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The Honolulu Advertiser

Posted on: Wednesday, February 23, 2005

Businesses happy to see soldiers

 •  O'ahu deployments had little impact

By Catherine E. Toth
Advertiser Staff Writer

It took six months for Mike Royce to get a city permit to build his take-out restaurant in Wahiawa.

The deployments seriously hurt business at the Top Hat Bar on Kamehameha Highway, but owner John Eiting said he was more interested in letting returning soldiers know how much they're appreciated.

Deborah Booker • The Honolulu Advertiser

Though he had to pay months of rent, insurance and utilities, opening Maui Mike's Fire-Roasted Chicken on Kamehameha Highway two weeks ago — just when the deployed soldiers from Schofield Barracks were returning to Hawai'i — has worked out.

"We've been packed," said Royce, who opened the chicken take-out with a partner, professional surfer Jairus Cannon. "We can't handle the business. ... People warned us that because the military wasn't going to be around, we should have a back-up plan. And we did — but not a plan for what to do when you're too busy. It's a great problem to have."

Businesses in Wahiawa and Mililani, from small alteration shops to large fast-food chains, are seeing improvements in sales since soldiers from Schofield Barracks have come back from deployments to the Middle East last month.

Many of these businesses were hurt by the deployments, which started a year ago when more than 8,000 soldiers left Schofield Barracks for a year-long tour in Iraq and Afghanistan. So dependent are they on the military for business, many wondered if they would survive.

Business at Michael's Barber Shop on Wilikina Drive dropped at least 75 percent last May, said barber David Phan. And it stayed that way for months.

Now the barbers are seeing more soldiers return to the base and, more importantly, coming in for haircuts.

"We're getting more people," Phan said. "It's good to see signs of life."

The exact amount of revenue the more than 100 Wahiawa businesses lost during the deployments is difficult to calculate. Last year, economists estimated that roughly $80 million to $100 million in potential revenue could have been lost in that one-year period.

During that time, merchants from Wahiawa, Mililani and Waialua offered discounts to the remaining military troops and their families to show their support and drum up business.

Now the support is evident just driving through downtown Wahiawa. Kamehameha Highway is lined with yellow ribbons and businesses have put up signs welcoming back the soldiers.

The Top Hat Bar on Kamehameha Highway lost about 80 percent of its business when the soldiers left. But the deployments hurt owner John Eiting much more emotionally.

He spent those months renovating the 64-year-old establishment, making the place more comfortable for when the troops returned.

"It shouldn't be about trying to make money off people who are serving our country," said Eiting, who enjoys sitting and talking with his military patrons, many of whom had never been to war before. "We should be comforting them and letting them know how much we appreciate what they've done. That other thing comes later."

Since January most merchants have seen immediate boosts to business, as troops venture back to familiar restaurants, shops, golf courses and bars.

Business has bounced back at El'Gant Alterations on Kamehameha Highway, which reduced its staff last year because of slow sales. Soldiers are streaming into the 15-year-old shop to get uniforms cleaned and starched.

"We've improved quite a bit," said general manager Peter Nelson. "You can't pay the bills when you've got no money."

Some merchants are offering discounts to military troops and their families to show their appreciation and encourage patronage. For example, Zippy's Restaurant on Kamehameha Highway, which has a steady local crowd, offers a 10-percent discount on menu items at the restaurant, take-out window and bakery for the military through April.

"Wahiawa was a sleepy little town for a while, so it's great to see the families reunited and coming into Wahiawa again," said Dan Nakasone of the Wahiawa Community and Business Association. "I'm sure our businesses will show their appreciation."

About three-fourths of customers to Maui Tacos in the Mililani Shopping Center are military, said assistant manager Mark Hayes. Now that the soldiers have come back, sales at the take-out restaurant are up 20 percent.

"We were pretty slow back then," Hayes said. "Now we're a lot busier. We're real optimistic."

But not all businesses in Wahiawa suffered as much during the deployments.

"For those that rely on the military, they definitely took some major hits," Nakasone said. "But the ones that had a local market made it through OK, and they're probably better for it now."

For 10 years, Kitchen Delight on California Avenue has catered to residents with its local-style menu. Business went up a little when National Guard soldiers, most of whom were residents, were activated and staying at Schofield Barracks. But otherwise, sales at the tiny restaurant haven't fluctuated much.

"We've been doing pretty good," said owner Gladys Okamura. "The military didn't really affect me before (the deployments)."

The soldiers who have come in, she said, have enjoyed her now-famous "Shock & Awe" breakfast of two eggs, two scoops of rice and a choice of five meats for just $1.75. It's the most popular item on the menu.

"I wanted to take advantage of that phrase and do a breakfast in support of the troops," Okamura said. "It's so cheap. I really shocked-and-awed them."

Reach Catherine E. Toth at ctoth@honoluluadvertiser.com or 535-8103.

• • •

O'ahu deployments had little impact

The deployment of more than 10,000 troops based in Hawai'i to Iraq and Afghanistan last year may not have affected O'ahu's economy as much as expected, according to an economist studying the issue.

Lawrence Boyd, economist for the Center of Labor Education and Research at the University of Hawai'i-West O'ahu, has been researching the military's economic impact on O'ahu, where most of the soldiers are based.

His research showed that while at least 25 percent of O'ahu's civilian workforce is connected to the military, the recent deployments didn't destroy these businesses.

Many of these soldiers left families, who continued to live, work and shop on O'ahu, contributing to the local economy. Military-related projects that involved local businesses, such as renovations to base housing, weren't disrupted by the deployments, either.

"If that's the case, and I think that it is, (the deployments) didn't have much of an impact," Boyd said. "The families are still here and the basic infrastructure in those relationships hasn't changed. You will have some local effects (to businesses around bases), but in terms of the economy as a whole, I don't think it's made a big dent."

According to his research, the military ranks second to tourism in providing jobs. And these jobs tend to be higher in pay, averaging better than $50,000 a year. Military and tourism industries account for about 60 percent of economic activity on the island, he said.

"What surprised me was the high annual income and that it comprised a large sector of the workforce, either directly or indirectly," Boyd said. "A lot of O'ahu's underlying prosperity, or lack thereof, relates to the military."

— Catherine E. Toth