurants in the Gulf remain our priority, we have to lend whatever assistance we can to those beyond our shores,” he said. “The one thing that will bring both residents and tourists back to our restaurants is the food. People love to eat and the especially love to eat our oysters.”
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