Business Monday: Century-old Kona Inn Restaurant celebrates new ownership with revamped menu, dining space

When the Island Restaurant Group acquired the 100-year-old Kona Inn Restaurant and Kona Canoe Club eatery two months ago, longtime Kona Inn general manager Leila Kanuha was hesitant to stay over a couple of concerns.

Would the new owners maintain the vibe and nostalgia? Would they keep the existing staff, an allow them to change basic things and elevate the menu?

The answer to all her questions was yes.

“I can tell you right now, every single day has been something better and more to look forward to,” said Kanuha, who has worked at Kona Inn Restaurant for 19 years.

On June 18, the Island Restaurant Group, formed by Jackie Rey’s, Harbor House and Umekes Fish Market Bar & Grill, will host the launch of a revamped menu and the completion of a revitalized dining space at the Kona Inn Restaurant.

The restaurant is giving away tickets for the celebration. Visit @konainnrestaurant on Instagram for details on how to enter to win tickets. Four winners will be announced on June 15.

The Island Restaurant Group also has plans for the Kona Canoe Club, which was once a sports bar owned by famed LA Dodgers pitcher Don Drysdale.

Pabre said the plan for the Canoe Club, which is located along the breaking shoreline of Kailua Bay, is to rebrand but still pay homage to the canoe.

“We’re going to do tapas, which is small plates from all around Polynesia,” said Nakoa Pabre, owner of Umekes and executive chairman of the group.

The new era for the Kona Inn Restaurant, built in 1928, comes after it struggled for years with the retirement of the boots-on-the-ground part-owner Steve Falella, the COVID-19 pandemic in 2020, and the introduction of expensive paid parking to the Historic Kailua Village in 2023.

In 2024, the leases and contents of the two turn-key establishments, nestled in the Kona Village Shopping Center along the bustling Ali‘i Drive in downtown Kona, were listed for $3 million. But in March 2025 the price dramatically dropped in half to $1.5 million.

Michael Hofstedt II, the group’s vice president of operations, declined to disclose how much the restaurant group paid to acquire the businesses.

But the Kona Inn Shopping Village, where the eateries are located, is still for sale by the Kimi family. It is listed on the JLL Brokerage website, but does not have a price. The Hawai‘i County Real Property Tax website assessed the land and building value at $12.36 million.

At the Kona Inn Restaurant, Kanuha has been thrilled with the new ownership, which gave the staff a seat at the roundtable and listened to their suggestions to improve the place.

“I can tell you right now, I have not heard no yet out of their mouths,” Kanuha said. “Everything’s been yes, yes, yes, absolutely.”

Hofstedt said when the group acquired the century-old restaurant, it was excited about the legacy and wanted to understand the history and “respect that at its core.”

The restaurant group set aside approximately $200,000 to complete projects in the kitchen and the dining area and bar. There will be new tables and chairs that are more comfortable than the wooden chairs, Hofstedt said. Sconces on the wall have been replaced.

The new ownership maintained the old belt fan system that is operated with pullies throughout the seating area of the restaurant.

“That’s such an identity for the restaurant, and we actually connected with the manufacturer to acquire some parts just so we can maintain that look and feel of a belt system, but also make sure that it’s working soundly and looking fresh and clean,” Hofstedt said.

“It was really important to meet our guests’ expectations, to continue to evolve as a restaurant while maintaining its legacy ambience,” he added.

The new owners looked back at what made the restaurant special over the years, and kept the menu the same at its core. The crab cakes, calamari and “infamous mud pie” will stay the same.

But they are bringing back traditional favorites, like the nightly prime rib, which had been moved to a weekend special years ago.

“We’re not only bringing back recipes from yesteryear, but we’re also modernizing them and bringing them into a more modern plate composition,” Hofstedt said.

A new Wellington dish will be introduced, consisting of beef encased in a puffy pastry in a Hawaiian fashion.

About two weeks ago, Kaikili Roldan joined Kona Inn Restaurant as its chef about two weeks ago. He comes from Four Seasons Resort Hualālai.

Born on the Big Island, Roldan grew up on the continental U.S. but visited Hawai‘i Island regularly, including outings to the Kona Inn Restaurant.

“When I was younger, we used to eat there a fair amount, and that whole strip there was so lively,” Roldan said. “Then it just kind of faded.”

When he heard buzz about the new ownership, Roldan called Nakoa Pabre, owner of Umeke’s, and member of the restaurant group, to congratulate him.

That phone call turned into the opportunity to take on the revised menu at Kona Inn Restaurant.

“That one got me excited because Kona Inn has so much history in Kona town, and it’s a beautiful restaurant right on the ocean,” Roldan said, adding he was excited to leave the corporate structure of the resort and hop on with the new restaurant group.

Without giving too much away, Roldan is working on some new vegetarian options, but being right by the ocean, fish will be front and center on the menu and purchased from local fishermen.

“We just pull it straight from the waves and straight to the grill,” Roldan said. “I’m just excited to bring back some life to the place and get the corner back on the map.”

There’s also a new wine menu, and new cocktails and mocktails. However, Hofstedt assured the traditional mai tai is still being served up.

The restaurant has 45 to 50 team members and is actively looking to add 10 to 15% more employees to the staff.

“We’re just elated to be part of this as new stewards of the restaurants and of the legacy,” Hofstedt said. “We’re focused on evolving into the next era.”

While the improvements are sure to bring more people to the eatery, Hofstedt said the restaurant’s success stretches beyond its walls.

“It’s not only bringing a new service standard to our restaurant in high-quality ingredients from local farmers and fisheries, but also the impact that we have from a business perspective and give back to the community,” he said.

The restaurant group plans to soon announce a charitable focus.