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36 HOW PUBLIC SCHOOLS BOUNCED BACK AFTER THE PANDEMIC

N I S S H O D O C A N DY S TO R E

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HAWAIIBUSINESS .COM

PLUS NOT JUST KŪPUNA . SCAMS TARGET EVERYONE. P. 52

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COMPANIES THAT INNOVATE, ADAPT, ENGAGE, SOLVE, INSPIRE AND SERVE CUSTOMERS AND THE COMMUNITY

LOCALLY GROWN VS. FOREIGN MAC NUTS P.57

APPLICATION PORTAL FOR COHORT 7 OPENS JULY 1ST

BECOME PART OF HAWAII'S NETWORK OF GROWING WOMEN LEADERS! Whether you're an entrepreneur or navigating the corporate world, Wahine Rising is your dedicated support system for success. Perfect for emerging women leaders, immerse yourself in essential leadership topics that will expand your leadership capacity and foster meaningful connections. TAKE THE NEXT STEP ON YOUR LEADERSHIP JOURNEY. CONNECT WITH US TODAY! mcblhawaii.org/wahine-rising 2 | M AY 2 0 2 5

PH 808.695.2635 EM mcbl@ywcaoahu.org 1040 Richards Street Suite 105 Honolulu, Hawaii 96813

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PHOTO: AARON YOSHINO

05.25

FEATURES

HAWAIIAN HOST AND MAUNA LOA – THE STATE’S BIGGEST SELLERS OF MACADAMIAS BY FAR – USE FOREIGN NUTS EVEN THOUGH THEIR PACKAGES ARE ALL ABOUT HAWAI‘I.

Best of Small Business: Companies We Admire They innovate, serve and inspire us. Profiles of eight winners of our SmallBiz Editor’s Choice Awards and three inductees into the Hawai‘i Small Business Hall of Fame.

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Schools Countered After Pandemic Hurt Learning Hawai‘i public schools are among the national leaders in the bounce back in test scores following the pandemic. Here’s how three schools found many ways to help kids.

Not Just Kūpuna; Scams Target Gen Z & Everyone Romance to cryptocurrency, concert tickets to jobs, Hawai‘i residents lost $61.6 million last year as scammers pushed your psychological buttons in all kinds of ways.

Packages Imply the Nuts Are Local. They’re Not. Local growers and companies that sell Hawai‘igrown nuts want a label-oforigin law with real teeth, not the narrow version that takes effect Jan. 1.

Our Surveys Ask: What’s the State of the State? That and other results from the BOSS Survey of 357 local business owners and executives, and the 808 Poll of 413 members of the general public.

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CONTENTS PHOTO: COURTESY DEREK PETROWSKI

He’s Part of the “Pit Crew” for a Maunakea Telescope Derek Petrowski describes how he got the job and what he does as a telescope support technician at the Keck Observatory.

Make Hawai‘i & America Better: Listen Like a Good Journalist Editor and Executive Publisher Steve Petranik says that listening to those with whom you disagree is a valuable exercise – even if they don’t listen back. 7

YWCA of Hawai‘i Island Aims to Pump Up Historic Campus Almost half of the $6 million Phase 1 budget has already been raised to transform a downtown Hilo location that has served the community for 105 years. 10

IHS Builds Bridges for Men From Prison to New Purpose Program provides shelter and services, so residents have a base from which to secure vital documents, apply for jobs, begin work and start a life on the outside. 8

Do It Yourself Jewelry Starts at Kaimukī Store Called Bead It! Brendan and Jill Barry opened the store in 1992, where they not only sell you the supplies you need, they will help you create your own unique piece. 106

COVER PHOTO BY AARON YOSHINO

SPECI A L A DV ERTI SI N G SECTI ON S Keeping Hawai‘i Healthy Hear from a local health care leader on key issues affecting our state this year. 15 Hawai‘i Island Business Report Organizations share their challenges and vision for moving toward a brighter, more sustainable future. 45 Hawaii Restaurant Association The association celebrates the 2025 Food Service Expo. 67

HAWAII BUSINESS (ISSN 0440-5056) IS PUBLISHED 12 TIMES A YEAR BY PACIFICBASIN COMMUNICATIONS. ©2025 PACIFICBASIN COMMUNICATIONS, LLC. ALL RIGHTS RESERVED. ANY UNAUTHORIZED COPYING, DISTRIBUTION, OR ADAPTATION IS STRICTLY PROHIBITED AND WILL RESULT IN LIABILITY OF UP TO $100,000. EDITORIAL, ADVERTISING AND BUSINESS OFFICES AT 1088 BISHOP STREET, SUITE LL2, HONOLULU, HI 96813. TELEPHONE (808) 534-7520. POSTMASTER: SEND ALL ADDRESS CHANGES TO HAWAII BUSINESS, P.O. BOX 913, HONOLULU, HI 96808. SUBSCRIBERS NOTIFY THE SAME OFFICE. PLEASE INCLUDE NEW ADDRESS AND OLD ADDRESS (MAILING LABEL PREFERRED) PERIODICALS POSTAGE PAID AT HONOLULU, HAWAI‘I, AND AT ADDITIONAL MAILING OFFICES. SUBSCRIPTION: ONE YEAR $24.99 / TWO YEARS $34.99 / THREE YEARS $44.99. FOREIGN: ONE YEAR $53.99 (US FUNDS). FOR SUBSCRIPTION INQUIRIES, ADDITIONAL RATES, INFORMATION, NOTIFICATION OF CHANGE OF ADDRESS AND SUBSCRIPTION SERVICE, PLEASE CALL (800) 788-4230. MAY 2025 VOL. 70/NO. 11

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HB EVENTS C O N N E C T W I T H H AWA I I B U S I N E S S M AGA Z I N E

L O C A L LY OW N E D , L O C A L LY C O M M I T T E D SINCE 1955.

Our goal is to strengthen the local economy and help our communities thrive.

Publisher KENT COULES kentc@hawaiibusiness.com • (808) 364-5869

DEVELOP YOUR SKILLS, BUILD YOUR NETWORK FRIDAY, JULY 25 Hilton Hawaiian Village The 12th annual Leadership Conference is dedicated to the advancement of Hawai‘i’s emerging leaders.

UPCOMING EVENTS: SEPTEMBER

Hawai‘i Excellence in Business Awards

Organizations chosen as finalists for Hawai‘i Excellence in Business Awards are recognized at this evening celebration, where we announce the winners for 2025. TBD NOVEMBER

Money Matters Financial Conference

A full day conference where attendees will choose from one of five “tracks” to gain knowledge and tools to navigate the complex world of personal finance. TBD For more information on events, visit hawaiibusiness.com/events or contact Madelene Martinbianco, Events Manager, at madelenem@hawaiibusiness.com

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Editor & Executive Publisher STEVE PETRANIK stevep@hawaiibusiness.com • (808) 534-7584 Editorial Managing Editor CYNTHIA WESSENDORF cynthiaw@hawaiibusiness.com • (808) 224-7943 Staff Writer RYANN NOELANI COULES ryannc@hawaiibusiness.com Staff Writer SHELBY MATTOS shelbym@hawaiibusiness.com Copy Editor ELROY GARCIA Editorial Interns: SAVONNA ANDREWS, LAUREL GALVIN, ALLYSON WHALEY

Design & Photography Creative Director JEFF SANNER jeffs@hawaiibusiness.com Staff Photographer AARON YOSHINO Digital Digital Director RANDALL LIBRAMONTE randalll@hawaiibusiness.com • (808) 534-7531 Digital Growth Marketer MARIANNE LEANO mariannel@hawaiibusiness.com Sales & Marketing Account Executive YONGCHAE SONG yongchaes@hawaiibusiness.com • (808) 228-5078 Account Executive CHAZ TIOGANGCO chazt@hawaiibusiness.com • (808) 387-1672 Senior Account Coordinator REBECCA BROOKING rebeccab@hawaiibusiness.com • (808) 534-7560 Events Manager MADELENE MARTINBIANCO madelenem@hawaiibusiness.com • (808) 534-7578 Events Coordinator OLIVIA DE SENA oliviad@hawaiibusiness.com Circulation circulation@pacificbasin.net Connect with us on social media: HawaiiBusiness HawaiiBusinessmagazine Hawaii Business is published by

Chairman DUANE KURISU Chief Executive Officer SUSAN EICHOR Chief Operating Officer BRANDON KURISU

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M I N D

Make Hawai‘i & America Better: Listen Like a Good Journalist

BEGAN LIFE AS A SHY KID AND THOUGH I HAVE DEVELOPED AN OUTGOING EXTERIOR, IN MANY WAYS I REMAIN AN INTROVERT AT HEART. That has helped

make me a good listener. I’ve also been an outsider and an insider, a success and a failure, affluent and poor – which I think helps me to be more empathetic to other people’s views. I love to learn and am willing to be proven wrong about things that I thought to be true. Or to understand a new perspective that is as valid as mine. One of my favorite thinkers, Daniel Kahneman – who the Wall Street Journal recently described as “the World’s Leading Thinker on Decisions” – knew the importance of reconsidering your thinking. “Most people hate changing their minds,” he said, “but I like to change my mind. It means I’ve learned something.” All of those attributes made journalism the perfect career for me, one in which I have to do my best to understand what people tell me so I can faithfully convey their thinking to others. In my opinion, Hawai‘i and America – heck, the world – could use a lot more listening, more empathy and more willingness to reevaluate. Doing so doesn’t mean you abdicate your responsibility to judge and choose, but it will help you to make better judgments and choices. And it gives you an opportunity to realize your own errors or fuzzy thinking, something you probably won’t do if you only talk to like-minded people.

YOU WIN EITHER WAY

I know what you’re thinking: “What if I open myself to others’ thinking, but they don’t open themselves to my thinking? In that case I lose.” Wrong, you win either way. You win if other people listen to you because it means you’ve started a dialogue that can be valuable for both sides and valuable to building consensus in the broader community. And if you listened but the others did not, you learned something, and they did not. Your new knowledge is valuable to you no matter what you – or others – decide to do next. That new knowledge is valuable if you want to build a more inclusive community and appeal to more people. You will be someone who more people are willing to listen to – because you better understand a broader range of opinions and perspectives.

And you’re better equipped for the cutthroat world of politics. Consider the words of Sun Tzu, one of the greatest military strategists of all time: “If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.” In war and peace, in your career and personal life, knowing thyself is an essential lifelong journey. One thing that helps me to know myself is to let my mind wander – without any media to get in the way – while my body is busy walking, hiking, swimming or driving. Being an introvert makes that easier. It clears my mind of garbage and demons that would otherwise intrude when I try to go to sleep and lets me better assimilate everything I’ve learned, even if I don’t directly think about any of it.

MAKING OUR REPORTING EVERGREEN

One of the constraints of magazines is they cannot focus on breaking news: It takes weeks for a magazine to be printed, bound, mailed to subscribers and distributed to stores. But I believe that extra time is a benefit. The internet, TV, daily newspapers and others can focus on today’s news. We must take the long view and make our articles as “evergreen” as possible – valuable and relevant to read today, or next week or in six months. I am grateful to have served that journalism role for 16 years. My last day as editor and executive publisher of Hawaii Business Magazine will be May 6 – about the time this article is available for you to read. I have one more column to write, but I want to use that to introduce my successor as editor in chief, who I will support in a part-time role.

STEVE PETRANIK EDITOR AND EXECUTIVE PUBLISHER

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N O N P R O F I T

W I T H

M I S S I O N

BY SAVV Y A N D R E W S

From Prison to Purpose The Institute for Human Services’ re-entry program rebuilds lives after years behind bars

TOO OFTEN, PEOPLE RELEASED FROM PRISON EVENTUALLY VIOLATE THEIR PAROLE OR COMMIT NEW CRIMES AND END UP BACK IN PRISON. The Institute for Human

Services, known for its work with homeless people, is trying to end that cycle with a re-entry program that serves as a bridge between release from prison and full reintegration into society. The program provides shelter and services, so residents have a base from which to secure vital documents, apply for jobs, begin work and open bank accounts while being part of a community of like-minded people looking to make a new start. Right now, the program has 40 participants spread across three sites, one of them supervised by Tana Alualu, who himself spent seven years behind bars. Eddie Reed, incarcerated intermittently since 2010, says he finds inspiration in the program’s combination of freedom and support, which he says has created career opportunities for him and fueled his personal growth. When you talk with Reed, you realize that, for him, simply living a “normal” life is remarkable. “My worst jail experience was in 2019,” says Reed, who works at Waikiki Market. “This time … I told myself it was time to change. I had exhausted every option. My family didn’t want to be around me anymore – not my grandpa, not my

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HAWAII BUSINESS REPORTER SAVVY ANDREWS POSES WITH RESIDENTS OF THE IHS RE-ENTRY VILLAGE OF REDEMPTION. FROM LEFT ARE PROGRAM LEAD TANA ALUALU, AND ROOMMATES JERRICK KAANOI AND EDDIE REED.

friends. I had no one left and I knew I couldn’t keep living that way.” He shares a space with roommate Jerrick Kaanoi within the communal village called the IHS Re-Entry Village of Redemption. “The best part is, after work I can come home to this space, a space I call home, a space where I can feel normal. … It gives us relief, like, hey, we’re normal,” he says. “We’re doing something normal, and it keeps you striving for better opportunities.” Kaanoi, with a 17-year prison history, says he has found safety

and stability at IHS, in stark contrast to his past. “My mentality has changed. I used to let heartaches, bad experiences and mistakes pile up, but I don’t want to regret my life anymore. Now I’m on a path that feels good, safe and possible … so I keep moving forward.” Kaanoi recently received a welcome surprise: a promotion to grocery manager at Waikiki Market. “Seeing your boss see something in you that you never saw in yourself before – that’s a wonderful feeling,” he says.

PHOTOS: COURTESY IHS

A criminal past can be a constant obstacle, a stigma that lingers long after a person is released from prison. “Once people find out about our past, they don’t want to give us a chance,” Reed says. Yet securing a job is part of the journey. That’s where the federal work opportunity tax credit can make a difference; it offers businesses financial incentives to hire individuals with criminal backgrounds. As the program’s leader, Alualu’s mentorship is crucial. He brings an infectious energy and an unwavering belief in the participants’ potential, and he understands the challenges they face. “When you give somebody freedom and they’re ready to make a change, they’ll move mountains – not only for themselves but for those around them,” Alualu says. “The biggest reward for me is seeing that transformation. Not many ex-felons would do what [Reed and Kaanoi] have done, and that’s what keeps me going. It’s a reward greater than any paycheck.” Says Reed: “We come out of an environment where we’ve been locked up, where someone is always telling us what to do and how to do it. But here, it’s different. Being here feels normal. In this environment, I don’t feel like I’m on parole or like I’ve been locked up. For the first time in a long time, I feel like I have freedom and peace.” You can donate to IHS at ihshawaii.org/donate.

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BY CYNTHIA SW E E NE Y

YWCA of Hawai‘i Island Aims to Transform Its Historic Campus The nonprofit has so far received $2.8 million of its $6 million Phase 1 goal

THE YWCA OF HAWAI‘I ISLAND HAS BEEN SERVING THE COMMUNITY WITH VALUABLE PROGRAMS FROM ITS DOWNTOWN HILO LOCATION FOR 105 YEARS. It’s now launched

an ambitious campaign to raise $21 million to transform that historic campus. The nonprofit says it serves about 3,000 individuals and families each year through a preschool, a Healthy Families program that serves expectant parents and caregivers of newborns, and support services for sexual assault survivors. Most preschool classes are in a 2,500-square-foot wooden cottage built in 1926 as a private home. The YWCA’s campus also includes a community pool that closed in 2013. The preschool cottage “has been very well utilized for almost 100 years, and the buildings that we will be renovating are for the most part completely unusable,” says CEO Kathleen McGilvray. The site’s last major renovation was in the 1980s when the community helped rebuild the YWCA’s program center after arson destroyed the original building. The goal of the $21 million campaign – called Building a Bright

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Future for Our Keiki, Families & Community – is to transform the YWCA’s historic campus in three phases. So far, almost half of the $6 million Phase 1 budget has been raised. When the Hawai‘i Island branch of the YWCA launched in 1919, the county had less than one-third of today’s population, says state Sen. Herbert M. “Tim” Richards III, chair of the leadership committee for the YWCA’s fundraising campaign. “We need to build for a brighter future, which means taking care of our next generation, the keiki.” The YWCA says its plans call for a new preschool, a multipurpose building and a small housing complex with 10 units for the community’s most vulnerable women and families. The preschool will feature four dedicated classrooms for children ages 2 to 5, shaded outdoor play areas, covered walkways and a commercial kitchen to support expanded meal service and nutritional education. “There’s a huge need for child care, especially quality child care and the kind of transformative work our teachers do. And

now they will have a beautiful new facility that they deserve, a preschool that’s worthy of our children,” says McGilvray. In Phase 1, underway now, the pool is being demolished and the preschool expanded. Architect Fleming & Associates expects the first phase to be completed by summer 2026. The preschool is currently at capacity with 90 students and a full waitlist. The new campus will accommodate 130 children. “Preschool is critical for children’s development, socialization and serves a critical workforce need. Moms and dads can’t work if they don’t have a safe and accredited place to take their children,” McGilvray says. “We are setting children up for success. They are ready to learn. We hear that all the time from kindergarten teachers.” The Healthy Families staff works with parents on individual and family needs, as well as their babies’ developmental stages and screenings, and connects them with information and support resources. The services are free and confidential.

PHOTO COURTESY: YWCA OF HAWAI‘I ISLAND

Since the 1970s, the YWCA has also supported victims of sexual assault. The YWCA says its program is open 24/7 and is the only rape crisis center on the island with short-term crisis intervention and long-term confidential counseling. It also helps with forensic exams and decisions on whether to file police reports. The fundraising campaign seeks support from government grants, foundations, businesses and individuals.

The YWCA is located just down the road from the Palace Theater, at a historic crossroads. “From a development standpoint, this is a really exciting project in the downtown area. With its high visibility, I think this is going to be a really pivotal project for the revitalization of downtown Hilo,” McGilvray says.

ON THE STAIRS OF THE YWCA OF HAWAI‘I ISLAND’S CURRENT 100-YEAR-OLD PRESCHOOL BUILDING IN HILO ARE, LEFT TO RIGHT, TOBY TANIGUCHI, SANDRA TOKUUKE, KATHLEEN MCGILVRAY, TIM RICHARDS AND JENNIFER ZELKO-SCHLUETER. MCGILVRAY IS THE YWCA’S CEO AND THE OTHERS ARE MEMBERS OF THE LEADERSHIP COMMITTEE OF THE BUILDING A BRIGHT FUTURE FUNDRAISING CAMPAIGN.

ywcahawaiiisland.org

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M Y

J O B

BY LAU RE L G ALVI N

NAME: DEREK PETROWSKI JOB: TELESCOPE SUPPORT TECHNICIAN W. M. KECK OBSERVATORY ON MAUNAKEA

“Like the Pit Crew for a Race Team.” BEGINNINGS: Derek Petrowski sets a goal every New Year’s Eve and did so again on Dec. 31, 2021. “I try to make it a realistic goal,” Petrowski says, “but this time I was feeling a little wild. So I said, ‘2022 is coming up, I’m going to get a job at a telescope.’ ” Petrowski is the son of an engineer, whose career took him around

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the world. Derek was born in Suva, Fiji, but his family settled in Hawai‘i in 1990. He left school after 10th grade when “I found myself getting bored in school,” Petrowski says. So he got into the world of carpentry and later worked as a car audio specialist on O‘ahu. He says curiosity has driven him throughout his life, which at

times meant teaching himself how to build motorcycle engines and learning how power plants worked while helping build them. OVERCOMING DOUBTS: Petrowski was

working at the Honua Ola power plant in Pepe‘ekeo on Hawai‘i Island while his wife, Carolyn, was employed at the Canada France

PHOTO: COURTESY DEREK PETROWSKI

Hawaii Telescope in accounting and administration. At a holiday party in 2021, Derek talked with some of Carolyn’s colleagues and discovered how similar their jobs were to his. “I always had an interest in working with the telescopes, but I thought … I don’t have the pedigree to even try for this.” Despite his doubts, he applied for a position at the Keck Observatory on Jan. 3, 2022. “I remember my first interview, I was so nauseous because I really wanted it. I was in cold sweats and I felt like I was going to throw up. I had never felt like that before.” Keck Community Engagement Manager Kekoa Alip says he saw great potential in Petrowski “and it’s proven to be right.” Alip says Petrowski is passionate about involving people who are already

part of Hawai‘i’s community in telescope operations. “We don’t have a lot of local people working in the telescopes,” says Alip. “My target was to get talent from the community.” That’s why telescope experience was not a job requirement. TYPICAL DAYS: “This is the first job

where I wake up in the morning and I don’t dread going to work,” Petrowski says. “And when I come home, I feel like I accomplished something. I’ve been there for three years now and that feeling hasn’t changed.” “Support techs,” Petrowski says, “we’re like the pit crew for a race team.” On a typical day, he comes into the observatory on Maunakea in the morning and makes sure all the telescope’s instruments are

chilled and working correctly. He checks software, cameras, infrastructure or anything else that could keep the telescope from functioning, then works with others to resolve any issues. Along with his everyday work, Petrowski helps on public tours and passes on his knowledge to new hires. “Impressive and inspiring is his passion for community involvement and serving the community,” says Alip, “which is one of our core values at Keck – to be great stewards, and he’s proven to be one of the greatest.”

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“SO M UC H R ES PO NS I B I L I T Y, SO L I T T L E T R A I N I N G – U N T I L N OW”

The Hawai‘i Leadership Academy provides senior leaders with the fast-track, high-impact program they need to elevate their skills. Prepare for increased responsibility in just ﬁve weeks. The Hawai‘i Leadership Academy is an exclusive program designed for Hawai‘i’s leaders who are ready to develop and expand their executive skill sets. Tailored for director-level professionals and above, from all industries across the state, this academy offers strategic leadership growth, professional development, intentional networking, and direct exposure to Hawai‘i’s top leaders. We are excited to launch our inaugural cohort in Fall 2025. Hawai‘i Leadership Academy:

Participants will beneﬁt from:

• Consists of ﬁve immersive Friday sessions from September 12 – October 10, 2025.

• Engaging guest speakers who will provide fresh perspectives and invaluable leadership insights.

• Offers a personalized and impactful experience with a limited cohort size for greater engagement.

• A powerful professional network, connecting with like-minded peers from diverse industries and organizations.

• A ﬁve-week, in-person, half-day dynamic program designed to elevate careers.

This exclusive academy is crafted for ambitious professionals, providing opportunities for personal and professional growth, leadership development, and insights from esteemed C-suite guest speakers.

• Personal and professional development by harnessing their innate leadership strengths.

This transformative experience is designed to inspire growth, expand leadership potential, and foster meaningful connections.

F O R M O R E I N F O R M AT I O N O R T O S U B M I T A N A P P L I C AT I O N , V I S I T H E C O U N C I L . O R G / L E A D E R S H I PA C A D E M Y 2 0 2 5

T H E H A WA I I L E A D E R S H I P ACA D E M Y I S A PA RT N E R S H I P B E T W E E N T H E H A WA I I E M P LOY E R S CO U N C I L A N D H A WA I I B U S I N E S S M AG A Z I N E . 14 | M AY 2 0 2 5

SPECIAL SPECIAL PROMOTIONAL PROMOTIONAL SECTION SECTION TAKING CARE OF BUSINESS: Keeping Hawai‘i Healthy

Q&A WITH

KEEPING HAWAI‘I HEALTHY Hear from a local healthcare leader on key issues affecting our state in the coming year. H AWA I I B U S I N ES S | 15

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SPECIAL PROMOTIONAL SECTION SPECIAL PROMOTIONAL SECTION TAKING CARE OF BUSINESS: Keeping Hawai‘i Healthy

H AWA I I D E N TA L S E RVI C E ( H DS )

Hawaii Dental Service (HDS) is the leading not-for-profit dental benefits provider in Hawai‘i, serving the state for over 60 years. HDS partners with over 95% of Hawai‘i’s licensed, practicing dentists and serves more than one million residents in Hawai‘i, Guam, and Saipan, ensuring care for individuals, families, and employer groups. Beyond dental plans, HDS is deeply committed to improving oral health throughout Hawai‘i, especially in underserved rural communities. The HDS Foundation, established in 1986, has played a crucial role in these efforts through its mission to improve oral health across the islands. In 2024 alone, the HDS Foundation distributed over $2.3 million in grants to 14 nonprofit organizations throughout the state to support programs that promote oral health education, prevent oral disease, promote workforce development, and increase access to dental care for underserved populations.

In addition to providing grant support for oral health programs in Hawai‘i, HDS invests in local talent by funding scholarships for students pursuing careers in dentistry and dental hygiene. In 2024, the HDS Foundation awarded $113,000 in scholarships, helping to further strengthen Hawai‘i’s dental workforce. HDS also fosters early interest in dental careers through community events like the HDS Tooth Fairy Fun Day. This annual event celebrates National Children’s Dental Health Month, where children participate in dental screenings and interact with volunteer dentists. In 2025, over 1,800 keiki and family members attended the event at the Hawaii Children’s Discovery Center. To continue expanding its impact, HDS will extend the event to Maui in June and return to Pearlridge for the second time later this year. HDS will continue its outreach with rural communities, including a visit to Moloka‘i for the annual Moloka‘i Resource Fair. With a strong commitment to community outreach, workforce development, and oral health education, HDS continues to play a vital role in shaping a healthier, brighter future for Hawai‘i. Through these efforts, HDS is not only improving access to dental care but also helping to cultivate the next generation of dental professionals in Hawai‘i.

HawaiiDentalService.com

17 AWAI II I BBUUSSI INNES ESSS | 17 HHAWA

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J A M S WO R L D , K A L I H I

PH OTO S BY A A R O N YO S H I N O

WE CELEBRATE EIGHT WINNERS OF OUR SMALLBIZ EDITOR’S CHOICE AWARDS AND THREE NEW INDUCTEES INTO THE HAWAI‘I SMALL BUSINESS HALL OF FAME

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SMALL BUSINESS SUCCESS! Aloha, From old-school diners to innovative companies, local businesses improve the health and economic longevity of our island communities. Mahalo to Hawaii’s entrepreneurs for your hard work and dedication. A special congratulations to the amazing small business owners recognized in this noteworthy issue of Hawaii Business! Caring for the people we serve has been HMSA’s mission since we opened our doors in 1938. We’re proud to carry on this legacy in serving our members and employers for 87 years and counting. Whether you’re a small or large business, HMSA has you and your employees covered with quality health plans and excellent customer service. To learn more, call us at (808) 948-5555 or visit us at an HMSA Center near you. HMSA is here for the good times, for the tough times, for lifetimes. We look forward to working with you. Mahalo, MARK M. MUGIISHI, M.D., F.A.C.S.

President and Chief Executive Officer HMSA

THIS FEATURE WAS SUPPORTED FINANCIALLY BY HMSA . THE COMPANIES WERE CHOSEN BY HAWAII BUSINESS MAGAZINE’S EDITORIAL STAFF, AND PROFILES WERE INDEPENDENTLY WRITTEN AND THEN EDITED BY THE EDITORIAL STAFF.

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PICTURED, SENECA KLASSEN

TRANSPARENT AND ETHICAL: EASY TO SAY, HARD TO DO LO N O H A N A E STAT E C H O CO L AT E L AW R E N C E B O O N E SENECA KLASSEN

HE FOUNDERS OF LONOHANA ESTATE CHOCOLATE WANTED TO DO MORE THAN JUST GROW AND SELL CHOCOLATE IN

HAWAI‘I, they wanted to do so in the best way possible. “I wanted to create a vertically integrated farming and manufacturing company that does chocolate in a completely transparent and ethical way. It’s easy to say, but it’s incredibly hard to do,” says co-founder Seneca Klassen. The name Lonohana serves as a constant reminder of that mission. Lono is the Hawaiian god of agriculture, fertility, rain and peace, and hana means work. “We want to honor Lono through all of our farming practices: do right by the ‘āina and express our kuleana toward the areas we’re responsible for,” Klassen says. In 2009, he and co-founder Lawrence Boone began planting cacao trees on 14 acres of nutrient-deprived soil on O‘ahu’s North Shore that had been abandoned after sugarcane farming. “Chocolate is a food that tastes like the place it’s grown,” Boone says. “You have this profound interaction between all the fac-

tors – the climate, the plants, the microbiology – each one directly impacting the chocolate we make at the end of the day.” Klassen adds that transparency is a top priority. “We want to show where our food is grown, how it’s grown and how it’s made,” he says. Lonohana is foremost a farming business, but it also makes finished chocolate bars with flavors like salted macadamia nut, coconut crunch and passion orange guava. “We’re striving to create local products with a global reputation – products that are as good as, or better than, anything else in their category, but are deeply local, authentic and fully integrated into their community,” says Klassen. Another part of the mission is to educate, especially since many people have never visited a cacao farm or learned about cacao pods and seeds and how they become

chocolate. So Lonohana offers tours three days a week at its factory in Kaka‘ako, in the old Kewalo Theater building. Boone, Klassen and farm manager Duke Morgan have a holistic vision of farming. “We’ve always farmed with a gentle touch. The only way we know how to do it is respectfully. The idea is simple: If you take care of the land, the land will take care of you. It’s a whole concept of you are farming in a way that you’re leaving the land better than how you found it,” Boone says. Klassen adds: “We tend to think of the land as something passive, something we control, but that’s not the case. We’re collaborators with it. When you put the right things in the right place and give them a little nudge, they really take off.” – Savvy Andrews

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PICTURED, LAWRENCE FUJIWARA

HISTORIC TEAHOUSE SURVIVES WITH SUPPORT FROM EVERYONE

HALL OF FA M E

N AT S U N OYA T E A H O U S E L AW R E N C E F UJ I WA R A

ROM ITS PERCH NEAR THE TOP OF ‘ĀLEWA HEIGHTS, NATSUNOYA TEA HOUSE HAS BECOME A HISTORIC LANDMARK.

But its continued success, says owner Lawrence Fujiwara, depends on being able to constantly renew and upgrade the business while retaining its appeal to longtime customers. First opened in 1921, the teahouse and restaurant have been given a fresh exterior appearance since a fire on Feb. 24, 2024, destroyed the home of Fujiwara’s grandparents, the founders of the business. The adjacent restaurant’s kitchen was scorched on one side and other parts of the business suffered smoke damage, Fujiwara says, but everything else survived intact. He declined to disclose the cost of damage while the insurance settlement is still in process, but those who worked on the repairs say things could have been far worse. The restaurant resumed full operations last May. Fujiwara says he appreciates the support the business received during the recovery. “The community, the employees, the vendors … everybody was reaching out, trying to see if they could help us,” he says.

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With business back to normal, Fujiwara says he’s considering next steps. The latest upgrade involves converting a private room upstairs into a “chef’s table” for 10 to 12 people. That would be adjacent to the teahouse’s current dining room, which has a panoramic view of the city and can accommodate groups of 50 to 60. Downstairs is the main banquet hall, large enough for about 200. Most of the restaurant’s business comprises catering and large group events, but there is some conventional restaurant traffic too, including at the sushi bar, one of the teahouse’s more recent additions. And behind the main building, connected by a walkway, are two small cottages for parties of 20 and 30. The restaurant has a staff of 12 full-time employees and 30 to 40 part-timers. Fujiwara, who took over the helm in 1996, studied business administration at the University of San Diego. But he’s a

cook at heart and so is the rest of his family. In fact, an uncle is one of the teahouse’s past head chefs. Fujiwara says his grandfather first settled in the San Francisco area, but after the devastating earthquake and fire of 1906, he headed back to Japan. On his return trip, he stopped in Hawai‘i, fell in love with the Islands and stayed. He eventually built the teahouse, years before the surrounding neighborhood filled in. Fujiwara’s parents took over in 1956, followed years later by Fujiwara himself. He underscores that he took over the place without pressure from Mom and Dad. As for a continuation of the Natsunoya family business, Fujiwara insists that, again, there will be no pressure. He and his wife have four children and, he says, it’s possible that more chapters will be added to the family business’s story. – Vicki Viotti

BOH

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HALL OF FA M E

SWEET RECIPES FROM HIROSHIMA NISSHODO CANDY STORE MICHAEL AND URSULA HIRAO

N 1921, ASATARO HIRAO OPENED HIS CANDY STORE ON KING STREET IN HONOLULU WITH FELLOW IMMIGRANTS, INCLUDING JOKICHI TASAKA. At first, he

leaned on traditional Japanese recipes for chichi dango, mochi and manju that he learned in Hiroshima. Tasaka went on to found Tasaka Guri Guri on Maui, but Hirao continued to serve the Japanese community on O‘ahu. Eventually, Nisshodo Candy Store incorporated local flavors into its treats, such as liliko‘i and melona. Today, the store and manufacturing facility is on Dillingham Boulevard in Iwilei; it’s run by Hirao’s grandson, Michael Hirao, and his wife, Ursula. “We’ve been fortunate to cater to the local population for a while … [and] very thankful for the

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response that we’ve gotten from our community,” says Michael Hirao. Nisshodo takes suggestions from customers for new and experimental flavors, leading to creations like peanut butter mochi, which Hirao says is a personal favorite. “We produce in the back area,” says Hirao, “and we have a small retail outlet in the front that takes care of our customers.” A team of 12 creates the candies, operates the store and wholesales to other companies. “We have people who are very loyal and do a great job for us.” Nisshodo’s traditional Japanese sweets are still popular, especially around Japanese celebrations like Girls Day. – Laurel Galvin

MICHAEL HIRAO WITH TREATS SOLD AT NISSHODO CANDY STORE.

H AWA I I B U S I N ES S | 25

PICTURED, ROY AND KATHY SAKUMA

SPREADING LOVE THROUGH THE ‘UKULELE ROY SAKUMA UKULELE STUDIOS R OY A N D K AT H Y S A KU M A

OY SAKUMA UKULELE STUDIOS OPERATES UNDER A SIMPLE PRINCIPLE: ANYONE CAN LEARN TO PLAY ‘UKULELE.

Children as young as 5 can learn a new song in a single session using techniques learned at the studio, and students with visual impairments, physical handicaps and even life-threatening diseases like cancer have learned to play there, says Kathy Sakuma. Kathy says she and her husband, Roy Sakuma, would “never say no to any parent who came in.” Since opening their first studio in Kaimukī in 1974, the Sakumas have added locations in ‘Aiea, Kāne‘ohe and Mililani. With a staff of 30 instructors, all former students, the studios offer both individual and group lessons, online and in person, to all ages. For those who find it intimidating to read sheet music, Roy Sakuma developed a method that allows students to read and play music using the letters of the alphabet. “It opened the door,” he says, “because now we could have 5-year-olds come in and in one 30-minute lesson, they will learn their complete song. They instantly feel accomplished.” The Sakumas started Ukulele

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Festival Hawaii in 1971; it ran annually until 2022. This year, Sakuma’s students will participate in the International ‘Ukulele Festival of Hawai‘i, July 20 at Kapi‘olani Park. “Ukulele Festival Hawaii was Roy’s dream to showcase the ‘ukulele’s versatility and virtuosity with a free concert in the park,” says Kathy Sakuma. In 1971, “there was very little interest in the ‘ukulele and the ‘ukulele was thought of as a toy.” Roy Sakuma’s personal journey with the ‘ukulele started in his teens. The first time he played the ‘ukulele, the music “just poured out of me.” In 1964, he sought out Herb “Ohta-san” Ohta to be his mentor, and went on to teach under Ohta-san. Shortly after composing his first song, “I Am What I Am,” Sakuma moved out from under the wing

of his mentor to start Roy Sakuma Ukulele Studios. Working with her husband, Kathy Sakuma developed her own passion for ‘ukulele, particularly teaching young children to play. Roy Sakuma Ukulele Studios has been honored with many awards, including the Family Business of the Year award from UH’s Family Business Center of Hawai‘i and the Kahili Award from the Keep it Hawai‘i Recognition Awards Program. “One of the things we feel most proud of is our instructors,” Kathy Sakuma says. “They have that feeling. They’re so attached to their students, and their students are so attached to them. It’s not just teaching the music, it’s really caring for them.” – Laurel Galvin

PICTURED, AL KAKAZU

“STRONG FOCUS ON CUSTOMER SERVICE” B . H AY M A N AL KAKAZU

F YOU HAVE A LOT OF GRASS, B. HAYMAN CAN PROVIDE THE TOOLS TO KEEP IT LOOKING GREAT.

the company came to the Islands and settled in Waipahu; its headquarters is still there. By the time it arrived, the company had stopped selling wagons and buggies and had entered the turf equipment business. Along with its Waipahu location, the company has an office in Kona. Despite being as old as it is, Kakazu says the company stays on the leading edge of its field. “Even in our business, we see how artificial intelligence and technology are changing our industry, with smart mowers that can detect where to mow or where to spray. We are in the infancy stage of a growing

autonomous operation and alternative energy movement,” he says. “Manufacturers continue to expand their product lines with this revolutionary equipment, and we want to embrace this change and stay ahead of the game.” Part of the company’s secret sauce is taking care of employees, who often stay long term, Kakazu says. “We need good people to be able to provide good service, and our whole goal is to provide excellent customer service to our customers, and that starts with the employees.” – Ally Whaley

The 149-year-old company sells and services mowers of all sizes and all the other equipment needed to maintain turf, plus golf carts, utility vehicles and industrial equipment. B. Hayman’s customers include golf course owners, landscapers, the government – think parks and school athletic fields – hotel owners, farmers, condo associations, cemetery owners, and other people and organizations with large lawns. “We’ve always had a strong focus on customer service,” says President Al Kakazu. “We strive to treat our customers with utmost respect by understanding their unique needs. Our job is to make their job easier.” The aio family of companies acquired B. Hayman in 2004 when aio owner Duane Kurisu was operating Hawaii Winter Baseball. You may fondly remember the league as a place for up-and-coming players from the mainland, Japan and South Korea to hone their skills, including future Hall of Famers Ichiro Suzuki and Todd Helton. (Like B. Hayman, Hawaii Business Magazine is part of aio.) The company’s history goes back much further. Benjamin Hayman founded his wagon and buggy company in Los Angeles in 1876. In 1969,

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HALL OF FA M E

FROM PAJAMAS TO SHORTS TO ART JAMS WORLD P UA A N D H E AT H E R R O C H L E N

EATHER ROCHLEN, THE SELF-DESCRIBED “HOUSEWIFE OF JAMS,” SAYS JAMS WORLD CLOTHING “STARTS AND ENDS

WITH ART.”

“It’s resort, it’s fun, it’s colorful,” Rochlen says. “There’s a certain extra intelligence and intensity of color and brushstrokes that we screen print onto our fabric, which makes a Jams print so recognizable. … The way we lay out the art is very intentional, so that it looks the best.” Jams World is a family-run clothing brand; it opened its first store in the Islands – Surfline Hawai‘i – in 1964. Founder Dave Rochlen, Heather’s father-in-law, began his line of surf-friendly clothing by asking his wife, Keanuenue Ka‘eo, to cut a pair of

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pajama pants into shorts. “And so we came up with the word ‘jams,’ short for pajamas,” Heather Rochlen says. “And that’s our trademark.” Jams World is run today by Dave’s son and Heather’s husband, Pua Rochlen, who continues his father’s love for curating textiles from around the world and transforming them into clothing for any occasion: from kimono robes to blazers to original Jams shorts. “There’s something for everybody in the collection,” says Heather Rochlen. “[We] keep the silhouettes super simple but flattering.” Six Jams World stores are spread across the state, with three on Hawai‘i Island, one on Kaua‘i and two on O‘ahu, including the factory store in Kalihi, where

customers can look through a window into the factory while shopping. “People love that you can see some of our artwork and collections from over the years,” Heather Rochlen says. Retail sales account for about 50% of transactions, online about 35% and wholesale 15%. Jams World has 44 employees and, according to Heather Rochlen, a very low staff turnover rate. Jams World supports local causes including Make-A-Wish Hawaii, the Hawai‘i Foodbank, the Hawaiian Humane Society, the Legacy Reef Foundation and the American Red Cross. In each collection, a piece is dedicated to a foundation, and a portion of proceeds goes straight to them, Heather Rochlen says. — Laurel Galvin

PICTURED, HEATHER ROCHLEN

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PICTURED, ALAN NAKAMURA

STRAIGHT TALK AND FAIR PRICES

KAIMUKI AUTO REPAIR ALAN NAKAMURA

AR TROUBLES ARE NEVER FUN AND ALWAYS INCONVENIENT. And because

you depend on your car, you want a repair shop you can trust. Owner Alan Nakamura and the other folks at Kaimuki Auto Repair say they work to earn that trust with excellent customer service and the best pricing possible. “We won’t try to sell something that isn’t necessary, and we treat each customer as if they were our own family. Our dad, Alan, spends the time talking and answering whatever questions the customers have,” says VP Laurie Marcouiller. “He will break it down to terms they can understand instead of mechanic verbiage. If we have younger customers, he will talk to their parents and explain to them so everyone is on the same page.” It’s also that now rare kind of auto repair shop: one that also has gas pumps. Marcouiller says Kaimuki Auto Repair can provide excellent service because of its employees, some of whom have been with the company for 20 years or more. “It’s not easy working here since we are usually pretty busy and it’s always fast-paced. Not a lot of peo-

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ple can work as hard and efficiently as our current employees do,” she says, adding that others who could not keep up have left. Kaimuki Auto Repair has been around for 54 years and Marcouiller hopes it’s open for many more. “Our grandpa took over the service station in 1971 and our dad was working as a mechanic and eventually took it over when our

grandpa passed away. Being a small, multigenerational business, we have seen many generations of customers as well,” Marcouiller says. “Our customers are so loyal and many of them are just like family. We’ve heard many stories from the time our grandpa was alive, which is always nice to hear.” – Ally Whaley

PICTURED, KATIE BENNETT

“IT SHOULD BE ABOUT WHAT’S BEST FOR THE CHILD” FA M I LY M E D I AT I O N H AWA I I K AT I E B E N N E T T

ATIE BENNETT KNOWS THAT NAVIGATING A DIVORCE CAN BE EMOTIONALLY COMPLEX,

especially when it involves expensive court processes to divide property and, more importantly, to determine child custody. In those cases, “It should be about what’s best for the child, and that can be challenging,” says Bennett, founder and lead mediator at Family Mediation Hawaii in Honolulu. Mediation can untangle complicated custody issues and help couples avoid costly and lengthy court trials. “People still think they need to lawyer up and protect themselves. But mediation can be more effective because we’re hearing both, not just one side of the story,” Bennett says. “The process is about building trust and rapport and helping clients understand you want them to have a better outcome.” Born and raised in Nu‘uanu Valley, Bennett is a lawyer, holds a master’s degree in sociology from UH Mānoa and has three children. She has taught mediation and regularly mediated for the Hawai‘i Family Court of the First Circuit’s O‘ahu Child Welfare Mediation Program at the Ronald T.Y. Moon

Judiciary Complex in Kapolei. That experience, she says, helps her understand the human dynamics in divorce and child custody situations. Six years ago, Bennett launched her Family Mediation Hawaii business; since then, she’s added six mediators, all lawyers who know their way around a courtroom. They also understand the dynamics of child development, and how issues like substance abuse and power imbalances can play out during a divorce. And as mediators, she says, they are practiced at remaining neutral. Additionally, comments made in court are available to the public, whereas mediation is a confidential process in which the two parties control the outcome. Family Mediation Hawaii bills by the hour. “People want to know when is it going to be done and how much

it’s going to cost. I say, ‘It depends on how much you fight.’ ” Most of the company’s clients seek uncontested divorces, and most of the cases are referred to mediation by the court. This means they never step foot in a courtroom; instead, a Family Court judge signs off on their paperwork and enters the divorce decree. Bennett says people’s behavior runs the gamut, from parents fleeing the country with a child to those who amiably try to sort out school schedules and co-parenting during the holidays. “We know how kids of different ages deal with separation,” she says. “There’s definitely a place for the legal system, but we can make things happen faster. Even if it’s a partial decision, like who pays for school, it’s going to make the trial go a heck of a lot faster.” – Cynthia Sweeney

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A FAMILY BUSINESS FOR THREE GENERATIONS S E RV I C E P R I N T E R S H AWA I I K AT H Y A N D J O D I E YA M A S H I R OYA

HE DIGITAL WORLD HAS PUT MANY PRINTING COMPANIES OUT OF BUSINESS, BUT SERVICE PRINTERS HAWAII IS STILL FLOURISHING AFTER 61 YEARS. It’s the only union

printing shop left in the Islands, and it’s still owned by the family of one of its founders. The company was created by Yoshiharu Hirota, Fred Nagasawa and Roy Yamashiroya, who took over a defunct print shop on Sheridan Street in Honolulu. In December 2004, Roy Yamashiroya sold the company to his son Dean and five employees. After Dean’s death in 2012, his widow, Kathy, and daughter Jodie took over the business. Jodie Yamashiroya says the company’s mission has remained the same through the years: to provide outstanding service and high-quality printing at competitive prices. “We’re not just in sales, we’re consultants as well. We work with our customers and marketing departments to produce the best

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product that will fit the customer’s needs,” she says. “The people behind this company are family. We’ve had employees here for 40-plus years, most of whom I grew up around. And so when my dad passed, my mom and I had to jump in.” One of those long-term employees is Bruce Inouye, who started about 25 years ago as a production worker and worked closely with Dean Yamashiroya. Now he’s VP and a key decision-maker for the company. “The two of us never worked with my husband but Bruce did. His expertise impacts everything we do,” says Kathy Yamashiroya. Service Printers has kept evolving to meet challenges that have driven many other printing companies out of business. “Staying relevant is tough with everything going digital. The equipment is expensive, and with Hawai‘i’s small economy, many print shops have closed since I started. We’re just grateful to still be here,” Jodie Yamashiroya says.

Sustainability helps guide the company, which uses paper partly made from recycled materials and soy-based inks. And now all the equipment is in a new location. Service Printers Hawaii had been located on Dillingham Boulevard for most of the past six decades, but the rail project spurred a move to a “bigger, brighter” location on Iwaena Street in ‘Aiea, says Jodie Yamashiroya. – Savvy Andrews

PICTURED, KATHY YAMASHIROYA, LEFT, AND JODIE YAMASHIROYA

H AWA I I B U S I N ES S | 33

PHOTO COURTESY: PICKET FENCE FLORIST

PICTURED, SADIE AKAMINE, WITH DAUGHTER ASA VOSS IN BACKGROUND

A PLACE FOR FLOWERS, FRIENDS AND FAMILY PICKET FENCE FLORIST SADIE AKAMINE

ADIE AKAMINE OPENED HER FIRST FLORAL BUSINESS 51 YEARS AGO IN A 200-SQUARE-FOOT SPACE AT THE YOGI BUILDING ON KAMEHAMEHA HIGHWAY IN KĀNE‘OHE.

Five years later, she moved into a much bigger space, her current location on Hekili Street in Kailua, across from Foodland. When you walk into her shop, it’s like entering a country garden, with wisteria hanging from the ceiling and floral scents everywhere. Akamine says she chose Picket Fence Florist as the name of her shop because she loves country gardens and the homespun feel of picket fences. She says she wanted a “nice country place to have friends over” and was inspired by her grandmother who taught ikebana, the Japanese art of arranging flowers. Her daughter, Asa Voss, along with her other staff – Douglas Scheer, Howard Souza and Kathy Piimauna – have been with Akamine for over three decades. She says she works with over 30 vendors, some of whom are retirees who sell their own backyard plants. She is currently grieving the death of the “Pīkake Man,” who supplied her pīkake for many years.

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Akamine says she tries to use as many locally grown Hawai‘i plants as possible but in recent years has had to get other flowers, like roses, from places such as Ecuador, Thailand and California. She credits other Kailua florists for their support in acquiring flowers for large orders. The different shops “help each other out on a regular basis.” “The people of Kailua love leis,” Akamine says as she proudly shows me a bright orange ‘ilima lei made with more than 700 flowers. In fact, a third of Picket Fence’s business is creating lei. Akamine recalls her first job, at age 19; she worked with Greeters of Hawai‘i, handing lei to tourists at the airport. “In those days, you could go up to people as they got off the tarmac.” After half a century in the floral business, Akamine’s connection to her customers is what keeps her going. “You’re involved with births,

graduations, weddings, people coming and leaving. We’re doing a lot of events, so over the years our customers became friends.” And she’s found many ways to say thank you to her customers and to bring the community together. For instance, for 10 years on “Good Neighbor Day,” Picket Fence would give away a dozen roses on condition that “you keep just one and give 11 away.” She loves “the immediate gratification” of seeing how her flowers light up faces and places. “This is a very emotional business,” she says. And it’s a business that keeps evolving. Akamine hands me some of her latest “hits” – big coffeecolored roses. They don’t smell like coffee but they do smell amazing. – Roxana A. Jimenez

PICTURED, JACOB KAHIAPO, LEFT, AND MASH HATAE

“WE’RE HERE TO BE EXEMPLARY MODELS OF RESPONSIBLE TOURISM” MANA CRUISES AND CHARTERS JACOB KAHIAPO AND M A S H H ATA E

M ITS GUESTS.

ANA CRUISES AND CHARTERS, FOUNDED IN 2017, FOCUSES ON SUSTAINABILITY AND PERSONAL EXPERIENCES FOR

“We’re here to be exemplary models of what responsible tourism can be, what it looks like, and what it is when it’s grown straight from the community we were born in,” says Jacob Kahiapo, co-founder and director of operations. “Keeping your people and community first in mind, and then allowing people to visit based on that, I believe is really the best way to approach any tourism business.” The company and its mission were partly inspired by a personal tragedy: the unexpected death of Kahiapo’s close friend Mana. “That made me realize that not every day can be taken for granted, and every decision you make could be your last. I couldn’t just sit back; I had to step up to the plate and do my best to follow what I thought was right,” he says. Mana is one of the few words used across all Polynesia, whether you’re in New Zealand, Tahiti, Samoa or

Hawai‘i, and holding the same meaning: an unseen and supernatural power that permeates the universe and that we all feel within us. “That’s something that we try to exemplify on all of our charters,” Kahiapo says. The company has 22 captains, crew members and support personnel and three vessels – the Manakahi, Hilinai and Lanakila – based in Waikīkī and Ko Olina. Lanakila can carry up to six guests, and the other two boats can carry up to 10, says Mash Hatae, co-founder and director of sales and marketing. The trips can include snorkeling, sightseeing, whale and dolphin watching, sailing and fishing. The small size of each tour group allows for a “genuine, authentic experience, something more personalized and intimate for the people that we meet,” Kahiapo says. “We make sure that our efforts here, whether through our employees or our givebacks, positively affect our community, rather than just being a business on the water that makes money.” That means offering metal cups instead of plastic, holding an annual beach cleanup, and giving back to nonprofits and schools through vouchers and donations, among other initiatives, Hatae says. “The storytelling and knowledge that our team has about every coastline we operate on, whether it’s from Waikīkī or Ko Olina, is passed down from myself and generations before me, as well as cultural practitioners in the area. Whether it’s about Mount Ka‘ala and why it’s flat [at the top], or about Polihua and the navigation that took place there, or even about Waikīkī and why it’s so segmented, the stories behind these places are deeply cultural,” Kahiapo says. – Savvy Andrews

H AWA I I B U S I N ES S | 35

BY CYNTHIA WE SSE NDO RF

A Bright Spot for Hawai‘i’s Public Schools The state’s fourth- and eighth-graders are national leaders in post-pandemic academic recovery. Here, three Title I schools show what big improvements look like, with expanded assessments, tutoring and summer learning. They share what’s worked and how local public schools can keep up the momentum.

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PHOTO: JEFF SANNER

“

I THINK THAT ALL OUR SYSTEMS OF SUPPORT – THE UNIVERSAL SCREENING, HEARING THE STUDENTS, PROVIDING INTERVENTIONS WHEN DEFICITS ARE RECOGNIZED – WERE ALL CRUCIAL TO THE GROWTH WE’VE SEEN.” – HEIDI ARMSTRONG DEPUTY SUPERINTENDENT OF ACADEMICS, HAWAI‘I DEPARTMENT OF EDUCATION

IVE YEARS AFTER COVID SENT A PARALYZING SHOCK THROUGH THE NATION’S PUBLIC SCHOOLS, THE IMPACT OF LOST INSTRUCTIONAL TIME CAN STILL BE FELT. In every

state, fewer young people are able to read and write with appropriate fluency, or accurately solve math and science problems. In Hawai‘i, 39% of fourth graders and 33% of eighth graders lack basic skills in reading, while 23% of fourth graders and 42% of eighth graders lack basic skills in math, according to the National Assessment of Educational Progress. Known as the “nation’s report card,” the NAEP test is administered every two years at select schools; it’s considered more rigorous than many similar state tests. Hawai‘i’s 2024 NAEP results still lag behind those from 2019, when 37% of fourth graders and 32% of eighth graders lacked basic skills in reading, and 22% of fourth graders and 35% of eighth graders lacked basic skills in math. Chronic absenteeism is a lot higher, at about 25% compared with 14% in 2019; meanwhile, 52% of Hawai‘i high school graduates enrolled in two- or four-year colleges, compared with 55% in 2019. The percentage of Hawai‘i high schoolers who meet college-readiness benchmarks, based on the national ACT test administered to all public school juniors in the state, has slipped over the past five years, according to data supplied by the Hawai‘i Department of Education. But these statistics don’t paint the full picture. Hawai‘i’s public school system is more agile and ambitious than it used to be. Unlike 20 years ago, when the state’s schools consistently ranked among the worst academic performers in the nation – “a perennial bottomdweller,” as Terrence George, the outgoing president and CEO of the Harold K.L. Castle Foundation, puts it – students now score in the middle of the pack nationally, and sometimes better than that. H AWA I I B U S I N ES S | 37

NATIONAL RANKING SHOWS LONG-TERM GAINS FOR HAWAI‘I STUDENTS Fourth-grade reading scores dramatically lifted Hawai‘i’s ranking from No. 45 to No. 13 in the U.S. over the past two decades.

DATA COMES FROM THE FEDERAL NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS, KNOWN AS THE “NATION’S REPORT CARD.” THE NAEP TEST IS ADMINISTERED EVERY TWO YEARS TO FOURTH- AND EIGHTH-GRADERS AT SELECT SCHOOLS ACROSS THE COUNTRY. GRAPHIC PROVIDED BY THE HAWAI‘I STATE DEPARTMENT OF EDUCATION.

“There’s no question in my mind that the Department of Education, with all its continued faults as a huge, old, bureaucratic institution, has made some serious progress,” says George, whose foundation spearheads and funds many educational initiatives. “And it represents the focused work that our teachers and administrators have done to keep their eye on what matters most.” Since the schools reopened in-person instruction in fall 2021, more and better data have driven many of the improvements. Heidi Armstrong, the DOE’s deputy superintendent of academics, says schools are now assessing students three times a year, using the results to target tutoring and intervention efforts, and offering extensive summer learning programs at 222 of the state’s 296 public schools. Those efforts are paying off. In February, an analysis of NAEP results delivered welcome news: Fourth and eighth graders in Hawai‘i ranked second in the U.S. in reading recovery between 2019 and 2024, and fourth in math recovery. 38 | M AY 2 0 2 5

Overall, Hawai‘i fourth and eighth grade students performed about 13% of a grade level lower than in 2019 – still considerably better than the national average of nearly half a grade level lower. The analysis was conducted by the Education Recovery Scorecard, a collaboration between researchers at the Center for Education Policy Research at Harvard University and Stanford University’s Educational Opportunity Project. While Hawai‘i students are recovering from the academic slide more quickly than those in nearly all other states, the ongoing learning lag isn’t entirely unexpected, given the enormous decline in reading and math skills after schools were shuttered. When looking at the worst examples of continued learning loss – a full year in some struggling U.S. districts that didn’t offer extra teaching time – the Education Recovery Scorecard describes the daunting challenge of bouncing back in its 2025 report, Pivoting from Pandemic Recovery to LongTerm Reform:

“In order to make up for a full grade equivalent loss within two years would have required students to learn 150% of what they would typically learn per year – for two years in a row. Without lengthening the school year, dramatically increasing summer learning or providing full-year tutoring to more than a minimal share of students, it was close to impossible for districts to recover from a full grade equivalent loss in achievement over two years. Were teachers simply expected to speak more quickly?” Hawai‘i’s recovery is the result of many of those exact efforts, aided by the infusion of more than $600 million in federal pandemic-era funds to help schools recover. The final round of pandemic funding was obligated in September 2024. “The department set out a combination of foundational strategies that we really believed would move the needle in helping us make up that learning loss and then, long term, allow us to progress,” says Armstrong.

“I think that all our systems of support – the universal screening, hearing the students, providing interventions when deficits are recognized – were all crucial to the growth we’ve seen and will be continually important as we move forward, always striving to increase our proficiency.”

“ALL MEANS ALL” Kids growing up in low-income households are more likely to have poor grades and test scores than affluent kids, and less likely to finish high school or attend college. The link is strong and well-documented. Hawai‘i’s school system is filled with these struggling children and families, as the challenges of managing the basics of life – stable housing, a working car, enough food and clothing for the kids – are as hard as ever. Aloha United Way’s most recent ALICE Report found 41% of local residents barely scrape by or are in deep poverty. In the 2024-2025 school year, 196 regular public schools and public charter schools – or 66% of all schools – were designated as Title I, which means a disproportionate number of students come from low-income families that qualify for free or reduced-price lunches. Nearly 11% of the state Department of Education’s $2.18 billion annual budget in 2024-2025 comes from federal funding, much of it specifically targeted for Title I schools and special education. Schools have historically relied on the federal money to hire people to help in the classroom and fund professional development, new technology and academic programs – all of which have helped Hawai‘i students bounce back academically. In March, massive layoffs were underway at the U.S. Department of Education and the department itself was targeted for closure by the Trump administration. Responsibility for distributing Title I and special-education funding was expected to move to another, unnamed agency. The

Hawai‘i attorney general joined 20 others across the nation to try to block the department’s dismantling. Meanwhile, the National Center for Education Statistics, which administers the NAEP test for the Education Department, had been gutted to a tiny handful of employees, making future testing unlikely. Amid the chaos, teachers and administrators in Hawai‘i that I spoke with said they were very worried about funding delays and cuts. But they were also determined to continue helping students to progress and maintain the momentum they’ve achieved so far. “My whole theory is ‘all means all,’ ” says Jhameel Duarte, the principal at Kīpapa Elementary, which dedicates a half-hour block each day to grouping the entire student body by the extra assistance they need, whether it’s with reading comprehension or phonemic awareness. She expects such strategies will continue, no matter what happens. “Some of our kids need acceleration and so they get that, but there are a lot of kids who still need support. What we’re trying to do is make sure that we’re closing our gaps,” Duarte says. Here’s how Kīpapa Elementary and two other Title I schools are making strides for all their students.

CASE 1: HOW DATA HELPS A SMALL MILILANI SCHOOL MAKE BIG GAINS Kīpapa Elementary is a well-kept school in the suburb of Mililani. It’s also the area’s only Title I school, with about 50% of its 485 K-5 students qualifying for free or reduced-price lunches, according to fall 2024 data from the Hawai‘i DOE’s Child Nutrition Programs. The school was founded in 1932 – before the area was known as Mililani – for the children of farmworkers in nearby plantation

“

WE DON’T GO INTO A (MATH) COMPETITION NOW AND CONCEDE ANYTHING. WE BELIEVE WE’RE GOING TO WIN.” – MICHAEL HARANO PRINCIPAL, WASHINGTON MIDDLE SCHOOL

fields. Today, Kīpapa Elementary is hemmed in by houses, condos and apartments, and a public housing complex across the street. Duarte is the school’s dynamic new principal, having arrived in June 2023 as one of dozens of new principals who stepped up during a wave of pandemic retirements. She says the school was performing below students’ capabilities at the time. Her 20-year career as a teacher and administrator at Title I schools across O‘ahu – at Pālolo Elementary, William P. Jarrett Middle, Wahaiwā Middle, Waialua High and Intermediate, and ‘Aiea High – had turned her into a forceful proponent of student data, both collecting it and using it. Without data to pinpoint those who need extra help, and data to make sure they’re improving, a person’s life can derail, she says. “I’ve had kids in ninth grade not being able to read, and what happens? They stop attending school, which is very difficult to watch. I’ve seen kids not graduate, and that’s heartbreaking,” Duarte says. As an educator and school leader, “I can do something to make sure they’re not falling through the cracks.” Charts and graphs line the H AWA I I B U S I N ES S | 39

NATIONAL RANKING SHOWS LONG-TERM GAINS FOR HAWAI‘I STUDENTS

Eight-grade math scores lifted Hawai‘i’s national ranking from No. 47 to No. 30 over the past two decades.

walls of her office and a staff-only room where grade-level teachers and academic coaches meet every two weeks to talk about assessments, instruction and curriculum. They’re supported by extra classroom tutors, hired with Title I funding, who help run small-group sessions in core reading skills. The charts and graphs clearly show how every grade level, classroom and student performs in core subjects, both now and in the past. “The first level is just understanding what your data is saying and where your kids have been,” Duarte says. One chart tracks scores from the state’s annual Smarter Balanced Assessment and links the information to specific teachers and academic priority areas. Others show results from the triannual “universal screeners” that gauge proficiency in real time. More fine-tuned assessments pinpoint what a student needs help with, such as sounding out words. An interactive chart assigns every student with a red, yellow or green card to show if they’re struggling, in the middle or solidly meeting targets. After new assessments, a student’s

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card is placed in the low, middle or high section, which quickly shows who is making big improvements, and who is slipping and may need counseling or other interventions. As a leadership aid, a circular graphic outside Duarte’s office matches photos of teachers and staff to their personality traits. Duarte says it’s a quick reminder that she may need to modify her “dominance/action” style to better connect with the “steadiness/ reflective” types. Another data point that she’s especially proud of is parent attendance at school events, at 100%. After a single year of this intensive, data-driven approach, Kīpapa Elementary’s proficiency scores jumped dramatically on the 20232024 state achievement tests: • 66% of students were proficient in English language arts, up 13% from the prior year • 67% were proficient in math, up 20% • 63% were proficient in science, up 17%

Duarte says she was shocked to see last year’s “phenomenal scores,” but cautions that 2024-2025 scores will probably be lower as “it’s a different set of kids and a different set of dynamics,” with “more accentuated behaviors” on display this year. And she recognizes that the stress of so much testing can be hard on students, who sometimes express their frustrations on the Panorama student survey – another regular test that gauges social-emotional health. While testing is necessary, she says, it isn’t the main objective. “It’s really about the individualized needs of kids, making sure that each kid is closing the gap, each kid is being successful, each kid is being celebrated for their growth.”

CASE 2: HELPING MARSHALLESE STUDENTS IN KA‘Ū ADVANCE AND GRADUATE Ka‘u High & Pahala Elementary School, on the southeast side of Hawai‘i Island, enrolls about 500 students in grades K-12. It’s

a particularly high-needs school, where nearly 98% of students qualify for free or reduced-price lunches. Surrounded by agricultural land, the school serves rural communities stretching across 922 square miles of the vast Ka‘ū district, from Pāhala to Nā‘ālehu-Wai‘ōhinu to Ocean View. Many of the Ocean View students, or their parents, are originally from Enewetak Atoll in the Marshall Islands, says ‘Āina Akamu, the complex academic officer. About 37% of the Marshallese students fall below the poverty line, which in Hawai‘i is currently $36,980 for a family of four; they make up about one-fifth of the school’s student population, he says. Some of the students live in rudimentary houses perched on the lower slopes of Mauna Loa, 5,000 feet above sea level and often miles from the school’s bus stop. A few have a two-hour walk from the upper sections of the Ocean View grid to the morning bus, says Akamu. The students face a daily odyssey, descending the mountain on foot on cold, dark winter mornings, dressed in shorts and Crocs, and dodging menacing dogs and vehicles careening down the roads, he says. Once they make it to the bus stop, it’s a 26-mile ride to school. When they get there, they confront language barriers and cultural differences. Most struggle to keep up with the lessons, or don’t show up at all. Only 16% of the Marshallese students regularly attend school, says Akamu. Until last year, none had made it to high school graduation. Since returning in the 20212022 school year, Ka‘u High & Pahala Elementary School has run after-school tutoring and summer-enrichment and creditrecovery programs. Last year, when federal pandemic money ran out for summer school, the state made a $20 million allocation across the public school system to keep the summer-learning programs intact; funding for summer 2025 was still uncertain in early April.

But those efforts weren’t reaching the Marshallese students. “We take a holistic approach and ask, what do kids need?” says Akamu. “It’s not sitting in front of a computer and doing packets of math. You can’t just tutor after school – you need people who will champion something bigger.” The school stepped up with additional assistance. It partnered with St. Jude’s Episcopal Church in Ocean View, near the town’s main artery, Hawai‘i Belt Road, to host the students four afternoons a week during the school year and five days a week in the summer. When the school bell rings in the afternoon, a special tutoring coordinator drives the Ocean View kids in a bus to the church, where she makes them snacks and meals. About 80% to 90% of the Marshallese students attend tutoring, says Akamu. For academic help, they use a new online option, Tutor.com, for live guidance from qualified tutors, rather than the more common format of prerecorded lessons or AI chatbots. The online service is free and open to all Hawai‘i public school students. When the after-school session is over, the coordinator drives the students from the church to their homes, scattered across the vast neighborhoods of Ocean View. Back on campus, a new coordinator for the Marshallese community is helping to build relationships with the families, and the school distributes free boxes of food from the nonprofit Food Basket, hosts Marshallese-focused events, and aids students’ morning treks with supplies such as rain jackets, reflective backpacks, sturdy shoes and flashlights. The special tutoring program has delivered strong results, based on ambitious but realistic goals. “Our success metric is the percentage of kids who move on to the next grade level or graduate on time,” Akamu says. Last year, 88% of kids in tutoring moved up, and all the seniors graduated on time.

CASE 3: AFTER-SCHOOL OPTIONS FOR THE “DANGEROUS HOURS” OF MIDDLE SCHOOL Principal Michael Harano is an old hand at managing the awkward, vulnerable and – aside from the toddler years – “most volatile time in a child’s life,” which are the sixth, seventh and eighth grades, he says. For more than two decades, he’s led Washington Middle School, located in the densely populated neighborhood of McCully in urban Honolulu. It’s the “most ethnically diverse middle school in Hawai‘i,” he says, and includes kids of Japanese, Filipino, Korean, Chinese, Native Hawaiian and Micronesian descent, among others. Harano’s approach is more relaxed than many administrators. He says he doesn’t fixate on test results but prefers to focus on what’s most important to middle schoolers: keeping them safe, pushing them to do their best, helping them figure out what they like and what they’re good at, and creating a sense of belonging. Academically, the school falls in the middle range among O‘ahu’s middle schools, with fewer than half of students showing proficiency in core subjects. But its overall growth scores, which measure student progress, put it among the top six middle schools on the island, according to 20232024 data from the DOE: 61% growth in English language arts and 66% in math. Washington students generally have so-so scores in sixth grade. Harano says those scores typically dip in seventh grade and then, as learning accumulates, they pick up in eighth grade. He says that helping students master a handful of core concepts each year – such as slope and y-intercept problems – is key to developing the problem-solving skills they’ll need to take standardized tests. Since schools reopened, he says many of the faculty have bought into this idea.

H AWA I I B U S I N ES S | 41

TUTOR LORI GIBSON WITH STUDENTS MINA LAKJOHN AND MORONI JOHN, WHO RECEIVED $100 GIFT CARDS FROM THE ROTARY CLUB FOR BEING TOP ATTENDEES OF THE OCEAN VIEW AFTERSCHOOL TUTORING PROGRAM IN THE KA‘U DISTRICT OF HAWAI‘I ISLAND. GRADUATION RATES FOR THE MARSHALLESE STUDENTS ATTENDING TUTORING ROSE FROM 0% TO 100% IN A SINGLE YEAR.

And his attention to the students’ social and emotional needs has led to rich after-school programming. Unsupervised hours, he says, are “a dangerous time for kids,” when they’re more likely to engage in shoplifting, drinking, drug use and other risky behaviors. Structured activities are especially important at Title I schools such as Washington, where 68% of students qualify for free and reduced-priced lunches. Most of the students’ parents don’t have the kind of jobs where they can pick up their kids at 2:15 and drive them to dance lessons, Harano says. So programs are brought to the students. One is the math team, which developed under the guidance of teacher Sun Park and now has 30-plus members who meet every day after school. Once a dark horse on the competition circuit, the team’s top eighth graders now consistently win the state MathCounts contest against heavyweights such as ‘Iolani and Punahou. “Mr. Park got them to believe that if you work hard, then you can win,” says Harano. “We don’t go into a competition now and concede anything. We believe we’re going to win.” All students also have access to extracurriculars and homework help

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from two well-regarded after-school programs, After-School All-Stars Hawaii and the Boys & Girls Club of Hawaii, whose two-story Spalding Clubhouse is located on the campus’s southern perimeter.

SCHOOL IS OUT, BUT THE LEARNING GOES ON After-School All-Stars, a nonprofit supported by grants and philanthropy, runs programming at 13 middle schools on O‘ahu and Hawai‘i Island, including Washington Middle. Students get homework help and tutoring, as well as take part in activities such as drama classes, pickleball, basketball, arts and crafts, cooking classes, leadership opportunities and gaming matches. The program is free for families and runs until 5:30 on school days. The Boys & Girls Club offers similar options, including sports, activities and homework help, as well as a relaxing space to unwind. “Kids should be who they are, and we allow them to be,” says Danielle Trinidad, the clubhouse director, who jokes with the older kids on our tour of the facility. “Even the troublemakers are just misunderstood,” she says with a laugh.

The center hosts about 150 students a day, from elementary school through high school, and charges a small monthly fee. It offers summer and intersession options, including field trips, and usually runs until 6 p.m.; on Tuesdays and Thursdays, the center stays open until 7 p.m. for high schoolers. These kinds of all-inclusive programs are rare at middle schools. The state’s A+ after-school program operates in elementary schools, while middle and high schools are largely left to create their own programs. About 70% of Hawai‘i’s children have both parents or their single parent in the workforce, according to a 2016 report from UH Mānoa’s Center on the Family. That leaves thousands of young people adrift on weekday afternoons, and during the long summer, holiday and mid-semester breaks. The Hawai‘i Afterschool Alliance, located on the UH Mānoa campus, connects public schools with organizations offering afterschool programming and maintains a database of services. Paula Adams, the nonprofit’s executive director, says she’d love to see structured after-school programs rolled out more widely to the upper grades. “There’s this assumption that middle school and high school kids can take care of themselves, but we know that these youth need a safe place … where they can be with their friends, finish their homework and have fun,” Adams says. She’s worried about cuts to federal grants that pay for much of the after-school funding in Hawai‘i’s public schools. “If that funding doesn’t come, what is going to happen with afterschool programs?” she asks. “It’s something that not only the state should be involved in but also the city and counties because we don’t want thousands of kids alone in the after-school hours.” While after-school programs at the middle and high school levels are

HIGHER TEST SCORES ARE LINKED TO HIGHER INCOMES Hawai‘i’s best language-arts scores in 2023-24, represented in the top-right quadrant, are mostly from students with higher socioeconomic status, but not always.

State math scores in 2023-24 follow the same pattern as language arts, with greater proficiency and growth in the higher socioeconomic-status quadrant.

THE SCATTER PLOTS SHOW RESULTS FROM HAWAI‘I’S SMARTER BALANCED ASSESSMENTS FROM 2023-24. STUDENTS WITH HIGH SOCIOECONOMIC STATUS ARE DEPICTED WITH BLUE AND THOSE WITH LOWER SOCIOECONOMIC STATUS ARE RED/ ORANGE. GRAPHIC PROVIDED BY THE HAWAI‘I STATE DEPARTMENT OF EDUCATION.

spotty, summer learning is thriving. Before the pandemic, the DOE ran summer school programs on 30 campuses; in 2024, it had programs at 222 sites. The department offered standard credit-recovery classes and accelerated classes, and a wide range of enrichment programs. Last summer, 27,660 students attended summer school across the Islands, according to state DOE data. About 45% were elementary school students, 22% were middle schoolers and 33% were high schoolers. All programs were free. Another new learning option is the DOE’s virtual tutoring program, Tutor.com. So far, it’s been used by 4,593 students, for a total of 12,528 sessions with a live tutor, says Teri Ishijima, assistant superintendent for the DOE’s Office of Curriculum and Instructional Design, who oversaw the project’s development and launch.

The service is available 24 hours every day, and includes a writing component that lets students submit their essays for personal feedback. The service also helps students taking accelerated AP classes and preparing for the ACT and SAT college exams.

LINKING EDUCATION TO THE REAL WORLD In recent years, a wealth of new programs has been launched to give public school students the kind of real-life, hands-on experiences that make learning relevant in their lives. Career and technical education, ‘āinabased education and early-college programs can be found in schools across the state.

One of the newest initiatives is “work-based learning,” which relies on outside “intermediaries” who bring together companies and schools for career fairs, classroom talks, apprenticeships and internships. The Hawaii Workforce Pipeline is one such intermediary. Founded in 2020 by Rachael Aquino and Jennifer Sagon-Taeza, the nonprofit now works with 83 public schools across Honolulu and the Windward side, from Waimānalo to Sunset Beach. A cohort of students at Farrington High School, for example, is working in paid apprenticeships at the Blood Bank of Hawaii to become certified phlebotomists. When they finish, they can jump into jobs immediately or use the training as a launching pad into different health care roles, says Aquino.

H AWA I I B U S I N ES S | 43

In another example, Hawaii Workforce Pipeline has paved the way for Windward students to train to become registered behavioral technicians, now in short supply. Students work in special-education classrooms, and their online coursework and licensing exams are paid for by the nonprofit. Before starting the organization, Aquino was the senior program manager for the COPE Health Scholars Program at Adventist Health Castle. The internship attracted “these amazing private school students who were going to be successful without my help,” she says. But the public school students, she says, needed a head start. “If you don’t start soon with career awareness, then when opportunities are happening later in high school and college, our public school students aren’t ready,” says Aquino. “They don’t always have the same resources, or examples in their families of doctors, nurses and engineers.” Sagon-Taeza, a curriculum specialist, says education in Hawai‘i, perhaps counterintuitively, may have benefited from the pandemic, which spurred educators to be “a bit more creative” and innovative with their programs and policies.

WILL PROGRESS CONTINUE? In 2002, the Bush administration rolled out a controversial law called No Child Left Behind. It mandated high-stakes testing of all students and administered penalties for schools whose students failed to show adequate yearly progress. George, the Castle Foundation’s outgoing leader, says that despite being widely vilified, the law put Hawai‘i on the “path of actually caring about data on student achievement and being able to disaggregate the data based on socioeconomic status and ethnicity.” Eventually, Hawai‘i schools 44 | M AY 2 0 2 5

became adept at gathering and analyzing data that “we created for ourselves, not for Washington, D.C.,” he says. Individual schools now have their own specialists and teams that sift through the data and use it to improve students’ learning. Another major trigger that influenced public education, says George, was the Obama-era Race to the Top of 2009, a $4.35 billion U.S. Department of Education competitive grant that required states to adopt higher standards to qualify for funding awards. Hawai‘i’s Smarter Balanced system is a product of that. “Before, we had hundreds, if not thousands, of standards that teachers were trying to comply with,” says George. “Now it’s down to a smaller number that are more aligned with not just rote academic regurgitation of knowledge, but actually demonstrate the ability to find different ways of solving a problem, to analyze a passage, to state an opinion and back it up with evidence.” Armstrong, from the state Department of Education, says Hawai‘i elected to use the Smarter Balanced Assessment to align its content with national standards and to be able to compare proficiency results with other states. “Our standards are very robust,” she says, “specifically in our math and our English, social studies and science. Our CTE (career and technical education) standards are matched to industry expectations because we know that the purpose of K-12 schooling is to allow students to leave with the knowledge, skills and dispositions to be successful.” When she was a teacher, the state DOE’s Ushijima says each classroom and school “did a lot of individualized things.” But for the past two decades, “we’ve moved toward data-driven decision-making, looking at student work collaboratively, and we have a

“

THERE’S THIS ASSUMPTION THAT MIDDLESCHOOL AND HIGH-SCHOOL KIDS CAN TAKE CARE OF THEMSELVES, BUT WE KNOW THAT THESE YOUTH NEED A SAFE PLACE.” – PAULA ADAMS EXECUTIVE DIRECTOR, HAWAI‘I AFTERSCHOOL ALLIANCE

vetted, quality curriculum so everyone’s going in the same direction.” The pandemic brought a potentially insurmountable amount of learning loss among students. Yet many educators say it also brought opportunities for reinvention and a renewed focus on getting Hawai‘i’s kids up to speed in reading, math and basic academics. The sense of urgency it spurred among educators and school administrators has helped make Hawai‘i a national leader in terms of bouncing back to 2019 levels. Given the progress so far, what’s to stop Hawai‘i from becoming a top-performer across the board, joining such states as Massachusetts and Vermont? “Why did we move from a bottom-dweller five, and Arkansas did not, or Alabama did not, or Mississippi did not?” asks George. “We did something right, and we have that in our DNA. We can continue to push upward.”

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BUSINESS REPORT 2025

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F R O M T H E H AWA I ‘ I I S L A N D C H A M B E R O F CO M M E R C E

Table of Contents 4 6 FROM THE

The Hawai‘i Island Chamber of Commerce is dedicated to supporting the business community on the east side of Hawai‘i Island, a region known for its resilience. Over generations, our community has faced and overcome numerous challenges, from devastating natural disasters to economic downturns and global uncertainties. Through it all, we have come together with strength, innovation, and the unwavering spirit of aloha. As we continue navigating economic challenges, our commitment to supporting local businesses and industries has never been stronger. For more than 125 years, the Hawai‘i Island Chamber of Commerce has been an essential part of our community. Our mission remains steadfast: to make Hawai‘i Island a better place for families to live and do business. In 2025 our priorities include affordable housing, improving access to healthcare, strengthening our education system, and fostering a workforce that can adapt to changing economic conditions. These priorities are crucial to ensuring that Hawai‘i Island remains a place where businesses thrive, families flourish, and opportunities are accessible to all. This year, we hosted our 24th Annual Whitey Rose Memorial President’s Cup Golf Tournament, presented our prestigious Athena Leadership Award® to Hawai‘i County Council Member and President & CEO of Nā Leo Television, Ashley Kierkiewicz, and are looking forward to more exciting events, including our Young Professionals’ Recognition Gala and Career Fair, as well as our monthly Business After Hours gatherings. We have a great slate of member hosts coming up - Hawaii Gas Company, HouseMart Ace Hardware, Southwest Airlines, and Gemini Observatory! Furthermore, we are preparing for an Economic Outlook and General Membership Meeting and Luncheon sponsored by First Hawaiian Bank this Spring, along with a session on the state of tourism in Hawai‘i this Fall. The true strength of our community lies in its people. Our diverse membership reflects the dynamic nature of our island, supporting economic development, and opportunities that beneﬁt all. We would like to extend our heartfelt thanks to Hawaii Business Magazine for once again shining a spotlight on our island and its hardworking business community. We hope this Hawai‘i Island Business Report offers valuable insights into the collective efforts that make our home a truly special place.

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KONA-KOHALA CHAMBER OF COMMERCE

4 8 2 0 2 5 HAWAI‘I ISLAND BUSINESS REPORT

PUBLISHER

Kent Coules kentc@hawaiibusiness.com (808) 364-5869 E D I TO R & EX EC U T I VE PUBLISHER

Steve Petranik stevep@hawaiibusiness.com (808) 534-7584 ACCO U N T EX EC U T I VE

Chaz Tiogangco chazt@hawaiibusiness.com (808) 387-1672 ACCO U N T EX EC U T I VE

YongChae Song yongchaes@hawaiibusiness.com (808) 228-5078 S E N I O R ACCO U N T CO O R D I N ATO R

Rebecca Brooking rebeccab@hawaiibusiness.com (808) 534-7560 WRITER

Cynthia Sweeney

Mahalo,

Carla Kuo CAR L A KU O, Executive Officer, Hawai‘i Island Chamber of Commerce

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PHOTO: COVER, JEFF SANNER; COCONUT ISLAND, HILO

A LO H A A N D WE LCO M E F RO M TH E H AWA I ‘ I I S L A N D C H A M B E R O F CO M M E RC E .

HAWAI‘I ISLAND CHAMBER OF COMMERCE

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F R O M T H E KO N A - KO H A L A C H A M B E R O F CO M M E R C E

A LO H A

Mahalo to Hawaii Business Magazine for this special section showcasing Hawai‘i Island’s vibrant business community! At the Kona-Kohala Chamber of Commerce, we believe building relationships is the foundation for a thriving Hawai‘i Island. That’s why we’ve launched “Networking with Intention”—a new 2025 initiative designed to create meaningful connections through chamber activities and signature events. This goes beyond exchanging business cards; it’s about cultivating relationships that drive collaboration, spark innovation, and create shared success. With 460 member businesses and over 1,000 representatives, the Chamber is a dynamic hub for leaders across industries committed to shaping a vibrant future. That includes investing in the next generation through our Young Professionals Program, which fosters emerging leaders through purposeful networking, professional development, and community service. These efforts align our deep commitment to the values that guide everything we do: leadership, connection, education, respect, and aloha. The Kona-Kohala Chamber’s mission is to lead and advocate for a successful business environment in West Hawai‘i. Our top priorities—housing, water development, homelessness, and astronomy—reflect the urgent challenges and unique attributes of Hawai‘i Island. We focus on these issues to strengthen our local economy and promote the well-being of our community. Whether you’re a local entrepreneur, a growing company, or an established industry leader, we invite you to connect, collaborate, and grow with us on Hawai‘i Island! Sincerely,

WE N DY J. L AROS , President and CEO | Kona-Kohala Chamber of Commerce

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cross Hawai‘i Island, business owners large and small are facing uncertain economic times. However, challenges are being tempered with optimism and a spirit of working together in a business climate that’s been boosted by Kīlauea Volcano eruptions, employment and housing efforts, and annual events like the Merrie Monarch Festival and the Ironman Triathalon.

PHOTO COURTESY: PASHA HAWAII

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KTA Super Stores KTA SUPER STORES STARTED IN 1916,

ECONOMIC UNCERTAINTY ON THE ECONOMY AND FEDERAL TARIFF ISSUES, THE CONCERN IS

PALPABLE. “Basically, it’s wait and see,” says Carla Kuo, Executive Officer, Hawai‘i Island Chamber of Commerce. “There is a lot of uncertainty. That you can be certain about.” Toby Taniguchi, president and CEO at KTA Super Stores, says that between impending tariffs, federal funding cuts, and concerns about unemployment and insurance rates, “all are creating havoc. In our business, we see a lot of inflationary pressures. Businesses can’t absorb all of it. Unintended consequences of government actions can add to the burden of the cost of doing business, and at the end of the day it’s going to get passed to the consumer.”

How Canada and China react to tariffs is one of the “What if?” questions business owners are asking. “That matters especially for tourism, and is also a concern for our businesses that export,” Kuo says. Despite the uncertainty, the ocean shipping sector will continue to provide fast, reliable service to Hawai‘i Island in 2025, says George Pasha, IV, president and CEO of Pasha Hawaii. The shipping company operates an exclusively domestic service between the mainland and Hawai‘i, and is not directly impacted by proposed tariffs or port fees associated with the international carrier lanes. “The overall Hawai‘i economy is expected to maintain current levels supported by ongoing construction activity from both public and

as a modest 500 square-foot grocery and dry goods store, by Koichi & Taniyo Taniguchi. Since then, KTA has grown to a seven store chain, serving the residents of Hawai‘i island. When they first opened, the couple had no idea their modest business would someday evolve into a multi-store supermarket chain, employing over 800 associates. By 1940, a branch store was established in Downtown Hilo. This proved to be a wise decision when the original structure the couple began with was destroyed by the tsunami of 1946. This branch (Downtown) was converted into a supermarket in 1953 and was later followed by the opening of the Kailua-Kona store in 1959 (relocated to its present location in 1975). Just seven years later, the Puainako store was opened, followed by Keauhou in 1984, and the Waimea store (located in Kamuela) in 1989. In 1990, a sixth location was opened to serve the growing community of Waikoloa Village, and in 2018, KTA Express Kealakekua opened their doors. In 2025, KTA Super Stores opened its first stand-alone pharmacy location in the Ka Waena Lapa‘au Medical Center at 670 Ponahawai Street in Hilo. For over 108 years, KTA Super Stores has been committed to our founder’s philosophy, which is a commitment to humbly serve the people of our community.

Continues on page 50

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SPECIAL PROMOTIONAL SECTION

and we’re slowly building our employee numbers back up,” Taniguchi says, noting the employment front is looking brighter. “Human capital is super important to us, and we are focused on that while also looking at how we can evolve with the changing generations, and intentionally more fully understand what the incoming generations are looking for and how we can make work meaningful for them.” Lobbying on behalf of workforce development, Kona-Kohala Chamber of Commerce President and CEO Wendy Laros says the chamber supports the University of Hawai‘i Space Science and Engineering Initiative and the Mauna Kea Scholars program. These activities feed directly into the region’s key industries, including the astronomy industry on Hawai‘i Island, a global leader in astronomical discoveries. “Funding these programs is a strategic investment in Hawai‘i’s workforce,” Laros says. “These initiatives will foster innovation, diversify the island’s economy, and provide quality, high-paying jobs for the people of Hawai‘i.”

VISITORS ALTHOUGH VISITOR NUMBERS ARE REPORTED TO BE SLIGHTLY DOWN, YEARLY EVENTS

private sectors,” Pasha says. However, “Questions around federal employment levels and potential reductions on Hawai‘i Island may negatively impact consumer spending and freight volumes.” He adds that cuts to grants and federal programs may extend into joint federal and state ventures. “The overall global supply chains may see drops in international cargo arrivals into the mainland, which may, in turn, affect the freight that retailers flow from mainland distribution centers to meet Hawai‘i state and island demand,” Pasha says. “It’s very early in this new administration’s tariff rollout, and we have not seen any major forecast changes but will continue to monitor data very closely.”

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LABOR POST-PANDEMIC, SOME BUSINESSES ARE STILL HAVING DIFFICULTY FINDING ENOUGH EMPLOYEES TO FILL POSITIONS.

“People are working extra hard to cover for folks who aren’t there,” Kuo says. “For small businesses, it affects their opening hours, and can shorten their day.” She adds that she’s thankful that “our mayor and governor are open to rehiring some of our laid off federal workers.” KTA is one of the larger employers on the island. The company has maintained a loyal workforce over the years, including one employee who just retired after 58 years at KTA. But that also raises the issue of the island’s aging workforce. “We are seeing a lot more applicants,

ON HAWAI‘I ISLAND, including the Merrie Monarch Festival, and the Ironman Triathlon, continue to entice both international and domestic visitors. Kīlauea has erupted more than a dozen times since December, and the eruptions are popular among visitors who want to check out the spectacular flows, Kuo says. At Hawai‘i Volcanos National Park, “People can easily see the eruptions... Pele has been kind to us, and it helps our tourism for sure.” Although the downtown Hilo district remains busy, “I have heard from some small businesses that discretionary spending is down, and maybe that is because of uncertainty with the economy,” Kuo says. And while the international visitor market could be stronger, Laros says, “There are nuances here and there, but tourism in general is still very strong.” Laros highlights that the Kona-Kohala coastline boasts the bulk of accommodations and activities along with the

SPECIAL PROMOTIONAL SECTION

infrastructure to support the visitor industry on Hawai‘i Island. She notes, “We recognize the critical importance of tourism in providing large and small business opportunities, jobs, capital investment, and taxes.”

WORKING TOGETHER AND STAYING COMPETITIVE KTA SUPER STORES STARTED IN 1916 AS A MODEST 500-SQUARE FOOT GROCERY AND DRY GOODS STORE, AND HAS GROWN TO

A SEVEN-STORE CHAIN. It now competes against big-box stores like Target, Safeway and Walmart. KTA stays competitive by being “absolutely committed to local sourcing, to food sustainability, and supporting local farmers and fishermen,” Taniguchi says. “For us to stay relevant, we need to offer conveniences such as self-checkout and items with fair pricing.” In September, KTA purchased the family-owned Takata Store, a 100-yearold business in North Kohala.

“That’s been a really special project for us. We were super-honored that the family would trust us enough to let us take over,” Taniguchi says. The company brought in new items, while at the same time being respectful of existing community businesses, “so that everyone can flourish. We kept their name, brand, and nearly 100% of their associates. It’s the same with all our island locations, including Waikoloa and Kealakekua,” Taniguchi says. In 2020, several business-oriented groups came together to form the Hawai‘i Island Chamber Hui, to share ideas. It includes leaders from the Native Hawaiian Chamber of Commerce, the Japanese Chamber of Commerce & Industry, and the Kona and Hilo chambers. “It’s been a great way to create synergy for the island with a lot of the top business leaders, including KTA,” Laros says. “Agenda items rotate and typically revolve around our advocacy efforts to see where we might align, and see where we can advance our advocacy initiatives together.”

Hawai‘i Island also has a new mayor, Kimo Alameda. “From our experience he’s very popular,” Laros says. The Kona-Kohala Chamber recently met with the county’s Department of Research and Economic Development. Officials there are “very excited,” she says. “They’ve got a lot of good plans and ideas.” Meanwhile, Pasha Hawaii says it’s working closely with its state partners to keep the Kapalama Container Terminal project in Honolulu on target for completion late this year. “The KCT project will also help drive efficiencies into the overall network including our connections with Young Brothers’ container service into the Big Island,” Pasha says. Says Taniguchi, “It’s incumbent for everyone to be a part of the solution. My dad always told me, ‘Son, if you’re not a part of the solution, there’s a high possibility you’re part of the problem.’ I would encourage everyone to be a part of the solution. Let’s work collectively together for the broader community.”

Devoted to the community since 1916. KTA Super Stores is Hawai‘i’s locally owned & operated one stop shop, serving Hawai‘i Island’s grocery, household and pharmacy needs for over 106 years! Downtown, Hilo 808-935-3751

Puainako, Hilo 808-959-9111

Waimea 808-885-8866

Waikoloa Village 808-883-1088

Kailua-Kona 808-329-1677

Keauhou, Kona 808-322-2311

Express, Kealakekua 808-323-1916

KTA Delivery in Hilo delivery.ktasuperstores.com

www.ktasuperstores.com

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ILLUSTRATION : GETTY IMAGES, HAWAII BUSINESS

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BY S H E L BY MAT TOS

No One is Immune to Fraud Almost 9,000 fraud reports were filed in 2024 in Hawai‘i, and residents lost $61.6 million. I’m in a new target group, Gen Z, and though I’m usually on guard for scams, I ended up paying $150 for concert tickets that never materialized. You could be next. YOU MAY HAVE BEEN TOO PREOCCUPIED WITH THE PANDEMIC TO NOTICE, BUT RIGHT AROUND 2020, YOUNG PEOPLE STARTED FALLING VICTIM TO SCAMS JUST AS OFTEN AS OLDER PEOPLE. AND IT’S A TREND THAT CONTINUES TODAY.

The reasons are plentiful: Young people are likely to be on their phones, on social media and online more often than other generations – and that’s where fraud often happens. And they’re more comfortable and confident using technology, which can make them less cautious about cyber scams. Or maybe they’re enticed by online trading, cryptocurrency investments and gig work, areas where fraudsters thrive. And older adults have been warned about fraud for decades, so their warning radar may be well developed – whereas young people may be encountering these schemes for the first time. One fact remains: Older folks generally have more money than younger ones, so they lose more to scammers, on average. Fraudsters create urgency or fear that puts pressure on people, persuading many to react irrationally and uncritically in real time. They also use emotional manipulation – maybe leveraging personal relationships or fake familiarity – to lower a victim’s defenses.

“Scammers are going to play on your emotions and they’re going to push urgency,” says Cameron Nakashima, media engagement and digital campaigns manager for the Better Business Bureau Great West + Pacific. “So if you can take a minute to step away from the situation, whether it’s over the phone, over a message, anything like that, give yourself time to process and just think about it outside of your situation.” Keali‘i Lopez, AARP Hawaii’s state director, says people have to think beyond the panic and faux emergencies that scammers create. Once you step back and take time to really think about what’s happening, you might recognize you’re being conned. Scammers try not to give you that time. BBB tracks scams reported nationally by victims as well as those who spot scams before any damage is done. It collects information on government, personal and business imposters and scams on its scam tracker. The top three national scams target investments, employment and romance. More than 80% of people who reported cryptocurrency investment scams to BBB lost money to it. Nakashima says it is one of the most susceptible scams, with the second highest monetary loss. In

Hawai‘i, seven people reported to the BBB that they had lost money to cryptocurrency fraud. Together, those seven lost $289,575. Employment scams – often where people are offered enticing jobs but told to pay money up front to lock down the jobs – are the most reported, but the amounts lost are lower. Locally, 29 people reported the scam in 2024 with a median loss of $1,500.

“I LOVE YOU.” NOT!

When someone contacts you on social media or a dating app, beware: It might be a romance scam, also known as a friendship scam. “They’re going to be messaging you for weeks, months, sometimes even years, to gain as much trust as possible and then convince you, usually people who are later in life who’ve amassed a large 401(k), a retirement fund … to liquidate literally everything that they’ve spent their life saving” and send it to them, Nakashima says. The romance scam, he says, is the costliest in terms of the median loss, at $6,099. “Where they’re going to try to strike, what they’re going to try to get from you, the avenues that they use, those will look different from generation to generation,” he says.

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The Federal Trade Commission’s Consumer Sentinel Network 2024 Data Book found that in the U.S., people in their 20s lost money to fraud more often than people in their 70s. However, people in their 70s lost more money, a median of $1,000 compared with $417 for people in their 20s. For U.S. scam victims over 80 the median loss was $1,650. Hawai‘i fraud reports show much higher losses for kūpuna over 80 – a median of $4,250. “It doesn’t matter if you’re a 19-year-old trying to snag a good deal online or if you’re 65 and you think you’ve made a new friend online, it’s going to look different, but scammers are everywhere,” Nakashima says. “So … it’s important to be vigilant. We say, ‘trust but verify.’ ” There are a few ways to verify online whether an organization is legitimate. Search the group’s website and make sure it matches a legitimate organization. At BBB.org, some businesses are flagged if there is a pattern of complaints. “Unfortunately … not many organizations have a great solution after you’ve lost money or lost your personal data,” including the BBB, Nakashima says. “There are steps to recover, and if you contact Better Business Bureau, we’ll do our best to get you in touch with the right people and get you on the path to correction. But if you can avoid getting into that situation in the first place, that’s really going to be the best thing for you.”

I KNEW ALL ABOUT ONLINE FRAUD, YET …

On Feb. 12 at 9 p.m., I got scammed on Instagram. I wanted to attend a sold-out concert and was messaged that people

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were reselling tickets on Instagram. Even then I knew that people get scammed all the time – including over concert tickets – but in a moment of naivety, I sidestepped all the safeguards I had been taught. I messaged the “seller” and eventually sent $90 for three tickets. I was then told to send more money for the ticket transfer. And all the while, I was telling myself – and my roommate – that I felt like I was being scammed. But I continued the exchange. As the “seller” and I continued our back and forth – we’d been dealing for nearly three hours at this point – my suspicions eventually peaked, and I demanded the tickets I’d already paid for. Only at 11:30 p.m. did I realize I was never going to get those tickets. I’d been scammed. If this fraud sounds obvious, it was. I should never have trusted the person I was dealing with – someone I didn’t even know. I should never have sent money. But I was excited to see that concert. When the exchange ended, I canceled what I could and just stared at a wall, feeling stupid for sending $150 to a scammer. I felt so much shame. AARP’s Lopez says victim shaming is common. The people losing money often feel like it’s their fault, even though the fault is truly only with the scammers. Shame can lead people to avoid reporting the crime, or not talking about it, which can leave them vulnerable to more scams, she says. “We also try now at AARP, rather than using the term victim, we will use the term ‘consumer.’ They still are a victim, but now we are trying to move away from that shame part.” In the past decade, Lopez says investment crypto scams have been the most common and impactful. And she says those scams will remain a prevalent problem. AARP supported Hawai‘i House Bill 1277, which was introduced in 2025 to protect consumers from cryptocurrency scams. It would have

imposed a daily maximum of $1,000 on transactions through digital financial asset transaction kiosks, also known as cryptocurrency ATMs. The bill died at the state Legislature, but Lopez says AARP will continue to push for such caps to prevent fraud. Scammers will “have kūpuna take money out of their bank accounts and go to a kiosk and transfer thousands or tens of thousands of dollars in one fell swoop. And because it’s not regulated, once the money’s gone, it’s gone.”

BEEN SCAMMED? HERE’S WHAT TO DO NEXT.

If you are a victim of fraud, stop all communications with the fraudster and contact your bank as soon as possible, says Brian Ishikawa, senior VP and director of corporate security at Bank of Hawai‘i, and chairman of the Hawaii Association of Financial Institution Security Officers. Association members coordinate with each other and with local law enforcement agencies. They also collect fraud reports from clients and investigate them. Your bank may freeze your account, cancel credit and debit cards, dispute charges and take other actions. If you have shared your Social Security information with a fraudster, contact the Social Security Administration at 800-269-0271 or report it at oig.ssa.gov/report. You should also report it to the FTC at reportfraud.ftc.gov. The more reports the federal government receives, the more information it will have to combat fraud.

SOURCE: FTC CONSUMER SENTINAL NETWORK

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HAWAIIBUSINESS.COM/NEWSLETTER-SIGNUP

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BY RYA N N N OE L A N I C OU L E S ILLUSTRATION: GETTY IMAGES, HAWAII BUSINESS

Not Grown in Hawai‘i Hawaiian Host and Mauna Loa – the state’s biggest sellers of macadamias – use foreign nuts. Local growers and companies that sell Hawai‘i-grown nuts want a label-of-origin law with real teeth, not the limited version that takes effect Jan. 1.

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PHOTO COURTESY: HĀMĀKUA MACADAMIA NUT CO.

MACADAMIA NUT TREES WERE INTRODUCED TO THE HAWAIIAN ISLANDS IN 1881. THE HAWAI‘I MACADAMIA NUT CO. PLANTED THE FIRST COMMERCIAL ORCHARD IN 1921 AND BUILT A PROCESSING FACILITY IN 1934, BOTH OF WHICH WERE ON O‘AHU. TODAY, MOST LOCAL MAC NUT FARMS ARE ON HAWAI‘I ISLAND.

AWAI‘I’S MACADAMIA NUT FARMING INDUSTRY IS IN CRISIS AND A STATE LAW THAT TAKES EFFECT JAN. 1,

2026, has exceptions that will diminish its relief. In 2021, mac nuts were the state’s second-most important agricultural commodity, generating $62.73 million in revenue, according to an annual report released by the state Department of Agriculture. In 2022, mac nuts dropped to fifth place with just $33.18 million generated and by 2023, the last year for which data is available, mac nuts ranked seventh, generating only $30.91 million. I spoke with people from three brands that exclusively use Hawai‘i-grown macadamia nuts in their products. And I spoke with the state’s biggest mac nut seller by far, Hawaiian Host Group, which also owns the Mauna Loa

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brand. Both brands now use cheaper foreign nuts even though their packages emphasize Hawai‘i but do not mention that the nuts are foreign grown.

MAC NUTS FROM AFRICA

Macadamia nuts are an iconic Hawai‘i commodity, but imported nuts are increasingly infiltrating the local market. “Mac nuts have been imported from other areas for probably decades, but when it really started to become a problem and farmers began to take notice was during the pandemic,” says Jeff Clark, president of Hāmākua Macadamia Nut Co. According to its website, Hawaiian Host, which acquired the Mauna Loa brand in 2015, “currently has 80% of macadamia nut sales across Hawai‘i,” and the company has said tourism accounts for 65% of sales for the two brands.

So, when the pandemic halted tourism, Hawaiian Host almost went bankrupt. Around that time, both brands switched from buying most of its nuts locally to purchasing nuts grown overseas for a fraction of the cost. “They actually shut down their facility in Kea‘au in 2022, which used to crack pretty much all the nuts” on Hawai‘i Island, Clark says. After that, “they imported essentially 100% of their needs from foreign sources.” Chad Cleveland, owner of Ahualoa Family Farms, says the move to imported nuts was a huge blow to mac nut growers on Hawai‘i Island: “Farmers did go out of business or a lot of them didn’t even harvest. And that’s kind of when some of these other countries had a lot of these new plantings mature. So then there was a flood of foreign-grown nuts that you could buy for pennies on the dollar, which affected the market here.”

AVERAGE PRICE FOR HAWAI‘I-GROWN MACADAMIA NUTS

84 ¢

THE AVERAGE PRICE FOR WHICH LOCAL FARMERS SELL THEIR MACADAMIA NUTS HAS DROPPED TO ITS LOWEST POINT SINCE 2012. SOURCE: USDA NATIONAL AGRICULTURAL STATISTICS SERVICE

Based on public import data, Clark says, “Hawaiian Host brought in 1.5 million kernel pounds of nuts in 2024. ... That’s about 30% of what’s grown in the state.” Meanwhile, he says, “we have farms that are going out of business because they have no market. Mauna Loa is not buying it.” The website Import Genius, citing U.S. customs data, indicates Hawaiian Host and Mauna Loa are receiving nuts from South Africa and Kenya. (At press time, South African exports to the U.S. were hit with a 31% tariff, and Kenyan exports with a 10% tariff. The impact on Hawaiian Host’s sourcing was not immediately clear.) When I asked to interview a Hawaiian Host representative, I received an emailed statement from President and CEO Ed Schulz. He acknowledged Hawaiian Host buys foreign nuts but refused to disclose from which countries and what percentage of their nuts are imported. “To fulfill the high demand for our products, we buy additional macadamias from other Hawaiian

growers that we process in our local facility as well. In the past two harvest years, for example, we have purchased every high-quality Hawaiian macadamia that a small or large farmer wanted to sell us. ... Yet, as we sell our products in 49 states and export to over 23 countries around the world, we need a significant amount of macadamias that exceeds what we can source from our own local orchards or other high-quality growers in Hawai‘i.” At least eight mac nut companies say they’re committed to using only Hawai‘i-grown nuts in their products, according to the Hawai‘i Macadamia Nut Association. Many of these companies grow their own nuts and purchase additional nuts from other local farmers. Island Princess and its parent company, Hawaiian King Candies, purchased from 46 Hawai‘i growers this past year, says owner Patrick Haddad. His reasoning: “If I don’t help the grower, I’m going to be alone one day.”

But these brands can only buy so much. “We’ve purchased in the past from about 150 independent farmers. Today, we only buy from a few” because of recent economic conditions, Clark says. “Mauna Loa and Hawaiian Host are using cheaper nuts from South Africa, mostly, and so I need to compete with them in the market. I can’t pay a Hawai‘i price to local farmers, because I can’t compete with Hawaiian Host using their cheaper kernel.” Cleveland echoes Clark: “Of course, foreign grown nuts are going to cost far less money, so they’re going to be less expensive on the shelf when we’re barely scratching by with our margins to even market our nuts at a reasonable price. It’s very difficult for us with our economies of scale.” Their biggest gripe with Hawaiian Host is not that it outsources its nuts. The complaint is that the company deceives consumers with packaging that showcases Hawai‘i but does not disclose the nuts are from elsewhere.

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PHOTOS: AARON YOSHINO

MISLEADING MARKETING

PATRICK HADDAD, OWNER OF HAWAIIAN KING CANDIES, SAYS ALL OF THE COMPANY’S MACADAMIA NUTS ARE GROWN ON HAWAI‘I ISLAND AND TRANSPORTED TO THEIR HONOLULU FACILITY FOR PROCESSING AND DISTRIBUTION.

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A lot of tourists and locals want to buy made-in-Hawai‘i products – and are often willing to pay more for the real deal. “If you look at any of the packaging that Mauna Loa and Hawaiian Host have, it’s in their (brand) name,” says Clark. Individual product names include AlohaMacs and Island Macs. He says the companies are “using all these crafty marketing terms to market their product without saying Hawaiian nuts. But they’re cleverly dancing around that.” Mauna Loa’s website says the design of the new boxes for its milk chocolate covered mac nuts is “inspired by the breathtaking Ko‘olau mountains of O‘ahu.” A label that calls the nuts “the original gift of aloha” appears on the packaging of many Hawaiian Host products, alongside Hawai‘i imagery such as Diamond Head, lei, waves and women in traditional Hawaiian attire. “The one thing that gets me probably the most is just the deceptiveness,” says Ahualoa Family Farms’ Cleveland. “It hurts my heart just to know that these people, whether they’re a visitor or someone who lives here or who is from here or is Hawaiian, thinks they’re getting an authentic Hawai‘igrown and produced product.” The Hawai‘i Macadamia Nut Association advocates for a labeling law from the state Legislature that would require brands to clearly state where their macadamia nuts are grown. According to Clark, every member of the association – except for Hawaiian Host – agrees it’s “not fair that they can use the marketing power of Hawai‘i while not using the ag aspect of Hawai‘i.” Clark says Hawaiian Host saw that labeling regulations were likely coming, so it began buying local mac nut farms in 2023. “For many years, they have not had a farm at all. They’ve only been a cracking facility and a brand. Now they have a farm, but they’ve reduced that farm by about 50% and they are now

PHOTO COURTESY: AHUALOA FAMILY FARMS

advocating for getting a co-op facility built by the government,” he says. The first label-of-origin bill failed in the state Legislature but a watereddown version was approved on its second attempt. It was signed into law in June 2024 and is set to take effect on Jan. 1, 2026. “We were advocating for all macadamia products to be included under this bill, which would have included chocolate covered and even cookies and things like that to have to label if they’re using Hawaiian or foreign nuts,” Clark says. But the law that actually passed excluded macadamia nut products with multiple ingredients, such as chocolate-covered macadamia nuts or macadamia nut cookies. Currently, the label-of-origin legislation covers macadamia nuts that are plain, salted, honey-roasted, coconut and coffee-glazed, Maui onion, chili-spiced and other seasoning and flavor varieties. “That’s a big hole in the market,” Clark says, adding that the macadamia nut association hopes a more comprehensive labeling law passes soon. In his emailed statement, Hawaiian Host’s Schulz says his company fully supports the label-of-origin law that goes into effect January 1, 2026. “This year, we even advocated at the State Legislature for additional labeling laws that would require ‘Hawaiian Macadamias’ to not only be grown in Hawai‘i, but also processed here. The processing phase involves removing the husk, drying the nut, cracking the shell and roasting the kernel.” Clark says he opposes Hawaiian Host’s proposal to make local processing a requirement for the Hawai‘i label. “I oppose the bill, not necessarily because I oppose the idea of processing in Hawai‘i. Clearly, we support that. I oppose it because they’re the very guys that reduce the capacity to crack. ... We still don’t have enough capacity to crack all the nuts grown here.” Concerns about lacking sufficient infrastructure are where they find common ground. “That’s why our

MACADAMIAS ARE WIDELY CONSIDERED THE HARDEST NUTS TO CRACK, REQUIRING 300 POUNDS PER SQUARE INCH OF PRESSURE TO CRACK A SHELL OPEN.

industry’s focus should be to grow together,” says Schulz. “To do this, we need a modern co-op processing facility that gives all growers, large and small, economies of scale to compete on a global market. That way, we can bring a large number of jobs from China back to Hawai‘i.”

MADE IN HAWAI‘I VS. ELSEWHERE

Most of the state’s mac nut farms are in the Hāmākua, Puna and Kohala districts of Hawai‘i Island, which is where Hawai‘i’s first commercial macadamia nut trees were planted over a century ago. Mac nut trees thrive in warm, subtropical conditions that get consistent rainfall. “The quality of what feeds the mac nuts, the water and soil, is the best in the world,” says Hawaiian King Candies’ Haddad. “Water, because we are the furthest from any continent, so we are one of the least polluted areas. Second, the soil is renewed due to the fact that it’s a volcanic soil, and the absorption of the mineral is much better in Hawai‘i than anywhere in the world.” Clark says you can taste the difference: “If you think of where else macadamias are grown – Australia, South Africa, Kenya, Brazil,

Guatemala and now China – each has their own kind of growing conditions, and different types of soils. None is the same as what we grow in, which is purely volcanic type soils. So that is really the difference, that creamy, buttery texture that we get out of the macadamias that we grow here.” Cleveland says sourcing macadamia nuts from foreign countries comes with uncertainties, particularly regarding freshness, food safety, and ethical practices. He adds that imported nuts may spend extended periods in storage before being purchased, processed and transported, which can impact their quality. “That kind of taints the quality or perception of Hawai‘i-grown nuts” if they are being falsely marketed as such, says Cleveland. This issue of protecting Hawai‘i’s brand from deceptive marketing goes far beyond mac nuts: Kona coffee, sea salt and mamaki tea have provoked similar controversies in recent years. “Everyone deserves to know what they’re purchasing so then they can make that educated decision on who they want to support, and, yeah, maybe they need to buy the cheapest one. That’s fine as long as they know what they’re getting,” Cleveland says. H AWA I I B U S I N ES S | 61

“Congratulations to the honorees of the 20 for the Next 20, 2025 Cohort! We are inspired by their remarkable achievements and excited to see what the next 20 years will bring.” — KELLY UEOK A , PRESIDENT, PACX A

The “20 for the Next 20” event celebrated the outstanding achievements of 20 emerging leaders in Hawai‘i. These individuals were selected for their impressive talents, accomplishments, and potential to make signiﬁcant contributions across various sectors, including business, law, education, healthcare, and government. The event highlighted their potential to shape Hawai‘i’s future, offering a platform to honor their innovative work and inspire others. Each year, Hawaii Business Magazine recognizes these exceptional professionals, shining a spotlight on their remarkable journeys and the impact they are poised to make in the coming decades.

“Ward Village is honored to support the 20 for the Next 20 celebration. Congratulations and thank you to all of the honorees for their positive contributions to the community.” —WARD VILL AGE

“At ALTRES, we believe in the transformative power of leadership and putting passion to work. Sponsoring Hawaii Business Magazine’s 20 for the Next 20 event is more than an honor, it’s a commitment to nurturing the visionaries and trailblazers who are shaping a brighter future for Hawaii and allows us to celebrate these passionate leaders for their accomplishments and the impact they will have on our state for the next two decades. Mahalo to Hawaii Business and all the honorees for an incredible night and for their collective work of making Hawaii a better place.” —ALTRES

MAHALO TO OUR SPONSORS CO-PR ESEN TI N G SPON SOR S

“It was an honor to host Hawaii Business Magazine’s 20 for the Next 20 celebration at YWCA Oahu. Recognizing Hawaii’s emerging leaders is crucial, as their exceptional talents and accomplishments have set them apart in their ﬁelds. They are shaping a brighter future for our islands, and we look forward to witnessing their continued impact in the years ahead. Congratulations to this year’s well-deserved honorees!” —Y WCA OAHU

VEN U E S P O N S O R SUPPORTI N G SPON SOR

BY STEV E PETRANI K

Boss survey AND 808 POLL

Our Surveys Asked Hawai‘i Residents: What is the State of the State? Here is what we learned from two statewide polls: the BOSS Survey of 357 local business owners and executives, and the 808 Poll of 413 members of the general public Each respondent in both surveys was presented with these five options and asked to select one that best mirrored their views on the direction the state is headed.

14%

3% 23%

33% BUSINESSPEOPLE

16%

GENERAL PUBLIC 27%

*NO BUSINESSPEOPLE CHOSE THE FIRST OPTION

37%

32%

* HAWAI‘I IS THRIVING AND ITS RESIDENTS ARE DOING A LOT BETTER NOW THAN A FEW YEARS AGO HAWAI‘I IS MOVING AHEAD, SLOWLY BUT STEADILY, AND IS ON A GOOD COURSE FOR NOW OVERALL, THE ECONOMY AND QUALITY OF LIFE IN HAWAI‘I HAVE NOT CHANGED A LOT IN RECENT YEARS HAWAI‘I IS STAGNANT AND IS SHOWING THE BEGINNING SIGNS OF DIFFICULT TIMES AHEAD HAWAI‘I IS IN REAL TROUBLE AND NEEDS TO CHANGE COURSE TO ENABLE ITS RESIDENTS TO THRIVE AND ENJOY LIFE

In both surveys, Neighbor Island responses did not differ significantly from O‘ahu responses. PERCENTAGES DO NOT ALWAYS TOTAL 100 DUE TO ROUNDING.

METHODOLOGY: The BOSS Survey of local businesspeople and the 808 Poll of the general public are conducted twice

a year for Hawaii Business Magazine by the research division of Anthology/Finn Partners. To learn the methodology for the polls, go to hawaiibusiness.com/bossmethod2025. 64 | M AY 2 0 2 5

Supreme Court Ruling on Homeless Camps All respondents in both surveys were given this statement:

The U.S. Supreme Court ruled in 2024 that government may get more aggressive in clearing or disbanding homeless encampments. What is your thinking: Should more efforts be made to remove homeless persons and their belongings from Hawai‘i’s public areas or should they be allowed to live on state and county land?

16%

18%

BUSINESSPEOPLE

GENERAL PUBLIC

77%

80%

ENCAMPMENTS SHOULD BE MOVED FROM PUBLIC LANDS HOMELESS PERSONS SHOULD BE ALLOWED TO LIVE ON PUBLIC LANDS DK/DA*

How Much Paid Maternity Leave for New Mothers and Who Pays? All respondents in both surveys were given this statement:

Hawai‘i‘s temporary disability insurance, known as TDI, covers pregnancy complications and the postpartum period, providing 58% of a mother’s average income, with a current cap of $798 a week. Benefits generally cover five to six weeks after birth, or eight weeks for cesarean-section deliveries. But not all mothers are covered. Do you agree or disagree that there should be longer paid leave for mothers for childbirth and that it should cover all or almost all mothers?

16% STRONGLY AGREE SOMEWHAT AGREE SOMEWHAT DISAGREE STRONGLY DISAGREE DK/DA*

BUSINESSPEOPLE

48%

41%

GENERAL PUBLIC

40% 36%

*DIDN’T KNOW OR DIDN’T ANSWER | PERCENTAGES DO NOT ALWAYS TOTAL 100 DUE TO ROUNDING.

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How Much Paid Maternity Leave for New Mothers and Who Pays? Those who agreed with extending paid leave for new mothers were presented with these options and asked how long they felt the paid leave should extend to. 6%

13% 23%

28%

21% BUSINESSPEOPLE

GENERAL PUBLIC 26% 38%

44% A TOTAL OF TWO MONTHS THREE OR FOUR MONTHS FIVE OR SIX MONTHS MORE THAN SIX MONTHS DK/DA*

In the poll of the general public, support for longer paid leave was statistically higher among respondents under 50. For example, 26% of young adults under the age of 35 want paid leave extended past six months. This number drops to 6% among seniors. Those who support longer paid leave were asked who should pay the mothers.

15%

13%

11%

37% BUSINESSPEOPLE

GENERAL PUBLIC

60%

23%

EMPLOYERS, THROUGH THEIR TEMPORARY DISABILITY PREMIUMS OR SOME OTHER METHOD STATE GOVERNMENT A PAYROLL TAX ON ALL EMPLOYEES LIKE THE SOCIAL SECURITY TAX OTHER | DK/DA* *DIDN’T KNOW OR DIDN’T ANSWER | PERCENTAGES DO NOT ALWAYS TOTAL 100 DUE TO ROUNDING.

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Food Service Expo

Left to Right: Duane Kurisu (aio), Ronna Bahl (Y. Hata & Co. Ltd.), Andy Huang ( L & L Hawaiian Barbecue), Sheryl Matsuoka (The Hawaii Restaurant Association), Michael Palmer (The Kuhio Avenue Food Hall), David Yoshioka (Sysco Hawaii).

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A HISTORIC SUCCESS: THE 2025 HAWAII RESTAURANT ASSOCIATION FOOD SERVICE EXPO

Three months. That’s all the time we had to plan, organize, and execute what has now been called the best Hawaii Restaurant Association Food Service Expo ever. And let me be clear—those are not my words. Those are the words of our sponsors, exhibitors, and attendees. From the very start, we heard one thing loud and clear: the food service industry in Hawaii needed a high-quality, high-impact event that truly served its needs. And in just three months, we delivered. With over 90 exhibitors, 210 booths, and 2,500 attendees, the numbers spoke for themselves. Thanks to our Expo app, which allowed exhibitors to track who visited their booths, we know that on the first day alone, one exhibitor reported over 900 attendees entering their exhibit space. On the second day, over 1,000 more visited their booth. And the resounding feedback? Quality over quantity: decision-makers and purchasers filled the room. One exhibitor, a seasoned veteran in the media and communications industry, shared her amazement at the level of engagement. She had attended countless expos over the years, but never had she encountered so many true industry leaders in one place. By the end of the Expo, she had a list of over 100 restaurant and food service owners and key decision-makers who visited her booth. She commented that she has never held so many conversations with so many restaurant and business owners ever! That’s the kind of impact we aimed for—and we achieved it. None of this would have been possible without our incredible sponsors. From the moment we announced this Expo, they stepped up, fully committed and all in. In such a short time frame, their unwavering support was nothing short of extraordinary. Their belief in our vision fueled our ability to deliver an event that exceeded all expectations. A special thank you to our distinguished sponsors: Y. Hata & Co., Sysco Hawaii, SpotOn, First Hawaiian Bank, Hawaii Gas, Central Pacific Bank, American Savings Bank, and Altres. Their support was integral to the success of our event and showcased the strength of Hawaii’s food service community. A heartfelt thank you to our Hawaii Restaurant Association Chairman, Andy Huang, and to our Incoming Hawaii Restaurant Association Chairman Mike Palmer and staff J. Kinmoto, who stood strong even when faced with pushback. Change is never easy, and we knew there would be challenges. But

See you at the Hawaii Restaurant Association Food Service Expo in 2026. For details, marketing@hawaiirestaurant.org.

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we also knew that our exhibitors and sponsors had spoken, and we needed to listen. Our team spent hours replying to emails and returning calls to explain why, this year, we were going to listen to our sponsors and exhibitors and pre-qualify attendees. Our exhibitors make significant investments to be part of this event—covering the costs of their booths, food and beverage samples, staffing, and supplies—all while navigating rising costs in food and labor. They asked us to ensure that our event was exclusively for restaurant owners, decision-makers, and purchasers. And we honored their request. It wasn’t the Hawaii Restaurant Association that set this guideline—it was the exhibitors themselves. To everyone who attended, supported, and believed in this Expo—thank you. Your enthusiasm, your engagement, and your commitment to elevating Hawaii’s food service industry made this event a resounding success. The conversations, the connections, and the collaborations that happened over those two days in February will shape the future of our industry. And for that, I offer my deepest gratitude.

Here’s to an Even Brighter (Filled with Sparkle and Bling) Future! The Hawaii Restaurant Association and the aio team have been thrilled to hear that our exhibitors are not only planning to return next year but many are also doubling their booth count! As I’ve shared with the HRA Board of Directors, my vision for this Expo was to bring bling and sparkle—and on the first day, I knew we had achieved just that. A dear friend, who has been in the food service industry for over 40 years, came up to me and said, “Sheryl, there is a high level of excitement in the air at the Blaisdell Exhibition Center. I have never felt this before—congratulations!” At that moment, I knew: The Hawaii Restaurant Association had delivered the sparkle, the energy, and the excitement that made this Food Service Expo truly unforgettable!

Building Something of Our Own When I learned that the Hawaii Restaurant Association would not be part of a prior show in 2025, I knew we had to create our own—thus, the Hawaii Restaurant Association Food Service Expo was born. Our members needed a place to connect with new eateries, decision-makers, and purchasers to grow

their clientele. In this challenging business climate, I wanted to provide an opportunity for the entire food service community to build new relationships and rekindle old ones. I am incredibly grateful to The Hawaii Restaurant Association administrative team and our team of volunteers who reached out to new restaurants, eateries, hotels, resorts, schools, country clubs, golf courses, government agencies, hospitals, and assisted living facilities that serve food. One of my most memorable calls was to an assisted living facility. Their response? An excited, “Yes! We would love to attend your Expo. Restaurants hope for a full dining room every day, but in our assisted living facility, we have a captive audience—we know exactly how many meals we need to serve!” We had a great laugh, and it was wonderful to meet them at the Expo. Expanding our reach to the entire food service industry has strengthened the Hawaii Restaurant Association’s impact. The feedback from exhibitors has been overwhelmingly positive. One exhibitor shared, “We will absolutely be back in 2026! The connections we made at your Expo more than paid for our booth.” So, to everyone who helped make our Expo happen— from our hardworking team to our generous sponsors, committed exhibitors, and engaged attendees—thank you from the bottom of my heart. We did it, and we’re just getting started!

A Huge Mahalo to our Hawaii Restaurant Association Administrative Team: • Holly Kessler - Vice President • Kenia Sciarrilli - Marketing Administrator • Jaylina Abuy - Graphic Designer • Dana-Lynn Rodrigues - Administrative Assistant Your dedication, hard work, and passion made this event a historic success. We couldn’t have done it without you!

The Future is Bright This is just the beginning. The 2025 Hawaii Restaurant Association Food Service Expo has set a new standard, and we are already looking ahead to 2026. Bigger, better, and blingier than ever!

SHERYL MATSUOKA, President & CEO, Hawaii Restaurant Association

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THE HAWAII RESTAURANT ASSOCIATION EDUCATIONAL FOUNDATION The Hawaii Restaurant Association Educational Foundation (HRAEF) is a 501c(3) nonprofit organization whose mission is to enhance the restaurant and foodservice industries through education, community engagement, and promotion of career opportunities to future generations. The foundation’s focus is on providing the necessary resources to help educational and labor challenges with the latest innovations in education, technology and training. The HRAEF supports the hospitality industry in Hawaii through programs that educate and inspire current and future hospitality industry workers. HRAEF administers and supports Hawaii ProStart, a nationally accredited culinary curriculum, currently in 13

Hawaii public high schools, including Campbell, Castle, Kahuku, Kaiser, Kalani, King Kekaulike, Kohala, Leilehua, Maui, McKinley, Moanalua, Pearl City, Roosevelt. Hawaii ProStart offers high school students the opportunity to learn about culinary arts and hospitality management in a hands-on environment. Hawaii ProStart students are actively engaged in the foundation’s fundraisers, having the opportunity to work alongside high-profile chefs in a fast-paced atmosphere, to get a true feeling of what it’s like to be a successful chef. Upon completion of the two-year program, students receive consideration for scholarship opportunities. Hawaii ProStart inspires our youth and increases the number of trained hospitality workers in Hawaii. Learn more at www.hraef.org

BRADDAHHOOD & SISTAHHOOD GRINDZ Braddahhood & Sistahhood Grindz (BG & SG) is in its fourth year of supporting UH Athletics. With 26 participating restaurants and over 40 corporate partners, total contributions by the end of the 2024-25 season will exceed $1 million. While the program aims to help all sports teams at UH Athletics, participating teams to date include football, men’s and women’s basketball, men’s and women’s volleyball, men’s and women’s golf, women’s soccer, women’s water polo and women’s beach volleyball. We are extremely grateful for the entire Hawaii Restaurant Association for being a leading program

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member from the very start of BG & SG. Their ongoing support has been crucial to our growth and has played a huge role in the expansion and success of the organization. We have some new and exciting developments planned for 2025 and can’t wait to share them with our community. We want to also extend our gratitude not only to the Hawaii Restaurant Association but to all our program members for their invaluable contributions. Scan QR code to learn more!

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LOCALLY GROWN, SOURCED AND MANUFACTURED HAWAII PRODUCTS HAWAII VOLCANIC WATER From its inception, Hawai‘i Volcanic Beverages has been driven by a deep commitment to benefit Hawai‘i and its people. The company received the blessing of the late Uncle Ed Kaiwi, a respected kahuna and konohiki of Anahola, Kaua‘i, to launch this purposedriven project. Today, Hawai‘i Volcanic Beverages continues to evolve as a brand dedicated to supporting healthy lifestyles through locally sourced, natural beverages. Sourced from the pristine waters of the Big Island, their products harness the purity of Hawai‘i’s natural resources, offering refreshing beverages that reflect the island’s rich volcanic heritage. Their mission is to always “Be Pono” – to do what’s right by becoming an environmental leader in the beverage industry. Every bottle purchased helps clean our world’s oceans and supports their ongoing Pono Programs, both here in Hawai‘i and around the globe. We were honored to have Hawai‘i Volcanic Beverages at the 2025 Hawaii Restaurant Association Food Service Expo, where they showcased their incredible products and reinforced their dedication to preserving the land and sea. Their participation highlighted the significance of supporting locally grown and sourced products while actively contributing to a healthier, more sustainable future for Hawai‘i and beyond.

KULEANA RUM Having Kuleana Rum Works at our expo was a true honor. As a local distillery, Kuleana Rum Works crafts its products with an incredible sense of place and purpose. Their rums are made with fresh cane juice from sugarcane grown right here in Hawaii, ensuring every sip reflects the island’s rich heritage and the dedication of its growers. Featuring locally sourced ingredients is essential to supporting sustainable practices and preserving the authenticity of Hawaiian craftsmanship. We’re proud to have had Kuleana Rum Works as a part of our event, showcasing the vibrant spirit of the islands in every bottle.

ALOHA SHOYU In 1946, a small shoyu (soy sauce) manufacturing plant was established in Kalihi, Hawaii by five local Japanese families amidst post World War II. Aloha Shoyu™ Company has survived through competition to become one of today’s market leaders in Soy Sauce sales in Hawaii. Aloha Shoyu continues to expand its line of quality products which now includes Lower Salt Soy Sauce, Aloha Gold Soy Sauce, Gluten-Free Soy Sauce, White Distilled Vinegar, Cider Vinegar, Sushi No Tomo Vinegar, Barbecue Sauce, Hawaiian Teriyaki Sauce, Somen Tsuyu Noodle Sauce, and Teriyaki Glaze and Marinades. Tradition, local roots, and flavor make Aloha Shoyu products a favorite among Hawaiian islanders and visitors alike, so serve up your next favorite dish with a little Aloha. The name Aloha Shoyu was conceived to reflect our deeply rooted island heritage melded with our Japanese origin and to portray the company’s core values. The word Shoyu originates from Japan and is a term widely accepted in Hawaii which refers to Soy Sauce. Aloha, a term widely used as a greeting, also signifies important values in the Hawaiian culture, which includes kindness, unity, humility and perseverance. Over the years our line has grown from only soy sauces, to include a variety of sauces, marinades, and vinegars to meet the changing and expanding needs of the consumer. It is with this attention to detail and dedication to our customers that Aloha Shoyu has captured over 65 percent of the market share in Hawaii.

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MAHALO TO OUR SPONSORS The 2025 Hawaii Restaurant Association (HRA) Food Service Expo, held on February 26-27 at the Neal Blaisdell Center Exhibition Hall, was a resounding success, thanks in large part to the generous support of our esteemed sponsors. These partnerships played a pivotal role in creating an event that not only showcased the latest innovations in the food service industry but also fostered invaluable connections among professionals.

Y. Hata & Co. Founded in 1913 in Hilo, Y. Hata & Co. has grown to become Hawaii’s largest locally owned foodservice distributor, serving a diverse array of restaurants and food service operations statewide. Their commitment to providing high-quality products and solutions “with Aloha” has solidified their reputation as a cornerstone in Hawaii’s food infrastructure. At the Expo, Y. Hata & Co. not only showcased their extensive product range but also demonstrated their dedication to supporting the local food service community, reinforcing their role as a trusted partner in the industry.

Sysco Hawaii Sysco Hawaii, a subsidiary of Sysco Corporation, is a leading foodservice distributor on the islands, offering a comprehensive range of food and related products to restaurants, healthcare, and educational facilities. Their participation in the Expo highlighted their commitment to delivering fresh, locally sourced products and innovative solutions tailored to the unique needs of Hawaii’s food service operators. By connecting with industry professionals at the event, Sysco Hawaii underscored its mission to help customers succeed while nourishing the communities they serve.

EXHIBITOR MAHALO PAU HANA SPONSOR

EXHIBITOR LOUNGE SPONSOR

SpotOn SpotOn is a cutting-edge technology and payment processing company that provides comprehensive solutions for businesses of all sizes. At the Expo, SpotOn showcased their suite of services, including point-ofsale systems, marketing tools, and loyalty programs, all designed to streamline operations and enhance customer engagement. Their innovative approach empowers Hawaii’s restaurants to adapt to the evolving digital landscape, ensuring they remain competitive and efficient in a rapidly changing market.

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WEDNESDAY COFFEE & PASTRIES SPONSOR

THURSDAY COFFEE SPONSOR

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Hawaii Gas As the state’s only regulated gas utility, Hawaii Gas plays a vital role in providing clean, reliable, and affordable energy solutions. Their presence at the Expo emphasized their commitment to supporting the food service industry with energy-efficient appliances and sustainable practices. By offering expert insights and resources, Hawaii Gas helps businesses reduce operational costs and environmental impact, aligning with the industry’s move toward a more sustainable and efficient future. Their dedication to innovation and energy solutions ensures that Hawaii’s restaurants and food service providers have the tools they need to thrive while minimizing their carbon footprint.

First Hawaiian Bank –

Mahalo Pau Hana Sponsor Established in 1858, First Hawaiian Bank is the oldest and largest financial institution in Hawaii, known for its commitment to innovation, customer service, and community support. With a strong legacy of empowering businesses and individuals through comprehensive banking solutions, First Hawaiian Bank continues to be a trusted financial partner across the islands. Their sponsorship of the Mahalo Pau Hana gathering at the Expo fostered an environment of networking and appreciation, celebrating the vibrant food service industry that fuels Hawaii’s economy.

Central Paciﬁc Bank –

Exhibitor Lounge Sponsor Founded in 1954, Central Pacific Bank has been a cornerstone of Hawaii’s financial landscape, offering tailored banking solutions to local businesses and individuals. CPB is committed to fostering economic growth by supporting the food service industry through specialized business banking services, loans, and digital innovations. As the Exhibitor Lounge Sponsor, CPB provided a comfortable and quiet space for our exhibitors to take private meetings and make phone calls, making it an essential part of the event. Their sponsorship created a welcoming environment where industry leaders could connect, recharge, and cultivate new opportunities.

American Savings Bank –

Wednesday Coﬀee & Pastries Sponsor With a mission to make banking easier and more accessible, American Savings Bank (ASB) has been serving the people of Hawaii for nearly a century. Known for its commitment to financial education, community development, and business support, ASB helps local

entrepreneurs achieve their dreams. Their sponsorship of the Wednesday Coffee & Pastries station at the Expo ensured that attendees started the day refreshed, energized, and ready to explore new possibilities.

ALTRES/SimplicityHR – Thursday Coﬀee Sponsor

As Hawaii’s most experienced human resources organization, ALTRES/SimplicityHR has been helping businesses streamline their HR, payroll, and compliance needs for over 50 years. By providing innovative workforce solutions, they enable local restaurants and food service businesses to focus on growth while ensuring smooth operations. Their sponsorship of Thursday’s Coffee station at the Expo was a fitting way to fuel the industry professionals who keep Hawaii’s food scene thriving.

A Grateful Acknowledgment to 1311 Events for Elevating the HRA Booth The 2025 Hawaii Restaurant Association Food Service Expo, held on February 26 and 27 at the Neal Blaisdell Exhibition Hall, was a resounding success—an event that brought together industry leaders, restaurateurs, and food service professionals for two days of networking, innovation, and collaboration. Amid the energy and excitement, the Hawaii Restaurant Association’s booth stood out as a beautifully designed and welcoming space, thanks to the incredible contributions of Jordan Rabe and the team at 1311 Events. Their expertise in providing high-quality, thoughtfully designed furniture and decor transformed the HRA booth, the Exhibitor’s Lounge, and the Exhibitor’s Pau Hana into a professional and inviting environment. The elegant setup was visually stunning and functionally perfect, ensuring that every conversation, every meeting, and every interaction took place in a space that reflected the excellence of the industry we serve. The Hawaii Restaurant Association extends its sincerest gratitude to Jordan and 1311 Events for their generosity. Their support played a vital role in the success of the Expo, and we look forward to future collaborations that continue to elevate Hawaii’s food service industry. The Hawaii Restaurant Association Food Service Expo extends its deepest gratitude to all sponsors for their invaluable contributions, which played a pivotal role in the success of the 2025 Food Service Expo. The Hawaii Restaurant Association Food Service Expo would like to express its heartfelt appreciation to all sponsors for their essential contributions, which were instrumental in making the 2025 Food Service Expo a remarkable success.

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Above: David Yoshioka (Sysco Hawaii) , Jay Kaneshiro (FCH Enterprises, Inc.-Zippy’s Restaurants) , Sheryl Matsuoka (The Hawaii Restaurant Association) , Danny Bruce (Sysco Hawaii)

NON-STOP TRAVEL Non-Stop Travel played a vital role in the success of the 2025 Hawaii Restaurant Association Food Service Expo, held on February 26 and 27 at the Neal Blaisdell Exhibition Hall. Their generous donation of $1,000 in gift cards—comprising two $250 certificates to Jade Dynasty and two $250 certificates to Gyotaku—not only added excitement to the event but also reinforced their commitment to Hawaii’s thriving food service industry. The giveaway drew great enthusiasm from attendees, creating memorable moments and celebrating the community’s support for local dining establishments. Beyond their financial contributions, Non-Stop Travel’s generosity helped foster meaningful connections among industry professionals, restaurateurs, and food service providers. Their investment in the Expo brought the industry together for a dynamic and impactful event. The Hawaii Restaurant Association is deeply grateful for their partnership and recognizes the invaluable role they played in making the Expo a true success. Above, Casey Lund of Hawaii News Now, Sheryl Matsuoka of The Hawaii Restaurant Association, Andy Huang of L & L Hawaiian Barbecue, Tom Jones of Gyotaku Japanese Restaurant & KOROMO katsu & curry bistro. 74 | M AY 2 0 2 5

WHOVA APP SUCCESS The 2025 Hawaii Restaurant Association Food Service Expo was nothing short of spectacular, bringing together 2,459 attendees, 90 exhibitors, and 211 booths in a dynamic showcase of Hawaii’s thriving food service industry. Over the course of two action-packed days, industry professionals networked, discovered innovative products, and forged valuable business connections. The excitement was palpable, with exhibitors reporting record-breaking engagement and an overwhelmingly positive response from decisionmakers and buyers. From bustling booths to insightful discussions, this year’s Expo proved to be a game-changer for food service professionals looking to expand their reach. One of the biggest success factors of the event was the integration of the Whova app, which streamlined networking and amplified exhibitor engagement. With a cutting-edge badge-scanning

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FIRST HAWAIIAN BANK – MAHALO PAU HANA SPONSOR The Exhibitor Mahalo Pau Hana, sponsored by First Hawaiian Bank, provided exhibitors with a valuable opportunity to connect, collaborate, and build relationships. A huge Mahalo to First Hawaiian Bank and the generous contributions of participating restaurants and beverage providers for ensuring exhibitors enjoyed an abundance of delicious food and beverages. Held at the close of the first day of our Expo, this event was a much-welcomed gathering after an exciting opening day. First Hawaiian Bank’s sponsorship of the Mahalo Pau Hana fostered an atmosphere of networking and appreciation, celebrating the vibrant food service industry that fuels Hawaii’s economy.

EXPO STATS Left: Russell Hata (Y. Hata & Co. Ltd.), Sheryl Matsuoka (The Hawaii Restaurant Association)

feature, exhibitors were able to capture 3,991 high-quality leads—not just random contacts, but vetted industry professionals ready to do business. Attendees took full advantage of the platform, sending 1,097 private messages, engaging in 307 community board discussions, and sharing 461 photos that captured the energy of the Expo. Sponsor impressions skyrocketed to 67,184 proving that brand visibility was at an all-time high. This seamless technology didn’t only connect people in the moment—it provided long-term value, allowing exhibitors to follow up and convert real opportunities into lasting partnerships. The 2025 HRA Food Service Expo set a new benchmark for industry events, and with this level of innovation and engagement, the future’s looking brighter—and busier—than ever.

ALL ATTENDEES:

2,459

EXHIBITORS:

COMMUNITY BOARD MSG TOTAL

307

211

SPONSOR IMPRESSIONS TOTAL

EXHIBITOR VISITOR REPORT FUNCTION

PRIVATE MESSAGES 1-ON-1

BOOTH COUNT:

LEADS GENERATED TOTAL

3,991

67,184 1,097

PHOTOS IN WHOVA

461

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Empowering Hawaii’s businesses with exceptional distribution services since 1957. Committed to quality and reliability, we’re Hawaii’s preferred distribution partner!

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CELEBRATING 5 YEARS TOGETHER hawaiiancoolwater.com

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The Best Mochi Mixes in the World! At Mochi Foods, we are passionate about bringing the authentic taste and texture of mochi to kitchens everywhere. Whether you're a home baker or a café owner, we provide the ingredients to create chewy, delicious treats that stand out. Our mission is to share the joy of mochi with the world, one bite at a time!

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MAHALO FOR YOUR SUPPORT IN MAKING THE HAWAII RESTAURANT ASSOCIATION FOOD SERVICE EXPO AN INCREDIBLE SUCCESS!

CARGILL BEEF CHESTER FRIED OF HAWAII

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ALOHA WE LOOK FORWARD TO SEEING YOU NEXT YEAR.

See you at the Hawaii Restaurant Association Food Service Expo in 2026. For details, marketing@hawaiirestaurant.org. H AWA I I B U S I N ES S | 105

PA R T I N G

BY RYAN N N OEL AN I C OUL E S

S H O T

LOCATION: BEAD IT! KAIMUKĪ

| PHOTOGRAPHER: AARON YOSHINO

JewelryMaking 101 HUSBAND-AND-WIFE BRENDAN AND JILL BARRY SHARE A PASSION FOR JEWELRY-MAKING, WHICH LED THEM IN 1992 TO OPEN A CRAFT STORE, BEAD IT!

“It’s a meditative practice. Putting beads on the string, we have to slow down and focus. We get to put ourselves into that flow type of state. So that’s a huge benefit,” Brendan Barry says. Located in Kaimukī, Bead It! stocks hundreds of jewelry-making materials and helps patrons create their own unique pieces. On a visit to the store, I carefully selected my beads and then the staff helped me create my charm bracelet. Bead It! also offers classes that teach the fundamentals of jewelry-making, including wiring, knotting, drilling, bezeling and soldering. Jill Barry says students “always leave with a finished product.” Brendan Barry says his favorite moments are right when a piece is completed, when he sees customers “light up with the success of their own creation.” bead-it-hawaii.myshopify.com

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Beyond Branded Pens H OW O N E F I N A N C I A L A DV I S O R H A S T U R N E D C L I E N T G I F T S I N T O C O M M U N I T Y I M PAC T.

practice of sending logoed merchandise to clients on special occasions. But, as his team spent more time trying to come up with new swag ideas, they realized the gesture was feeling a little empty. “It really started back in my Morgan Stanley days,” recalls Rine. “We had a budget to spend on client gifts, but it was branded stuff that didn’t really resonate in any meaningful way.” Working with his office manager, Kimberly Hitchcock, Rine reimagined this business expense as an opportunity to deepen client connections while supporting local communities. They developed a partnership with HCF to redirect their client gift budget toward charitable donations in accordance with each client’s values.

OMETIMES, THE MOST EFFECTIVE

A TRIPLE WIN

BUSINESS STRATEGIES ARE THE ONES THAT ALSO DO THE MOST GOOD.

Christopher Rine, founder of Mālama Wealth in Līhu‘e, has worked with the Hawai‘i Community Foundation (HCF) to create a new approach to client appreciation by aligning his business practices with client values and community needs, generating a triple win for his business, his clients, and the community. “It’s not just about managing their money,” Rine explains. “It’s about understanding their values and helping ensure their wealth has a lasting impact on what’s important to them.”

FROM BRANDED SWAG TO MEANINGFUL IMPACT

After 23 years at Morgan Stanley in Southern California and Kaua‘i, Rine established his independent practice in 2020. Like many financial advisors, for years Rine followed the conventional

Each month, Mālama Wealth identifies clients celebrating birthdays or other special occasions and directs donations to HCF’s priority unrestricted funds on their behalf. The contributions support initiatives like the CHANGE Governance Fund, which emphasizes community-wide kuleana and collective flourishing; the CHANGE Arts and Culture Fund, which extends access to arts and culture for keiki to kūpuna; or the CHANGE Health and Wellness Fund, which aims to improve health, well-being, and quality of life for everyone. The gifts create a triple win: Clients feel genuinely appreciated, community needs are supported with unrestricted funding, and Rine’s practice demonstrates its commitment to the values of its clients and the community. “We now spend less time worrying about coming up with a thoughtful token of appreciation and more on understanding our clients’ passions,” Rine explains.

BUSINESS BENEFITS

For Hawai‘i business leaders, this approach offers several advantages: 1. Deeper client insights: The program naturally opens conversations about clients’ values and priorities, providing valuable information for long-term relationship building. 2. Philanthropic efficiency: Unrestricted gifts to HCF give the foundation the flexibility to direct resources where they are most needed and can have the greatest impact. 3. Community standing: Supporting local philanthropic initiatives enhances business reputation and community goodwill. “It really opens up a dialogue about what’s important to them and where they want their money to go next,” Rine explains. “That’s crucial if you want to build a lasting relationship and help clients create a meaningful legacy.” The response from clients has been overwhelmingly positive, with many expressing appreciation for the thoughtful approach that aligns with their own values. By making unrestricted donations to CHANGE funds, Rine and his clients are providing flexible resources for HCF to address pressing challenges and opportunities as they arise— ensuring a stronger, more resilient future for all of Hawai‘i. For businesses and professionals looking to strengthen client relationships while making a community impact, Rine’s approach offers a practical blueprint. “Showing clients you understand who they are and what’s important to them helps cement relationships that last,” he says.

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