Local franchise moving Burger Kings

By Andrew Gomes
Advertiser Staff Writer

The franchise owner of 24 Hawai'i Burger King restaurants said it is repositioning several outdated stores under a strategy to improve sales with more modern stores at locations with better visibility.

Hawaii Cimm's Inc., a unit of California-based Cimm's Inc., recently closed stores at Kahala Mall and King's Village in Waikiki. It also plans to close its Burger King restaurants in Kailua and Hawai'i Kai soon.

Employees affected by the repositioning will be transferred to other locations, according to Cimm's.

Larry Cimmarusti, co-owner of Cimm's, said the company is replacing "tired, old locations," primarily in-line stores at shopping centers, with more accessible stand-alone restaurants with drive-throughs.

"We intend to make our mark in Hawai'i more than ever," he said. "The mall stores with this economy just don't do well. They just weren't generating the dollars to stay there."

For instance, Cimm's Kailua Burger King was in a two-story building that didn't meet requirements of the Americans With Disabilities Act, according to Cimmarusti. "There was no dining downstairs," he said.

Cimm's is searching for a new location in Kailua. It also has selected a site near the Hawai'i Kai Towne Center restaurant to move that Burger King and is in the process of reopening in Waikiki in front of St. Augustine Church, Cimmarusti said.

At some of Cimm's older locations such as Kahala Mall, where Burger King has operated since 1988, the company tried to renegotiate more favorable lease terms, but wound up being evicted after mall management refused and Cimm's stopped paying rent.

Cimmarusti said: "Sometimes owners won't negotiate with you. That's how you have to do business sometimes."

Ron Yoda, Kahala Mall general manager, said Burger King seemed to be doing fine as far as occupancy costs relate to sales.

"We're puzzled," he said. "It's a very good location right by the theaters."

Kahala Mall is negotiating with another restaurant operator to take the former Burger King space.

Cimm's, which acquired its Hawai'i Burger King franchise in 1994, operates about 130 Burger King restaurants in Hawai'i, California, Texas, Virginia and Washington state. It also has subsidiaries in real estate brokerage, management and development as well as construction.

Andrew Gomes can be reached by phone at 525-8065, or by e-mail at agomes@honoluluadvertiser.com.