Playing catch-up at Salt Lake

By Dan Nakaso
Advertiser Staff Writer

Sales at One Fas Lube are still only 60 percent what they used to be before Costco moved from the Salt Lake area. The staff is smaller, including co-owner Donna McLaughlin, left, and Jason Caracol and Rey Gray. Jeff Widener • The Honolulu Advertiser

Sales plummeted immediately at One Fas Lube and are still at only 60 percent. The drop in business put owners Donna Maria Fasone McLaughlin and husband John through a series of adjustments, including watching the number of employees fall from 20 technicians during Costco's heyday to just six or seven.

And like the dozen or so businesses that remain around the empty Costco store, the loss of a 130,000-square-foot anchor tenant that drew customers from all over the island has tested the McLaughlins' business savvy.

"My wife and I have had to work harder to pick up the slack," John said.

Each of the businesses has had a different experience with the departure of Costco after 14 years.

At Sleepland USA, division manager Ron Ishizu has increased and better targeted his advertising and urges his sales staff to know the store's products better.

"It has created better sales people," Ishizu said.

Papa John's Pizza, which relies on deliveries, has made up for a slight drop in takeout business from former Costco customers. But the workers still answer the phone with "Papa John's at Costco," even though it's been renamed Stadium Papa John's.

"When you're talking about the area and you say 'Costco,' people recognize it that way and say, 'Oh, yeah, that's the one,'" said Papa John's owner Jeff Jervik.

In 18 months, the most notable change came on Nov. 1, when Costco's empty parking lot suddenly saw the return of hundreds of cars.

Propark Inc. took out a one-year lease for 437 parking stalls — representing slightly more than three-quarters of Costco's lot — to run an airport park-and-shuttle service.

The Propark operation inadvertently brought a halt to unauthorized nighttime racing in the parking lot and attracted much-needed people back into the area.

One Fas Lube and T & T Tinting Specialists Inc. are talking to Propark officials about offering separate deals to work on Propark customers' cars while they would otherwise sit idle in the parking lot.

Hungry airline passengers returning home also have meant more business for Papa John's and the Camelia Junior Korean Restaurant, which lost half of its business when Costco closed.

"Big help," said restaurant owner Mona Nakamura. "Business is way better than before."

But Propark eventually hopes to find a permanent spot closer to the airport. So, unless someone else large enough fills the former Costco site, Propark's departure will leave another business void in the area.

"We're looking to stay longer if we can," said Propark operations manager Allen Alana. "But we're also negotiating for a permanent location near the airport."

Even with the arrival of Propark's operation, businesses such as One Fas Lube continue to make adjustments to stay alive.

John McLaughlin liked to keep a six-month supply of air and oil filters, which he can buy cheaper in bulk, but that's no longer possible.

"When you're doing 60 percent of your old business, I can't afford to keep that big of an inventory," McLaughlin said. "I can't afford to buy that big of a batch because I don't have the cash."

And moving is out of the question, McLaughlin said.

Donna's father, Don Fasone Sr., started One Fas Lube 11 years ago to capitalize on Costco's draw by investing $500,000 to build an operation with four service bays.

Today, McLaughlin estimates the cost to start a similar-sized shop at close to $1 million.

"Obviously we can't put that kind of expense into a new location," McLaughlin said.

But John will keep on cooking meals every Saturday for the workers who remain. And he and Donna will continue to hope for better times in Salt Lake.

"When times are tough, you have to dig in for less money, which is not everyone's life goal," John said.

"But that's life in small business."

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.