Businesses are still struggling in Malibu after the Palisades fire

Caroline Petrow-Cohen, Tribune News

Six months after the Palisades fire roared down Pacific Coast Highway, the Country Kitchen in Malibu is open for business, but many customers have yet to return. The no-frills eatery features a few outdoor tables and ocean views, nestled in a narrow parking lot alongside a liquor store and gift shop. The restaurant, which opened in 1972, is literally a hole in the wall. It serves breakfast burritos all day and burgers out of a window. It wasn't destroyed by the fires but had extensive smoke damage. It was cut off from most of its customers for close to five months, waiting for the highway to reopen. Business is a lot better than it was a couple of months ago, but still well below what the restaurant would usually see this time of year.

"Things are better, but if you compare it to last year, it's still probably 25% less business," said Joel Ruiz, who has worked at the Country Kitchen for 40 years. Up and down the coast, businesses that survived the flames are still hoping for a return to normalcy. As customers slowly return to a changed landscape, the small businesses that dot Pacific Coast Highway wonder how long it will take to get back to business as usual. PCH was closed to nonresidents for five months following the Palisades fire, isolating the once-bustling businesses that catered to beachgoers and tourists.

According to the California Department of Forestry and Fire Protection, the Palisades fire charred more than 23,000 acres and destroyed more than 6,000 structures. The blaze burned the vast majority of homes along the ocean from Topanga Canyon to Las Flores Canyon. Nearly 800 structures were lost in Malibu, including the Reel Inn, a seafood restaurant just a few miles down the road from the Country Kitchen. Other popular restaurants including Duke's Malibu are still closed due to damage. Caffe Luxxe near Carbon Beach was closed for months before reopening in May. It should be peak summer season for Zuma Jay's, which has been selling boards and wax to surfers since 1975. Instead, sales are about a third less than normal.

"It's better, but not like it was last year at the same time," Jefferson Wagner said. He couldn't pay his four employees for months. Some estimates put the total cost of the Los Angeles area wildfires at $250 billion. Gaps or delays in insurance coverage have kept many from cleaning or rebuilding their property at the pace they hoped. "We're still trying to get back to what we had before," said Malibu City Councilmember Doug Stewart, who was serving as mayor during the Palisades fire. "The store owners and restaurants are telling me that things have picked up considerably, but they're still not back to what they'd expect to see for the summer."

Stewart said most businesses in the community were spared from being burned to the ground but are still struggling to reopen and stay viable. "It's less of a rebuilding issue and more of a question of making sure that they've been able to survive," he said. The businesses neighboring the Country Kitchen in the strip mall along PCH have all had to adapt to the aftermath of the fire. Even the view from the parking lot is different, with vast stretches of the ocean now visible where homes had previously stood. The scuba shop Malibu Divers officially reopened May 23, the same day Gov. Gavin Newsom reopened PCH. Co-owner Carter Crary came into the shop every day while the road was still closed, serving an occasional customer. Business was down about 90% for more than four months.

"There's been a definite change since the highway reopened," he said. "We are not yet where we should be for this time of year, but we're on a trajectory that has us heading in the right direction." Malibu Divers doesn't have business interruption insurance but was able to offset some of the losses caused by the fire with a Small Business Assn. emergency loan. Crary estimated his business has lost out on $150,000 in revenue since January. The shop earns between $500,000 and $1 million in a normal year. Crary employs around 12 staff members, but he's currently not able to pay or bring in his in-store employees. The dive shop, which offers rental gear and scuba lessons, opened in 1969 and is usually busiest between May and September.

Business has been further impacted because people aren't diving in the areas where the Palisades fire burned. Most divers are going north for cleaner waters, Crary said. Malibu's scenic beaches, now contaminated with heavy metals and debris from the wildfire, usually attract customers to Roxanne Jensen's souvenir shop, Blue Malibu, located a few doors down from Malibu Divers. "It's been very slow because people don't know we're open," Jensen said. "We have to be patient. As long as the ocean is there, the customers will come back." Jensen closed her store for five months after the fire destroyed the merchandise on display and drove away tourists. July and August are typically big months for sales, said Jensen, who runs the shop with her husband. Jensen's landlord is allowing her to pay half her usual rent, but even that is hard to come up with, she said. She opened her shop 10 years ago and sells sweatshirts, swimwear and gifts.