Will more Hawaii restaurants close, move to take-out only, or make other significant changes as problems worsen, and some restaurants simply decide to close down?
Four of Honolulu’s most recognized restaurants, and highly rated ones at that, have closed their doors with little notice. This comes as the Hawaii restaurant industry suffers from many issues, including high costs and a lack of ability to hire and retain staff. Of all these issues, the worst we are told is staff shortages.
The Hawaii restaurant industry remains primarily disrupted.
That comes following the pandemic, and the industry appears unable to recover. There are currently significant staff shortages at most restaurants.
Not only that, but some restaurants are seeking to provide housing for their employees to offset the untenable cost of living they face. Following Covid and the decrease in Hawaii travel, restaurants closed or reduced operating hours. Workers were initially laid off or chose to leave independently.
When Hawaii’s travel economy started recovering, and restaurants reopened, there was a skyrocketing demand for workers. Still, not enough people were qualified or wanted to return to restaurant positions.
While restaurant staffing shortages aren’t uncommon throughout the country, it is greatly exacerbated in Hawaii because of the higher cost of living. Restaurant workers find it hard to make enough money in their positions to continue to afford to live in Hawaii.
While restaurants have sought to increase worker pay and benefits, that still hasn’t been enough. Many restaurants, cafes, and other establishments now operate on reduced hours, with fewer menu options and tables in use.
Technology, including self-service options and online ordering, is also being used to help restaurants operate with fewer staff. Restaurants are also trying innovative solutions like flexible hours and shorter and longer shift options. We just interewed one restaurant owner who said that it isn’t unusual to have staff work double shifts to make up for shortages. He said that the increased cost of overtime and in trying to hire, train and retain staffing presents a very challenging situation.
Zippy’s Restaurant tries a take-out-only model.
Could this be more of what the future will look like? The Zippy’s restaurant at the Koko Marina Shopping Center called it quits in terms of sit-down dining last week. They have transitioned entirely to being take-out. That is becoming commonplace, unfortunately.
The Hawaii Restaurant Association executive director said regarding Zippy’s, “the rent of that space and the revenue is what they’re looking at on the top of expenses, the employee shortage, and whether they have enough staff to provide excellent customer service.”
Four popular Honolulu restaurants closing suddenly.
Two closures already occurred this week. First was Piggy Smalls at Ward Center which closed after seven years. Their flagship Chinatown restaurant, The Pig & The Lady continues to operate. Next was Little Village Noodle House, a fixture in Chinatown for 22 successful years. Both will be missed.
Ruby Tuesday in Kapolei is scheduled to close on February 21 due to increasing costs and, even more so, unavailability of workers. Also closing in Hawaii Kai is the Outback Steakhouse. They will serve their last meal on February 26.
While restaurant closures are becoming a regular occurrence, the number announced this week, is unpreceneted.
What we can do to stop more Hawaii restaurants from closing?
One thing is to support local restaurants and tip employees generously. The prior 15-20 percent tip guideline maybe now should be 20-25% given today’s world. What are your ideas?
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Ingrid C says
What happened to the beautiful Pineapple and Sugarcane Fields? Shipped out to another country while Hawaiians struggle for work and for food sources. Now you import everything that once was easily acquired right on your home soil. Still baffles me when I visit Hawaii and those historic, legendary industries no longer exist. Open and baren fields are a sad reminder of what Hawaii gave away. Vote smarter Hawaii.
Jeanne M says
Your suggestion of raising tips to 25 % should consider some people don’t tip
at all! I suggest an automatic 18 % on bill. More at your discretion. As we do when really pleased!
Remember your article about nickel and diming….20 to 25 % kinda smacks of that.
Your cheap fares are not attracting the big spenders…part of the problem.
I make an analogy to underpaid service workers to what Hawaii has done for decades before…underpaid teachers!
danj says
Well our state and local governments could make certain take out boxes illegal, ban plastic straws, increase welfare and unemployment benefits, shuttered the source of 16% of Oahu electricity production, and ban future gas stoves! Oh wait a minute; Government has already done taken these steps or are in the process of doing so. Most Hawaii restaurants were thriving pre pandemic, and then the state and federal governments shut down or hamstrung most small businesses and paid people to refrain from working. I wonder who’s to blame here?
brenda n says
i think if people who eat out tourists or locals spend money ina restaurant they still deserve the same level of food and table service. Cost of living doesn’t raise tips. If the server is attentive and respensive 20% is expected. Most peoples cost of living has gone up ,cost of good, gas,rent. And our incomes dont go up so we can make rent and support ourselves and pay our bills at customary levels post covid, at best if we re lucky it’s up by 1.5 to 3 % or at rate of inflation.Rent goes up 3.5% that takes that increase away. Anyway many professional jobs like nursing caring for the aged in their homes one has to do 3 jobs to keep a roof over their head. There is no tips to increase just burnout and bad health from stress. It affects many
Phil R says
As a former resort bartender (Lake Tahoe… 17 yrs pouring drinks), I really hate to say that tipping 25% on what is now typically an overpriced meal or bar tab isn’t the answer, or at least not sustainable as restaurant/bar prices in Hawaii continue to increase significantly. I’m normally a generous tipper, however, aside from the staffing shortages, it seems to me the restaurant owners are the clear winners if they won’t pay their staff. Recently I was with three friends at a nice beachfront restaurant on Maui last week for “happy hour” and I picked up the tab for two rounds. The bill was about $140 with tax! Throw in a 20% tip and I left spending $170 on eight drinks. I know… I saw the menu, but it’s getting kinda ridiculous now.
Eve says
How can we possibly pay 25 percent tip on top of paying 25 percent more for a meal? Who will be able to continue to enjoy eating out?
Dennis d. says
Okay, so a staff shortage is the crux of the problem for restaurants staying open??? What are these former employees doing now to earn a living, pay for rent and food, etc.??? And we keep hearing of the Overflow of tourists coming to HI, they have to eat somewhere! So, we have restaurants trying to get staff, tourists trolling for a place to eat, and we can’t put these two together???
So, restaurants, pay staff better if you want to stay alive and feed the hoards of tourists inundating HI. Problem solved! (I hope!)
SD says
They left the island during the pandemic to go to states that were open or areas where they could work and afford to live. California restaurants are suffering as well. Hawaii and California had the longest restrictions and longest closures, yet have the highest cost of living areas. It’s really sad actually because these states got hella money from the federal government for “state of emergency” yet gave the people crumbs while their sponsors got rich.
Cynthia S says
I live in Texas now, and I have news for you–businesses around here can’t get employees either. And this state pretty much stayed open. People are moving into other industries–industries that pay a living wage.
BD says
Quality of service at restaurants seems to be declining, probably due to staff shortages, yet we are now expected to increase a tip for inferior service????
CYM says
Is it just me or has the quality of food gone down too? We ate at a fine dining restaurant last year and it was about $130 a head including drinks. I was not impressed with the food but because it was fine dining, the service was good. Tip was already included in the bill.
Debbie N says
Because of your handy information on Hawaii we learned we needed to get reservations early for restaurants because they have fewer wait staff and often fewer tables. That is so true. Thanks for letting us know
Beat of Hawaii says
Hi Debbie.
Thanks. Glad we can be of help.
Aloha.
JW says
In the Sultan Restaurant in Wisconsin, employees will make $20 an hour plus a 5% profit share. No tipping is allowed. Maybe if that became the norm people would be happy with the prices.
We pay for many things that don’t require tips, like car sales or rentals, without tipping. Let’s look at doing the same in the service industry.
Debbie N says
Yes something needs to be done but I admit I don’t know the solution. We just got back from Hawaii a few days ago and the prices at beloved restaurants have doubled or more at several of our favorite restaurants. We began discussing that we may not be able to afford to return. Ex. We love the KPC in Hawaii Island. It cost 2.5 times what we used to pay. Same with the Canoehouse. And the food wasn’t as good although the views were still spectacular.
Lanell says
BOH, thanks for the info. Sad state of affairs, so expensive to live in Hawaii. Do you know if housing costs have declined at all with the new transient vacation rental rules on Oahu? I haven’t seen anything mentioned about it in the news.
Mahalo
Lanell
Beat of Hawaii says
Hi Lanell.
Thank you! We have heard nothing to that effect but we will keep an eye out.
Aloha. .
Rich S says
I think in general, 20% should be the norm and if service is exceptional then 25% or more. But restaurant folks should realize that a lot of tourists have had to pay very inflated air fare and housing costs during their Hawaii stay, as well as food costs at local stores. Possibly, restaurant owners and the state of Hawaii should give wage and tax incentives to restaurant workers to make these jobs more appealing and acceptable.
Karen L says
We need to stop this insane attack on the short-term rental, cottage industry that employs people within their communities and does not take away affordable homes. Short-term rentals in Honolulu County have been regulated to B&Bs, but DPP has not and does not appear that it will permit B&Bs. DPP needs to follow the law. It appears ethically, lawfully, and politically challenged and heavily influenced by the hotel industry and developers.
With just a little more money, people may be able to take a better job in town and be able to afford a solution to the last few miles not covered by public transportation. With just a few more tourists venturing out of resort areas with rental cars, more restaurants may be able to survive.
SD says
While I understand your logic, Hawaii was thriving before the air b n b and short term residential rentals came to the island. Because of this, it prices locals out of homes so they have to leave the island or forced to work several jobs. It creates a housing shortage for locals…who are the ones who serve tourists.
Ernie S. says
SD, the entire country, Post Covid, is dealing with the same issues. The difference may be in how much things cost but remember that different portions of the country are not making the same amount of money. Rents have risen considerably everywhere far outpacing wages, that doesn’t include the Crazy Inflation. The pain is being felt everywhere is what I am saying.
DJD says
Tips dont go to the business owners, they go to the wait staff. The business owner decides if the resteraunt will close or not, based on their profit and loss statements. So tipping more wont help save your restaurants. Sad to say but the entire industry was hurt by the extreme covid restrictions placed upon them no fault of their own. Government doesn’t care much for the small business as they do for the large corporations who will fill their back pockets. You want small business to survive, then vote accordingly. The greedy politicians are ruining it.
kellyp says
I think fast casual restaurants will be take out only, maybe walk up. The economics don’t support the dining room, cleaning, etc. Everywhere not just Hawaii.
If I were Governor of Hawaii, I would make a big push for growing your own food. Commercial fish farms, vegetables, everything you can. It’s ridiculous for Hawaii to import as much food as they do.
I know someone who works for a large employer with employees in Hawaii and a major metropolitan city. They were offering $10k plus a year in bonuses to move to Hawaii for even 2 years and there were no takers.
Hawaii only seeks the rich and those people do not eat at fast casual restaurants.
Don K. says
Well, you can thank both the previous administration and the now new governor for the fiscal state of countless small businesses and restaurants throughout the Islands for the chaos they caused! No real rhyme or reason, just an overriding amount of control of the Hawaiian Islands but then once again within Hawaii like everywhere else, you get what you vote for, over and over again!
Melony P says
Wow! Piggy Small’s and Little Village closing! Two awesome restaurants will greatly be missed. Restaurants on the mainland have and are still suffering also. My ohana’s restaurant, a landmark for over 50 years in NC closed in June 2021 for many of the same reasons, despite being high paying, with benefits, insurance and profit sharing. Sending aloha to all impacted.
Rob says
I find it odd there are so many stories about too many visitors and ways to deter them and now not only should visitors pay extra fees/taxes but should tip more? Careful what is asked for you can only squeeze so much.
Michael R says
Little Village was a favorite, and for more than the noodles. Sorry it’s gone, along with some others including Jimbo’’s udon. Thanks for keeping us up to date on this and other news, good and not so good, such as this.
Beat of Hawaii says
Hi Michael.
Thanks. Yes, Jimbo’s on King Street closed quite some time ago. That was definitely a favorite. Somehow it’s still hard to believe it isn’t there.
Aloha.
Jay says
When the government gives long handouts or unemployment is extended people make more money than working milking the system. Also they pay no taxes.
Todd H says
Unemployment payments and “handouts” are taxed. All those Covid era financial assistance programs ended a while back.
Dee D. says
Extended unemployment benefits are long expired post-covid. Low-wage workers aren’t flocking back to the service sector for various reasons but not because they are collecting unemployment. They’re also not living off the $ they “milked out of the system”, that’s also been spent long ago, on, you know, the high cost of living. It’s really sad to see Little Village go, it was a gem.