This was the last night the restaurant would be open, becoming another business casualty of Outrigger Enterprises' $460 million redevelopment project in Waikiki, which broke ground on Friday.

In a mu'umu'u and haku lei, Robinson sat politely, nursing a glass of Budweiser and chatting with her longtime bar pals.

"It's sad it's closing," said Robinson, 68, who moved to Waikiki from England 36 years ago. "I haven't found a new place to go yet."

The sentiment among patrons was similar at Trattoria Italian Restaurant and Davey Jones Ribs the night before. Both Waikiki eateries closed their doors to make room for the Outrigger redevelopment project.

"If we had our choice, we'd stay here forever," said Linda Muschek, Waikiki Broiler general manager. "I've been doing this for 33 years, and I still love to come to work every day just because of the people you meet and see every day. Outrigger's been good to us, but I guess it's time for change."

Outrigger's multimillion-dollar face-lift of 7.9 acres of land here — along with an $84 million renovation to the Royal Hawaiian Shopping Center and a $150 million redevelopment of the International Market Place — is being met with mixed feelings from neighborhood business owners and their patrons.

Waikiki Broiler owner Doug Salisbury didn't want to close the decades-old restaurant. But the only way he could remain in business was to close down for two years and reopen when the Waikiki Beach Walk project was finished. And he couldn't wait that long.

So Salisbury decided to close the restaurant and look for a different location to open another one.

But he's not bitter about the changes. He considers the upcoming redevelopment projects in Waikiki "long overdue."

"I think the area will be better when they're completed," Salisbury said. "It's going to be a positive environment. It's just sad for us."

This isn't a business dilemma unique to Waikiki.

Any renovation or remaking of retail space by the building's owner can lead to higher rent or concept changes that end up forcing current tenants to make difficult financial decisions: What will this cost in rent? Will my customer base change? Will my store fit into the new look and feel? Should I relocate? Can I afford it?

Kevin Knapp of Waikiki and Nono Haunga of Kalihi shared a karaoke song at the Waikiki Broiler's bar on a night before the restaurant shut down. The owner hopes to open another business elsewhere.

Overall, the retail industry in Hawai'i will benefit from any kind of upgrade to the visitor industry, Pregill said. So the projects in Waikiki should be a boon to local retailers.

"What's happening in Waikiki is very exciting, especially for retailers," she said. "There's so many opportunities. ... What's even more exciting is that it's not only creating opportunities for luxury retailers, but for Hawai'i-made products and mid-level retailers as well. There'll be a mix in this whole renovation."

Outrigger's planned 90,000-square-foot retail entertainment complex will include 40 retail shops, six restaurants and bars, and an open pedestrian plaza. The center, along Lewers Street between Kalakaua Avenue and Kalia Road, is expected to be completed late next year.

Roy's Waikiki will take over the site vacated by the Waikiki Broiler. A Wolfgang Puck Express will open where the Lewers Street Fish Company used to be.

At least six other retailers have signed leases to be on Outrigger properties in the area.

The Royal Hawaiian Shopping Center is looking at increasing the number of retail shops and restaurants at its location, where renovations, to be completed by July 2006, also will include 33,000 square feet of open space.

So far, none of its more than 100 tenants have left the center.

"We've purposely left some holes in the center knowing we would bring in restaurants and stores that nobody in Hawai'i will have," said Anne Murata, marketing director for The Festival Companies/ Royal Hawaiian Shopping Center.

The Waikiki Shopping Plaza will add more than 100 carts on its third floor to accommodate smaller retail businesses.

While most residents understand that the upgrades are necessary in ramping up the state's largest industry, many feel the changes will alter the atmosphere in Waikiki. And that, they say, may end up hurting tourism.

Robert Finley was a regular patron of many of the businesses that recently shut down. Though he'll miss his favorite spots — Lewers Street Fish Company, Trattoria, Waikiki Broiler — he sees the overall value of redevelopment.

"(The Outrigger project) will provide a much-needed face-lift to Waikiki," said Finley, chairman of the Waikiki Neighborhood Board. "I understand that this project will pump $600 million into the economy."

He praised the renovations to Kuhio Avenue, which will provide additional opportunities for new businesses to move into the area — or the ones that recently closed to relocate.

But Loretta Rickard, 71, doesn't like the way Waikiki has changed over the years.

"It scares me because I love my island," said Rickard, a resident manager in Makiki. "It's going to be totally different."

She said her out-of-state friends won't be able to visit her this year because they can't afford the Waikiki room rates.

The redevelopment "is going to hurt Waikiki in the long run," Rickard said. "I don't think Waikiki will ever be the same."