Reconstruction of New Orleans - Businesses

Businesses

Bars were the first businesses to reopen in many areas; two remained open in the French Quarter even during the worst of the storm and the official mandatory evacuation. Most other businesses, such as gas stations, supermarkets, appliance stores, and restaurants, followed somewhat later as they required more work before they could reopen. Some of the few businesses to do significantly better business after Katrina than before were new car dealers. Flooding totaled an estimated 200,000 vehicles in Metro New Orleans, and dealers able to get in shipments of new cars quickly found customers. After local reporters found a used car dealer selling partially cleaned up flooded cars with restored engines but still soggy trunks, the state legislature quickly passed legislation mandating that cars declared totaled must be dismantled, crushed, or otherwise disposed of and could not be resold.

Three months after the storm, most open restaurants were serving food and drink in disposable plates and cups because of the shortage of dishwashers. Despite many restaurants offering wages double pre-Katrina levels for dishwashers, there were few takers as untrained laborers were able to make more money in demolition- and reconstruction-related industries. Ten months later, things had improved, though there were still labor shortages in many service industries.