When we had a look at the most recent US Bureau of Labor Statistics Consumer Price Index, we understood better why so many visitors are complaining about restaurant prices in Hawaii being too high.
Escalating costs at Hawaii restaurants and grocery stores yield unwelcome sticker shock again, leaving many of us here and visitors bewildered by another sudden surge in food costs.
Who loses the most: Hawaii restaurant diners.
This comes as restaurants pass on a plethora of fast-growing costs, including food products, shipping, and labor. Overall, prices for food at restaurants (away from home) rose 8.5% in one year. In the past two months, while non-alcoholic beverages rose by 4.3% (25% annualized), it is comforting to know that the cost of alcoholic beverages declined by .9% (-5.4% annualized).
Who is impacted the least: Those eating at home and in Hawaii vacation rentals.
Too high Hawaii restaurant prices are noted in countless comments that far exceed those complaining about Hawaii grocery store costs. Nonetheless, food prices in grocery stores continue to escalate. The CPI report commented that “Prices for food at home rose 0.5 percent, influenced by higher prices for nonalcoholic beverages and beverage materials (4.3 percent) and other food at home (2.4 percent).”
Restaurant owners, frequently small business people, find continuing to operate challenging due to mounting costs. As a result, there continues to be a high number of restaurant closures.
Hawaii food trucks, are also resurging as an increasingly popular alternative.
Hawaii Restaurants are evolving. One of the primary responses is restaurants transitioning to a less service-intensive model. That includes food trucks, take-out, or waiter-less alternatives.
And while Hawaii food trucks have existed for decades, we have noted many more of them recently, especially on Oahu and in Waikiki. Their far lower expenses and more limited operations, including no service and no dish washing components, help them navigate business challenges more easily.
BOH editors will tour the alternative food scene including Honolulu food trucks in March and report back on what’s happening.
Hawaii restaurant challenges.
Hawaii’s otherwise vibrant restaurant scene is challenged amid these extreme issues. While we await the winners following five Honolulu restaurants being named James Beard Award semi-finalists, other notable restaurants have just shuttered.
There is a stark disparity between those that are thriving and those that are not. Even esteemed restaurants find themselves grappling with insurmountable hurdles, including higher costs associated with running a restaurant, tourism spending related challenges, and profound operational setbacks. A lack of restaurant personnel exacerbates the situation significantly.
Despite the challenges we diners face related to escalating costs, the most impactful thing we can do to ensure the success of family-owned restaurants in Hawaii is to dine out and support their hard work. And that includes tipping restaurant staff well.
We wrote about fifteen Hawaii restaurants that closed recently.
Have you noticed the increases in Hawaii food costs, eating in and out, and what are you doing about it?
Consumer-Price-Index-Honolulu-Area-—-January-2024-_-Western-Information-Office-_-U.S.-Bureau-of-Labor-Statistics
Hawaii unfortunately is becoming a haven for the rich. To live in Hawaii comfortably you need to make at least 80K a year. At least 70% of the population only makes 30 to 50K a year and thst’s just to survive. Working 2 to 3 jobs and still living pay check to pay check just isn’t appealing at all. That’s why in the last 10 years or so there’s been such an exodus of locals to the mainland and to other countries that offer a more affordable lifestyle. Hawaii government really needs to brainstorm ways to diversify the economy. Affordable housing is a huge problem too. Who can afford a million dollar home? Not the majority of local folks. I had to leave Hawaii because retiring in Hawaii was impossible for me. Ahuihou!!
As a western Canadian, Hawaii was our
go to winter vacation spot for many years. But it has now priced itself out of the market for many people. Hotels, restaurants, car rentals everything feels like gouging. Mexico, the Caribbean are much more affordable alternatives, and more welcoming with happy friendly staff.
Hah, alcohol beverages are down. Perhaps to keep you drunk so you do not know what you are paying for other things 😉
I am joking.
Food prices are soaring everywhere due to inflation. It costs even more to ship the products to the Hawaiin islands since it is way out into the ocean. Makes sense to me.
From The Article
“Overall, prices for food at restaurants (away from home) rose 8.5% in one year. In the past two months, while non-alcoholic beverages rose by 4.3% (25% annualized), it is comforting to know that the cost of alcoholic beverages declined by .9% (-5.4% annualized).”
More irritated by ridiculous parking fees in Lahania at Whaler’s Village $34 for 2hours…..beware folks, rip off!
John M
This might irritate you even more.
Maui is thinking about implementing a time period during every day that locals only can park at beach parking lots.
“Maui County is moving to implement a new parking asset management program called PARK MAUI. The program focuses on tackling various issues associated with the confluence of cars, visitors, and limited space that have long troubled the island. Officials recently announced a plan to introduce locals-only hours for parking at certain beach parks in Maui, and Kamaole Beach Park and Ulua Beach have been named so far.”
Just got back from 2.5 weeks at Ilikai in Waikiki. Glad had full kitchen as ate out only 1 meal per day – too expensive. No way would go back if had to stay in hotel with no kitchen. After 15+ trips to Hawaii over the years, going to look at closer/cheaper options in Caribbean. Friends loved Dominican Republic. May go to Caribbean.
Exactly Chuck L
With Maui wanting to do away with short term rentals and the only option will be hotels. Not a good scenario.
Locals should not have to suffer. Hawaii is like Disney to tourist pass the cost on to them
I am sa California tourist bern to Hawaii 10 times
It’s not about eating all the time have some fun too. But please do not destroy the Aloha feeling that only exists in Hawaii. My daughter is there now for 1st time and she said now I know what you and mom mean, It’s magic. Aloha,
Everyone knows going to Hawaii is expensive and yes just like every other state food prices are extremely high. It takes alot more cost to get food to Hawaii and the employees need their tips to survive. Seems like alot of complaints on here. When on vacation you should expect to pay more for food and budget accordingly. Please don’t take it out on the staff they live there and pay high prices to.
“Everyone knows going to Hawaii is expensive” and “When on vacation you should expect to pay more for food and budget accordingly.” is a a tiring quote. Individuals, like myself, that have worked since 1967 to earn a living, save money to enjoy a holiday, should not be stamped to be taken advantage of for greed. I hear you about your wages as a restaurant employee. Your anger should be directed to the corporate, and any higher ups . They are the ones charging way too much. Staff should not be penalized, they should be paid in accordance to food prices being charged to the public. We should not have to pay your salary and food prices!
Mcdonalds is still cheap, if you don’twant to pay a lot for food …don’t blame the workers please. I expect to pay a lot for real restaurants there just as i do if i go to high-end places elsewhere such as s.f. and marin. I also expect to tip well for those working those tough jobs.
Hawaii doesn’t have a monopoly on sun, sand, and beaches in the winter.
Hawaii is simply pricing themselves out of future consideration. That is even before the stupid ideas of adding a tourist fee to visit and banning short term rentals because the state refuses to build enough housing.
We only stay in short term rentals and only eat out occasionally. If we were forced into a hotel with no kitchen we would go somewhere else to vacation.
We were in maui last month and the grocery prices were very high compared to last year. But our prices on the mainland have also gone way up and we have less Shipping costs so understandable. We did eat at food trucks but also supported restaurants. It seemed that some of the restaurants needed more employees is it because they are trying to keep costs down or because there is a shortage of workers. We were in west maui.