Cooking Oil
The Oil Slick Stops Here
The Gulf Syndrome
A Spreading Nightmare
Offshore oil drillers and politicians aren’t the only ones feeling the heat since the Deepwater Horizon oil rig began spewing thousands of gallons of oil a day into the Gulf of Mexico.
While the ultimate environmental impact of the massive oil spill that began on April 20 is yet to be known, owners of Houston, Texas-area restaurants that feature seafood and related businesses are increasingly concerned over the short- and long-term economic effects of the ecological disaster.
The Houston Business Journal spoke to well-known restaurateurs and chefs as well as other company executives about what impact is being felt or what steps they are taking—one local restaurant group has filed suit against BP and others for the potential loss of revenue—and found some surprising developments:
Bryan Caswell, owner of the popular, award-winning Reef restaurant, which is 100 percent dependent on the Gulf Coast for fresh seafood, says he’s more concerned as each day passes and crews are still not able to contain the oil leak.
“If you asked me two weeks ago, I wouldn’t have been so concerned, but they haven’t been able to stop it, and it’s really worrying me,” he says. “I don’t know what I’m going to do if it gets to Texas.”
Caswell says several generations of his family have been involved in the oil business, and he’s even heard hardcore oilmen express concern over the long-term effect the oil spill will have on the restaurant and fishing industry.
Caswell says days after the spill he was most concerned with assuring customers that it was still safe to eat at Reef, but now he’s more concerned with procuring the different species of seafood served at his restaurant.
He says about 75 percent of the seafood he gets comes from the Freeport and Galveston, Texas, areas, which haven’t been affected yet, but he says he can no longer get oysters or crabs from Louisiana waters. The federal government has extended a no-fishing area in the Gulf to more than 400 miles in length and 100 miles wide extending from the southeast tip of Louisiana.
He adds that he’s seen an approximately 16 percent to 20 percent increase in prices since the day of the oil spill and says he usually doesn’t pass costs on to customers for temporary situations, but may soon have to look at raising prices to balance the cost of the fresh seafood.
“We made our name on offering dishes solely from the Gulf Coast and offering the most unique species that you couldn’t find anywhere else,” he says. “We’re at a pretty good time right now with a lot of fish in season, but the demand for the fish is now outnumbering the supply.”
Rap superstar Jay-Z, who is married to Houston pop diva Beyonce Knowles, once stopped by the Reef and told Caswell his crab cakes were “solid.” Despite his own concerns, Caswell says he hasn’t noticed a decline in customer traffic, but says he definitely hasn’t noticed an increase either. “What’s going to be bad is if it continues for weeks,” he says. “That’s scary for a guy like me.”
Houston-based Pappas Restaurants Inc., which has about 100 restaurant locations in seven states, has already filed a lawsuit against Transocean Deep Water Drilling Co. and BP for damages caused by the oil spill, and Caswell says he’s also contemplating taking legal action against the oil companies.
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