HECO’s Chinatown outage continues to hurt local, small business owners: ‘HECO outage has set our business back years’

HONOLULU (KHON2) — Your next pau hana could save this locally owned business.

We’re talking about Proof Social Club, a staple in Chinatown life.

Recently, Hawaiian Electric Company’s (HECO) significant power outage in Honolulu’s Chinatown has caused severe challenges for local small businesses, putting them in dire jeopardy.

KHON2.com was able to sit down with Jasmine Mancos, the owner of Group Social Club, who shared the devastating impact these outages have had on her business and the broader community.

A community space in crisis

“I’ve been the owner of Proof Social Club since 2020. It’s really important for us to make sure that everybody feels included and welcomed here,” Mancos said. The club has been a vital space for marginalized communities, including the 2SLGBTQ+ community as it offers support and a safe gathering place.

The recent power outages, however, have threatened this sanctuary.

Mancos explained that during the three full days of power outages, her business suffered immensely.

“We had two really big events on the weekends in between that, that happened,” Mancos explained. “So, we were stuck to the team.” Despite their best efforts to preserve products by packing coolers with ice and checking temperatures daily, they still lost a significant amount of inventory due to spoilage.

Financial and emotional toll

But the financial loss has been staggering.

“Insurance doesn’t cover loss of income when you have to be closed for something like a power outage that’s outside of your control,” Mancos noted. The club lost thousands of dollars in revenue and, equally troubling, her staff lost out on critical income they rely on to pay bills and rent.

Mancos emphasized how crucial it is for small businesses to maintain consistent revenue.

“For a small business, being closed for even one day can be catastrophic. We, the bar essentially lives paycheck to paycheck, and we missed three really big paychecks,” she said.

Mancos highlighted the precarious nature of running a small business, especially in the bar industry.

“I don’t know how to express how tightly small businesses generally run, especially in this industry,” said Mancos. “We run on razor, razor-thin margins and something like this doesn’t set us back three days, it sets us back years.”

Mancos shared that despite the challenges, they managed to renew their liquor license. However, the financial strain is immense.

“We are in talks with the building to try to get an extension on our rent because it is and always has been the most important thing to me to make sure that my employees who come down and work so hard and care so much about this place and this community that they get paid,” she said.

The outages have left the business behind on many bills, and Mancos hasn’t even been able to pay herself.

“If we can’t get some community support, it is very possible that we will have to close our doors come the fall,” she warned.

Mancos emphasized the critical need for community support, saying,

“What we really need from the community right now is support. I know that we have been asking for a lot of support lately with the power outages and please come down and support Chinatown.”

She pointed out that the situation is beyond their control.

“We’ve been doing everything right. We pay our insurance, which quadrupled last year after the Maui fires,” she added. “That does not cover loss of revenue. As well as it, it takes a while for the insurance money to come through. And in the meantime, we need food to sell, we need beer to sell, we need to keep the lights literally on.”

Lack of communication from HECO

The recent HECO power outages in Chinatown have caused severe financial hardship for locally owned small businesses. Mancos described the impact.

“We, the bar essentially lives paycheck to paycheck; and we missed three really big paychecks,” she explained. “That doesn’t only mean that we weren’t able to make any sales; it also means that my staff who are counting on working those days lost out on all of their pay, all of their tips as well. Yeah, the loss of income has just been catastrophic.”

The timing of the outages couldn’t have been worse.

“Our liquor license renewal was also due at the end of this month, and we were just scraping by with going to be able to get that renewed, while still paying rent, while still paying all of our bills, while still making sure all of our payroll checks clear,” Mancos explained. Losing income for three days felt “like a slap in the face”.

One major issue was the lack of communication from HECO.

“We did not know when the power was going to come on. The levels of communication coming from HECO during the outage were pretty awful,” she said. The updates were inconsistent and kept changing, leaving businesses in uncertainty about their operations. Despite reaching out for more information, Mancos was told that “what was online was all of the information that they were going to be giving out.”

Mancos also pointed out that the support provided by HECO has been insufficient.

“There’s a form that we can submit for losses, but that only covers our loss in product. That does not cover our lost revenue or our lost income at all,” she noted. Additionally, HECO has not offered any credits toward their bills. “So, on top of losing product, losing income, losing revenue, we still have to pay our HECO bill on time. It is just awful.”

The financial burden has left small business owners like Mancos in a tough position.

“It puts us in this position where we’re deciding: Do we pay HECO to keep our lights on and bounce payroll checks? Do we make sure that payroll checks clear so we can get all of the products that need to be replaced back in so we can begin to recoup all of that lost money?” Mancos questioned.

The situation has highlighted the vulnerability of small businesses to infrastructure failures and the need for better communication and support from utility providers like HECO.

A Call for Community Support

In the face of these challenges, the community’s support has been crucial. “There’s been a huge outpouring of support for not just us, but all of Chinatown,” Mancos said. However, this support, while appreciated, has not been enough to cover the losses incurred.

“We truly need the community support right now. As much as you are able to, I know money is really tight for everyone,” Mancos urged. “But if you are able to donate to our GoFundMe, it would be huge in any amount.”

Mancos also encouraged people to visit Chinatown and support the local businesses.

“Please consider coming down and, you know, bringing a group from your office and having pau hana down here with us or checking out any of our shows that we have booked for the next month,” she added.

Moving forward

The power outages have left lasting damage, but Mancos remains hopeful. They were able to renew their liquor license and are in talks to get an extension on rent. However, the struggle to cover payroll, restock inventory, and keep the business afloat continues.

“If we can’t get some community support, it is very possible that we will have to close our doors come the fall,” Mancos warned.

The situation highlights the vulnerability of small businesses, especially those providing crucial community services, to infrastructure failures. Mancos’s story is a stark reminder of the importance of reliable utility services and effective communication from providers like HECO to mitigate the impact of such outages on small businesses and the communities they serve.

For more information on how you can help, visit Group Social Club’s GoFundMe page or drop by to show your support in person.

Background: HECO’s Chinatown outage

A couple of weeks ago, Chinatown in Honolulu experienced significant power outages due to a fire that damaged underground power cables. On June 18, a fire erupted in an underground manhole, damaging several high-voltage cables and causing an arc flash, which led to the initial shutdown of power for about 3,000 customers in the area​​.

The fire affected four underground circuits, totaling 12 high-voltage cables. Repair crews worked around the clock to address the extensive damage. By the morning of June 20, power had been restored to about 2,400 customers. However, approximately 600 customers remained without power as repair work continued.

HECO spokesperson Jim Kelly explained that such a prolonged outage outside of a storm situation was unusual and assured customers that every effort was being made to restore power safely and efficiently. The complex repairs required careful planning and execution, particularly because the work involved handling energized equipment in confined underground spaces​​.

Customers affected by the outage were advised to file claims for any damages or losses incurred. HECO provided contact information and detailed instructions for submitting these claims to ensure that customers could be compensated appropriately for their inconvenience and any financial losses they suffered during the outage​.