Dean Mishima, chef-owner of Dean’s Drive Inn in Kaneohe, is feeling a mix of emotions as he finishes up his last days of serving up gourmet plate lunches to customers before closing up for good next month.

“You got that bittersweet feeling,” said Mishima during lunchtime Monday. “I mean, this is my baby for 16 years. I have to let go of my baby.”

Mishima and his wife, Dee, are officially shuttering the family-run restaurant, Dean’s Drive Inn, on July 10 due to supply shortages and the cost of goods driving up the cost of doing business.

In a recent message posted on Facebook, the family said while the decision was “difficult to make,” the rising cost of food and supplies “has made it impossible to stay in business.” Further, it said, “We opened our doors in July of 2006 and it has been a pleasure to serve you for almost 16 years. Mahalo nui loa for all the aloha and generosity you have shown us.”

The popular eatery has been one of the Honolulu Star-Advertiser’s ‘Ilima award winners and was featured on Food Network’s “Diners, Drive-Ins and Dives” with Guy Fieri in 2014.

Mishima said while the pandemic did take a toll on the business, he was fortunate to be able to continue offering takeout to a loyal base of customers. In the end it was the costs of cooking oil, fish and meats, plus paper goods that added up. “For meat and fresh fish, it’s unbelievable,” he said. “I mean, the ahi that I bought is $9.43 a pound. I used to buy that for less than $2 a pound. The price of fish went up for over three years.”

In addition, Mishima said, cooking oil, needed for french fries, which is now in the ballpark of $60 a tub, previously could be purchased for $25 to $30. The cost of paper goods, meanwhile, has tripled, he said, noting concern that switching to the eco-friendly options as required by law down the line would deliver a higher-yet cost.

“We’re dipping into our savings,” Mishima said. “To be honest with you, I really don’t know if it’s going to get better for a while.”

What’s more, there are also the challenges tied to finding staff. Right now, just the couple and a cook run the restaurant, so apologies are made when the restaurant sometimes closes early or runs out of menu items.

Melanie Migvar-Ayers of Kaneohe, a customer of 10 years, said her favorite menu item is the ahi cakes and that she will return for them until Dean’s is closed. “It’s one of the best I’ve ever tasted,” she said, “so I’m going to miss them.”

Mishima opened up the dining room for in-person dining on Father’s Day, which the restaurant had not done since the COVID-19 pandemic surfaced, to bid aloha to his customers personally. He said he is grateful to have been featured on Food Network, which highlighted his signature ahi cakes drizzled with aioli, teriyaki beef and pan-fried ono.

Also, he said he’s thankful for his landlord — the business was at Adon Plaza initially, but for the past seven years at 45-270 William Henry Road — and for the many regular customers who continued to place orders while various pandemic restrictions were in place.

Amid the economic challenges touched off by the pandemic, Mishima said he didn’t want to pass on much of the higher costs of doing business to his customers. “I can’t raise the price too much on them,” he said. “They’re struggling, too, and if I raise the price, they can’t afford to come.”

Mishima said he has sold Dean’s Drive Inn to Cafe Kalawe in Kaneohe, which will take over the restaurant space in August.

Many eateries are struggling from a perfect storm of challenges, according to Ryan Tanaka, a board member of the Hawaii Restaurant Association.

Even with all pandemic-­related restrictions dropped, businesses are struggling to make up for back rent and dealing with staffing shortages — some of it caused by workers who are out sick with COVID-19 — as well as with the higher costs of doing business.

“Right now you have this period of a certain type of inflation caused by global supply shortages,” Tanaka said. “All this is making a perfect storm where people are unable to get, at the consumer level, what they order and in time. You’ve seen this upward pressure on pricing at the wholesale and distribution level.”

It is hard to pinpoint which items will be short, he said, because at certain times it may be mainland eggs, but at other times it might be basil — and there are random shortages and price increases.

Uncle Clay’s House of Pure Aloha, a popular shave ice spot in Aina Haina, posted on Instagram on June 15 that there would be a few days when it would only be able to serve ice cream. The business, founded by Clayton Chang, aka “Uncle Clay,” exited Ala Moana Center during the pandemic in 2020 but kept the Aina Haina location.

In its post, the business said that due to an “island wide ice block shortage,” vendors “have been limiting us to the number of blocks we are able to pick up based on availability.”

While the House of Pure Aloha does freeze its own ice in-house, its current freezer is not as effective as it once was, and a new one’s arrival has been delayed for weeks.

“Please know that our team is looking into every possible solution to be able to serve shave ice all day long,” said HOPA. “Until then, we hope you understand our current situation and will still join us in having a delicious treat on these hot summer days!”

In May, Ted’s Bakery announced that it would close down its wholesale operations that month due to supply chain issues — an ongoing problem since last summer, despite efforts to find substitutes. Ted’s pies and cakes are now only available at its Sunset Beach location on Oahu’s North Shore.

Jan Hori, co-owner of the family-run Hawaiian Pie Co. in Honolulu, said a shortage of starch was an issue in 2021 but that the business is surviving by planning ahead — and is already preparing for the winter holiday season.

Also, after contending with packaging-related challenges in 2021, the company pivoted to creating its own, which has helped, Hori said. “So far, we’re OK,” she said. Pointing out that local businesses are in need of local customer support, she added, “We’re fortunate, blessed we have a lot of support. We’re trying to stay ahead of it this year. … We’re just going to hope for the best to get through the holidays.”

National chains are better able to weather the current challenges — including ability to pay a rising minimum wage — than small mom-and-pop shops, according to Tina Yamaki, president of the Retail Merchants of Hawaii. Retailers facing shortages of items or staff have had to shorten hours or sometimes close up shop for the day, she said.

Michael Bier, president of the Small Business Chamber of Commerce Hawaii, said staffing shortages are the top challenge for its approximately 200 members. The staffing shortage is across the board and at every level. Despite wages going up, businesses cannot find help, and the reason why, Bier said, remains a “mystery.”