New owners revive Kona Inn Restaurant with fresh menu, familiar feel

The Kona Inn Restaurant is getting a reset on Ali‘i Drive, but the new owners are trying to make sure the century-old Kona landmark still feels like Kona. Island Restaurant Group bought the Kona Inn Restaurant and Kona Canoe Club about two months ago and is preparing a June 18 relaunch built around a revamped menu, a refreshed dining space and a promise to keep the place’s familiar character intact.

That balance matters in Historic Kailua Village, where the restaurant has long been more than a place to eat. Leila Kanuha, the Kona Inn’s general manager for 19 years, was initially hesitant about the transition, but the new owners addressed her concerns by saying they would keep existing staff, listen to employees and improve the business without stripping away its identity. The relaunch has also been framed as a community moment, with ticket giveaways tied to the opening.

Island Restaurant Group is led by chef Nakoa Pabre of Umekes Fish Market Bar & Grill and brings together operators with ties to Umekes, Jackie Rey’s and Harbor House. The purchase came after the Kona Inn Restaurant and Kona Canoe Club had spent about two years on the market, with the asking price reportedly cut from $3 million to $1.5 million before the sale closed.

The new ownership arrives after years of pressure on the business. The pandemic, the retirement of longtime part-owner Steve Falcinella and the introduction of paid parking in Historic Kailua Village all weighed on the restaurant and on downtown traffic more broadly. Business owners and residents have said the parking fees have made it harder to attract customers, with private lots in the village charging about $9 to $21 an hour.

That parking dispute has become a major local issue because it reaches far beyond one restaurant. A county bill introduced in March 2026 would have required three hours of free parking for patrons in paid Kailua Village facilities and capped most subsequent rates at $2 an hour for the first 24 hours, with a $30 maximum for that period. Supporters of relief have argued that the current system has created economic hardship and pushed some people away from downtown businesses.

The Kona Inn’s revival also carries unusual historical weight. Built in 1928, the property is widely described as helping herald the start of commercial tourism in Kona, and architect Charles Dickey is credited with its design. The Kona Historical Society says the inn housed guests until 1976. The wider Kona Inn Shopping Village later became part of the oceanfront site on Ali‘i Drive, described as about 4.07 acres with 750 feet of Kailua Bay frontage.

For local diners, nearby shops and longtime residents, the relaunch will be judged by more than the menu. The test is whether a revived Kona Inn can bring in new energy, support local jobs and still feel like the same gathering place that has anchored the waterfront for generations.