July 2026

Monthly News & Updates

Chairman's Message

Aloha HRA Members,

It is an incredible honor to serve as the Chairman of the Hawaii Restaurant Association. I want to begin by expressing my sincere gratitude to Mike Palmer for his outstanding leadership over the last years. Mike has led our Association with integrity, passion, and an unwavering commitment to our industry. On behalf of our members, mahalo, Mike, for your service and for leaving HRA stronger than you found it.

Our restaurant industry has always been built on resilience. We are entrepreneurs, operators, chefs, managers, servers, bartenders, suppliers, and countless others who wake up every day with one common goal—to create memorable experiences through hospitality. While our businesses may sometimes compete with one another, our success as an industry depends on how well we work together.

As I begin my term, my vision is simple: to strengthen the connections that make Hawaii's restaurant community exceptional.

The challenges facing our industry continue to evolve. Labor shortages, rising operating costs, changing consumer expectations...

Save the Date: 18th Annual Hall of Fame Induction & "Chefs of Aloha" Dine Around

Join us in celebrating and honoring outstanding individuals in Hawaiʻi's foodservice industry at the 18th Annual Hall of Fame Induction and "Chefs of Aloha" Dine Around on Monday, September 28, 2026 at the Sheraton Waikīkī. The evening begins with registration and cocktails at 5:00 PM, followed by the Dine Around featuring the Chefs of Aloha at 6:00 PM, and the Hall of Fame Program at 6:45 PM.



This year's inductees are select individuals who have demonstrated dedication and commitment to the growth of the restaurant and food service industry in Hawaiʻi, contributed to the enhancement of its quality and image, and demonstrated service through outreach.

The 2026 class includes Caleb Hopkins (Practice Aloha Hospitality — Māla Ocean Tavern, Coco Deck Lahaina Kitchen + Bar, Pizza Paradiso, and Pineapple Robot), Gene Kaneshiro (Columbia Inn & the Hawaiʻi State Department of Education), Dwight Otani (D. Otani Produce), and Hide Sakurai (Sky Waikīkī).

Waiānuenue at Kapaʻakea Announces Restaurant Lineup for Late 2026 Opening

Honolulu's newest mixed-use destination, Waiānuenue at Kapaʻakea, has announced its restaurant lineup ahead of a late 2026 opening. Located in Mōʻiliʻili near Puckʻs Alley, the two-block development will feature over 20,000 square feet of retail, dining, and community space, with a strong emphasis on locally rooted concepts.

The lineup includes Hawaiʻi Restaurant Association members Broke Da Mouth Grindz and Island Manapua, alongside additional food, beverage, and retail tenants. The project represents continued investment in Hawaiʻi's restaurant landscape and a new gathering space for the Mōʻiliʻili neighborhood.

Hawaii Restaurant Association in the News

• KHON2 — Electricity Bills See a Spike in the Summer Months
• KHON2 — Hawaii Cheers on U.S. Soccer
• KHON2 — Hawaii heroes in major UFC event brings local excitement

Economic Outlook Remains Cautiously Optimistic for Restaurants

The National Restaurant Association's latest monthly economic briefing points to a cautiously optimistic outlook for the restaurant industry. While consumer confidence remains below historical averages and affordability continues to challenge household budgets, dining out remains a top discretionary priority for many consumers. Restaurant operators reported improving expectations for the months ahead, with the Restaurant Performance Index returning to expansion territory in May.

Restaurant traffic and employment remain mixed, with June restaurant job growth slowing and customer traffic continuing to lag, even as same-store sales stay positive. Food and menu prices are rising at a slower pace than in recent years, though several key food commodities continue to experience cost pressure. Easing fuel prices and steady consumer spending provide encouraging signs, but operators should continue monitoring labor market conditions, inflation, and broader economic trends as they plan for the second half of the year.

ServSafe 2026 Mid-Year Review of Recent Legislation and Regulation

The National Restaurant Association's ServSafe program has released its 2026 Mid-Year Review of Recent Legislation and Regulation, a comprehensive resource highlighting the latest state-level updates affecting restaurants, hospitality businesses, and foodservice operators. The report is designed to help operators stay ahead of regulatory changes before they impact day-to-day operations.

This year's review covers new cottage food laws expanding home-based food production, changes to digital ID acceptance and alcohol age verification, human trafficking awareness training requirements, panic button mandates, FDA Food Traceability Rule updates, food allergen disclosure requirements, alcohol service and delivery law changes, and meal kit and food handler regulations. Whether you're managing one location or many, the report offers a clear look at what's changing and what actions may be needed to remain compliant.

SBA Made in America Loan Guarantee: Working Capital

The U.S. Small Business Administration has expanded its International Trade Loan (ITL) program to include manufacturers across NAICS Sectors 31–33, offering a 90% federal guarantee compared to the standard 75% guarantee under the SBA's 7(a) Loan Program. The enhanced guarantee provides lenders with greater confidence to deploy long-term, affordable financing into domestic manufacturing operations.

Eligible businesses may use funds to upgrade equipment, modernize facilities, diversify supply chains, build inventory positions, or expand operations through strategic acquisitions. HRA members with food manufacturing or production operations may qualify — restaurants themselves (NAICS 722) are not on the eligible list, but food manufacturers, beverage producers, and related supply chain operators can benefit. For more information, contact SBA's national team of Finance Managers.

Menu Pricing Strategies for Inflation in 2026

In a market defined by persistent cost pressure and cautious consumer spending, menu pricing has become one of the most important levers restaurant operators can pull to protect margins. A recent article outlines practical strategies for adjusting menus in 2026 without triggering guest sticker shock or eroding value perception.

The article covers smaller, more frequent price adjustments over large annual jumps, careful reduction of expensive ingredients, increasing perceived value through flavor and presentation, and rebuilding portions around actual guest behavior. It's a practical read for operators looking to protect profitability while maintaining the guest experience.

What Makes a Restaurant Ready to Franchise?

Franchising is often seen as the next logical step for successful restaurant concepts, but strong customer demand alone doesn't make an operation franchise-ready. A recent article examines the foundational elements that separate a franchise-ready restaurant from one that would struggle under expansion — including proven unit economics, repeatable operations, documented training systems, clear brand positioning, and scalable supply chain support.

The article walks through the financial benchmarks operators should evaluate before considering franchising, including prime cost, rent-to-sales ratio, cash flow consistency, and break-even sales. It also covers the legal and compliance framework required to franchise responsibly, including the Franchise Disclosure Document (FDD), franchise agreements, and trademark protection. A useful read for operators considering how to scale their concept.

Restaurant AI: What Works and What Doesn't

Artificial intelligence is being positioned as the solution to nearly every operational challenge in the restaurant industry — but not every AI product is worth the investment. A recent article cuts through the marketing language and identifies where AI is delivering measurable value for independent restaurants and small chains today, and which categories are still years away from being practical.

The article highlights inventory and food cost management, labor scheduling, AI-powered reservation and table management, and voice AI for phone ordering as the strongest current investments. Restaurants adopting these tools selectively are reporting food cost reductions of five to fifteen percentage points, labor cost efficiency gains, and revenue-per-cover improvements. Categories like fully automated cooking equipment and predictive customer sentiment analysis are flagged as not yet ready for most operations.