03/03/2026
Hawaii restaurant group transitions to ESOP
—Lava Lava Beach Club on Kauai
“Luana employees ages 21 and over who work at least 20 hours per week are eligible for the employee stock ownership plan (ESOP).”
“Co-Founder Scott Dodd said that because employees have a stake in the company under the new model, it gives workers an “ownership mentality” and “incentivizes them to keep making it successful.”
“Dodd also hopes that the new model will help retain and attract employees in the future.”
Hawaii Island-based Luana Hospitality Group, which has 5 restaurant concepts on two islands,
—has transitioned into an employee ownership model with an employee stock ownership plan (ESOP), giving eligible staff members an ownership stake in the company.
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The company said that the move away from private ownership aligns “employees directly with the ongoing success and sustainability of Luana Hospitality’s family of restaurants.”
Luana Hospitality Group was founded by Eric von Platen Luder and Scott Dodd.
Von Platen Luder’s family opened Huggo’s restaurant in Kailua-Kona in 1969, and Luana Hospitality Group now consists of:
Huggo’s, On The Rocks
Kai Eats + Drinks
Lava Lava Beach Club on Hawaii Island
Lava Lava Beach Club on Kauai
An ESOP is a tax-advantaged retirement plan for employees that is similar to profit-sharing and gives workers ownership interest in the company through stocks.
The National Center for Employee Ownership estimates that there are 6,609 ESOPs at 6,411 companies nationwide, covering 15.1 million participants, as of 2023 data.
The center said there has been a decline in the overall number of ESOPs but an increase in the number of participants over the past 20 years.
Investment banking company PCE forecasts that ESOPs could see strong activity through 2026.
Luana Hospitality Group said that the transition to this model positions it for long-term stability.
Dodd told Pacific Business News that he and von Platen Luder were drawn to the model after thinking about succession planning for their own retirements in the future.
While they considered selling the company one day, they didn’t like the idea of not knowing what would happen to Luana after that.
“What you’ve worked for and built up over the course of time could entirely change [in a sale]. That whole uncertainty was something that always held us back in trying to sell,” Dodd said.
When they learned about ESOPs, they liked the fact that the model would allow them to continue to operate the company as is, while “hopefully rewarding the employees.”
“They’re the ones who helped us be successful, and it’s just a great opportunity for them to have a retirement plan. The restaurant industry doesn’t really have that,” he said.
He said that because employees have a stake in the company under the new model, it gives workers an “ownership mentality” and “incentivizes them to keep making it successful.”
“A lot of them operate that way anyway, especially the managers, but this just gives them a little more skin the game,” he said.
Dodd also hopes that the new model will help retain and attract employees in the future.
Luana employees ages 21 and over who work at least 20 hours per week are eligible for the ESOP.
Dodd estimates that there will be at least 160 eligible employees.
Luana Hospitality Group Vice President Jolene Mears said in a statement that the launch of the ESOP launched marked a “really special day” for employees.
“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,” Mears said.
https://www.bizjournals.com/pacific/news/2026/02/26/hawaii-luana-hospitality-group-employee-ownership.html??utm_source=ma&utm_medium=dr&utm_campaign=rss&utm_content=general
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Photo: The company said that the move away from private ownership aligns “employees directly with the ongoing success and sustainability of Luana Hospitality’s family of restaurants.”
LUANA HOSPITALITY GROUP
