While the pandemic created challenges, it also created opportunities.

That’s evident in Waikiki where the pandemic plunge has given rise to a wave of more than 15 restaurant openings as well as significant expansions and reinvestment.

What’s driving this restaurant rally? Mostly opportunity and optimism, but also good old-fashioned pursuit of the American dream, said real estate analyst Stephany Sofos.

“Waikiki is a tight market, but it loosened during the pandemic. Vacancies and closures increased tenant bargaining power and, in some cases, created opportunities for owners to save money by converting already built-out spaces,” Sofos said.

Unlike previous expansions where large corporations dominated the landscape, this time around it’s mostly locals taking advantage of the more favorable conditions.

“It’s an ambitious undertaking, but I’m bullish on Waikiki,” Sofos said. “I walked the beach the other day and you couldn’t find a space to sit from the Moana Surfrider to the Sheraton. It was bumper-to-bumper humans and everyone was happy. They were just loving that they were in Waikiki — that’s why I strongly believe it will come back.”

Rich Stula, an owner of Tex808 BBQ & Brews and Teddy’s Bigger Burgers, said the pandemic-related closure of Uncle’s New York Pub & Grill in the Lay Low Hotel provided an opportunity to move the business into Waikiki over the Hallo­ween weekend. More affordable rents and lease deals also allowed Tex 808 to expand into Moanalua Shopping Center and upgrade its Hawaii Kai location to a waterfront spot, Stula said.

Stula said Waikiki penciled out for Tex 808 because it was able to invest about $100,000 converting an existing restaurant instead of spending millions on a new building. Also, market uncertainty allowed the company to secure a six-month lease with a 10-year option — far better terms than are normally available in desirable destinations like Waikiki.

“All of these locations have come up to us during the pandemic because of our willingness to put the money in and open stores when most places are trying to close up and limiting service,” Stula said. “When the shutdown happened in March 2020, it was like the sky was falling. But we quickly trimmed down our menus, added new technology and pivoted to online ordering.”

Stula said the company’s pandemic-related growth tracks closely with previous expansion periods for Teddy’s, which got busier after 9/11 and saw more growth in 2000 and 2001 after the tech bubble burst, and again in 2008 after the subprime crisis.

The International Market Place has had significant openings during the pandemic, including: Liliha Bakery, Skybox Taphouse, and Moani Waikiki , which is owned by musician and deejay Micah Keolanui.

Megan Birkes, director of operations for Liliha Bakery, said the company expanded into the former Yauatcha space at the International Market Place on Nov. 18.

“For us and our company philosophy coming from (our owner) Mr. (Peter) Kim, it’s always turn a negative into a positive,” Birkes said. “We wanted to serve our local community by bringing everyone together. We wanted to be that local home feeling in the middle of this urban area.”

Liliha Bakery, which opened its original Kuakini location in 1950, has garnered a following for its coco puffs, Chantilly cake and poi mochi donuts.

The Waikiki site — the bakery’s fourth location on Oahu — has so far drawn a mostly tourist crowd. Birkes said tourists tend to sample just one coco puff instead of buying a whole box, and are more familiar with ham and cheese croissants and danish. However, they are ordering plantation iced teas as well as breakfast and the prime rib and lobster plate in droves. It’s also the first Liliha Bakery with outdoor seating and a full bar.

“We are still trying to get the word out to locals that we have opened a Waikiki location,” Birkes said.

The owners of ShoreFyre also opened a second eatery in the International Market Place called Skybox Taphouse. The sports bar, which overlooks Kalakaua Avenue, features more than 40 televisions, two full-size bars, a main dining room, a VIP Locker Room available for groups and an outdoor tailgating area anchored by a beer tap waterfall and beer truck bar.

Alan Wiltshire, vice president of operations for ShoreFyre and for Skybox Tap- ­house, said the local owners decided to expand after the pandemic-related closure of Flour & Barley.

“We always try to have our sights set on the future. We didn’t want to focus on the pandemic and how bad things are now,” Wiltshire said. “People thought we were crazy. We opened on Sept. 19 right after Gov. (David) Ige made the announcement telling people not to come to Hawaii. But locals turned out in good force.”

Herringbone Waikiki reopened Nov. 17 in the International Market Place under the new management of celebrated Hawaii restaurateur Kevin Aoki, who created the successful Doraku restaurant.

Aoki said after the pandemic hit, his strategy to keep management on staff was to expand management agreements in Hawaii and Las Vegas. When Tao Group purchased Herringbone, Aoki said his team was fortunate to take on management of the restaurant, which he intends to update with more fresh fish from Hawaii and a more localized approach to hiring.

Aoki also is taking over the lease for Rocky Teppan­yaki at Hilton Hawaiian Village from his stepmother, who would have closed the restaurant, which was originally part of the Benihana chain. He said that by year’s end he plans to change the name to Aoki Teppanyaki and introduce an updated concept that offers a more authentic Japanese experience. He opened the first Aoki Teppanyaki in Miami in 2014.

“It’s a great honor for me to take over the lease on the former Benihana restaurant that my dad had signed in 1971,” he said.

Despite the pandemic, Aoki said he continues to be optimistic about Waikiki, where his restaurants are performing well and he thinks demand will continue to build.

“Waikiki is the crown jewel. We have 12 restaurants and Doraku is our highest performing restaurant,” he said. “People can see the writing on the wall. There are a lot of customers and not enough restaurants and its Waikiki. It will always come back like New York City.”

The Street Food Hall, under Michael Mina management at International Market Place, has been replaced by the Kuhio Avenue Food Hall. The new food hall is owned by Ho‘okipa Partners, which includes John Fareed and Mike Palmer, The Street’s former general manager.

“We reopened in April starting with two concepts that front Kuhio Avenue, Banzai Burger and La Pina Cantina. A few months ago we opened Aloha Pizzeria. We also have a tiki bar, a beer bar, and a gelato place,” Palmer said.

Given that more than 200 Hawaii restaurants shuttered during the pandemic, Palmer said he’s thankful that his team has been able to hire back 50 of the 150 people who were laid off when The Street went down to bare-bones staffing.

Palmer said more food concepts are planned for the Kuhio Avenue Food Hall, including a Hawaii Hoagie Company, which will open in two to three weeks; Greek Grotto, opening in about four weeks; and Hashi & Spoon, a ramen place opening later this month.

In late January, the food court also will welcome Cheeho BBQ that will serve barbeque and North Shore-style shrimp plates; as well as Cafe Waikiki, a smoothie and health food spot.

Uncle Sharkii Poke Bar, a popular San Francisco eatery, will open on the second floor of the International Market Place this winter. Uncle Sharkii specializes in quick-serve poke bowls, boba milk teas and tropical ice cream.

Raymond Reyes, co-founder and chief operating officer of Uncle Sharkii, was born and raised in Hawaii. The restaurant is named after his daughter’s plush shark.

Down the road, Musubi Cafe Iyasume has opened in Waikiki Beach Walk. And Bills Hawaii announced that it would stay permanently closed in September, but the owner replaced it with a new restaurant called UPSTAIRS, which opened Oct. 1.

The restaurant is a collaboration and in edition to its own globally-inspired menu also offers dishes created by chefs at two popular Japanese restaurants, Sushi Sho and Hachibei. It also features a music bar with a robust selection of Japanese sake.

“The idea behind the UPSTAIRS project came from wanting to create a gathering spot that brings together some of the area’s most coveted dishes in one place,” said Norihito Watanabe, CEO of Sunny Side Up Group.

Pesca Waikiki Beach opened Aug. 25 atop the Ilikai Hotel in the space that previously housed Sorrento’s.

Forty Niner opened this fall inside the Island Colony by Hawaii Ocean Club on Seaside Avenue. It’s original location in Aiea has been serving locals for decades.

Across the street, Heyday opened this summer in the Waikiki Sands Hotel. The restaurant is a new concept by the team who brought Fete to Chinatown.

Renowned Pacific Rim chef Chai Chaowasaree opened Kalo Hawaiian Food on Kuhio Avenue this summer in the spot formerly occupied by Spada Bar & Restaurant at the Courtyard by Marriott Waikiki Beach.

Sam Shenkus, vice president of marketing for Royal Hawaiian Center, said in August the center welcomed Raising Cane’s Chicken Fingers; and last month a Wicked Maine Lobster. Also at the center, P.F Chang’s just completed a significant renovation, and longtime tenant Suntory is undergoing renovations, she said.

Additionally, Shenkus said, Wolfgang’s Steakhouse, which is so popular that patrons had to book Mother’s Day dining a month in advance, has expanded to an outdoor lanai, and is in the process of an interior expansion that will double its size, she said.

“They all expect Waikiki to come back,” she said. “There is nobody here that is starting a business in Waikiki that thinks it will be a losing proposition. They are all very excited.”