Rebirth of a New Orleans Coffee Tradition

Two years after Katrina damaged the franchise's 25 local stores, the brand leader of PJ's Coffee talks about the strength of the people and the brand

A PJ's shop in New Orleans that didn't reopen.

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Like nearly every business on the Gulf Coast, PJ's Coffee, a famed New Orleans institution, suffered serious losses following Hurricane Katrina. Founded nearly 30 years ago in the heart of the Big Easy, pre-Katrina PJ's was a chain of 42 coffeehouses located across Alabama, Florida, Louisiana, and Mississippi. As a result of the disaster, all 25 of PJ's New Orleans stores suffered damage.

Two years ago, BusinessWeek's Stacy Perman spoke to Chris Morocco, president of PJ's Coffee, in Atlanta, and Randy Hollingsworth, then PJ's vice-president of operations about the impact of Katrina on their business (see BusinessWeek.com, 9/29/05, "Grounds for Hope in New Orleans"). On the second anniversary of the disaster, Hollingsworth, now PJ's brand leader, discussed the company's road to recovery. Here's what he had to say:

An Indelible Mark

Roughly two years after the Katrina disaster, I can say without hesitation that life is less of a daily grind. In the parishes, towns, and cities that define the Gulf States, it now takes less effort to appreciate things that seem fundamental to most people in America like fresh water, consecutive days of power, or a police presence. Running a business like PJ's Coffee of New Orleans now takes fewer makeshift resources than the months immediately following the disaster.

Less is a relative term in a post-Katrina era, though, as we approach two years since it left an indelible mark on a city with the third-largest coffee port in the U.S.; one of the most recognized streets in the world, Bourbon Street; a city whose architecture is not of this country, but of this world; a city that borders the most famous or infamous river in the U.S. Even fewer families are choosing the forever disaster-related Katrina identity—I noticed it was recently reported that Katrina dropped more than 100 slots in the popularity list for newborn names.

A third of our PJ's Coffee stores (we added "of New Orleans" to the brand in 2006 to feature our proud heritage and commitment) were dramatically affected by Katrina. Damage at our franchisees' locations ranged anywhere from several thousand dollars to in excess of $200,000, just in property and store damage. That does not include loss of operating income—or individual owners whose homes were damaged or lost. Felton Jones, our longtime roaster, lost his entire home as did his roasting associate Brian Beck.

Listening to Mark Twain

In those initial days and weeks following the storm, we were persistent in trying to determine the whereabouts of our franchisees and our corporate employees, and the scope of damage at our stores and our roasting facility that rests just a stone's throw from the mighty Mississippi. Mark Twain wrote, "The Mississippi River will always have its own way; no engineering skill can persuade it to do otherwise." How perceptive he was.

Realizing there was much at stake for us as a company, much at risk for the livelihood of our franchisees both inside and outside the Gulf, and much more in jeopardy close to home, it quickly became apparent to us that the only way to get our arms around the situation was to go against traffic, against the word on the street, against trucks and tanks and armored personnel carriers, and make our way to New Orleans.

We would fly to Jackson, Miss., and make the drive to New Orleans, stopping at every exit to fill gas containers, gaining familiarity with McComb, Miss., the last-chance fueling destination before entering Louisiana. Cash was important, but gas was king back then. Water was king. Without either liquid, you didn't go very far or last very long.