Less than half of new business ventures survive their first five years. By 10 years, two-thirds have failed, and a large percentage of the survivors have merged with, or been acquired by, other companies.
Such context makes the stories of these four, century-plus-year-old businesses, still owned and operated by the families that founded them, all the more remarkable.
All four sprung up within the old historic core of New Orleans — two of them less than a block apart — and continue today as reminders of when the city center was a thriving commercial zone. All four embody the virtues of both continuity and flexibility. But each has its own unique story, and its lessons for today’s entrepreneurs who might envision building a family legacy.
The Reily Companies | Brewing Iconic Brands for 121 Years
W.M.B. Reily & Company (now known as Reily Foods Company) was formed in 1902, when Monroe, Louisiana wholesale grocer William B. Reily decided that the roasted coffee he’d been making and selling at his store had become so popular that he could make a new business — and do so in New Orleans.
His new business venture as a roaster, grinder, packager and distributor of coffees, however, was not an instant success. In fact, it barely made it past its second year.
Two years after opening its doors, there was a fire in the factory that destroyed most of the facility. At the same time, a freeze in Brazil wiped out the coffee crops that were the main source of Reily’s beans.
“We had a line of credit, and the bank called in the loan,” recounted Boatner “Bo” Reily, the current president and CEO. “Our founder had to go to the bank and tell them he couldn’t pay it.”
Fortunately, William Reily ran into New Orleans commodities broker Jacob Aaron while at the bank, and the two worked out a deal to save the company.
“They became great partners,” Reily recalled. “They opened the office at 540 Magazine Street, and we’ve been there for 118 years.”
Reily Foods Company is now the home of local brands including Blue Plate, Luzianne and French Market Coffee.
“For the first 60 years of the company, we were really just coffee and tea,” said Reily. “Then my dad started making acquisitions.”
The company found that buying other companies with established product lines greatly reduced the risks that often come with expansion.
“Tens of thousands of new brands are introduced into grocery stores annually, and only a few dozen make it,” explained Reily. “Acquisitions don’t take away a lot of manpower trying to create new brands, that’s why they make more sense.”
While this strategy drove company growth for half a century, today Reily Foods is moving in the opposite direction.
“Acquisitions are now getting huge multipliers of their value, due to competition with private equity firms,” Reily explained. “So, we have decided that we have to do more organic, internal creation of spinoffs, new flavors and categories within our own brands.”
Two examples that consumers can look forward to are Luzianne Southern Blend, a tea flavored with real ingredients such as peach, mint, rose blossom, and honey; and a new spicy Blue Plate mayonnaise, which Reily reported “is great for a fried chicken sandwich.”
Despite the tactical shift, the basis for the company’s longevity remains the same.
“It’s the people,” Reily said firmly. “People here have been with us, some for 50 years or more. It’s like a family. We treat everybody the way we would want to be treated.”
In terms of making business and life work for the actual family, Reilly’s approach is that “no family member reports directly to another family member. And we don’t go home and have discussions about work.”
To ensure the transition of the fifth generation of Reilys is successful Reily said, “I try to make sure that they get every single job experience they can have so they know everything about the company.”
Meyer the Hatter | 129 Years of Timeless Style
eople have been wearing hats for at least 10,000 years or so,” pointed out Paul Meyer, fourth-generation owner and president of Meyer the Hatter. “They keep the sun off in summer, they keep you warm in winter. They top off any outfit.”
This downtown institution was founded by Meyer’s great-grandfather in 1894. Originally located near the corner of Canal Street and St. Charles Avenue, the store moved to its present location a little further up the block, at 136 St. Charles, in 1937.
In addition to the timelessly universal appeal of hats, Meyer credits attention to the clientele for the busines’s longevity. It’s not just the ownership that’s multigenerational, some of the customers first visited the store with a parent or grandparent. A significant percentage of sales is made to repeat customers, locals and visitors alike.
“We have some people, they get off the plane for Jazz Fest, and they come straight to see us to get their fest hat,” said Meyer.
“It’s taking care of our customers, giving them what they are asking for,” he continued. “A hat is a personal thing. It has to be the right size, the right shape, the right color. It has to fit just right.”
Because of the individuality that goes into selecting a hat, Meyer estimates that 92% of sales are made in-store, with phone and internet orders comprising only about 8%. Nonetheless, one of his priorities for the immediate future is to expand the company’s internet sales and social media presence.
The selection at Meyer the Hatter trends toward classic chapeaus. Stetsons, fedoras, Panama hats, even old-style newsboy caps, which remain popular, are featured items. While men’s hats are the main focus, an equally classic selection of women’s hats can be found.
“Eighty to 85% of our sales are men’s hats,” Meyer reported. “Sometimes a lady will buy a man’s hat, like a nice fedora.”
While the pandemic was a major challenge for the business — halting the tourist component of the sales — in some ways it was nothing new.
“In 129 years, we’ve had our ups and downs,” Meyer recounted. “The biggest challenge for my grandfather was the Great Depression, when no one had any money to spend. Then came World War II, with its manufacturing restrictions. By the end of the war, I think we had sold everything in the store.”
This institutional knowledge, shared across the generations, is invaluable, and Meyer is justifiably proud of the family continuity. He took over the operation in 2009, and his two sons are preparing now to be the company’s fifth generation.
“A family business has to have a plan for succession,” he emphasized.
Meyer’s secret for maintaining family bonds while running a business is “We leave the work here when we go home. We just try to get along with each other, respect each other.”
As some normalcy returns post-pandemic, Meyer said he’s grateful for both family and clientele.
“I really thank everyone for coming to see us over all these years,” he said. “We plan to be here for at least another 129 years, so come on in!”
Rubenstein’s | A Big Birthday and a Big New Venture
You have to change, be adaptable. You have to know where the crowd is going and be ahead of that. You can’t do the same thing over and over.”
Coming from a family-owned company celebrating its 100th year in business, this philosophy might sound startling. But for Kenny Rubenstein, chief experience officer of the eponymous men’s clothing store at the corner of Canal Street and St. Charles Avenue, it defines the guiding principle behind his company’s success.
Offering up an example of the value of staying nimble, Rubenstein recalled how the family opened a second, separate shop on the second floor of their building in the 1960s, complete with its own entrance and its own name, Madison’s.
“The young guys didn’t want to go to where their dads shopped,” he explained, “even though a lot of the merchandise was the same.”
Change is relative in the context of men’s apparel. Rubenstein said new trends take about six years to emerge – and even then, they may be as subtle as going from pleats to no pleats.
While the merchandise may be timeless, like other longtime retailers, Rubenstein has experienced its share of disruptions over the years.
“World War II was a major challenge. The store was open, but all the customers were gone. We flooded during Katrina. COVID closed the store, disrupted our supply chain, cost us our access to our customers.”
Overcoming each of these in their turn is what Rubenstein considers to be the company’s greatest achievement.
“After the war, we offered free white shirts to all the soldiers,” he recounted. “After Katrina, we opened within five weeks to help people rebuild their wardrobes. During COVID, we arranged private appointments and dropped off clothes to our customers.”
Each of these experiences, conveyed down through the generations, helps the firm prepare for the next hurdle. Rubenstein represents the third generation, and 18 different family members have been part of the operation.
“The experience from previous generations also helps deal with family situations,” he observed. “Growing up, when I worked here, if I messed up, I heard about it at home.”
Still, the family works to maintain a certain separation of work and family.
“You have to remember that maybe your boss is upset with you, but your dad is not,” Rubenstein said with a laugh. “Sometimes he is just talking to you as an employee.”
Interestingly, the Rubenstein legacy model doesn’t generally start training the next generation early.
“We feel it is important that they work outside the family business before working in the business,” Rubenstein explained.
As part of the centennial celebration, Rubenstein is welcoming yet another big change: the company has broken into the hospitality market by transforming the upper floors of five buildings — which previously served as company offices and distribution space — into a 40-room boutique hotel called, what else? The Rubenstein. The goal, said Rubenstein, is to attract new customers for the shop, while providing long-term clients with a new and luxurious way to do their shopping.
And in a tongue-in-cheek nod to a previous use of the upper area, the hotel bar will be called Madison’s.
Along with this new venture, and in support of it, Rubenstein is embracing new technologies and marketing approaches. The messaging, however, remains largely the same.
“These are not different customers per se; we are just using different ways of reaching them,” said Rubenstein. “But they all still want to look their best.”
Leidenheimer Baking Company | 127 Years of Rising to the Challenge
Food is an essential part of New Orleans’ identity, and we are fortunate to have been able to play a role in the city’s restaurant scene for over a century.”
Given the millions of po-boys served on his bakery’s bread over those years, this comment by William Whann, director of operations for Leidenheimer Baking Company, is something of an understatement. The company’s delivery trucks — adorned with their iconic “Vic & Nat’ly” cartoon by the late, great Bunny Matthews — are sighted daily throughout the metro area.
Leidenheimer’s French bread, muffuletta loaves and other baked treats are distributed nationally as well, but Whann, who represents the fifth generation of family ownership, knows that the local market is where the gusto lies.
“We have an unbelievably loyal and passionate customer base here,” he said. “It would be impossible to stay in business for over 120 years without our customers, so offering them the most reliable service has been our mission from generation to generation.”
Founded in 1896 by George Leidenheimer, who came to New Orleans from Deidesheim, Germany, the bakery has been operating at its present location on Simon Bolivar Avenue in Central City since 1904. The recipes are largely unchanged today, but that continuity has not always been easy to maintain.
“We have experienced the same disruptive challenges that all local businesses face, from hurricanes to pandemics,” noted Whann. “While every one of these issues requires new and inventive solutions, we never question the need to put our heads down and do everything in our power to get back to work. The people of New Orleans are as resilient as they come, and it is our job to be there for our customers and the rest of the city no matter the circumstances.”
Having succeeded in this gives Whann justifiable pride.
“We are incredibly proud to have been an integral part of the city for five generations. Family businesses are becoming an increasingly rare breed, and to still be going strong 127 years later is the greatest accomplishment we could ask for.”
Current management includes both fourth- and fifth-generation descendants of the founder, and the business, from baking to deliveries, is definitely hands-on.
“Luckily, we are a very close-knit family that enjoys spending time together in and out of the bakery,” said Whann.
Considering that outside of moving from local, horse-drawn delivery wagons to supplying customers nationwide, little has really changed for the company over its lengthy life.
Whann’s future plans are anchored in the past and present.
“Right now, our main goal is to continue to support our customers and the entire restaurant industry as business returns to pre-pandemic levels,” he reported.
Of course, use of social media and the internet is now part of the company, and Whann’s sister, Katie, also works at Leidenheimer, as director of marketing and communications.
But overall, what worked a century ago works today, and Whann is focused on continuing that success.
“We love our role in the tradition of New Orleans,” he said, “and we look forward to providing the highest quality French bread for generations to come.”