Businesses across Oahu prepare to close as rising costs strain operations

HONOLULU (HawaiiNewsNow) – Several businesses across Oahu are preparing to close their doors, raising concerns about the economic pressures facing local companies and the impact on workers and families.

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Community members say the closures are difficult to watch, especially as familiar businesses continue to disappear across the island.

“I’m very sad it’s closing,” said Mililani resident Darcey Iwashita.

Iwashita said she had been a longtime customer of La Tour Cafe, including its Pearl City location, before that store closed.

“I’ve been going to the one in Pearl City before that one closed because it was right by my work,” she said.

La Tour Cafe in Kapolei is set to close on June 30. Just next door, DB Grill is also preparing to shut down on July 12.

For some residents, the closures raise concerns about broader impacts on local families.

“I think it’s terrible,” said Kapolei resident Teresa Kuhia. “I think it takes away from the local people that need jobs.”

Kuhia said the effects extend beyond workers themselves.

“It’s going to have a trickle effect, impact their kids, their kids’ kids,” she said.

Business leaders say many restaurants are struggling under the weight of rising costs, from labor to everyday operating expenses.

“Our employees, they’re like family,” said Sheryl Matsuoka, president and CEO of the Hawaii Restaurant Association. “They have rent to pay, they have children to support.”

Matsuoka said wage increases, while important for workers, also create additional financial pressure for businesses already operating on thin margins.

“With everything going up, our minimum wage went up,” she said. “But when minimum wage goes up, everybody’s pay scale goes up.”

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At the same time, consumers are changing how they spend.

“People are really looking at what is going to be best for their family economics,” Matsuoka said. “Should we drive to our favorite restaurant across town, or should we stay within the neighborhood?”

Retailers are also feeling the pressure. Nordstrom Rack will close its Waikiki location at 2255 Kuhio Ave. on July 27.

In a statement, Nordstrom said the company made the difficult decision to close the store but plans to continue serving Honolulu customers through nearby locations and online.

The Better Business Bureau says brick-and-mortar retailers have faced mounting pressure as more shoppers move online.

“We do know that a lot of physical retail has been hurting in the last several decades because of the shift to online,” said Cameron Nakashima with the Better Business Bureau. “Businesses are clamoring to get that online, that e-commerce presence.”

Despite the closures, Matsuoka remains hopeful upcoming events could provide relief for local businesses.

She said restaurants are already seeing increased traffic from the Rim of the Pacific (RIMPAC) military exercise, which runs through July 31.

“I just got to speak to six restaurateurs this morning who said they have seen the impact of RIMPAC,” Matsuoka said.

“When they come in, it’s all the different countries,” she said. “And when they have their time off, they venture out.”

Matsuoka said she hopes visitors continue supporting local restaurants in the weeks ahead.

“We’re looking forward to those visitors venturing out and enjoying our restaurants,” she said.

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