Hawaii is a dream destination to the average American. It conveys an image of swaying hula dancers, balmy weather, beautiful beaches, luaus and, of course, delicious cuisine. As our nation steadies itself for a potential economic downturn and rising fuel costs, consumers are consequently rethinking their island getaway vacation plans. Luckily, dining out at a Hawaiian-themed eatery offers a bit of that island escapist fun, and that may be why so many restaurant brands in this category are expanding their real estate presence throughout the country. Watch for Pokemoto, Mo’Bettahs Hawaiian Style Food, Hawaiian Bros Island Grill and L&L Hawaiian Barbecue to all be focused on expanding into new U.S. markets.
Pokemoto is on the brink of massive expansion and expects to open between 35 and 40 new units per year over the next two to three years. This is due to its acquisition by Muscle Maker, Inc. in 2021, which also operates the Muscle Maker Grill franchise. In Q3, the Connecticut-based Pokemoto opened the option to add franchises in new markets such as Indiana, Maryland, the Dakotas and California. The brand also just entered its first Midwest market with a Wichita, Kan., restaurant that opened in September. Pokemoto will also continue to expand into Southern markets such as Florida, South Carolina, Tennessee, Mississippi and Texas. The chain is also focused on growth in the surrounding states near its Northeast base, adding new units in its home state of Connecticut, as well as Pennsylvania, New York, New Jersey, Virginia, Rhode Island, Maryland and Massachusetts.
Look for Pokemoto to concentrate on inline or end cap units that are between 1,000 and 2,000 s.f., in strip malls on busy retail thoroughfares. The brand is also open to space as small as 200 s.f., if within a food hall. Ground-floor units of mixed-use buildings on vibrant suburban streets close to major urban metros are also considered, in addition to popular tourist destination retail centers. Pokemoto especially seeks thriving high-traffic neighborhoods with a strong college presence, or near a high school, and the trade area should have a large number of millennials and Gen Z visitors. Preferred co-tenants include non-competing restaurants popular with 16- to 35-year-olds, such as Popeyes or Panera Bread. Pokemoto is known for its healthy, chef-driven approach to personalized Hawaiian-style poke bowls, wraps and salads.
Mo’Bettahs Hawaiian Style Food has been taking steps to embark on a massive expansion plan, expecting to open between 20 and 30 new units per year over the next two to three years. Look for growth to continue within the states the Utah-based brand entered this year — Oklahoma, Missouri and Kansas — and for future growth to take place in even more Midwest and West territories, especially in Ohio, Iowa, Colorado, Wyoming, Nebraska, New Mexico, Arizona and Nevada.
Mo’Bettahs looks for space in the 2,500- to 3,000-s.f. range, preferably end cap or standalone drive- thru buildings, but inline units will also be considered. Ideal space is in strip malls or grocery-anchored neighborhood centers and power centers within more affluent suburban regions. Co-tenants can include popular high-traffic retailers, such as Five Below and Ross, as well as non-competing eateries, including Cold Stone Creamery. Mo’Bettahs continues to benefit from its acquisition by Savory Restaurant Fund, a private equity firm that invests in emerging restaurant brands. In addition, Mo’Bettahs recently announced a new CEO, who was previously the COO of Philz Coffee, who will further amplify the brand’s expansion goals. Mo’Bettahs specializes in plate lunches featuring authentic Hawaiian flavors, and its new restaurant prototype, which debuted this year, includes decorations such as surfboards and paddles to emphasize the Hawaiian island experience.
Hawaiian Bros Island Grill anticipates opening between 20 and 25 new units per year over the next two years and expects that number to increase as it just introduced franchising for its brand this month. Areas targeted for growth include territories just outside of Saint Louis (including on the Illinois border), Kansas City, Mo., and Dallas/Fort Worth. Additionally, the brand is focused on expanding into markets just outside of the Oklahoma City and Tulsa, Okla., regions south/southwest of San Antonio, the major metros in Iowa, including Davenport, and regions in Kansas, such as Manhattan, and potentially Wichita. Future markets seriously considered for growth will include those in Omaha, Neb., Denver and within the major metros of Arizona.
Hawaiian Bros look for space in the 3,400-s.f. range, preferably end cap or standalone buildings for drive-thru purposes, but inline units with the option for a pickup window will also be considered. Space should be on a major retail street thoroughfare and can be part of a strip center or a power center. New builds for its standalone units are also an option. Growing suburban markets up to a half-hour drive from a major urban center are preferred. Co-tenants can include other non-competing fast food or fast-causal brands, such as Chick-fil-A and Panda Express. Hawaiian Bros Island Grill serves authentic Hawaiian plate meals, in addition to Dole soft serve dessert treats.
L&L Hawaiian Barbecue plans to open between 10 and 15 new units per year over the next three to five years and is targeting all U.S. markets. Look for immediate growth to take place in the Carolinas, Denver and Boulder, Colo., and in the cities between Dallas and San Antonio, including Austin. Future growth is rumored to be within such untapped markets as Tucson, Ariz., Albuquerque, N.M., Tulsa, Okla., Miami and Orlando, Fla., Omaha, Neb., and New Orleans.
L&L specifically seeks inline or end cap space between 1,200 and 1,500 s.f. (but no larger than 1,800 s.f.) in grocery-anchored power centers and strip malls in suburban areas close to major metros. L&L has indicated that it will be testing drive-thru configurations and walk-up window concepts, so expect standalone units to also be eyed for future sites. Potential areas should have a large demographic of middle to high income college-educated residents, and a high percentage of Asians are especially favored. Military base locations are also considered. Preferred co-tenants include large grocery store brands, such as Kroger or Safeway. L&L, headquartered in Honolulu, is known for its authentic Hawaiian comfort food staples, especially its barbecued chicken plate served with macaroni salad and rice.
