Arrivederci, Café Pesto Kawaihae: Popular local restaurant closes after 30 years in business

KAWAIHAE — It was no surprise to find Café Pesto Kawaihae filled with loyal customers every day last week.

Long a favorite of tourists and locals, the restaurant’s doors closed for the last time late Saturday afternoon.

“It has really been heartwarming to see all of our regulars come out to share their memories, affections and favorite dishes,” the restaurant’s owner, David Palmer, said. “Social media has been on fire as people scrambled to get their final ‘pesto fix’ and I love that. Nothing can be more affirming of a lifetime’s work than that.”

Located in a Kawaihae Shopping Center space facing the harbor, Palmer officially announced the news of Café Pesto Kawaihae’s closing on Facebook March 26. Its sister restaurant in Hilo will remain open.

On closing day, Waimea residents Tina Stuart and Gail Desha met for their final lunch there.

“I’m so sad that they’re closing. I love the food and excellence of service by their general manager, Michael Cohen,” Stuart said.

“I’ve been coming here over 20 years. We always end up with the salmon, Caesar salad and had to have crème brulée today,” Desha added. “I’m going to miss these guys big-time. We’re taking leftovers home to freeze so we can eat it again a year from now.”

Palmer said he decided to cease operations in Kawaihae for several reasons.

“This is the restaurant’s 30th anniversary and also the birth date of my youngest daughter. That’s a very long time in the restaurant business,” he said. “There have been a number of headwinds in recent years — principally severe labor shortages and the building in some form of foreclosure for five years have presented the greatest challenges.”

Palmer and his management staff decided it was best to go out on a high note.

“We have a very good reputation for quality and consistency and didn’t want to risk that. Our cherished customers deserved that,” he said. “We began as a small takeout and delivery pizza place, and with spirited local support we blossomed into an innovative and iconic full-service restaurant that was among the earliest adopters in 1988 of locally sourced Hawaii Regional Cuisine.”

In addition to traditional Italian fare, Café Pesto’s menu added a local twist evidenced by Pizza Luau made from Kalua-style pork, sweet onions and pineapple, Hamakua Calzone with BBQ Chicken and Cilantro Pesto, and Mango Chicken.

Tourists often returned for the restaurant’s most popular dishes: Blue Caesar Salad, Smoked Salmon Pizzette and Pacific Island Seafood Risotto.

“Over the years I have been a great fan of Café Pesto’s, and have been honored to be their lettuce supplier for a very long time,” Paul Johnston, owner of Kekela Farms, said Saturday. “I am sad to see the restaurant close, and will surely miss their great ohana.”

Several doors down at Kawaihae Shopping Center, Kohala Divers’ owner Rebekah Kaufmann shared similar sentiments.

“Our customers loved diving and then having a great lunch at Café Pesto,” she said. “A family who has visited for 20 years said they will miss their most coveted lunches there.”

Diners have come from near and far.

“I’ve been struck by the email addresses left on our comment cards about how many people from every corner of the world have dined at Café Pesto,” Palmer said. “Once, when traveling in Italy, I heard someone shout out ‘Cafe Pesto!’ only to see a regular visitor and snowbird to the Big Island calling out from his villa.”

Minneapolis resident Kim Hughes and her family had their first meal at Café Pesto Saturday.

“It was highlighted in one of the travel books from our local library. The menu looked great and we came and knew right away we wanted to eat here because it had such an inviting and friendly atmosphere,” she said. “Our waitress expressed sentiments about the restaurant closing but also told us about their other location.”

Several employees worked at Café Pesto for more than 20 years.

“This week has been incredible,” said the restaurant’s general manager, Michael Cohen, who along with his wife were employed there for 24 years. “I am very grateful to David for allowing us to be open this last week for lunch because everyone that’s come has shared their stories. It’s been amazing to see a lot of kids grow up and return with their own kids and families. We’ve all been one big family.”

Cohen added that although the Big Island has been fortunate to have one of the lowest unemployment rates in the state, there are too many jobs and not enough people to fill them.

“All the restaurants on this side of the island are experiencing this and we struggled with it for the last three years,” he said.

Kawaihae resident Rhonda Bell has many fond memories working at the restaurant.

“Café Pesto was very much a part of my life, with seven years there as an employee. My sister, mother, aunt and high school friends all worked together there too,” she said. “I will miss the creamy pesto dressing and the basil pesto.”

Over the years, staff have bent over backwards to accommodate unique requests.

“One person from Boston once called to order a pizza delivery to Boston,” Palmer said. “He had proposed to his wife a year earlier at Café Pesto and wanted the same pizza delivered for his anniversary. As with all special requests, we did our best to comply.”

When Café Pesto Kawaihae first opened, Palmer was one of three owners including Dave Levenson and Jim Williams.

“We originally named it We’re Takin ‘n Pizza back in 1988. In 1990, we changed the name to Café Pesto,” Palmer said. “I bought them both out in the early ‘90s.”

He moved to Hawaii Island on a summer break 10 years earlier.

“At the time, the only jobs in Hawaii were construction, real estate or resort related. I was no good at construction but I knew how to cook,” Palmer said. “I had no restaurant or business experience but soon realized I had a passion and, I’d like to think, a talent.”

For loyal North Hawaii diners craving Café Pesto Kawaihae dishes, several recipes can be found on their website at https://cafepesto.com/cafe-pesto-recipes.

“I have been so very fortunate to have some very talented and loyal employees over the years who have moved on to become successes in their own rights and lifelong friends in the process,” he said. “My three children grew up here in the restaurant business and learned the ethics of hard work, business and entrepreneurship. But mostly I enjoyed the friendships of customers and their appreciation of our concept over three decades.”

Another business has expressed interest in Café Pesto’s Kawaihae Shopping Center restaurant space. Negotiations for a transition are ongoing, according to Palmer.