Hawaii restaurants closing and cutting hours as costs rise

Oct 14, 2026

Rising food, shipping, and insurance costs plus fewer tourists are squeezing Hawaii restaurants, which is bad for local owners, workers, and diners facing higher prices.

  • Big City Diner is closing its Windward Mall location after 11 years, with some staff moved to other restaurants.
  • Shipping costs to Hawaii have jumped 80% over five years, hitting small family-run places hardest.
  • Tourism is down and the usually reliable off-season has been unusually weak, so less money is flowing through the community.
  • Health and liability insurance, minimum wage, and utility bills are all climbing at once.
  • Owners are cutting hours, adding self-order kiosks, and pushing off-peak specials before raising menu prices as a last resort.

Outlook: The Hawaii Restaurant Association expects more closures if costs stay high and visitor numbers do not pick up.

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