Luana Hospitality Group on Big Island shifts to employee ownership via ESOP

Luana Hospitality Group has transitioned from private ownership to employee ownership through an Employee Stock Ownership Plan, the Hawaiʻi-based company announced March 4, 2026, giving eligible employees a pathway to economic ownership as a long-term retirement benefit. The company operates oceanfront restaurants including Huggo’s, On the Rocks, Kai Eats + Drinks in Historic Kailua Village, and Lava Lava Beach Club in Waikōloa Resort, and Pilothilladvisors’ release indicates operations across Hawaiʻi Island and Kauaʻi.

The move means eligible employees will "earn economic ownership in the company over time as part of a long-term retirement benefit," Pilothilladvisors and Big Island Now state. Jolene Mears, vice president of Luana Hospitality Group, framed the change as cultural and operational: "This is a really special day for us. When you’re a shareholder, you don’t just work for the company—you’re invested in it. Every decision matters more, whether it’s improving efficiency, reducing waste, enhancing the guest and team experience, or strengthening the company for the future."

Company leadership emphasized continuity even as ownership changes. Jose Fuentes, president, emphasized that the ESOP "was designed to reward the people who have built the company while maintaining the same hospitality and leadership for guests of the restaurants." Founders Scott Dodd and Eric von Platen Luder reiterated a legacy rationale: Dodd said, "As we thought about the future, it made the most sense for the employees to take ownership of what they work so hard for. They made this company a success, and now they get to share in the benefits." Von Platen Luder added, "Our motto has always been ‘Family Owned and ʻOhana Operated. Now it truly becomes ‘ʻOhana Owned and ʻOhana Operated.’ This creates a serious retirement opportunity in an industry where that hasn’t always existed."

Public materials and social posts show slight discrepancies in property counts. Big Island Now and Pilothilladvisors list the four named restaurant brands; Pilothilladvisors refers to "Lava Lava Beach Club Waikoloa and Kauaʻi," which could indicate multiple Lava Lava locations. A Facebook excerpt claims Luana runs five Hawaiʻi restaurants, while an Instagram post celebrated the change "across Hawaiʻi Island and Kauaʻi" with hashtags #ESOP #hawaii #aloha #employeeowned. The company has said operations will continue "business as usual" with the same leadership team and employees in place.

The Luana announcement joins a broader Hawaiʻi trend toward employee ownership. Hawaiibusiness context notes there are 6,549 ESOPs in the U.S. and 10.57 million employee-owners nationwide, and the Hawai‘i chapter of The ESOP Association counts 40 member companies. Local examples include T&T’s ESOP process, which began in 2017 and became official in October 2021, and consultants such as Terry Lee who worked on transitions for Roy’s and Teddy’s Bigger Burgers.

Key technical details remain unreported publicly: the effective date and plan documents, eligibility and vesting schedules, percentage of shares allocated to the ESOP, trustee identity, and financing mechanics. Company leaders named in the announcement who can clarify those items include Jose Fuentes, Jolene Mears, Scott Dodd, and Eric von Platen Luder. For now, Luana’s conversion places its oceanfront restaurants and their employees into a structure that founders say will secure retirement opportunity and align staff incentives with long-term stability across Hawaiʻi Island and Kauaʻi.