September 2025

Monthly News & Updates

Chairman's Message

Aloha HRA Members and Friends,

It’s hard to believe that it’s already September and the beginning of the Fall season is upon us. I don’t know about you but for me summer seemed to fly by very swiftly. The keiki and college students are back in school, and the summer rush of tourism yields to our Fall shoulder season. Lucky for us, we live in Hawaii, and tourism is typically strong year-round, although we all know that lately that hasn’t been the case. Consumer confidence is still significantly down from last year, which most definitely has been impacting our industry nationwide, including here in Hawaii.

Unfortunately, this past month we have also seen more restaurant closures, including Sansei, DK Steakhouse, and Chronic Tacos to name a few. As we all know, the cost of doing business continues to face headwinds, which we are all facing. According to a Smart Asset study, Hawaii experienced the highest percentage increases in several food categories this past year. Overall grocery prices increased by 5.3%, while the categories with the highest increases were bakery products and cereals at 6.5% and fruits and vegetables at 6.4%, primarily driven by Hawaii’s reliance on imported food and higher shipping costs. Nationally, the price of food has risen 3% in the last 12 months and dining out became 3.8% more expensive. Egg prices saw a significant increase of 27.3%, while meats, poultry, and fish rose collectively by 5.6%. Even Non-Alcoholic beverages became 4.4% more expensive.

This January we are also facing an increase of the minimum wage to $16 an hour. Let me remind you all, that if it weren’t for the HRA and many of you who wrote amazing testimonies to our legislators 2 years ago, we would be looking at a much larger increase and no tip credit! Being faced with these cost increases leaves many of us with no other choice but to raise prices for our customers while always looking for ways to run smarter and more efficiently. Looking ahead, there are tremendous resources, experience, and business savvy within our HRA network. I encourage you to get involved as much as time allows, network, and band together to fight and weather these headwinds we are experiencing, as there is power in numbers. We are stronger together and a louder voice when we unite to face these challenges together. Thank you for what each and every one of you do every single day to make our industry strong, keep locals employed, and serve your guests with Aloha! 

Finally, a friendly reminder that there are still a few tables and tickets left for the 17th Annual HRA Hall of Fame Gala, which will be September 29th, 2025 at the Sheraton Waikiki. Join us for an evening of fun, food, and drink while we celebrate the 2025 inductees and the Chefs of Aloha….. hope to see many of you there!

Mahalo Nui Loa,

Mike Palmer

Chairman, Hawaii Restaurant Association

Managing Partner, Ho’okipa Partners LLC

Member Spotlight: WunderGuide

You’ve heard how AI is reshaping the service sector. HRA’s new member WunderGuide built Leilani—Hawaiʻi’s AI tour guide (free for visitors). She speaks English, Japanese, and any major language. She knows a guest’s location, time, and weather, and routes them to great local food right when they’re hungry.

What visitors ask:

• great venue for my anniversary dinner while on Maui… for about 25 guests
• a local plate lunch near me
• “happy hour” in Waikiki
• best poke in Hilo
• fluffiest pancakes in Kailua
• outdoor dining spot near Poipu?

She answers all those questions.

Owners and managers: Help Leilani feature the best of your business. Share your top 1–2 dishes, dietary tags, and specials. No POS changes. Update anytime. Free for HRA members.

Please fill this input form to be used in Leilani’s training.

https://www.surveymonkey.com/r/WGRestaurant

If you want a deeper relationship with Leilani, say a multi-lingual concierge service answering your phone during off-hours, call me at (808) 729-5850 or email

iqbal@wunderguide.com.

Iqbal Ashraf

WunderGuide

Special Offer from Premier Restoration Hawai‘i 

HRA Members Only: 10% OFF Water & Fire Mitigation Services

When disaster strikes, every hour counts. Premier Restoration Hawai‘i is here to help you recover quickly, minimize downtime, and keep your doors open to the community. For all HRA membes, enjoy 10% off all water and fire mitigation services.

📞 Call our 24/7 Emergency Line: (808) 873-8886

🌐 www.premhi.com

Before & after: Lululemon’s stunning remodel by Premier Restoration Hawai‘i

Act 237 Expands Opportunities to Export Hawai‘i Goods

Hawai‘i farmers and entrepreneurs will gain new opportunities to scale their businesses and reach global markets through the Food and Product Innovation Network (FPIN), established by Act 237.

The statewide initiative connects regional facilities with processing equipment, workforce training, and business support services to help local products move from idea to export. A pilot project on Kaua‘i is underway, with complementary facilities planned for O‘ahu and Maui. Recent legislation also provided funding for program coordination and a new agricultural processing facility in Kekaha.

By investing in infrastructure and support for small businesses, FPIN will not only strengthen Hawai‘i’s export capacity but also advance farm-to-school and farm-to-state programs, improve food security, and reduce reliance on imports.

New food safety rules in Hawaii impact restaurants and homemade food sellers

Hawaii food establishments must now inform customers if products contain sesame seeds, which the FDA now recognizes as a major food allergan.

Hawaii's updated food safety regulations are reshaping the landscape for small-scale producers and restaurants, but some businesses may not be fully prepared for the changes.

Hiding in Plain Sight: Hospitality’s Talent Pipeline

The U.S. hospitality sector, which includes restaurants, hotels, bars, catering, tourism, wellness, and entertainment, is a cornerstone of the American economy. It supports nearly 17 million jobs as of April 2025, according to the Bureau of Labor Statistics (BLS). Despite record consumer spending and a robust post-pandemic rebound, the industry continues to face a severe labor shortage and the highest turnover rates among major sectors

How Restaurants Can Profit From College Football Tailgates and Home Viewing Parties

Turn Sports Passion Into Revenue: The $16.5 Billion College Football Opportunity

College football isn’t just an athletic spectacle—it’s a money-making powerhouse for the hospitality industry and the food & beverage sector. Last year alone saw consumer spending top $16.5 billion during football’s peak season. With an estimated 13 billion meals eaten at tailgates annually, food and beverage operators are primed to score big, both in their dining rooms and via takeout, delivery, and catering

Cobber and Dumpcakes: The Sweet Profit Centers for Restaurants

In today’s competitive restaurant landscape, savvy food and beverage directors are discovering that traditional comfort desserts like cobbler and dumpcakes aren’t just crowd-pleasers—they’re profit powerhouses. With food costs soaring and labor challenges persistent across the hospitality industry, these simple yet satisfying desserts offer restaurant owners an opportunity to significantly boost their bottom line while delivering the homestyle comfort diners crave.

12 by AUTEC: Redefining Private Dining with Sushi Robotics and Culinary Artistry

AUTEC, the nation’s leading commercial sushi robot provider, has created something unprecedented in the hospitality industry. The 12 by AUTEC series represents more than just another dining concept—it’s a bold statement about the future of food service technology and its potential to elevate rather than diminish the human element in cuisine.

The debut event brought together only 12 guests in an intimate setting that blended fine dining, music, and design into a sensory-rich experience. This deliberate limitation on seating ensures that each guest receives personalized attention while witnessing firsthand how advanced robotics can seamlessly integrate into high-end culinary presentations.

Total Restaurant Industry Jobs

Nationally, Restaurants Added 11k Jobs in August

Restaurant staffing levels plateaued in recent months, even as the overall demand for labor remained relatively firm. 

Eating and drinking places* added a net 11,000 jobs in August on a seasonally-adjusted basis, according to preliminary data from the Bureau of Labor Statistics (BLS). That followed a 2-month period in which payrolls were essentially flat, as July’s increase (+5,800) was offset by losses in June (-5,900).

Food Costs

Wholesale food prices edged lower in August, but remained above year-ago levels

Average wholesale food prices ticked lower in August, according to preliminary data from the Bureau of Labor Statistics. The Producer Price Index for All Foods – which represents the change in average prices paid to domestic producers for their output – declined 0.3% between July and August.

August’s modest decline followed three consecutive gains in wholesale food prices, the strongest of which was a 0.8% increase in July. Prior to that, the food price index had fallen sharply in both March (-2.3%) and April (-1.5%), which offered temporary relief from the reacceleration in food costs. 

Why restaurant profitability has yet to recover from the pandemic

Why are some restaurants having such a tough time this year?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Chad Moutray, the chief economist for the National Restaurant Association. 



The National Restaurant Association wanted to talk with Chad for two big reasons: First, the association published its data abstract on the restaurant industry, which shows some surprisingly low profitability for both full-service and limited-service restaurants.