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Profiles of 12 awardwinning companies and two Hall of Fame honorees P. 23

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Many hands working together

Shelee Kimura

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President and CEO, Hawaiian Electric

President and CEO, HEI

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The companies of HEI, which include Hawaiian Electric and American Savings Bank, are united by a common purpose — to create a better Hawai‘i. One that thrives economically, environmentally, culturally, and socially, and where all in our community have access to resources and opportunities to attain their dreams.

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Matson’s people are more than Hawaii shipping experts. They are part of what makes our community unique. Visit Matson.com

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FEATURES The most popular products sold by Dipped by Dee are chocolatedipped strawberries, caramel apples and cheesecake cups.

Best of Small Business Profiles Local Companies The inside story on our 12 Editor’s Choice Award winners and two new honorees for the Hawai‘i Small Business Hall of Fame – both more than a century young. 4

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Turo Earns Cash for Locals, Adds Car Rental Options People rent out their own vehicles to visitors using the car-sharing app. This Airbnb on wheels gained popularity in the pandemic when rental cars were scarce.

Tech, Takeout and Covid Transformed Tipping Tips are crucial to the income of local workers in restaurants and hotels, but it’s hit or miss income – dependent on the attitude and mood of customers.

New Conference Supports Female Entrepreneurs What are the challenges of women entrepreneurs? Two banking leaders, a survey of local business owners and an in-person event tackle that issue.

Treats that Look Great and Taste Even Better The owner of Dipped by Dee started making chocolate-dipped strawberries as a Valentine’s Day treat nine years ago while a senior in high school.

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CONTENTS

Palama Settlement Continues to Evolve in the Digital Age The 127-yearold nonprofit has added a Digital Arts Department to provide kids and seniors with tech skills and access.

How to Give On-Site Teams the Flexibility They Want Not every worker can have the flexibility of remote work, but there are options for in-person teams that enhance recruitment and retention. 14

Your Diversity Policy Shouldn’ʻt Focus on One or Two Groups If you want to ensure your recruitment and retention efforts include the LGBTQ+ community, you should look at your overall diversity policy. 18

Gig as a Drag Queen Lets Him Explore Feelings, Inspirations In this month’s My Job column, “Marina Del Rey” describes how he got into the field 25 years ago and how he mentors new young performers today. 12

Your Hotel Deserves the Best Third-Party Management Firm Not all outside managament companies are equal. Two industry experts describe step-by-step how you can find the right organization for your hotel. 16

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Fujikami Florist, founded in 1919, is the oldest florist in the state.

SPECI A L A DV ERTI SI NG SECTI ON S Keeping Hawai‘i Healthy What industry leaders are doing to take care of their employees and customers. 41 Hawai‘i Island Business Report Organizations share their challenges and vision for moving toward a brighter, more sustainable future. 59

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ON THE COVER, PHOTO: AARON YOSHINO; THIS PAGE, PHOTO: AARON YOSHINO

Should Boys Wait a Year If Not Ready for Kindergarten? While continuing to fight discrimination against girls and women, Editor Steve Petranik writes, we need to address why so many boys fall behind in school. 8

Sign Up Today! LAUNCH MY BUSINESS DATES June 6, 2023 - July 18, 2023 Classes on Tuesdays & Thursdays TIME 5:30pm - 7:30pm Online via Zoom ABOUT This 7-week long course offers business fundamentals for new startups. This cohort offers Hawaii small business owners the insight, knowledge, and resources for a stronger future. TOPICS COVERED Concept Validation Business Model Development How to Register Your Business Financial Basics & Beginner QuickBooks Funding Opportunities in our Community Marketing Basics BUSINESS COUNSELING General Business, Legal, Business Banker, Social Media ELIGIBILITY Hawaii resident. Interested in starting a business within 6-12 months. Committed to participating in the full Launch My Business Program, plus working on your business in your free time. COST: $150 Early Registration: $100 (before May 5, 2023) REGISTRATION LINK https://bit.ly/2023lmb-summer Link is case sensitive.

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The Other Gender Gap

O PARAPHRASE F. SCOTT FITZGERALD , it is vital we understand and

accept that seemingly contrary ideas can all be true: That widespread discrimination persists against girls and women in Hawai‘i and America. That men still rule the world of business, politics and power. And yet that on average, our boys and men are doing much worse than girls and women in education and health. The indicators of this education reality are widespread. In Hawai‘i, 37% of women ages 25 to 34 have a bachelor’s degree, at least, while only 27% of men do, according to a 2022 report by the Brookings Institution. (Read the report at tinyurl.com/boystats.) That means one big gender gap between women and men has been reversed in the past half century: Women are now as far ahead in higher education as men were when Title IX became law 51 years ago. The female-male education gap begins early. The state DOE does not make it easy to compare boys and girls test scores in our public schools. But Stanford University research (tinyurl.com/boytests) shows that in Hawai‘i public schools, on average, girls are testing at their expected grade level while boys are testing at 0.72 of a grade below their expected grade level. That’s almost a full grade below where they are supposed to be. That gap in test scores is similar nationwide. And the K-12 education gaps can be measured in GPA, graduation rates, school readiness and other ways.

ONE POSSIBLE SOLUTION

Let’s stop to consider one idea for dealing with this challenge: Hold boys back a year before they enter school. That’s because boys are less developmentally ready than girls around ages 5 and 6 for the learning environment of schools. And less socially and emotionally prepared. That practice of “redshirting” boys – borrowing a college athletics term to describe waiting a year to enroll them in school – is trending among some affluent parents who send their kids to private schools. They have studied the data, biology and other evidence and know redshirting could benefit their boys. 8

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I imagine that if this practice were widespread among public schools, it would benefit both the boys who delay and everyone else in the classroom, including the girls, other boys and teachers, who would face fewer disruptions from boys. That shows one way some solutions are not zero-sums: Helping boys and men should make lives better for everyone, including girls and women. We can still work to eliminate discrimination against females while trying to fix the challenges of males. A SOCIETAL AND PERSONAL CHALLENGE

Richard Reeves, the co-author of the Brookings report, cites a study in Tennessee schools that shows the positive outcomes of redshirting are greatest for lower-income boys. That makes sense because the education gaps between boys and girls tend to be largest at the lowest income levels, and because rising out of childhood poverty into a more affluent adulthood is more common among females than males. There are downsides to redshirting. One is cost: Parents would need to provide an extra year of child care before enrolling their children in free public education. The second downside: Boys would reach the age at which they could drop out of school at an earlier grade level. Of course, we could raise the dropout age by a year to counter that problem. There are other solutions to the K-12 education gap. Some charter schools in Hawai‘i have curricula and teaching methods that may be better suited to boys and girls who don’t thrive in traditional schools. And vocation and technical training better suits some students – boys and girls. We face challenges on this education gender gap, both as a society and as parents. We have to recognize and deal with them while not ignoring that men still earn more money than women, still control the levers of power and still commit far more violence against women than the reverse.

STEVE PETRANIK EDITOR

HB EVENTS CONNECT WITH HAWAII BUSINESS MAGAZINE 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. Editor & Interim Publisher STEVE PETRANIK stevep@hawaiibusiness.com • (808) 534−7584 Editorial Managing Editor CYNTHIA WESSENDORF cynthiaw@hawaiibusiness.com • (808) 534−7529 Staff Writer & Engagement Editor NOELLE FUJII-ORIDE

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Need to Know Series THE PROMI SE AND REALI TY O F REGENERATI VE TOU RI SM WE DN E S DAY, MAY 17, 202 3 YWCA Laniākea Elizabeth Fuller Hall

Hawaii Business Magazine hosts inperson conversations with community leaders about critical issues. This event focuses on how local organizations are making regenerative tourism work and how they can expand efforts.

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Need to Know: The Present and Future of Local Commercial Real Estate YWCA Laniākea, Elizabeth Fuller Hall THURSDAY, JULY 20, 2023

10th Annual Leadership Conference Hilton Hawaiian Village

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FRIDAY, OCTOBER 27, 2023 Chairman and CEO DUANE KURISU President and COO SUSAN EICHOR CFO & Chief Administration Officer KEN MIYASATO Chief Revenue Officer PATRICK KLEIN

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CEO of the Year Japanese Cultural Center

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127-Year-old Palama Settlement Continues to Evolve in the Digital Age BY AISHWA RYA BEHL

HE PALAMA SETTLEMENT , founded in 1896

to serve the Kalihi-Pālama area, has added a rapidly growing Digital Arts Department to engage kids through education and technology, while also giving seniors a chance to gain digital literacy and other modern skills. “It gives students in this community an opportunity to learn something they would not have otherwise learned in school,” says Sam Aiona, Palama Settlement’s executive director. “Kids today are learning animation, coding, even filmmaking. We are all just adapting to the times, and so our Digital Arts Department is growing into a Digital Arts Academy.” Classes offered include graphic design, filmmaking, animation, coding and Lego robotics, with some classes for children and others for seniors. During Kamehameha the Great’s rule, the Kalihi-Pālama area was a training ground for warriors, Aiona says. “Lama is the tree that was grown in this area, and pā was the stage,” Aiona says. “So Pālama was the stage where warriors would train to become chiefs.”

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“Today, we are here to train the warriors of the future. We are continuing to turn warriors into chiefs. That is the beauty of Pālama.” Honolulu banker and philanthropist P.C. Jones established Palama Settlement to serve the surrounding community. It was initially a chapel adjacent to downtown Honolulu and Chinatown, but the bubonic plague outbreak and subsequent fire of 1899-1900 transformed it into a refuge for displaced residents. Its connection to the community and its ability to serve during a time of

need reshaped the chapel into a prominent community settlement. “Right now, we probably serve about 12,000 people every year,” says Aiona. The services cover a wide range, from free food and household items to classes and activities including swimming, cooking, gardening, hula, ukulele, watercolors and pottery. “Our primary mission will always be to help these kids feel nurtured and grow into becoming good citizens of this community,” Aiona says. “Palama Settlement is a safe haven for these kids, and we want it to continue to be a safe haven, just as it was in the 1920s, 1940s, 1980s, and 2000s. We will continue to do that, but as the times change, we too will change.”

“OUR PRIMARY MISSION WILL ALWAYS BE TO HELP THESE KIDS FEEL NURTURED AND GROW INTO BECOMING GOOD CITIZENS OF THIS COMMUNITY” — Sam Aiona, Executive Director, Palama Settlement

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

Palama Settlement’s Digital Arts Department offers classes for adults and kids, such as Lego robotics. H AWA I I B U S I N ES S

REAL NAME: MARK IMAIZUMI STAGE NAME:

MARINA DEL REY JOB:

DRAG QUEEN

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His Drag Queen Performances are “an Artistic Means of Expression” BY A ISHWA RYA BEHL

BEGINNINGS: While in Los Angeles for college, Mark Imaizumi says, he was inspired by French fashion designer Thierry Mugler’s punk vampire-themed collection. “It was very graphic, bold, sharp and stylized. It was so beautiful. My roommate and I were going to a party, so I decided I wanted to take from that style. It was my first try really playing with makeup.” Imaizumi continued this playful interaction with makeup and self-expression. He would dress up and go to parties with his friends where he would receive attention and performance offers: “Thus the continuum and expansion of drag.” REWARDS: Imaizumi’s full-time job is in health care; his work as the drag queen Marina Del Rey is part-time on weekends and for special events.

Why does he do it? “Expression, attempt, and exploration. It’s living out your influences and the things that inspire you. It is the development of character and the interpretation of storytelling.” He says his drag performances – which are a blend of dancing and lip-syncing to music – are vehicles that give depth to what he’s feeling and inspired by. CHALLENGES: “Sometimes you

can get into your head with nerves, but I try to remind myself that nerves remind you that you care enough to be nervous.” But with experience comes confidence, and Imaizumi has been performing as a drag queen for 25 years. The more you do it, the more you are at ease being on display, he says. Imaizumi says cultivating the persona of Marina Del Rey

allowed him to “understand more about being present and … knowing there is a platform I now can use.” TIPS FOR SUCCESS: “Anything

in a creative sense is an outlet: to express or experiment or try. It does not convert you to anything, it does not commit you to anything. Drag is an artistic means of expression.” It is something you have to nurture, like any other art, he says, and there is a lot of time and respect that goes into the portrayal. He mentors others who want to perform as drag queens. “When drag takes its place, it is a pricey and respected pursuit. It opens so many doors of thought and understanding.”

THIS INTERVIEW HAS BEEN EDITED FOR CL ARITY AND LENGTH.

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Bringing Flexibility to Your On-Site Teams Innovations in hours, scheduling and work practices can help recruitment and retention, and reduce burnout BY A N GIE WID EM AN - POWEL L

M A N Y E M P LOY E R S H AV E C R E AT E D remote or hybrid

work arrangements to give employees the flexibility they want, but for other organizations, remote work isn’t feasible. What can employers of on-site teams like those in retail, food and beverage, and construction do? Here are ideas for rethinking and expanding what flexibility looks like for your on-site teams. GIVE TEAMS GREATER FLEXIBILITY AROUND SCHEDULING.

EXPERIMENT WITH COMPRESSED WORKWEEKS.

More companies are testing compressed workweeks, allowing employees to work longer shifts in exchange for full or partial days off. There are various approaches, but the most common is when employees work 10 hours for four days instead of five eight-hour days. Another option is the 9/80 work schedule, where employees work 80 hours over nine days (instead of 80 hours over 10 days) and get an extra day off every other workweek. Com-

PHOTO: GETTY IMAGES, PHOTO ILLUSTRATION: KELSEY IGE

Multiple studies show employees, especially shift-based employees, want greater flexibility and control over their schedules. Rather than assigning shifts, self-scheduling can allow employees to choose their own schedules if they meet

minimum hours or established coverage requirements. Clearly written policies around scheduling can also make it easier for employees to trade shifts with each other to accommodate personal needs.

ILLUSTRATION: GETTY IMAGES

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pressed workweeks have been a success for companies like Chick-ﬁl-A, improving manager-level retention and drawing a ﬂood of new applicants. CONSIDER SABBATICALS TO BOOST RETENTION AND REDUCE BURNOUT.

Many employees are burning out, which is contributing to high job turnover. Instead of quitting, what if employees could break away from work for one to two months or longer? Retention-based sabbatical policies, whether paid or unpaid, could help employees recharge while promoting retention. The employee will frequently return feeling rejuvenated with new ideas, and the company can avoid costly hiring and onboarding expenses.

FINAL THOUGHTS

Giving employees ﬂexibility on where, when and how work is done beneﬁts employees and employers. It helps employees better manage their personal and professional lives, boosts morale, and can lead to

increased job satisfaction and increased productivity. Companies that create a culture of ﬂexibility, check in with their employees on the beneﬁts that truly matter to them, and reevaluate and adjust policies as needed will be better off in the long term.

THIS MONTH’S EXPERT:

ANGIE WIDEMAN-POWELL, VP OF PEOPLE & CULTURE AT PROSERVICE HAWAII

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Revolutionary direct-drive ECM motor with beltless vane axial fan is compact, ultra quiet and cost efficient.

PUT EMPLOYEES IN THE DRIVER’S SEAT.

While giving employees greater flexibility around their schedules and hours is important, flexibility can also mean allowing employees to choose how they work. Managers can create a culture of flexibility by setting clear goals and outcomes and then allowing employees to be creative, to think outside the box and try new approaches to reach those goals.

Round tube plate-fin condensor coil reduces refrigerant charge.

Tool-free filter access door for ease of service.

Carrier reinvents the wheel with EcoBlue Technology. Now available in select Weather Series RTUs. ™

REASSESS WHERE SPECIFIC TASKS CAN GET DONE.

While many customer service roles need to be done in person and within certain hours, managers can evaluate what tasks can be done off-site when it’s convenient for an employee. For example, is there a way for employees to virtually participate in new training instead of coming in pre-shift? Can employees request work on a different site or at another branch if they desire?

Innovative beltless direct-drive vane axial fan system and high-tech, high-density composite blade fan put a whole new spin on efficiency. Fewer moving parts minimize maintenance costs without compromising quality and the environment. And it’s all backed by the best technical support, parts and training in the islands.

Locally owned distributor: Carrier Hawaii Kapolei Honolulu Kahului Kailua-Kona (808) 677-6339 • CarrierHawaii.com *As compared to our traditional belt-drive fans. **Select models. Ask us for details. ©2023 Carrier. All Rights Reserved.

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How to Choose the Best Third-Party Management Company for Your Hotel The principals at Powell & Aucello, who provide hospitality real estate consulting and brokerage services, also describe how to get the most out of the management company you already use BY TIM POWEL L AN D K EVIN AUC ELLO

in the past few decades. In just one example, most guests have gone from simply calling a 1-800 number to make a reservation and lock in the seasonal rate, to navigating a variety of online reservation systems with constantly changing prices. To ensure a seamless guest experience amid this increasing complexity, hotel owners often use third-party management companies to handle all aspects of day-to-day sales, marketing and operations, while automating certain operations and maximizing revenue.

HOW TO CHOOSE

Here are a few important considerations we review with clients looking to hire third-party hotel managers: 16

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• DO YOUR RESEARCH : Management companies cater to everything from small, independent hotels to 1,000room resorts. When deciding on a firm, learn what types of properties it specializes in. A locally based company that is familiar with your market is typically preferred. • NOT ALL ARE EQUALLY QUALIFIED: The management team should be skilled in today’s technologies and have a breadth of experience, so owners are assured their hotel is in capable hands. • CHECK THE CONTRACT TERMS: A good contract pays the manager a base fee, usually a small percentage of gross revenue. Once the owner has made a predetermined percentage or fixed amount, the manager might also be entitled to an incen-

tive fee. Rewarding the third-party manager for outperforming competitors and the market in general is a win-win for owner and manager. • CONSIDER THE CONTRACT LENGTH: Management contract terms are negotiable, but the standard terms range between three and ten years. We recommend limit-

ILLUSTRATION: GETTY IMAGES

OTEL OPERATIONS HAVE CHANGED DRASTICALLY

MAXIMIZE YOUR EXISTING MANAGER

When measuring success, owners should be looking for results that exceed owner-operated hotel performance, across not only financials but also technology solutions, and perhaps most importantly, in happy customers. Are you already working with a third-party hotel manager? These tips will help you maximize your relationship: • STAY CURRENT ON ALTERNATIVES: Be familiar with other third-party managers in your market so you have candidates to consider when it’s time to change. • MONITOR YOUR MANAGER: Hire an experienced asset manager to review the hotel’s performance monthly. That person can properly measure the manager’s performance and help avoid unnecessary conflict. • HAVE REALISTIC GOALS AND TERMINATION PROVISIONS: Make sure your management agreement contains reasonable performance thresholds to allow for termination if the hotel’s performance falls behind its competition.

THIS MONTH’S EXPERTS:

ing the term to five years (more if there is a major renovation or repositioning). Note that a franchise property can also hire a third party in most cases, but the brand must also approve. • C A R E F U L LY R E S E A R C H O P E R AT I N G P R O J E C T I O N S : The management company will present an

operating projection to ownership before the fiscal year. That projection is based on information available through industry resources, making budget forecasting more accurate and reliable. If the third party doesn’t match that projection or other performance tests, it can be terminated, as long as that provision is spelled out in the contract.

TIM POWELL, PRINCIPAL AT POWELL & AUCELLO POWELLAUCELLO.COM

KEVIN AUCELLO, PRINCIPAL AT POWELL & AUCELLO POWELLAUCELLO.COM

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Recruiting in the LGBTQ+ Community is Part of a Larger Policy on Diversity A discussion on diversity, equity, inclusion and belonging in the workplace BY SA RA H GUAY A ND KU‘ULA NI KEO HO KA LO LE

CEO of the Hawai‘i Employers Council, for an article with advice on recruiting in the LGBTQ+ community. After wrestling with the topic, Guay says, she sought insights from Ku‘ulani Keohokalole, founder of People Strategies Hawai‘i, an organizational development consultancy. Keohokalole emphasized that recruiting people who identify as LGBTQ+ is one part of a larger necessary discussion on diversity, equity, inclusion and belonging in the workplace, DEIB. The following excerpt from their discussion explains how the two concepts are importantly related.

GUAY: It’s clear that strategic recruiting

to build diversity in Hawai‘i’s workplaces does have a role in this equation – but it can’t be done in isolation, right?

KEOHOKALOLE: Right. Bringing more diverse perspectives into the workplace through recruiting is the right thing to do. It’s just not the only thing organizations need to do around DEIB, and it’s often not the first thing they need to do. In the DEIB conversation, the organization needs to first fundamentally think about who it is and who it represents. For example, take an arts organization whose board members were used to holding exclusive private fundraising soirees extended to wealthy donors who enjoy art. One day the organization looked around and realized those actions were out of alignment with their desire

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to increase access to art for kids who are from underserved communities. That realization led the executive director to rethink their board makeup, and start to rethink who they fundamentally are, from the top-down – their mission, values, leadership and alignment all the way through. That’s the real work we’re talking about. It’s not just about recruiting. GUAY: Got it. But it feels like if we don’t start bringing in diverse perspectives, we’ll never get there. What comes first? It feels like a chicken and egg conversation. KEOHOKALOLE: It goes back to the ques-

tion: What problem is your organization trying to solve through DEIB work? Instead of asking about recruiting a certain number of LGBTQ+ employees or employees of any underrepresented identity for that matter, a better first question might be, how well does an organization’s workforce reflect the communities their mission says they exist to serve. Bringing in more diverse voices is the right thing to do, but if they are in the small

minority numbers-wise, it’s going to be an uphill struggle. All of us can think of times when we had to advocate for an alternative perspective and got pushback. That happens a lot for people who are brought in to support diversity efforts and then their perspective gets dismissed. On the flip side, leaders need to be careful not to hold up an individual as a representative of every voice out there. Not only is that unfair, it’s tokenism. GUAY: Sometimes diversity recruiting ef-

forts are criticized because there’s a belief it requires lowering qualifications to recruit diverse populations.

KEOHOKALOLE: Right. And actually, no one is asking you to lower your qualifications to diversify your workplace. In fact, recruiting for a diverse workforce requires you, in some ways, to become more stringent about certain position qualifications – rethinking them to be aligned to what your organization really needs. For example, if you’ve got people whose job it is to build community rela-

“A HEALTHY WORKPLACE IS THE OUTCOME OF ORGANIZATIONAL DNA THAT EMPOWERS, RESPECTS, SUPPORTS AND ENGAGES ITS EMPLOYEES.” —Ku‘ulani Keohokalole, Founder, People Strategies Hawai‘i

ILLUSTRATION: GETTY IMAGES

AWAII BUSINESS MAGAZINE asked Sarah Guay,

Why small business owners need a good business banker.

tionships, then they likely need experience engaging with the community here in Hawai‘i, right? To do that, they will likely need to be grounded in the community they serve and able to speak the language of those stakeholders. It’s not enough to just say, “Must have X years of education and know about Hawai‘i’s communities.” You’ll need to rethink the need for that person’s connections, the quality of relationships they bring, etc. Those are the qualifications you’re looking for. It’s not at all about lowering qualifications, it’s about redefining them intentionally to garner a workforce that reflects who the organization serves. One strategy we hear a lot about are referral programs. Are they helpful or harmful when it comes to supporting DEIB in organizations?

GUAY:

KEOHOKALOLE: The risk with blanket

referral programs is that they incentivize folks to recruit people within their own network – who likely have similar experiences and perspectives. This can reinforce a lack of diversity by relying on the networks of the dominant demographic in the organization, and can proliferate the status quo, making it systemically difficult to break the mold. Another way to go about it would be to create specific referral programs for what you’re looking for and target the program to those most likely to have those skills or backgrounds in their network.

GUAY: The discussion of strategic re-

ferrals brings up the relationship between fairness, equality and equity. How are these concepts related?

KEOHOKALOLE: Equity is about understanding there have been historical imbalances our society has accepted as “just the way it is,” and we are now trying to address those imbalances through our actions and decisions. An example was an organization that recently completed its performance reviews and was now figuring out employee pay increases. The organization realized it couldn’t afford across-the-board raises. Instead, they deferred highly compensated

“

HE N IT C O M E S TO FINAN C IN G AND BANKIN G ,

small business owners and entrepreneurs often don’t really know what they need. They are experts at what they do, not banking. So a good business banker needs to be the subject matter expert on financing and banking for their customers. At Central Pacific Bank, we work hard to provide guidance and insight into the many different options that may be available to business owners. In addition to traditional banking products and services, we can provide industry information, compare their financial performance to peers, or provide important factors affecting the industry. Often business owners approach a business banker when they have a specific need like a loan; however, it’s best to involve a business banker sooner than later. Our goal is to make sure we set the business up for success so even if they are not quite ready to apply, obtaining options and guidance early can make the process easier in the future. Having a support team of experts is extremely important to any business success. A business banker is a vital part of that team as well as a CPA, realtor, attorney, and such. Without these experts, they won’t know what types of opportunities they’re potentially missing out on. There are many small business resources, like the Small Business Administration

(SBA) and the Small Business Development Center, that can help business owners write a business plan, put profit and loss projections together, and get them thinking about aspects of their business that may not have been considered before. We love working with the SBA and other small business resource partners to help businesses, especially new business start-ups. Our commitment to small business goes back to how CPB was founded, to help support small businesses and those who others wouldn’t help. What we do, and why we do it is rooted in our culture. I think that really shows through with our business bankers. A good day for me is when I can make difference, small or big, for my customer and help their business grow.”

“Our commitment to small business goes back to how CPB was founded.”

- A M Y FLO R E S , C P B B U S IN E S S BA N K IN G O FFI C ER A N D 4 -T IM E S BA G O L D AWA R D EE

Member FDIC

H AWA I I B U S I N ES S

D E I B

employees’ raises in favor of providing increases to the lowest-paid employees. They made that decision in the name of equity. Was it equal? No. But was it equitably fair? Yes. Equity is about understanding what the problem is, what’s created the problem historically, and then what’s our role in addressing it systemically – versus focusing on isolated activities or tasks. It strikes me this conversation about building DEIB is similar to building other fundamentals of an organization’s culture. An organization that values service, for example, can’t just say they value service. That value has to come alive through their actions. Similarly, the commitment to DEIB needs to live and be reinforced regularly through practices, policies and systems. Specific tactics to support the desired culture include training, supportive benefit programs and employee resource groups. Organizations should invest in training staff on their DEIB values, in-

RICKHAMADA

WEEKDAYS 6AM TO 10AM KHVHRADIO.COM

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ILLUSTRATION: GETTY IMAGES

GUAY:

cluding specific policies and practices that support diversity. Managers need to deeply understand the issues surrounding DEIB in the workplace and be ambassadors of the values. Employers should ensure inclusivity with employee benefits, offering gender-affirming health care benefits or transgender-inclusive policies for parental leave. Employee resource groups, which are voluntary employee-led groups that serve traditionally underrepresented employees, can provide a supportive community for employees to mitigate for tokenism. KEOHOKALOLE: Exactly. A healthy workplace is the outcome of organizational DNA that empowers, respects, supports and engages its employees. These values are reflected in a myriad of ways within the organization – through policies, procedures, and systems. Too often, DEIB efforts are set aside as “HR initiatives” and recruiting is an action taken in support of the overall experience for an employee. This is what we mean when we say instead of starting with recruiting, start with what you’re recruiting them into. DEIB is not a certification or an achievement. This work doesn’t have a finish line. It’s a mindset that informs the way we approach the mission of our organization. It’s an ongoing journey to continually assess our alignment, course correcting as we go, and getting better every day through intentional focus and transformation.

THIS MONTH’S EXPERTS:

ILLUSTRATION: GETTY IMAGES

SARAH GUAY, CEO OF HAWAI‘I EMPLOYERS COUNCIL

KU‘ULANI KEOHOKALOLE, FOUNDER OF PEOPLE STRATEGIES HAWAI‘I

Hawai‘i Employers Council’s Tips to Effectively Recruit LGBTQ+ Candidates TO REACH LGBTQ+ JOB SEEKERS,

use a thoughtful and intentional recruiting approach. Here are tips for how to effectively recruit from this community. • PART N E R WI T H LG BTQ + O R G A N I Z AT I O N S and attend LGBTQ+ job fairs. You can also use social media and online job boards to reach a wider audience of LGBTQ+ candidates. The nonproﬁt Human Rights Campaign is a good online resource. • TA R G E T E D R E F E R R A L P R O G R A M S are structured programs in which a company encourages its employees to refer people from their networks to job openings. Such programs can help support LGBTQ+ recruiting strategies and provide access to job seekers in diverse networks and communities. • ENSURE INCLUSIVE LANG U A G E in job postings and employee materials that avoids gendered pronouns and other

exclusionary language. You can also include welcoming statements in job postings that demonstrate that your workplace is LGBTQ+ friendly, such as “we welcome candidates from all backgrounds and identities.” • YOUR RECRUITERS AND H I R I N G M A N A G E R S should be trained on how to effectively support LGBTQ+ job seekers. This includes being knowledgeable about LGBTQ+ issues and being able to answer questions that job seekers may have about the company’s LGBTQ+ policies and practices. • ENSURE A DIVERSE INTERV I E W PA N E L : When interviewing LGBTQ+ candidates, it’s important to ensure that the interview panel is diverse and inclusive. This means including LGBTQ+ employees in the interview process and ensuring that all interviewers are trained on how to conduct inclusive interviews. H AWA I I B U S I N ES S

YOUR SUCCESS IS

IN FULL BLOOM. We’re proud of you. WALTZ ENGINEERING ISTANBUL HAWAII KOLOA RUM

At Bank of Hawai‘i, we’re excited to celebrate all 2023 Small Business awardees. From working toward your dream to creating a business that earned its way into local hearts, congratulations on your success.

By Aishwarya Behl, Victoria Budiono, Alicia Lou, Chavonnie Ramos, Will Sanders, Krystal Spear, Cynthia Sweeney, Kathryn Drury Wagner PHOTOGRAPHY BY AARON YOSHINO, CHRISTIAN KAHAHAWAI, KEATAN KAMAKAIWI

Profiles of 12 small local companies that won our SmallBiz Editor’s Choice Awards by impressing us with their ingenuity, grit, service, perseverance or all of the above. Plus two inductees into the Hawai‘i Small Business Hall of Fame, each more than a century old.

BEST

SMALL

BUSINESS 2023 AT BANK OF HAWAI‘I, WE’VE BEEN BIG BELIEVERS IN SMALL BUSINESS SINCE 1897. F

O R OV E R 1 2 5 Y E A R S , we’ve been committed

to helping generations of entrepreneurs realize their dreams of building a successful business in this place we call home. Today, we’re honored to continue our tradition as a sponsor of this year’s Hawaii Business Magazine’s “Best of Small Business Awards.” We know starting and running a small business takes courage, grit and determination—and we salute every owner for their commitment to following it through. They are the economic, employment and innovation engine that powers Hawai‘i and moves us all forward. We’re especially proud to congratulate all of our Bank of Hawai‘i winning clients—and all the winners—for their hard work. To every small business owner across our islands, mahalo for all you do.

MATT EMERSON

Vice Chair, Bank of Hawai‘i

BEST

SMALL

BUSINESS 2023 with a focus on supporting generations of families and small businesses in Hawaii. Being locally owned, at Atlas Insurance Agency, we understand that small businesses are the lifeblood of our community. To further our commitment to the community we call home, we are launching our extensive Small Business Unit this year, specifically catering to the needs of Hawaii’s small business community. This unit offers local specialists who have decades of experience, a free 24/7 client service and training portal, and the full backing of the largest insurance agency in the state. We are honored to be the sponsor of Hawaii Business Magazine’s Best of Small Business awards for 2023 and proudly support the honorees who are the foundation of our economy. Mahalo to the small businesses who are our community’s innovators, entrepreneurs, and change-makers. We look forward to continuing to support you.

U R C O M PA N Y WA S FO U N D E D I N 1 9 2 9,

CHASON ISHII

President, Atlas Insurance Agency

CREATIVE DESIGN HAWAI‘I TIANA GAMBLE COMPANY OWNER WANTS TO KEEP BREAKING DOWN “THE BARRIERS OF EXPECTATIONS” HILE TIANA GAMBLE was applying for a loan to get a swimwear business started, “a tax guy introduced me to a company that was for sale.” After flying to California and meeting the couple who founded Creative Design Hawai‘i, Gamble acquired the business in 2017. CDH supplies modern promotional products; about 70% of its business comes from companies operating in Hawai‘i and the rest on the mainland. The businesses it supplies here include First Hawaiian Bank, Kaimana Beach Hotel and Howard Hughes Corp. – everybody from “construction to banks to retail,” Gamble says. Its merchandise are often things that carry the client’s logo and are given away to the client’s customers: tote bags, umbrellas, towels, notepads, reusable water bottles and many other items. Gamble says revenue from her business has grown to about $1 million a year – far more than her forecast. “It is

pretty phenomenal.” Along the way, she says she’s loved working with her team members – now 14 women and two men – and watching them grow in the promotional products industry, which traditionally has been male-dominated. “I love being able to run my own business and breaking down the barriers of expectations,” she says. Gamble launched a sister company called Goodmerch Supply in 2018 that emphasizes environmentally conscious merchandise. She says she strived to keep her companies innovative while providing flexible and happy places to work. “This way, companies will continue to trust us to offer them new ideas and I can challenge myself in doing better,” Gamble says. – Victoria Budiono

ISLAND PET MOVERS KARI MENDOZA 26

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ALOHA REVOLUTION ED SUGIMOTO COMPANY KEEPS FAMILIES AND PETS TOGETHER WHILE MOVING TO AND FROM HAWAI‘I E

VEN AS AN “ARMY KID” who moved all

over the U.S. and Europe, Kari Mendoza grew up with an abundance of pets – from dogs and cats to pot-bellied pigs, pythons, parakeets and more. Mendoza says her parents taught her that pets are as important as any member of their family, and when it comes to moving, wherever you go, they go too. That idea stuck with her when she served in the Navy, and when she started Island Pet Movers in 2010. “I don’t want the word ‘no’ to be a thing for families trying to keep their animals together … we will find a solution for you,” Mendoza says. “If it’s legal, we can do it.” To prevent rabies in the Islands, Hawai‘i has strict laws on importing animals. If pet owners don’t complete the necessary steps before arrival, their pets may spend up to 120 days in quarantine. After she saw her best friend struggle with moving her dog to Hawai‘i, Mendoza, who had experience dealing with government agencies, realized she could ease the process. Mendoza says she and her small team help move an average of about 5,000 pets a year, including dogs, cats, birds, mice and even some monkeys and a giant aardvark for the Pana‘ewa Rainforest Zoo in Hilo. Despite increasing demand for her services, Mendoza says, she has barely changed her prices in the last decade. Mendoza lost her job and savings when the housing market crashed in 2008, and when she started her business she was $500 short of what she needed. Instead of borrowing from a friend, she gathered a few household items and returned them to Costco. Today, the business remains entirely her own, which she runs with a dozen of her employees. “I genuinely don’t feel there are many days that I feel like I’m at work,” Mendoza says. “We just really enjoy what we do. We help a lot of families, and we hope to continue doing that.” – Alicia Lou

THE SPIRIT OF ALOHA INSPIRES THIS OWNER’S GIFTS TO THE COMMUNITY W

HEN ED SUGIMOTO NAMED HIS COMPANY ALOHA REVOLUTION, it

signaled his commitment to the community. His small business that makes shirts has donated over $70,000 to local businesses, nonprofits and others over the past 11 years. It’s rewarding to see “the smiling faces and the thankfulness of the people that we give to. That’s pretty much why we do it,” he says. He has collaborated on local fundraisers with the Red Cross, Susan G. Komen, Hawai‘i Foodbank and Lanakila Pacific. During the pandemic, Sugimoto created a Love’s Bakery-inspired T-shirt with Aloha Revolution’s “VH07V” logo, which reads like the word ALOHA when you look down at it on your chest. Sales of the shirt raised $55,120 for the 231 Love’s Bakery workers who lost their jobs when the company H AWA I I B U S I N ES S

closed in March 2021. He first made the VH07V shirts for readers when he wrote for the Star-Advertiser. His friends and family took interest and wanted to buy them, so he started the business. “It’s crazy,” Sugimoto says of the brand’s success. “In the beginning, I knew mostly everybody that had a shirt.” The first time he noticed one on a stranger was when he was walking through Disneyland. Aloha Revolution started as an online-only store with two shirt designs. Now, the brand has over 100 shirt designs and hats – and has sold products in almost every state and in Japan, Germany, South Korea and Canada. He credits his parents for his motivation to give back because they gave him an attitude of “If you have, you give.” Sugimoto wants to spread the feeling of aloha to people who were not born and raised in the Islands. “The world is kind of becoming a crazy place right now,” he says. “So I’m hoping that if somebody can have that feeling that we already have here, just by wearing a shirt – hopefully it will make the world a better place.” Sugimoto also created a Little League World Series fundraiser shirt for last year’s championship Honolulu team and raised $15,000 to help pay for the players’ travel expenses. “Thankfully, our community also gives to us by buying our shirts and supporting us in many ways. So, we feel that it’s our duty to pay it forward.” – Chavonnie Ramos

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KEAAU FILIPINO FOOD STORE MARIA TEREZA GACULA & MITCHELL GACULA

SECOND GENERATION TAKES OVER AT FILIPINO GROCERY S

MALL-TOWN GROCERY STORES are vital for com-

munities: Along with selling food, they help neighbors stay connected. Keaau Filipino Food Store is a prime example. Since 1980, the family-run business has been serving the diverse small town of Kea‘au, just south of Hilo. Husband and wife Jessie and Helen Gacula started the business in what was then called old Ōla‘a town, as a small store in the corner of a barbershop near the bank, firehouse and police station. Now run by daughter Maria Tereza and son Mitchell, the family recently expanded the operation into a space that is twice its original size. “Back in the day, my dad used part of the building as a billiards hall. It used to be this cozy place surrounded by the plantation camps,” says Maria Tereza Gacula. Her mom managed the store while her father managed other businesses. Mitchell Gacula kept the store’s shelves stocked during the pandemic, his sister says, by keeping close ties with vendors and searching out new ones. “We have a lot more suppliers than we used to,” Maria Tereza Gacula says. “During Covid we also had a lot more items on our shelves than nearby stores. We really grew during that time.” They’ve also added a small commercial kitchen and the store is offering freshly made traditional Filipino desserts. Maria Tereza Gacula, like many of her generation, says she’s just now learning how to make traditional Filipino dishes. “Last year, I started working in the store not knowing what all of the items were, or what ingredients went into traditional Filipino dishes. Now we are sharing those recipes on social media with our customers.” The store’s Facebook page also alerts customers to contests, new items and old favorites back in stock. – Cynthia Sweeney H AWA I I B U S I N ES S

tomized experiences rather than cookie-cutter tours. For Wasabi, that means a focus on small group tours. The business supports the sustainable tourism tenets of the Hawaii Ecotourism Association. “In accordance with those values, we maintain an ongoing commitment in environmental preservation, interpretive training for staff and guest relationship management,” Geng says. The company works to minimize its impact on nature, with tour guides emphasizing the recycling of food and drink containers and advising visitors to be aware of wild plants and animals they will see. “We do tell them to leave everything as they see it, and not to take anything back with them,” Geng says. – Cynthia Sweeney

WASABI TOURS HAWAII JAY GENG TOUR COMPANY FOCUSES ON HAWAI‘I ISLAND’S NATURAL BEAUTY ITH MORE THA N 4,000 F I VE - STA R RE VI E W S, Wasabi Tours Hawaii is ranked No. 1 on Tripadvisor for outdoor activities in Kailua-Kona. Founded in 2006 by Jay Geng and his mother, Aling, the company provides group and private tours that showcase Hawai‘i Island’s natural beauty and history. Geng says he has maintained the company’s resilience over the years by building partnerships and adapting with the times. The company collaborates locally with hotel concierges and Pleasant Holidays, and with online booking sites such as Expedia and Tripadvisor. After a rough time during the pandemic, Wasabi’s revenue has almost doubled in the past year, driven partly by more family tours. “Along with having a great reputation, we care for our employees and ensure they do a great job showing tourists the natural beauty of the island, as well as its culture and history, which allows us to thrive as visitors return,” Geng says. What tourists are looking for in a Hawaiian adventure has evolved over the years, he says. The trend has been toward cus-

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KŌLOA RUM CO. BOB GUNTER INSPIRED BY THE PAST, THIS KAUA‘I RUM IS INNOVATING FOR MODERN TASTES

PHOTO: COURTESY OF KŌLOA RUM CO.

made its first batch of rum in an old jam and jelly factory just outside of Līhu‘e. Today, its rum is sold in 32 states and Canada, Japan and across Europe. The brand has also expanded its lineup from white, gold and dark rum to coconut, coffee and spiced rum along with bottled signature cocktails and canned carbonated cocktails. “We like to say we have a rum for every day of the week,” says Bob Gunter, president and CEO of Kōloa Rum. A key part of the company’s success has been its partnerships, says Gunter. Hawaiian Airlines has served Kōloa rum and cocktails for over a decade and since 2021, Kōloa has been “the official ultra-premium rum of the Las Vegas Raiders.” After producing a limited line of commemorative bottles for the 45th anniversary of the Raiders’ first Super Bowl win, the company applied the concept at home. “We approached the University of Hawai‘i Athletics Department and began talking with them about ways that we might collaborate in a supportive way,” says Gunter. “We created a special bottle and box relief of our five-year single barrel” to commemorate the back-to-back men’s volleyball championships in 2021 and 2022. The 300 bottles, offered at select Foodland stores on O‘ahu, sold out in just a couple of days, says Gunter. Proceeds from the sales went to UH Athletics. Kōloa Rum was founded on the idea of “being able to create something of value” for the local community, according to Gunter. “We know and have known from the beginning that the real reason that we’ve been successful is because of the quality, the product, and that goes back to the ingredients, how it’s made, and of course, who’s making it.” Of the company’s 52 employees, 43 are based on Kaua‘i and O‘ahu, says Gunter. Ingredients like coffee and vanilla beans for their rum infusions are sourced from Kaua‘i. Sugar cane had been sourced locally until the closure of Hawai‘i’s last sugar mill. In the next 5 to 10 years, Kōloa Rum hopes to open its new Kōloa town facility, which will include a new tasting room, cafe and Kōloa plantation museum. The company plans to eventually have a “single-estate organic rum that is made from sugar cane grown there, processed there, distilled and bottled and sold there,” says Gunter. “The sugar industry, of course, is a big part of our heritage and our culture here in Hawai‘i. And so being able to memorialize that in that way in this museum … (and) continue having sugar cane grown there, it just brings it back full circle.” – Krystal Spear

N 2009, KŌLOA RU M CO .

HAWAII VETERINARY VISION CARE DR. MAYA YAMAGATA

SHE HELPS ALL OF GOD’S CREATURES PRESERVE THEIR VISION OR A QUARTER CENTURY, DR. MAYA YAMAGATA has cared for many kinds of animals, from cats and dogs to a rhinoceros at the Honolulu Zoo, dolphins at Sea Life Park and cattle at local farms. Her specialty: the eye health and vision of her patients. “We have also examined the endangered ‘alala Hawaiian crow at the Maui Bird Conservation Center, and Sumatran tigers, squirrels, and nēnē at the Pana‘ewa Rainforest Zoo on Hawai‘i Island,” says Yamagata, a veterinary ophthalmologist. Her patients usually come to her in much the same way other ophthalmologists get their human patients: a general veterinarian will refer a patient when an eye condition is complicated or requires a particular surgery, such as cataracts or cancer in and around the eyes. Her clinic, Hawaii Veterinary Vision Care, also provides eye examinations for work-

H AWA I I B U S I N ES S

ing, service, and military animals so they continue providing service, she says. Yamagata was the first veterinary ophthalmologist practicing in Hawai‘i when she started in 1997; now, she’s one of three. Travel is essential to her work, with visits to the Neighbor Islands generally every other week. Eyes have especially intrigued her ever since high school and it was back then that she began figuring out how to combine being a veterinarian and an ophthalmologist, saying that it was a “double dream.” However, veterinary ophthalmology is a challenging field to enter: It took Yamagata 14 years to complete training at UC Davis and Ohio State, which included undergraduate and graduate studies, veterinary school, internship, and residency. What motivated her was her strong Christian faith. “As a Christian, I believe that God created all animals and gave humans the commission to care for them. This is the basis of why I wanted to become a veterinarian.” She emphasizes that serving God and serving others is the foundation of her career. Her work helps both the animals and the people who care for them, and she says she’s gratified when her patients are no longer suffering. “God created animals to have the eye as a specialized organ to help them navigate the environment and survive in the world. It amazed me that the general anatomy of the eye is so well preserved all across animal species, from the smallest bird to the largest mammal,” she says. – Will Sanders

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ISTANBUL HAWAII AHU HETTEMA & NILGUN YILDIRIM A LONGING FOR HOME HELPED INSPIRE TURKISH RESTAURANT A

SIAN FOOD IS EVERYWHERE IN Chinese, Japanese, HAWAI‘I:

Korean, and Indian restaurants abound. However, Turkish cuisine is a rare treat here and Istanbul Hawaii deliciously fills that niche. Ahu Hettema says the restaurant was conceived during a period when, after more than 10 years away, she was longing to return to Turkey, but immigration problems got in the way. She got depressed and, for guidance, turned to her mother, Nilgun Yildirim, a chef specializing in Turkish cuisine for 30 years. The more they cooked together, the more Hettema healed emotionally as the delicious Turkish dishes helped her remember where she came from. She ultimately decided that sharing her love of Turkish cuisine and its delectable flavors with Hawai‘i brought her joy. Hettema says Istanbul Hawaii began as a farmers market stand in June 2015 and opened as a restaurant on Auahi Street in Kaka‘ako on June 27, 2020 – three months into the pandemic. The restaurant had a bumpy start because of Covid restrictions, but business picked up quickly; Hettema says people are drawn to the restaurant’s ambience and gourmet cooking. Turkish food “is largely the heritage of

Ottoman cuisine, which can be described as a fusion and refinement of Mediterranean, Balkan, Middle Eastern, Central Asian and Eastern European cuisines,” she says. “Turkey is known for an abundance and diversity of food due to its flora, fauna and regional differentiation.” The mother and daughter strive to get their ingredients locally, including hibiscus flowers, vanilla beans, Kaua‘i shrimp, Big Island lobster, macadamia nuts, most of its produce and some of its fish. Popular dishes include the Meze platter (a collection of vegetarian appetizers), pirzola (aged lamb chops), levrek (fresh Mediterranean sea bass), Hatay kunefe (a cheese curd) and baklava. On Yelp, the restaurant has around a thousand reviews, with nearly two-thirds of them at five stars. Hettema and her mother find joy in teaching various culinary techniques and Turkish cuisine to their cooks and chefs – many of whom had started there as dishwashers. “Good food is about simple things: fresh ingredients, basic techniques, patience, consistency, love and respect for cooking in the kitchen,” she says. “(We help) our team to understand the power of spices just like an artist with hues, and which spices pair well with which protein and vegetables.” – Will Sanders

Proudly Proudly Supporting Supporting Hawaiʻi's Hawaiʻi's Leaders. Leaders.

SHAKA GUIDE ANDREW FOWERS

PHONE APP OFFERS“AN IMMERSIVE AUDIO EXPERIENCE” FOR VISITORS S

HAKA GUIDE’S PHONE APP TOURS

are like “podcasts on steroids,” says co-founder Andrew Fowers. “Taking the podcast experience, connecting it with a location,” he says, “becomes a really powerful combination for an immersive audio experience.” Shaka Guide is a Hawai‘i-based company that launched in 2016 and provides GPS-guided audio tours for O‘ahu, Hawai‘i Island, Maui, Kaua‘i and, more recently, Utah, Arizona, Nevada and Colorado. Location-based storytelling is the heart and soul of the company, Fowers says. “It’s about understanding place,” including its history and unique features. “On the mainland, we’ve launched tours that are talking about the stories of Indigenous people: how they used to live there and what their stories are. And that’s important to help preserve and perpetuate this type of information, through audio.” The O‘ahu tour bundle covers six locations, including Downtown, Waikīkī and the North Shore, with each tour running from one hour to 10. The bundle highlights places like Banzai Pipeline, Leonard’s Bakery and ‘Iolani Palace; it provides any fees and prices along the way, a packing guide, and reminders to mālama ‘āina and to pause for the full experience, such as taking in the sights, sounds and salty smells as surfers ride big ocean waves. Fowers says Shaka Guide encourages exploring while respecting the land. “We try to define that balance between tourism and sustainability. Where those two meet is where we hope Shaka Guide will be.” Growing Shaka Guide did not come without challenges, including the strain of keeping up with new technology like GPS enhancements and surviving the pandemic. “It’s about the attitude of welcoming failure and not giving up, and just continuing to innovate and push toward your dreams without letting failure get the best of you,” says Fowers. – Aishwarya Behl 34

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ISLANDER SAKE BREWERY CHIAKI TAKAHASHI & TAMA HIROSE

THESE JAPANESE FOUNDERS ARE BREWING A HAWAIIAN SAKE C

HIAKI TAKAHASHI AND TAMA HIROSE’S homeland of Japan has about

1,600 licensed sake breweries. In Hawai‘i, there’s one: Islander Sake Brewery, which the pair launched in 2018. Until then, Hawai‘i had gone 33 years without a sake brewery. “By making sake in Hawai’i, and through our customers meeting us, we hope more people can understand Japanese culture,” Hirose says. “That is our mission.” Hirose, whose first name was “Tadashi,” changed his name in order to avoid confusion with his business partner. He chose “Tama” — the name of the city where Hirose and Takahashi met at a sake convention. After looking for a place to set up shop, getting their working visas in order, and managing the language barrier, the duo opened their Kaka‘ako brewery in March 2020, about a week before Gov. David Ige signed a statewide shutdown order because of the pandemic. “It has not been easy,” says Takahashi, a medical researcher turned brew master. “But it’s my dream come true.” She added that typically, women

H AWA I I B U S I N ES S

WALTZ ENGINEERING in Japan don’t return to work after giving birth. But at 52 and with two grown children, she hopes to inspire other Japanese women to pursue their passions. In just over a year of operations, they’ve produced 10 different sakes. The majority of their signature sakes are brewed without pasteurization or filtering, and two are flavored with fruit: locally sourced pineapple and liliko‘i. “We use the same technique other Japanese sake brewers use, but we are creating a Hawaiian sake,” says Hirose, who ran a general store in Japan with his family and is well-acquainted with sake. “There are four ingredients to make sake: rice, water, yeast and koji.” He says two of the four they use are sourced from Japan: the koji fungus and 50% of their rice. “Our fifth ingredient is the plumeria-scented Hawaiian wind.” Island Sake Brewery thrived during lockdown, and the duo produced about 12,000 bottles of sake in their humble 1,100 square-foot-space, which they say is all thanks to the local community that supported them during the pandemic. In February 2022, the duo also opened Hanale, an eightseat sushi restaurant in Chinatown that offers an 18-course dining experience. They’re still waiting for their liquor license, so for now, customers can bring their own and there is no corkage fee if you bring in a bottle of Islander Sake. In December 2022, they officially moved their brewery to Hawai‘i Island, where they are using volcanic water and melted snow from Maunakea for their sake. They also have plans to start a sake school, to pass on Takahashi’s knowledge to the next generation of brewers. – Alicia Lou 36

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“W

ALTZ ENGINEERING WAS STARTED

very originally by my dad in 1952 in California,” says Dick Waltz, VP and senior project manager. The company first came to Hawai‘i to build a plant for Al Phillips The Cleaner on McCully Street, which eventually led it into the equipment business. In 1986, Waltz and his wife, Lorinda, started Waltz Engineering in Hawai‘i. The company now supplies industrial equipment, primarily laundry plants and boiler plants for hospitality companies, hospitals, schools and the government. “The U.S. government is a major customer of Waltz Engineering, particularly the Navy,” Waltz says. In addition to its business in Hawai‘i, Waltz Engineering also does work on many Pacific Islands, including Guam, Saipan and Palau. “We also go wherever there is a U.S.

DICK & LORINDA WALTZ

Navy base,” Waltz says. “We go to Okinawa and South Korea and as far as Diego Garcia in the Indian Ocean.” Lorinda Waltz credits the company’s great team of employees – their ‘ohana – for their success over the years. “The other part of our huge success is Dick’s relationships with our customers,” she says. The business is doing well coming out of the pandemic, especially as the hospitality industry bounces back. In 2022, its gross revenue was $6 million to $7 million. Waltz Engineering is not a flashy company – it does most of its work in the background, says Lorinda Waltz. But, she says, the company takes pride in its integrity and strong customer support. Dick Waltz offers one other characterization of the company: focused on the present while “we’re always looking for long-term plans.” – Victoria Budiono

Congratulations to the small businesses that think BIG. American Savings Bank can help take your business to the next level with the following: Discounts for your customers and free promotional opportunities through our Buy Local program. Card processing with cash advance options and in-device apps to help your business with the day-to-day. Talk to an expert today about your next steps at asbhawaii.com/business

Lan Chung

Owner and Designer, Fighting Eel

Congratulations to our ASB customer of 20 years for the many years of success!

Member FDIC

To join Fighting Eel and the ASB Buy Local ohana, scan the QR code or visit asbhawaii.com/JoinBuyLocal H AWA I I B U S I N ES S

GUIEB CAFE

ERNESTO GUIEB

“DO WE SINK OR SWIM?” GUIEB CAFE EXPANDS DESPITE PANDEMIC N 2016, ERNESTO GUIEB officially launched Guieb Catering after 10 years of cooking for family and friends’ parties. Four years later, he and his family stepped it up by planning to open Guieb Cafe in Kalihi, their first brick-andmortar restaurant. The day after receiving the keys to the cafe, the pandemic hit. “Governor Ige had announced the shutdown and we thought, ‘Do we sink or swim?’ ” says Precious Guieb, Ernesto’s oldest daughter, who helps with the restaurant’s front of house. “At that point, we decided to go with it. “I think it all comes from my dad’s mindset. We do our best every day … with our hearts and our souls and see if

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the community reacts in a positive way, which they did.” Guieb Cafe has since opened two more locations, in Wahiawā and ‘Aiea. The cafe caters to each community’s tastes through its weekly specials that vary with each location, says Precious Guieb. Customer favorites on the regular menu include prime rib loco moco; ube mascarpone pancakes; and adobo fried rice omelet, which graduated from an off-and-on special to the regular menu because of high demand. After seeing homelessness and hunger in its community, the Guieb family began giving out free food. “We did a lot of either hot or cold food distribution,” says Precious Guieb, and at the Kalihi location, the family

gave out “bananas, eggs, bread, things like that because it was a hard time.” “It’s honestly just something that we do just from the bottom of our hearts.” During its growth, Guieb Cafe has expanded from having two hired employees to a team of 40 staff members. What remains a priority, Guieb says, is listening to employee feedback, providing good benefits, handing out employee awards and holding company events twice a year. “I think that just goes back to how my family and I are. We love hanging out and spending time and we enjoy each other’s company. And so we’re kind of just reflecting what we do as a little smaller family with our bigger family in the cafe.” – Krystal Spear

FUJIKAMI FLORIST THREE GENERATIONS AND 104 YEARS OF CONVEYING FEELINGS WITH FLOWERS

“I

EILEEN MIURA

LITERALLY GREW UP IN THE SHOP,” says Eileen Miura, the

third-generation owner of her family’s Honolulu-based business, Fujikami Florist. Started in 1919 by her grandfather, Walter Fujikami, it’s the oldest floral company in the state. Walter Fujikami’s oldest son, Stephen (Eileen’s uncle), took over the business in the mid-1980s. Adapting to the changing times, he incorporated

credit card processing, direct mail, product catalogs and computerization, and expanded the company’s offerings to include wines, champagnes and gourmet gift baskets. When Stephen Fujikami retired, his sister Stephanie (Eileen’s mom) and her husband, George Shikuzawa (Eileen’s stepfather) took over, until their retirement in 2016. Over the past century, the business has moved several times; its current location is on Pali Highway near Fort Street. And throughout, it’s been beloved for its fresh flowers and speedy service, its understanding of island aesthetics and its sensitivity to cultural traditions, according to what customers say online. “Flowers are about sentiment and the conveyance of feelings,” Miura says. In her business, impeccable customer service is as important a product as the arrangements themselves, “and we have lived and breathed all of it,” she says. While holidays like Mother’s Day and Valentine’s Day provide seasonal peaks, a steady stream of everyday occasions like birthdays, anniversaries, weddings and business openings keep things lively year-round. Still, the past few years have not been easy. “The supply and demand issues have been major and continue to be so,” Miura says, with some products remaining in short supply or even being out of stock indefinitely. “However, we endure and continue. To say I’m proud of my family legacy and now being its proprietor and perpetuator would be an understatement.” – Kathryn Drury Wagner

H AWA I I B U S I N ES S

TIP TOP MOTEL, CAFÉ & BAKERY SERVING UP A NO-FRILLS, FAMILY ATMOSPHERE FOR OVER A CENTURY EED THE PEOPLE. Give them what they want. It’s a simple formula, but it’s served the Tip Top Motel, Café & Bakery well since 1916. The Tip Top Café was founded by Denjiro Ota, who worked as a cook for sugar cane plantation manager Albert Wilcox. Ota was asked to open a café – a place where the businessmen of Līhu‘e could enjoy breakfast – so he did, inside the year-old Tip Top Building. In 1925, his son Mitchell took over and expanded the café’s bakery operations. (Its famous pancakes are still made according to his recipe.) When the Tip Top Building was demolished in 1965, Mitchell Ota moved the café a halfmile to its current location and built a 34-room motel around it. Fourth-generation Jonathan Ota has managed the place for the past 32 years. “We have a wonderful crew of employees who’ve been with us a long time and are tuned in to what people need,” he says. “Good, consistent service helps people know what to expect when they come in, and to leave happy.” He’s been careful to preserve the no-frills, family atmosphere he grew up with. “People want that same old feel, so we are sensitive to that,” he says. The most popular dish at the café is the oxtail soup, Ota says, a recipe given to his grandfather decades ago. He credits his grandfather for having the foresight to expand into motel operations. When business is slow on one side, the other side generally helps to balance things out, he says.

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Over the past century-plus, there have been highs, like in 2008 when the company was named by the U.S. Small Business Administration as the state’s top family-owned small business. And lows, like the million-dollars-plus in damage caused by 1992’s Hurricane Iniki. There have been strange times, too, like when a truck crashed through a wall and into the restaurant in 2019; thank-

JONATHAN OTA

fully, no one was hurt. But Tip Top’s future is up in the air. “I am not married and don’t have children,” explains Ota. “Passing it along to the next generation isn’t going to happen. We will need to figure out a plan. It’s a simple business. But a family business that is over 100 years old, well, there aren’t a lot of them.” – Kathryn Drury Wagner

SPECIAL PROMOTIONAL SECTION

KEEPING HAWAI‘I HEALTHY As Hawai‘i begins to loosen Covid regulations, hear from our local healthcare leaders on the key issues affecting our state in the coming year.

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

Q&A WITH

How is Hawaii Dental Service (HDS) boosting their members’ wellness and overall health this year?

As Hawaii’s oral health leader, HDS has been at the forefront of oral health education and increasing access to dental care for insured and uninsured local families, whether it’s through our dental plans or community initiatives.

DR. DIANE S.L. PALOMA PRESIDENT & CEO OF HAWAII DENTAL SERVICE

This year we are ramping up efforts to improve health outcomes and motivate our members through SMILEWell, our oral health wellness program, guiding employers by setting oral health goals and focusing on incentivized, educational initiatives. Believe it or not, many adults still fear the dentist and we make it our mission to reduce barriers, so our members get the care they need. For underinsured and uninsured families, the HDS Foundation funds and

We'll go the extra smile for your employees HDS has been at the forefront of advancing oral health for Hawaii's businesses for more than 60 years.

develops community programs that educate and treat individuals in need of discounted or free dental services. Our HDS Foundation team works with various agencies to promote our initiatives focused on educating parents to take their children to the dentist by their first birthday, to participate in our school-based sealant program for children, and dental hygiene training for caregivers. HDS also recently established an oral health endowment at the University of Hawaii John A. Burns School of Medicine to integrate oral health into the school’s core curriculum. Our hope is to elevate oral health to a new level of importance for the next generation of physicians serving our island communities. How does good oral health play a role in the success of a business or organization? Healthy and happy employees are the foundation to a successful business. Studies show healthier employees display higher levels of morale, productivity, and have lower healthcare costs. Poor oral health conditions such as toothaches, gum disease, and tooth loss can affect an employee’s productivity, attendance, and confidence due to extreme pain and discomfort, in addition to affecting one’s overall health. This is why we often stress the importance of preventive care and constantly challenge ourselves to make oral health engaging and fun – so Hawaii families can Live Well, Smile More.

Learn more about our dental plans and oral health wellness program by scanning the QR code below.

Hawaii Dental Service (HDS) 900 Fort Street Mall, Suite 1900 Honolulu, HI 96813-3705 (808) 529-9248 HawaiiDentalService.com

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Get the right mix of coverage, cost, and convenience

Choosing a health care partner is one of the most important business decisions you can make. You need options that provide flexibility, help manage your health care dollars, and tools and resources that empower your employees to be healthier. These are the solutions you get with Kaiser Permanente:

High-quality care

Get excellent care that keeps employees and businesses healthy.

Cost management

Our coordinated, team-based model can lead to lower costs and better population health outcomes.

Healthier employees

Give your employees what they need to stay on top of their health.

Telehealth services

At Kaiser Permanente, telehealth isn’t just used by your employees and their doctors — it’s integrated across our entire care experience. Together we can help build a better, sustainable future for your business. Learn more at kp.org/choosebetter

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

Q&A WITH

MATTHEW KOENIG, MD VIRTUAL CARE MEDICAL DIRECTOR AT THE QUEEN’S HEALTH SYSTEM

We offer on-demand video visits through Queen’s new Virtual Urgent Care program, which is available on the Queen’s website or through Queen’s MyChart app. This program guides patients through which symptoms are appropriate to be seen immediately by a provider through virtual care. Patients can also call their primary care physician or Queen’s Patient Support Center (808-691-8200) to ask whether virtual care is appropriate for their next clinic visit. Some appointments do require a hands-on physical examination, lab work, vital signs, or other procedures that are not available through virtual care, so it is important to ask your doctor if virtual care is right for you. How can Queen’s health care providers accurately diagnose and treat medical conditions through Virtual Care? Many medical conditions can be followed using tools like video visits, connected devices like glucose monitors

and blood pressure cuffs, and text-based interactions with the physician or care team. These virtual care tools should be considered complementary to in-person care since they can often provide more timely interventions to keep patients healthy and address problems before they become more serious. Common conditions like hypertension, diabetes, weight gain, epilepsy, allergies, and asthma can be treated over time with virtual care in a way that is safe and convenient for patients. It’s all part of Queen’s commitment to meet the needs of our communities and become lifetime partners in health with the people we serve.

The Queen’s Health System 1301 Punchbowl St. Honolulu, HI 96813 Queens.org

What is Virtual Care and how does Queen’s use technology to deliver care to patients?

True to our mission, The Queen’s Health System proudly cares for the people of Hawai‘i and continues to be innovative to ensure patients have access to high-quality, affordable care. Virtual care includes a variety of patient care services that use technology to connect patients or referring physicians with an expert provider at Queen’s. Although scheduled video visits are the most common, Queen’s also offers on-demand video visits, text-based eVisits, provider-to-provider eConsults, and remote patient monitoring in the patient’s home. Our goal is to provide convenient and timely access to expert care and improve a patient’s engagement in their own health and well-being. How do I know if Virtual Care is right for my specific health care needs, or if I need an in-person visit?

Virtual Care at your Fingertips Did you know The Queen’s Health System provides Virtual Care services to both our patients and caregivers? As part of our mission, we strive to provide quality care for you and your ‘ohana when you need it, and how you need it. Scan the QR code to learn more.

Queen’s is dedicated to ensuring that patients receive the right care in the right place at the right time.

H AWA I I B U S I N ES S

Our team is focused on your

FAMILY.

Our team-based approach is designed to provide you and your family with the right care, by the right expert, at the right time. HawaiiPacificHealth.org/PrimaryCare

T U R O

Like Airbnb But on Wheels Locals use web-based services like Turo to rent their cars to strangers for extra income. One host couple say they now offer 75 cars owned by themselves and others. BY CH AVON N IE R AM OS

ILLUSTRATION: GETTY IMAGES, AMY LOWE

AUI NATIVE ETH AN KALEIOPU AND H IS FAMILY are in the

real estate and tourism industries, and often fly back and forth between the Valley Isle and O‘ahu for work. And once on O‘ahu, they need a car. Kaleiopu says traditional rental car services aren’t always an option when he has to book last-minute flights. To avoid any uncertainty and stress, he says he turns to Turo, a car-sharing service. It can be more convenient, he says, and “you can be really selective with what type of vehicle you want.” He doesn’t worry about shortages because there are plenty of vehicles available and “you can book a car fairly quickly,” including just hours before landing on O‘ahu. And he enjoys that most of the money he pays to Turo goes to the car’s owner. Kaleiopu and his family are not only Turo renters; since the pandemic, they’ve been “hosts,” too. He started by renting out his mother’s car when both she and her

husband were laid off. Now the extended family has 10 cars for rent on Maui. Turo and Getaround are two peer-to-peer car-sharing services that operate in Hawai‘i for tourists and locals alike. Turo has been around nationally since 2009, but “was still really scarce” in Hawai‘i until Covid arrived, says Kaleiopu. “Not many people were doing it.” The service gained popularity here with the pandemic-fueled rental car shortage. The Hawai‘i Tourism Authority reported the Islands’ fleet of rental cars had dropped by over 40% from 2019 to 2021.

Albert Mangahas, Turo’s chief data officer, says “Turo has stepped up to kind of save the day” with its list of available cars in the Islands. HOW IT WORKS

Peer-to-peer car-sharing services allow vehicle owners to rent their cars to people for short terms. People can scan turo.com for available vehicles in their preferred areas or at specific locations like an airport, and

rent specific vehicles at daily prices set by vehicle owners. They can also filter results based on specific criteria like car type, price and features. Guests can also request vehicle drop-offs and pickups at specific locations. Car owners, known on Turo as hosts, set their own rental rates, which can be lower or higher than those offered by rental car companies. H AWA I I B U S I N ES S

T U R O

“IT’S A GREAT ECONOMIC OPPORTUNITY FOR A LOT OF THE HOSTS IN THE HAWAI‘I AREA IN TERMS OF REALLY KIND OF SUPPORTING THIS CONCEPT AND EXCITING IDEA – THIS REGENERATIVE TOURISM.” —Albert Mangahas, Chief Data Officer, Turo

accounts – one each for himself, his parents and aunty – and each account can earn from a few hundred dollars a month to $1,500. The average cost of owning a vehicle in Hawai‘i is $8,100 a year, or $675 monthly, according to a study by the Ulupono Initiative. The study also found that 80% of households in the state own two or more cars. (tinyurl. com/Ulupono2021Study) Turo’s Mangahas says cars sit idle 95% of the time, and “Turo’s hosting platform transforms these underutilized assets into earnings en-

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Looking for an alternative source of income, Maui resident Karissa and Jon Baker became Turo hosts in 2021. She says her husband worked in the hospitality industry as a valet and that the pandemic “was hard” on her family. They started with two cars on the platform, and now host or co-host 75, for themselves, family and friends. Their car-sharing service is called “Chosen Rentals,” and does all

in Hawai‘i is $8,100 a year, or $675 monthly, according to a study by the Ulupono Initiative. The study also found that 80% of households in the state own two or more cars.

MAUI

HONOLULU H AWA I ‘ I

80 %

OF HOUSEHOLDS IN H AWA I ‘ I OW N T WO O R M O R E C A R S

SOURCE: ULUPONO INITATIVE

EXTRA SOURCE OF INCOME

reservations through Turo. “Hawai‘i is expensive, so this has been a great way to supplement our family’s income,” she says. Hawai‘i Island resident Tarek Antaki has been using Turo as a host and renter for more than two years, and says income from the service represents 40% to 50% of his total income. He was one of 13 people who responded to Hawaii Business’ outreach on social media to find Turo hosts and renters. “Turo allows me to support my family of four,” he wrote.

TH E AV ER AGE COST OF OW N ING A V EHICLE

MAKES OWNING A CAR MORE AFFORDABLE

Kaleiopu says being a Turo host helps him and his family cut the costs of car ownership. For example, when his parents were laid off during the pandemic, Turo helped cover the payments on his mother’s car, along with maintenance costs. Now Kaleiopu and his family have 10 cars listed on Turo, which they use as personal cars when they’re not rented. He has the vehicles separated into different Turo

gines and puts money back into our hosts’ pockets.”

K A U A‘ I

For example, a recent open-ended search on the Turo website for the Daniel K. Inouye International Airport showed 200 vehicles available in Honolulu with a price range from $44 per day for a 2020 Toyota Corolla to $214 per day for a 2020 Tesla Model X. At the same time, rental company Enterprise showed a Toyota Corolla for rent at $129.98 per day. Turo also offers car insurance and protection plans for both hosts and renters. According to the platform, every host plan comes with $750,000 in third-party liability insurance for when the cars are being rented. The platform has five levels of plans for hosts, which can earn 60%-90% of the trip price, depending on which plan they choose, though hosts typically collect 75%. If a guest damages a car they rent, Turo says, the guest’s own car insurance may cover it. If not, guests should buy a Turo protection plan. The Insurance Information Institute, which has 60 insurance companies as members, says car insurance policies differ on whether they cover peer-to-peer rentals, so check your policy or call your insurance agent.

A typical Turo host can earn $115 per four-day transaction, which is enough to cover on average a month’s insurance and registration costs, according to a 2022 study commissioned by Turo. If a car is shared for two weeks in a month, the entire monthly cost of the vehicle, including the typical car payment, can be covered. (tinyurl.com/2022TuroStudy) ILLEGAL TO PARK AT AIRPORTS

The Hawai‘i Department of Transportation says it’s illegal to park Turo-rented cars at any state airport. Turo officials say they

have been working with state officials to establish a permitting system but for now recommend that hosts arrange for pickups and drop-offs outside of airport property. Nonetheless, some hosts pick up guests at state airports and take them to nearby parking lots to turn over the keys and vehicles. On Kaua‘i, a shuttle runs between Līhu‘e Airport and a dedicated parking area at Kukui Grove Center for Turo drop-offs and pickups. Last year, some state lawmakers unsuccessfully tried to pass a law that would ban peer-to-peer car rental programs, citing concerns they

can lead to overtourism and are not regulated. MIX OF LOCALS AND TOURISTS

When Kaleiopu and his family started as Turo hosts, they noticed only younger tourists were renting their cars. But in the last two years, he says more locals and Neighbor Island residents have been using the service. Recently, a couple of Kaua‘i residents traveled to Maui to get married and booked one of Kaleiopu’s best vehicles. Kaleiopu says they put together something nice for them like a goodie basket and lei to help “set the tone” of the trip. “It was nice because it’s

locals helping other locals, and kind of setting that experience,” he says. Turo host Baker agrees and says a lot of local Turo hosts “go the extra mile to make a guest’s experience special and unique.” “It’s a great economic opportunity for a lot of the hosts in the Hawai‘i area in terms of really kind of supporting this concept and exciting idea – this regenerative tourism,” says Turo’s Mangahas. “The great thing about this is it’s not only enabling tourists to come, but it’s the earnings that are coming directly into local Turo hosts here in the Hawai‘i Islands.”

“HAWAI‘I IS EXPENSIVE, SO THIS HAS BEEN A GREAT WAY TO SUPPLEMENT OUR FAMILY’S INCOME.”

—Karissa Baker, Maui Turo Host

A T Y PICA L TU RO HOST CA N E A R N $1 15 PER FOU R-DAY TR A NSACTION, which is enough to cover on average a month’s insur-

ance and registration costs, according to a 2022 study commissioned by Turo. If a car is shared for two weeks in a month, the entire monthly cost of the vehicle, including the typical car payment, can be covered.

T O TA L V E H I C L E S R E G I S T E R E D I N H AWA I ‘ I

VEHICLES LISTED ON TURO

T YPICAL COSTS O F 4 - D AY TR ANSACTION $234

COUNTY

REGISTERED VEHICLES

COST OF VEHICLE OW N E R S H I P (MILLIONS OF $)

COUNTY

REGISTERED VEHICLES

H AWA I ‘ I

1 9 9, 8 0 8

$ 1 , 62 6 . 8

H AWA I ‘ I

174

UPKEEP $19

HONOLULU

791,884

$ 6 , 4 47. 2

HONOLULU

586

TA X E S $ 5 3

K AUA‘ I

83,871

$ 6 8 2 .9

K AUA‘ I

M AU I

17 9, 8 62

$1,464.4

M AU I

250

T O TA L

1,225,425

$10, 221.3

T O TA L

1,086

SOURCE: ULUPONO INITATIVE

I L LU S T R AT I O N : G E T T Y I M A G E S , A M Y L OW E

SOURCE: TURO

PROFIT MARGIN $115

TURO FEE $47

SOURCE: TURO

H AWA I I B U S I N ES S

TIPS HELP PAY THE BILLS Tips are a big part of many people’s income in Hawai‘i, but the amounts vary greatly from customer to customer. The pandemic, technology and other factors have changed when, how and how much people tip – spurring debates about best practices.

BY NOELLE FUJII-ORIDE

BARBARA TALLEY TYPICALLY SERVES 25 TO 30 DINERS DURING A DINNER SHIFT AT THE SHERATON KAUAI RESORT’S RUMFIRE POIPU BEACH. WITH RICH SUNSETS AND LIVE MUSIC CREATING A LEISURELY ATMOSPHERE, GUESTS AT HER FOUR-TABLE SECTION OFTEN TAKE THEIR TIME EATING AND TALKING STORY.

PHOTO: GETTY IMAGES, PHOTO ILLUSTRATION: MALLORY ADAMS-NAKAMURA

TA LLE Y A I M S TO M A K E AT LE AS T $ 2 5 0 I N TI P S E AC H S H I F T

because that’s what she needs to pay her bills. Some nights she succeeds. Others, she’s way under. Often, tips are based on factors outside of her control, like a customer’s mood upon arrival, the time it takes to get food and drinks out, the season, and who the customers are. “Depending on where you’re at and how people are, sometimes you can get 10 percenters and you’ll be lucky if you make $200,” she says. Talley has worked at RumFire for almost two years and enjoys her job. She and other service workers say that although tipping is unstable, it’s still a vital income source as inflation has pushed prices higher for food, gas, rent and other essentials. Some local restaurants have changed how they request tips and added mandatory service fees to provide gratuities to back-of-house workers that customarily do not receive tips, like cooks, expeditors and dishwashers. Lee Anne Wong, executive chef of Koko Head Café in Kaimukī and Papa‘āina on Maui, says many restaurants are still recovering from pandemic closures, staff shortages and rising costs from locally grown food, takeout containers and the need to pay competitive wages. She thinks diners need to be reeducated on what it means to eat out and why they should tip.

“Tipping is like literally taking care of the people who are taking care of you,” she says. “Consider the cost of your menu item. That’s the chair rental, that’s … the invisible people in the kitchen that are magically making the food for you – and they’ve been there all day. Understand the food you’re paying for pays all the bodies that you see.”

TIPPING HABITS TI PPI N G H A S I N C R E AS ED N ATI O N A LLY, driven partly by the adoption of digital payment systems that request gratuities. Some customers have been frustrated by the prompts, especially at places where tips normally aren’t expected, like at coffee shops and other counter-service venues. According to Fortune Magazine, tips at full-service restaurants grew by 25.3% in the third quarter of 2022 compared to the same time in 2021. Tips at quick-service restaurants increased 16.7%. (Read the report at tinyurl. com/mpksnjc6.) Fortune’s data is based on information from Square, which operates digital payment systems for food and beverage, retail, beauty, and service businesses. Hawaii Business Magazine reached out to Square and was told the company could not provide state-level tipping data. The company did

H AWA I I B U S I N ES S

TIP REQ U E S T S K AUA‘ I M U S I C I A N S E TH WO M B LE C O LLECT S TI P S by leaving an open ‘ukulele case when he performs on his own or with his band, the Napali Coasters. In his regular solo gigs at restaurants in Po‘ipū and ‘Ele‘ele, which tend to last at least two hours, he sees various tipping behaviors. Some diners want to be seen leaving tips, while others will send their kids up or slink by. Some who don’t tip avoid eye contact when they leave. Womble, who often plays to a full restaurant, says

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people are probably being more careful with how they’re spending their money. In the last year, he started collecting tips through a Venmo QR code placed in his empty ‘ukulele case in addition to cash tips. He provides the QR code as an option for listeners to show their appreciation, but only one or two people a night use it. Some listeners who do use it include short notes or song requests. Womble is a mural artist by day, and the tips help pay for his community projects. Maria Rallojay worked as a waitress at a Filipino restaurant in Waipahu for four years until February. She says the restaurant charged parties of six or more a mandatory gratuity of 18% – a practice that began a few months after its dining room reopened in late 2020. Before that, the mandatory gratuity was 15% for parties of 10 or more. Rallojay says mandatory gratuities make it easier for servers to get tips, especially on weekends when bigger groups are more frequent. Smaller groups, she says, tended to leave smaller tips, and some didn’t tip anything. On a good night, she could make $300 in tips, which helped cover her UH tuition. Many co-workers would seek the busiest shifts to get more tips. “I’m very grateful for people who do tip, but sometimes when they don’t, it feels like maybe I didn’t give them good service, or maybe it was just a really busy night and I didn’t cater to them as much,” she says. “But when I do get good tips, it’s really nice and after working a really long shift, it’s nice to just know I made something.”

‘GRATEFUL FOR YOUR GRATUITY’ PA PA‘Ā I N A I S H O U S ED I N TH E DA R K G R EEN , plantation-style Pioneer Inn just off Lahaina’s Front Street. In addition to

PHOTO: GETTY IMAGES, PHOTO ILLUSTRATION: MALLORY ADAMS-NAKAMURA

not respond to our request for updated national data. Quarterly data published by Toast, a Square competitor that serves about 79,000 restaurant locations in the country, shows that about 48% of the transactions on its digital platform at quick-service restaurants included a tip in the fourth quarter of 2022. That’s 11% higher than the beginning of 2020. It’s hard to say how much tipping has changed locally. Toast only provided Hawai‘i data for the last three quarters of 2022. That data shows Hawai‘i customers tipped an average of 18.8% in the second quarter and 18.7% in both the third and fourth quarters. Restaurant workers say tipping is often hit or miss. Talley says RumFire, located in Kaua‘i’s Po‘ipū resort area, has higher prices and customers tend to leave higher tips compared with the restaurant she worked at before Covid. That restaurant was part of the Marriott Kaua‘i Beach Club. RumFire typically sees more customers and tips in the summer, but tip amounts vary based on the individual or group. One customer might give 20% for good service while another might give 10%, Talley says. Sometimes, it depends on where the customer is visiting from. For example, tipping in Australia is considered optional and the standard tip there is 10%. Tomoko Otani, a waitress at Mr. Ojisan Neo Bar and Sushi in Mō‘ili‘ili, says the restaurant’s regulars typically tip around 18% to 20%. New customers tend to leave 15%. Some don’t tip at all. In some cases, there are fewer opportunities than before for customers to tip, such as when hotel guests check in without using bellmen and restaurant customers order food on their phones, says Eric Gill, financial secretary-treasurer for Unite Here Local 5. The union represents about 12,000 workers, including about 8,500 who work in hotels. He says bellmen and valets rely on tips for much of their income, but some hotels were slow to bring them back and now have fewer bellmen and valet attendants working, so they sometimes have less time to talk with guests and receive tips. And while the union’s housekeepers don’t rely on tips to the same extent, they have fewer chances to receive them as hotels encourage credit card payments and guests carry less cash. “We struggle with it because it’s people’s lives and incomes and families at stake and we do our best to try to keep the system as fair as we can,” Gill says. “That said, it’s just an imperfect system.”

“I’M VERY GRATEFUL FOR PEOPLE WHO DO TIP, BUT SOMETIMES WHEN THEY DON’T, IT FEELS LIKE MAYBE I DIDN’T GIVE THEM GOOD SERVICE, OR MAYBE IT WAS JUST A REALLY BUSY NIGHT AND I DIDN’T CATER TO THEM AS MUCH.” M A R I A R A L LOJAY

Former waitress

serving brunch, dinner and happy hour in its open-air dining room, it operates a grab-and-go breakfast counter. Wong, the executive chef, says she put up a sign that reads, “Your gratuity is deeply appreciated by our counter staff who are working hard to serve you the fastest, freshest breakfast on Maui. Mahalo for your support!” She says a lot of customers don’t tip at the counter and some question why they must tip for coffee. They don’t fully realize staff come in before 4 a.m. to open the counter at 6 a.m. and that a lot of work goes into making the food and drinks and cleaning up after people. “I’m very grateful for tourism but I also want an educated tourist who understands what our community has been through and why things cost what they do and why they should tip their server or counter person or barista,” she says. “It’s like we’re barely getting by. People cannot afford to live in Maui. Period.” She plans to increase her menu prices. A pound of locally grown cauliflower cost $6 before the pandemic; today, it’s $8. She says she could get cauliflower from the mainland for $3 a pound, but she’d rather support local communities. And if she were to use fresh orange juice, she’d have to charge $15 for an 8-ounce glass because her organic oranges cost $4 a pound and she pays the person who would make it $20 an hour. All her back-of-house staff make around $20 an hour. Papa‘āina earlier in the pandemic added a 5% service charge on all checks so that its back-of-house staff, who traditionally don’t receive tips, can get an extra $5 to $7 per hour. Customers could choose not to pay it, she says, but the restaurant could also choose not to serve those customers if they return. “For every person that says, ‘Why should we tip? Why can’t the restaurant pay more?’ Well, who’s paying for that?” asks Wong. “I’d be happy to raise my prices to where you think it’s unreasonable but that’s what it would actually cost if we were to pay our servers $40 to $50 an hour and our back of house $40 to $50 an hour because that’s what the back of the house deserves to make. But the business doesn’t support that.” Wong says she’s exhausted from having to explain to the public why it’s important they tip their servers. The local industry could easily disappear, she says, because restaurants are constantly in tenuous positions with small margins and labor shortages. She adds that her restaurants H AWA I I B U S I N ES S

less pressure on our guests’ wallets when compared to forcing them to pay a higher menu price, which comes with a higher G.E. tax and inevitably a higher gratuity amount,” they wrote. Dine-in customers tend to leave a 12-18% tip in addition to the mahalo kitchen charge, they add. Koko Head Café and Papa‘āina are among the many Hawai‘i restaurants that need more cooks, so they haven’t been able to return to pre-pandemic operating hours, Wong says. In January 2023, there were 66,800 people working at local food service and drinking businesses, according to the state Department of Labor and Industrial Relations. That’s almost 10% fewer workers than in January 2020.

“(TIPS ARE) A GOOD MEASURING STICK FOR HOW THE GUEST EXPERIENCE IS. IF I SEE THAT, THEN I SEE A MAJORITY OF GUESTS ARE HAPPY AND THAT MEANS HOPEFULLY THEY’LL COME BACK AND SPREAD THE WORD ABOUT US.”

MEASURING GUEST EXPERIENCE WHEN JAPANESE AMERICAN FUSION RESTAUR ANT NAMI K A ZE

opened at Honolulu Harbor’s Pier 38 in 2022, chef/owner Jason Peel and GM Brandon Nakachi knew that finding workers would be a challenge, so they eased the workload by having customers order and pay through a QR code system. They say it’s a casual way of ordering and takes some of the work off their servers, enabling them to instead spend more time talking with guests and ensuring they feel like family. Nakachi says the system has improved efficiency and created the positive restaurant experience they envisioned. The average tip is 20%. “It’s a good measuring stick for how the guest experience is,” he says. “If I see that, then I see a majority of guests are happy and that means hopefully they’ll come back and spread the word about us.” Beau Hannafious and Jo Weaver-Hannafious, owners of Rainbeau Jo’s coffee shop in downtown Līhu‘e, say tips are a testament to the service provided by their employees.

BRANDON NAKACHI

GM, Nami Kaze

don’t take a tip credit. By law, Hawai‘i restaurants can pay tipped employees $11 per hour instead of the $12 minimum wage if those employees make at least $19 an hour in combined wages and tips. Highway Inn’s Kaka‘ako location has had a 5% “mahalo kitchen charge” for the last seven years. Owner Monica Toguchi Ryan and CFO Russell Ryan wrote in an email that this is factored into the restaurant’s “suggested tip percentage” for its servers. They say they’ve had few complaints about this practice and sometimes hear from customers who say they should raise their menu prices instead. Prices are already up 10% to 15% compared to before the pandemic. “We’ve had a lot of opportunity to think about this situation and still believe that our mahalo kitchen charge puts

HERE’S HOW MUCH HAWAI‘I CUSTOMERS TIP Toast, a company that operates digital payment systems for restaurants, ranks states based on their average tipping percentages. Hawai‘i ranked 46th in each of the last two quarters of 2022 with a total average tip of 18.7%. In the fourth quarter of 2022, 41 states had average tip percentages of 19% or higher, with Delaware, the No. 1 state, at 21.8%. California ranked 50th with an average tip of 17.5%.

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Here are the average tip percentages for full-service restaurants and quick-service restaurants, according to Toast. Q 3 20 22

Q 4 20 22

Full Service

Quick Service

Full Service

Quick Service

Hawai‘i

19.2%

16.8%

19.2%

16.6%

U.S.

19.6%

16.8%

19.6%

15.9%

Those tips also help their employees better afford to live on the island, they say. Most already have second jobs. Prior to opening their shop at the end of 2022, they operated a coffee truck. They say tips, especially from loyal local customers, helped them survive. Monica Toguchi Ryan and Russell Ryan wrote in an email that it’s a win-win when guests are happy and staff are rewarded through tips. “Good tips also help with server retention; if our servers feel that customers appreciate and recognize them for what they do, they will want to stay,” they wrote.

Add a Tip YOUR BILL: $26.16

10%

Service was ok

15%

Service was quick

TIP CREDIT E A R LI ER TH I S YE A R , TH E LEG I S L AT U R E C O N S I D ER ED A B I LL

20%

Service was exceptional!

No Tip

Custom

I said no green onions

PHOTO: GETTY IMAGES, PHOTO ILLUSTRATION: MALLORY ADAMS-NAKAMURA

25%

Everything was great!

“I’M VERY GRATEFUL FOR TOURISM BUT I ALSO WANT AN EDUCATED TOURIST WHO UNDERSTANDS WHAT OUR COMMUNITY HAS BEEN THROUGH AND WHY THINGS COST WHAT THEY DO AND WHY THEY SHOULD TIP THEIR SERVER OR COUNTER PERSON OR BARISTA.” LEE ANNE WONG

Papa‘āina at the Pioneer Inn and Koko Head Café

to increase Hawai‘i’s tip credit to 20% of the minimum wage. Several restaurants, plus the Chamber of Commerce Hawaii and the Hawai‘i Restaurant Association, supported the bill, saying the tip credit keeps overhead costs down and helps to balance wages between tipped and non-tipped staff. Highway Inn testified that its highest paid hourly staff members in 2022 were the minimum wage front-of-house workers, who took home $80,594 in combined wages and tips. On the other hand, a person who was paid $18 an hour had a gross salary of $40,829 without tips. “Legislators need to separate highly tipped professions, such as servers, who make close to $100,000 a year while making minimum wage, from the same legislation aimed at workers making only minimum wage and around $20,000 a year,” Toguchi Ryan and Ryan wrote in an email to Hawaii Business, adding that the mechanism for that is the tip credit. The bill ultimately died after receiving overwhelming opposition. One of its strongest opponents was the Hawai‘i Workers Center, which was established in 2020 to train and organize workers. Sergio Alcubilla, its co-executive director, says even though Hawai‘i’s tip credit is only $1 an hour, the lowest among states that have tip credits, it still comes out to $2,000 a year that the employee could be using to help offset the state’s high cost of living. “I think there’s a narrative in the community that people are saying, ‘oh, these tipped workers are already making $11 an hour plus tips,’ but at the end of the day, not everyone works at a high-end restaurant or not everyone works at a fancy restaurant,” he says. “So that’s one narrative that we’re trying to combat, like not everyone is doing well. And there’s nothing wrong with a server or waiter making good money.” The center advocated for bills that would eliminate the tip credit as part of the national One Fair Wage campaign. Seventy percent of the nation’s 5 million tipped workers are women and 43% are people of color, according to One Fair Wage. “Just this whole notion of an industry being able to take wages away from their employees and putting the onus on customers to pay wages, I just feel like there’s something wrong with that system,” he says. H AWA I I B U S I N ES S

This invitation-only celebration brought together our 2023 cohort of emerging leaders. Mahalo nui loa to our speakers and sponsors. A big congratulations to all the honorees!

MAHALO TO OUR SPONSORS & PARTNERS

“We were honored to host this year’s celebration of trailblazers who are making a difference in our community. They represent the breadth of talent that the Hawai‘i business community fosters, critical to shaping the state’s future at this pivotal time. Congratulations to this year’s prestigious group of leaders.” — HALONA NORTON -WESTBROOK , DIRECTOR & CEO, HONOLULU MUSEUM OF ART

“The location, at the Honolulu Museum of Art, was beautiful and intimate, the speakers were so inspiring and the food was exquisite. I truly enjoy the partnership with Hawaii Business Magazine and hope we can work together for many years to come!” — JODI NAK AMA , JPG HAWAII (DESIGN + PRINT + ADVERTISE)

“What a special night honoring outstanding members of our community. It was an honor to participate.” — ART GL ADSTONE , EXECUTIVE VICE PRESIDENT & CHIEF STR ATEGY OFFICER , HAWAI ‘ I PACIFIC HEALTH

“Servco was honored to be part of a wonderful event celebrating an inspiring group of young leaders in Hawai‘i. It’s exciting to see the strength in our community, in terms of leadership, across all industries. We look forward to hearing about and seeing the positive impact that this cohort has in the next 20 years.” — TAYLOR IGAR ASHI , CORPOR ATE COMMUNICATIONS MANAGER , SERVCO

P RE SE NTE D BY

Join our host Unyong Nakata of Nakata Advisory as she talks with some of Hawai‘i’s most inﬂuential business and community leaders.

Robynne Maii Fête Hawaii

Chason Ishii Atlas Insurance Agency

Micah Kāne Hawai‘i Community Foundation

AVA I LA BLE E V E RY OT HE R T HU R S DAY ON TH ESE PO D CA ST PL AT FO R M S : Locally Owned, Locally Committed

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Hawai‘i Island BUSINESS REPORT 2023

Serving Hawaii Is Our Business Pasha Hawaii’s dynamic shipping network and knowledgeable professionals are here to serve your supply chain needs. Pasha offers the broadest range of container and roll-on/roll-off services between Hawaii and the Mainland, with connections to comprehensive intermodal services nationwide. Find out more at pashahawaii.com.

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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 .

Table of Contents 61 FROM THE

HAWAI‘I ISLAND CHAMBERS OF COMMERCE

62 2023 HAWAI‘I ISLAND BUSINESS REPORT

AS S O C I AT E P U B L I S H E R

Kent Coules kentc@hawaiibusiness. com (808) 364-5869 ACCO U N T E X EC U T I V E

Pam Saito pamelas@hawaiibusiness. com (808) 364-5897

As our island community continues to slowly rebound from the challenges brought on by the pandemic, local businesses, community leaders, social service organizations, educational institutions, and government agencies are collaborating to find immediate and long-term solutions which will cultivate opportunities for growth and sustainability for this and the next generation. With an active, but lately quiet Kīlauea volcano up the hill, a world-class astronomy center on Maunakea, fertile agricultural land, usable space for new technologies in energy, all surrounded by the blue Pacific, we have the resources we need to develop and expand technologies to maintain our island’s role in scientific research. The ultimate beneficiaries of this are our keiki, who will be equipped with STEAM (Science, Technology, Engineering, Arts and Math) and other life skills necessary to compete on the world stage. We have the hearts and minds to make it happen. Our membership reflects the diversity of our community and includes people from a variety of business sectors and professionals who advocate responsible business practices and economic development on our island. We continue to cultivate opportunities for growth for the next generation of business leaders through our chamber’s Young Professionals Program. These energetic young adults participate in networking and educational opportunities, which help to make them more valued employees who are able to learn new skills, expand their professional network, and develop important connections with others in the business world. Founded in 1898, the Hawai‘i Island Chamber of Commerce has been a part of our island community for more than 125 years and includes over 325 businesses, non-profit organizations, government agencies, and professionals who support the chamber’s mission. We applaud Hawaii Business Magazine for once again showcasing our beautiful island. We hope you enjoy this Hawai‘i Island Business Report and learn how our community works together to make our island home special.

ACCO U N T E X EC U T I V E

Mea Aloha Spady meaalohas@ hawaiibusiness.com (808) 364-6126 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 C R EAT I V E D I R ECTO R

Kelsey Ige WRITER

PHOTOS: GETTY IMAGES; COURTESY OF MILES YOSHIOKA AND WENDY LAROS

Cynthia Sweeney

Mahalo,

Miles Yoshioka M I LES YOS H I O K A , Executive Officer, Hawai‘i Island Chamber of Commerce

A LO H A A N D WE LCO M E !

Working to enhance the quality of life for our community, the Kona-Kohala Chamber of Commerce provides leadership and advocacy for a successful business environment on the west side of Hawai‘i Island. For 2023, we are pushing for more housing projects at all inventory levels in West Hawai‘i. This includes the development of infrastructure to support more housing along with an emphasis on improvements in permitting processes. We also advocate for fresh water resource development and encourage streamlining government regulation to provide predictability for development. We continue our strong support for the astronomy industry on Maunakea noting significant scientific discovery, educational outreach and economic impact. To everyone’s delight, we are back to our full complement of in-person events including luncheons, expos, networking activities and the annual golf tournament. As a member organization, we appreciate these opportunities to enjoy one another’s company, build relationships and work together for West Hawai‘i. Mahalo to Hawaii Business Magazine for this special section on Hawai‘i Island! Sincerely,

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

AWAIIII BBUUSSIINNES ESSS HHAWA

61 61

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n recent months, it’s almost as if the natural forces of Hawai‘i Island has been staging a dramatic show for returning tourists. There’s been heavy snowfall on Maunakea and Mauna Loa, and lava flowing from Mauna Loa, coming dramatically close to the Daniel K. Inouye Hwy., the main connector between Hilo and Kona. With the return of mainland visitors, business owners are breathing a little easier these days, and anticipating the return of international tourists.

Tourism Rebounds H E N U M B E R O F M A I N L A N D VI S ITO RS to Hawai‘i Island is slightly down from previous, pre-pandemic years, however the good news is that spending per person is up a significant amount. “Tourism is definitely back,” says Wendy Laros, President and CEO of the Kona-Kohala Chamber of Commerce. “If we can have less visitors, with less impact, and more money spent, that helps the overall economy.” The return of more international tourists is also something the business community is looking forward to. “We have seen some interline cargo freight, but we look forward to when the Japanese tourism really kicks in,” says Aloha Air Cargo vice president and general manager Kyle Nishitomi. Toby Taniguchi, president and chief operating officer of KTA Superstores agrees. “Sales have lifted now that tourism is picking up again, yet it’s challenging with the (lack of) Japanese tourists right now.” Although some items might still be hit or miss on store shelves, cargo shipments have also rebounded in line with the ripple effect return of tourism. “As Hawai‘i’s economy returns to pre-pan-

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demic levels, Pasha Hawaii, together with our supply chain partners, remain consistent in meeting the needs of our customers, both on the Big Island and Hawai‘i as a whole,” says George Pasha, IV, President and CEO, Pasha Hawaii. The return of visitors to

Hawai‘i Island has huge and positive indirect impacts on other businesses as well. “While visitors won’t necessarily shop at HPM, we benefit from increased purchases by organizations servicing the visitor industry and by the residents they employ,” says Jason Fujimo-

PHOTO: AARON YOSHINO

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Pasha Hawaii SINCE 2005, PASHA HAWAII

to, president and CEO, HPM Building Supply.

Labor

I K E J U ST A B O UT EVE RY WH E R E E L S E ,

businesses on Hawai‘i Island are still struggling to find employees. In addition

to the high cost of living and lack of affordable housing, there are lingering effects of the pandemic. “Labor is the biggest issue that we hear from our members, and it’s nation-wide,” Laros says. “Each and every Chamber of Commerce is really focusing

has provided bi-weekly direct service to Hawai‘i Island from the Mainland. The company’s Island roots date back to World War II, and for the 400-plus locally-based employees, serving Hawai‘i is a privilege. “Our kuleana is to the residents and businesses who rely on us to bring in the goods they need every day,” said Reggie Maldonado, General Manager, Pasha Hawaii. “This sense of responsibility drives us in everything we do, from our customer service and account managers to our team members working at our ports. Our values reflect those of our owners; excellence, honesty and integrity, innovation and teamwork.” Maldonado, who joined this third-generation, familyowned company in 2005, spearheads the company’s employee community action team program called Hui Hulilima (Helping Hands). Throughout the year, employees volunteer their time to various nonprofits. Pasha Hawaii also donates thousands of dollars in cash donations and in-kind shipping. In 2021, Maldonado joined the Boys & Girls Club of the Big Island’s Board of Directors, marking the first time an individual not residing on Hawai‘i Island was appointed (Maldonado was born and raised on O‘ahu). “It’s an honor supporting BGCBI and the wonderful work they do, taking care of our keiki and their ‘ohana.”

H AWA I I B U S I N ES S

on workforce development.” Part of the issue is with kama‘āina moving to the mainland for a better opportunity, and part of it is also the opportunities the gig economy has provided, when people can work from home, says Taniguchi. “Nobody works from home at KTA. Childcare and transportation are issues for our employees. It’s challenging. We’re receiving a few applications but it’s not at the levels we like to have.” And then there is an aging workforce. Many employees at KTA have put in 50 or more years with the company and are getting close to retirement. “There’s a lot of institutional knowledge and seasoned experience there. We try to train new employees on things like meat cutting, but it just takes years of experience,” Taniguchi says. Beacause they are currently under staffed, KTA stores have been closing an hour or two earlier than usual, which also cuts into revenue. “We don’t want to burn our people out. They’re tired. I get it, and our local community is great at supporting our workers, who are like first responders showing up to work and providing a

service during the pandemic.” Aloha Air Cargo has gotten creative to accomodate employees, adding more part-time and supplemental positions in order to help those who need that extra job to help meet the economic needs of their families. They have also added certain apprentice work in the company’s various departments, Nishitomi says. HPM has increased their minimum starting pay, added benefits and continues to offer a $1,000 signing bonus, and their Employee Stock Ownership Plan. They have also opened the option for some new positions that, prior to the pandemic would have been based on Hawai‘i Island, to work remotely

from any Hawaiian island. HPM is also seeing many employees choose to work beyond the typical retirement age. “When employees decide to retire, they often give plenty of notice so that we and they can plan a smooth transition,” Fujimoto says. The company is also exploring artificial intelligence solutions that can support administrative functions. “These investments into AI do not replace employees, but rather free up the team to focus on more impactful work,” says Fujimoto. As an example, HPM now uses a robot to count both out on the shelves and misplaced products after the stores close for the night, and are building robotic process automations

Our history

G U I D E S O U R VA L U E S

Our roots

GROUND US IN OUR MISSION

Our community SHAPES OUR FUTURE

Helping Hawaii build and live better together for more than a century

100% Employee-Owned • hpmhawaii.com 64

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PHOTOS: COURTESY OF PASHA HAWAII

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(RPA) to complete routine and repetitive administrative tasks.

Infrastructure, Supply Chain

H E LEVE L O F D E LIVE RY O F G O O DS to Hawai‘i Island is not quite back to pre-pandemic levels, but is trending in the right direction. “Although space is limited at our neighbor island ports, Pasha Hawaii, along with our partners and other port users collaborate with one another to ensure the flow of goods to Hawai‘i Island remains intact and is delivered on a timely basis,” Pasha said. KTA buys most its fish direct from fishermen, and much produce from local farmers. Taniguchis says the supply chain has increased somewhat, and deliveries are pretty consistent, “But we still have outages. We try to substitute some items. We don’t like selling air (empty shelves).” Contributing to the issue is a truck driver shortage on the mainland, and challenges nation-wide to fi nd pilots and mechanics. And while facilities at the Hilo Airport were upgraded about six years ago, the Kona Airport is in need

Pasha Hawaii’s Jean Anne

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H AWA I I B U S I N ES S

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HPM Building Supply

of some new structures, and that’s up to the State, says Nishitomi. “The buildings are old. I think the new governor has great vision, and as our business to and from the mainland grows it would be beneficial, and nicer, to have a better structural facility.” With some of the fastest growing areas in the state, Hawai‘i County continues to face infrastructure challenges amid the growing demand for new construction, both residential and commercial. In addition, and specific to new home or residential construction, the permitting process can present delays to project timelines that may impact project budgets and affordability, Fujimoto says. “These challenges are widely known, and like other businesses on Hawai‘i Island, we are actively partnering with our local government agencies to collaborate, find

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solutions and address any barriers to safe, effective construction,” he says. At HPM, the supply chain has returned to normal for the majority of building products, however, there are still some key products critical to construction and are in very short supply or are nearly unavailable, such as subfloor adhesives, electrical circuit breakers, and some plumbing and paint items. “We expect these products to continue to be in short supply until late 2023 or early 2024,” Fujimoto says. To gain more direct management of their inbound supply chain, HPM opened a West Coast Consolidation Facility in Washington State last year, enabling them to track more of their own inventory and shipping. Says Fujimoto, “We know what we have inbound 2–3 weeks earlier than when we work through a third-party consolidator... and can better serve our customers.”

PHOTO: AARON YOSHINO

FOR MORE THAN 100 YEARS,

HPM Building Supply has served Hawai‘i’s building needs. A humble lumber mill on Hawai‘i Island persevered through World War II and two tsunamis to grow into a statewide building resource, with 16 locations across Hawai‘i Island, Maui, O‘ahu, and Kaua‘i, plus a distribution center in Fife, Washington. HPM provides lumber, building materials, manufactured products, steel framing, kitchen and bath products and design services, pre-designed home plans, and more. We continue to innovate and expand our product selection and services to help Hawai‘i build and live better. As a local, fifth-generation, family-run business, we remain committed to our founding values and taking care of our customers and each other. HPM was one of Hawai‘i’s first businesses to establish an employee profit-sharing plan in 1959 and, in 1977, became one of the first companies in the state to be employee-owned. Today, we are 100% employee-owned by our more than 500 owner-employees who share in our company’s success. Our team is passionate about their work and dedicated to HPM’s mission to enhance homes, improve lives, and transform communities.

Supporting

WOMEN ENTREPRENEURS A new survey reveals the challenges that local women encounter in running their own businesses. But a new conference in May offers a one-stop shop for information, resources, inspiration and networking to overcome those problems. B Y STEV E PETRA NIK

LL ENTREPRENEURS FACE HUGE

challenges, but women often face extra obstacles, such as increased difficulty accessing funding, not being taken seriously and greater struggles balancing business and family life. I collaborated with the Patsy T. Mink Center for Business & Leadership and Central Pacific Bank on a survey of local female entrepreneurs to better understand their needs, problems and goals. The Anthology Marketing Group interviewed 245 women who are owners or principals of local small businesses that are majority female-owned. To address those needs and challenges, Hawaii Business Magazine is holding the first annual Women Entrepreneurs Conference on May 10 at the Prince Waikiki. Central Pacific Bank is the presenting sponsor. Sessions and workshops will provide information on access to capital, revenue growth opportunities, financial management, networking, plus inspiring advice and stories from successful women business owners. Learn more and register for the WE Conference at wec.hawaiibusiness.com. Key results of the survey of female business owners are published in this report, along with my recent interview with two CPB leaders, Chair Catherine Ngo and Susan Utsugi, senior VP and manager of the Business Banking Division. Here are highlights from that interview. PETRANIK: Do you think female entrepreneurs face additional challenges from those faced by male entrepreneurs? N G O : I do think women face different challenges than

men and part of it relates to what I think of as legacy and historical biases, whether that be the thinking that women may prioritize motherhood over their businesses, or the impression that men have the boldness and drive to be successful entrepreneurs. I will say it’s good to see more and more successful women-owned businesses year over year. I do think those biases are eroding. UT S UG I : All entrepreneurs face similar challenges, how-

ever, women entrepreneurs face additional unique challenges. Studies show they received less funding than their male counterparts. False stereotypes about women put them at a disadvantage. And they may delay going for capital, or go for less capital than they actually need, which limits their growth. On the other side, studies show that when women entrepreneurs are capitalized, startups they found or co-found are better financial investments. They’re good custodians of the funds they receive and generate higher annual revenue. They’re a good investment.

P E T R A N I K : Is the Women Entrepreneurs Conference

designed to help women business owners deal with those challenges?

U T S U G I : Yes. The conference will offer information

on accessing different types and sources of capital. Attendees will hear from successful women entrepreneurs and how they overcame their challenges. We offer sessions on imposter syndrome and overcoming fear, on branding and marketing, on crafting the perfect pitch, plus the conference will be a place for women to connect with other successful entrepreneurs, hear their stories, and be inspired and energized.

H AWA I I B U S I N ES S

NGO: We want to replicate the experience of the women who go through the WE by Rising Tide program. (A 10-week program for female business owners run by the Mink Center and funded by the CPB Foundation. Learn more or apply at risingtidehawaii.com.) In the graduation ceremony for our first cohort of 20 women, the graduates said it was a rigorous program, but they said things like, “I feel empowered,” “I feel armed with knowledge,” “I have greater confidence in myself and in the future of my business,” and “I’m more excited about driving this company to success.” That was an aha moment for Susan and myself. That’s when we started talking about opening this kind of program to a much larger group in a one-day conference. And it was wonderful to see others jump in to support this conference. P ETRANIK: Confidence is a huge issue for all businesspeo-

ple because confidence means they’re willing to invest further time, energy and money to open a new location, hire further employees and add products and services.

NGO: More confidence often means the owner will ask

for more capital. Women sometimes underestimate the future prospects of their business, while men might do just the opposite.

U T S U G I : In the WE by Rising Tide program, four out of the 10 sessions focused on financial management. That helps women business owners understand their financial statements and cash flow, how to use them to make decisions going forward. With knowledge is empowerment, so they feel more confident taking on risks, such as debt. P E T R A N I K : What information and inspiration do you hope attendees will gain from the WE Conference? U T S U G I : We want them to get a good understanding of

access to capital, what forms of capital are out there, so we’re bringing in folks who cover the spectrum, from crowdfunding to women-funded venture capital, all the way to traditional conventional financing. We’re also having an expo with small-business resources all in one place – such as organizations that provide free or low-cost services. We’ll have folks who can help them write their business plan, help with hiring and retaining employees, obtaining capital. We want the conference to be a one-stop shop for women entrepreneurs. And we’ll conclude with a pau hana that’s going to be an opportunity to network. We found in our WE by Rising Tide program that networking was key for women entrepreneurs, one of the things they found very beneficial and that it resulted in more business. We had one cohort member who was already doing business with big box retailers like Costco and Sam’s Club, and she helped another cohort member

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MALE-FEMALE SPLIT Men own more than half of the stock or equity in 63.2% of businesses in the U.S.; women own the majority interest in 22.2%. Another 14.5% are equally male- and female-owned. Source: November 2022 report by Lending Tree, compiled using data from U.S. Census Bureau’s 2021 American Business Survey

get her products showcased in Costco. N G O : There’s so many other stories like that where the power of networking resulted in a strategic partnership, customers or even funders for the business. P E T R A N I K: Why does Central Pacific Bank provide this support for women-owned businesses? N G O : We were founded about 70 years ago by veterans

who came home from World War II and saw the banking needs of immigrant families were not being met. We were founded to help underserved segments of the community and that’s a legacy we continue to honor today, and that includes local women-owned businesses. U T S U G I : I think no local bank does more to support small businesses than Central Pacific Bank. We created unique programs to help small-business customers like the Keep Hawaii Cooking program during the pandemic and we continue to help restaurants in Hawai‘i. We developed the WE by Rising Tide program. We’ve graduated two cohorts and continue to have events where alumni strengthen their network. The last one was on positive thinking. CPB received the most awards and recognitions of any local bank from the U.S. Small Business Administration’s Hawai‘i District Office including Lender of the Year Category 2 for 2022. We’ve received this award 13 times since 2007. And in the latest fiscal year, CPB financed more SBA loans than all of the other local banks combined. We’re very proud of that. N G O : We’re really happy to partner with Hawaii

Business Magazine to be the presenting sponsor of the Women Entrepreneurs Conference. We hope this will be an annual conference and really encourage women to participate in events of this kind. Small businesses in general are such a great engine to Hawai‘i’s economy. Women entrepreneurs are a vital part of that.

P E T R A N I K : And these locally owned small businesses

mean the revenue and profits stay here in Hawai‘i and that’s not always the case with big mainland companies.

SURVIVABILITY

HOW DID YOU GET YOUR STARTUP FUNDS?

Female entrepreneurs were asked in the survey: How confident are you that your company will survive and still be operating five years from now? Their answers show that the larger the business, the greater the likelihood of confidence.

The women were asked how they raised the original capital to start their companies. Some listed more than one way.

All businesses surveyed

Sole proprietors

2-4 employees

5-10 employees

11 or more employees

100% confident

47% 32% 51% 63% 61%

Fairly confident

36% 49% 31% 20% 30%

Somewhat worried

13%

15%

12%

Very worried

Note: Percentages do not always add to 100 due to rounding.

WHAT ARE YOUR OBSTACLES TO GETTING OUTSIDE FUNDING? Survey respondents were asked if they had any issues or problems obtaining outside funding; 45% said they did have a problem. Here are the top problems they cited; some respondents cited more than one.

Unsure how to proceed, did not understand process

Poor credit score

I (or the business) lacked assets or capital

Bank rejected loan request

I personally was the issue

Personal issues

Pandemic

Financial institution

Sales too low

Personal savings

61%

No major capital needed

20%

Borrowed or received from family and friends

16%

Bank loan

Mortgaged home

Outside investors

Grants or government loans

Credit cards

Next, they were asked if they knew how to ask for or obtain outside funding and capital. Here are how many said yes.

44% 36% All businesses

Sole proprietors

H AWA I I B U S I N ES S

HOW MUCH FUNDING DO YOU WANT AND HOW WOULD YOU USE IT?

ARE YOU RISK-AVERSE? DO YOU SUFFER FROM IMPOSTER SYNDROME?

The female business owners were asked how much extra capital they would like to have available, if possible. Two outlier responses of $5 million and $15 million were excluded from the calculations.

The female business owners were asked for their thoughts on the perception by some people that women are more riskaverse than men. Do you agree that women are more risk-averse than men?

Average of all requests

Median

$176,219.67 $69,000 $200

Minimum requested

Maximum requested

$2 Million

From the 157 respondents who said they would like additional capital, here are the top things they said they would use the money for. Some cited more than one purpose.

Equipment

20%

Additional Employees

18%

Inventory, supplies, materials

13%

Marketing, advertising

12%

Reduce debt

11%

Larger space

Credit line, working capital

Website design

Professional services, vendors

Capital improvements to building

Purchase property

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All businesses surveyed

In business fewer than 5 years

In business 20 or more years

Strongly agree

13%

25%

Somewhat agree

44%

39%

40%

Somewhat disagree

23%

25%

26%

Strongly disagree

19%

11%

29%

Note: Percentages do not always add to 100 due to rounding.

Each respondent was presented with this statement: Imposter syndrome can be defined as a collection of feelings of inadequacy that persist despite evident success. “Imposters” suffer from chronic self-doubt and a sense of intellectual fraudulence that override any feelings of success or external proof of their competence. The respondents were then asked two questions.

Do many female entrepreneurs suffer from imposter syndrome?

Do you sometimes suffer from imposter syndrome?

53%

51%

said yes

UNIQUE ISSUES THAT FEMALE BUSINESS OWNERS SAY THEY FACE Survey respondents were asked to identify any unique problems or difficulties that female entrepreneurs encounter. They were not given preset responses; here are their top responses. 25% 20% 15% 10% 5% 0

Treated differently in male-dominated fields

Lack of respect, not taken seriously

Work/life balance, family responsibilities

Difficulty obtaining loans or capital

Lack of support, guidance

Challenges of running a business

Female business owners whose operations are solely on the Neighbor Islands are significantly more likely to feel they are not taken seriously or are disrespected than women whose businesses operate only on O‘ahu – 39% vs. 17%.

WHAT IS THE IMPACT OF YOUR FAMILY ON YOUR BUSINESS?

WHY DID YOU BECOME A BUSINESS OWNER?

Female business owners were asked to choose which of these three options best mirror their personal situations and views.

The female business owners were not given preset responses to the question: Why did you become a business owner? Here are the top responses; some cited more than one reason.

Family situation helped my business succeed

All owners

Owners with mentors

Owners without mentors

56%

66%

46%

22%

No impact Limited success of my business or made it more difficult

22%

18% 16%

25% 29%

Based on their responses, female business owners with mentors are more likely to view their family situations as assets than those with no mentors. Mentoring also correlated significantly with whether the owner’s company had increased gross revenue or sales over the past year. Here are the percentages of respondents who said they have a mentor. 60%

60% 53%

Autonomy, be my own boss

38%

Flexibility in scheduling

26%

Pursue a career/ passion I enjoy

23%

Fill a need in the community, help others

21%

More family time

13%

Higher earning potential or supplement income

10%

52% 43%

40%

Creative freedom 7%

20%

0 All businesses with mentors

Those with increased sales revenue

Those with steady sales revenue

Those with decreased sales revenue

Did not plan on it, happened by chance

Needed a job

H AWA I I B U S I N ES S

HOW DO YOU DEFINE SUCCESS?

METHODOLOGY AND WHO WAS SURVEYED

The female business owners were presented with six ways to define business success and asked to select the one they felt best mirrors their views.

The research was conducted by the Anthology Marketing Group on behalf of the Patsy T. Mink Center for Business & Leadership, with cooperation and assistance from Hawaii Business Magazine and Central Pacific Bank. The survey used an online methodology.

Offers a valuable product or service to our customers

31%

The business allows me to be independent and successful

31%

The business continues to grow at a steady pace

14%

Provides a positive employment experience for myself and staff

12%

Financial profit

Other

Is still in business five years from now

WHAT’S YOUR BIGGEST CHALLENGE? The owners were asked to identify the top issue or problem currently facing their businesses. No preset responses were given. Here are their top responses. Too little time in the day; too much to do; worklife balance

15%

General business challenges

The respondents were owners or principals of female-owned businesses, defined as having at least 51% ownership by one or more women. A total of 245 interviews were conducted from Nov. 11, 2022, to Jan. 18, 2023. A sample of this size has a margin of error of plus or minus 6.26 percentage points with a 95% level of confidence. Breakdown of the business owners surveyed

38% 29% 20% 13% Sole proprietor

82% My business is my full-time job

18% My business is a part-time job

Finances, cash flow

15%

10%

Worsening economy

5 to 10 employees

11 or more employees

What best describes your business? Services

60%

Retail

26%

Wholesale

Other

Manufacturing

Where are you located? O‘ahu

Staffing Concerns

2 to 4 employees

Hawai‘i Island

Kaua‘i

Maui County

Outside Hawai‘i

13%

75%

Growth

How many years has your business been in operation? Increasing expenses

Not being taken seriously

31% 34% 20% 14% < 5 years

Difficulty obtaining capital

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5% Marketing, adver-

tising, networking

5-10 years

11-19 years

20+ years

Note: Percentages do not always add to 100 due to rounding.

PA R T I N G

TIME: 8:20 A.M.

S H O T

They Look Great, Taste Even Better BY NOEL L E FUJ II- OR ID E

O N E O F D I P P E D BY D E E ’ S

20 employees prepares a cup of Berry Bitez: stemless strawberries dipped in white chocolate with a strawberry shortcake topping. Chocolate-dipped straw-

berries, along with caramel apples and cheesecake cups, are the ‘Aiea business’s most popular products. Owner Daniela Fry started making chocolate-dipped straw-

LOCATION: ‘AIEA, O‘AHU

berries as a Valentine’s Day treat nine years ago while a senior in high school. She says she loved the reactions she received from her friends, family and classmates, who kept asking for more. She studied business at the University of New Mexico and used her winnings from business plan competitions to launch Dipped by Dee in Hawai‘i in 2018. Each day, the Dipped by Dee team handmakes 500 to 800 dipped strawberries, plus 75 to 100 caramel apples

PHOTOGRAPHER: AARON YOSHINO

and 50 cheesecake cups. The strawberries come in 10 ﬂavors, including dark chocolate, cookie butter and ube. The apples come in 25 ﬂavors, and the cheesecake cups in four. The business also sells cheesecake tarts, breakable chocolate hearts and other sweets. Fry says team members spend three to four hours each morning dipping strawberries and apples into chocolate. The most time-consuming part is preparing the fruit, she adds.

H AWA I I B U S I N ES S

PA R T I N G

S H O T

Dipped by Dee uses about 50 pounds of chocolate a day. Fry says much of the design inspiration comes from social media and her passionate and dedicated team, though customers also request custom orders. Dipped by Dee recently made caramel apples that looked like Stitch from the movie “Lilo and Stitch,” and the ears were made from Rice Krispies treats. “We pride ourselves in creating products that are pretty and packaged nicely,” Fry says. “A lot of our customers sometimes say that some of our apples, especially the super detailed ones, or even the strawberries that are super detailed, are too pretty to eat. But I think the best part of our product is not only do they look good, but they taste better than they look.” dippedbydee.com

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SPECIAL PROMOTIONAL SECTION

What’s Next for the New State Office of Wellness and Resilience T H E N E W LY C R E A T E D S T A T E O F F I C E H A S B I G P L A N S T O I M P R O V E E A R LY C H I L D H O O D M E N T A L H E A LT H I N T H E I S L A N D S . H E R E ’ S W H A T ’ S F I R S T O N I T S P R I O R I T Y L I S T .

Photo: By Michelle Mishina for the Hawai‘i Community Foundation

Resilience, newly created in 2022 to adN SC HOOL S AN D WORKPL AC E S, dress issues just like this, by improving most people understand the need the ways that trauma-related issues are to care for physical health. If someaddressed statewide. one breaks a bone or comes down with The Office of Wellness and Resilience the flu, there are accommodations to (OWR) is the first of its kind help them recover. “We have to in the nation. In addition to But what happens when a child runs away from home understand that building Hawai‘i’s traupeople who are ma-informed care resourcor skips school? In many cases, they’re treated as ofhighly stressed es, it also aims to: fenders—with punishments and experiencing • connect with state departments, medical that could include being put trauma are health facilities, university in detention. also injured. It’s researchers, and cultural However, that child’s actions could be a response important to build practitioners to better systems in place understand data trends in to trauma, or a reaction to a family or school situation to care for these Hawai‘i’s health system; perceived as frightening individuals too.” • host an annual wellness and resilience summit; or stressful. “We have to  TIA HARTSOCK • propose and support understand that people trauma-informed and resilwho are highly stressed and ience-related legislation; experiencing trauma are also injured,” • and work to establish new practices says Tia Hartsock. “It’s important to to improve outcomes when it comes to build systems in place to care for these child welfare, mental health, and crimiindividuals too.” nal justice in Hawai‘i. Hartsock is the executive director of Hartsock’s first day was January 18, the Hawai‘i state Office of Wellness and

opening day of the 2023 Hawai‘i state Legislative session, and her first objective is the creation of a 24-month action plan. Hartsock has already submitted testimony for more than 10 bills relating to improving healthcare initiatives, and is in the process of applying for grants from agencies, such as the National Institutes of Health, for research dollars. “We’re having dialogues with healthcare providers, public and private agencies, and other organizations to learn what works and what has been tried that doesn’t work,” says Hartsock. Looking ahead, Hartsock wants the OWR to help uplift the voices of those who have lived experience providing trauma-informed care, to help examine current healthcare policies in place and make recommendations on how state departments can operate in a trauma-informed way. “We want there to be a mechanism in place for local communities and the state to have constructive conversations relating to developing new strategies for approaching wellness,” she says. The OWR will be working with the Hawai‘i Community Foundation, through its Promising Minds initiative, which has goals that closely align to those of OWR. Promising Minds program director Justina Acevedo-Cross says, “In the past, there was often a gap when it came to caring for young children’s mental health needs. There are times when a child and perhaps their families need significant treatment. If we invest in care early on, it can yield a positive ripple effect throughout a child’s life.”

T O S U P P O R T T H E P R O M I S I N G M I N D S I N I T I AT I V E , V I S I T H A W A I I C O M M U N I T Y F O U N D A T I O N . O R G/S T R E N G T H E N I N G/ P R O M I S I N G M I N D S

Service with a caring heart, that’s UHA. Celebrating Over 25 Years of Caring. Since 1996, UHA Health Insurance has been working hard to improve the lives of everyone we touch. Whether it’s inspiring employers to create healthier workplaces, sponsoring events that uplift our community or supporting local nonprofits that improve lives, caring is at the heart of what we do. Mahalo to our entire ohana throughout the islands for this opportunity to continue to serve you.

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