The owner of the landmark restaurant at the Crouching Lion Inn in Ka'a'awa laid off 35 employees yesterday as part of the restaurant's closure for renovations.

The restaurant, a regular stop for tour buses — and in the past a kama'aina favorite for local folks driving around the island — has seen a drop-off in patrons in recent years as competition increased from other restaurants in the area.

"Lately, it's been kind of slow," owner Michael Abreu said, with travelers choosing to stop at Kualoa Ranch, Coral Kingdom and the shrimp trucks in Kahuku.

Abreu said he expects the closing to be temporary and hopes to reopen the restaurant in a "matter of weeks." He said the Crouching Lion Gallery will remain open during the work.

A check of Web site restaurant reviews shows the place still has a loyal following, especially for those who come for the view and the old-time atmosphere. But others complained about the quality of the food and that the restaurant catered to tourists.

Abreu said he does not have a specific date since the bulk of the work will involve replacing an aging cesspool with a septic system as required by the federal Environmental Protection Agency. He said he plans to rehire the laid-off employees but gave no firm date.

"We still have some waitresses that have been there since Day 1," Abreu said. "Our goal is to open it as soon as we can."

Worried workers have said they're not sure if they will be rehired or how long the restaurant will close.

A sign on the door reads: "The landowner will be installing a new commercial grade septic system as required by the EPA in the near future. We will take that time to complete the renovations of our facility and will reopen early next year."

Abreu said the restaurant marked its 50th anniversary this year. The building was constructed in 1928 as the private home of a Honolulu contractor named George Larsen. It was sold several times over the years and converted to a restaurant in 1957.

The restaurant — now doing business as Michael's Restaurant and Sports Lounge — was open Sunday but closed yesterday. Abreu said he was expecting to close at the end of the month since this is traditionally a slow time for the restaurant.

And Abreu said he wants to continue some of the restaurant's signature dishes: "mile-high coconut cream pie" and Slavonic steak, which is a marinated filet mignon prepared tableside.

He decided to close when the food supplies dwindled rather than reordering. The restaurant closed Sunday night, and the workers were terminated yesterday. "The food ran out sooner than expected," he said.

The EPA recently inspected the property and said a septic system must be put in place, Abreu said. The EPA has been citing businesses that do not comply with the requirement.

"We had not complied yet. They gave us a deadline and will start levying fines," Abreu said.

Since word of the closing has been spreading slowly, Abreu said he's heard from potential investors who want to make sure the restaurant doesn't close for good.

"I've had it for two years. I hope to hang on to it. I am looking at other investors," he said. "We want to get it back open as soon as we can."

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.

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