Zippy's, one of the state's largest locally owned restaurant chains, said it is embarking on a Neighbor Island expansion again and will open a Kahului, Maui, location on Aug. 18.

The 242-seat restaurant will be open 24 hours a day and features a fast food counter, dine-in restaurant and Napoleon's Bakery outlet.

Charlene Kim, director of administration for Zippy's owner FCH Enterprises Inc., said the Kahului opening marks a new effort by the company to expand to the Neighbor Islands. Zippy's first Neighbor Island expansion involved the opening of a small drive-in restaurant in Kapa'a, Kaua'i, in the early 1990s. But the restaurant was closed after the island's economy slowed after Hurricane 'Iniki.

"We're venturing out again to the Neighbor Islands," Kim said, noting FCH is searching for another location on Maui. She said the company believes it may have saturated the market on O'ahu where it has 24 locations.