By Amanda Pampuro
The saying that blood runs thicker than water is very true for the families of Micronesia, and that bond is even deeper when a family business is involved. Guam Business met with five such families to see how they created a living for two or more generations and how their family bond has enriched what their businesses mean to Guam’s and Saipan’s communities.
The Arriola Family: Arriola, Cowan & Arriola
Founded: 1953
Founder: Joaquin C. Arriola
Generations: Two
Original number of employees: One
Number of employees: Four partners, 10 employees
(Standing, from left) Joaquin C. “Jay” Arriola Jr.; and Anita P. Arriola, both partners; (seated, from left) Mark Cowan, partner; and Joaquin C. Arriola, senior and founding partner, and father of Jay and Anita.
After surviving the Japanese occupation of Guam during World War II, Joaquin C. Arriola left island on a scholarship to attend St. Thomas College in Minnesota. After continuing on to law school at the University of Minnesota, he chose to return and help rebuild Guam.
Arriola founded his own practice in August 1953 with only one employee and an Underwood typewriter. Today, Arriola does all of his typing on an IBM Selectric and the firm — Arriola, Cowan & Arriola — employs nine staff members and five lawyers, four of whom are equal partners. This includes two of Arriola’s children — Joaquin “Jay” Arriola Jr. and Anita P. Arriola — as well as Mark Cowan, who joined the firm in 1973 and has since become like a surrogate relative.
“I feel like family because I’ve known Anita and Jay since they were kids,” says Cowan, who also attended all of the Arriola children’s high school graduations.
“Mark isn’t like a member of our family,” Anita says. “He is a member of our family. We couldn’t find a more trustworthy person.”
Being family-run, the firm has done well in retaining both employees and clients.
“If you look at trends in our company, we have long-term employees and long-term clients,” Anita Arriola says, including legacy employees like officer manager Diana Santos, who will celebrate 40 years with the firm in August; Cowan’s legal secretary of 30 years, Agnes Meno; and the firm’s 35-year paralegal, Dan Muña.
Anita Arriola joined the firm in 1988 after practicing law in San Francisco and says the transition only seemed natural. “We started out as kids coming here after school.”
“We would steal candies out of the secretary’s desk,” added Jay Arriola, who joined the firm in 1990 after practicing as a public defender in San Diego. “I always knew I wanted to come home.”
While many law practices on Guam tend toward general practice, each of the family members excels in a specific area — Joaquin Arriola Sr. in litigation and insurance cases, Cowan in transactions work, Anita Arriola in civil and commercial litigation and Jay Arriola in domestic suits.
“On a small island like this, the challenges of practicing law are in the family issues,” Jay Arriola says. “Sometimes we have to pick sides in terms of representing some and not others. On the other side of the table, we often face people we know very well.”
Proof of the practice’s success is in its referrals. Jay Arriola says, “At my dentist’s office, there is a sign that says, ‘The referral of friends and family is the best compliment.’ When I ask people why they came to me, 99% of them say they were referred. We have no website, just a listing on the Guam Bar, and in the old days, that was our only method — we didn’t advertise. We gained our reputation by our practice.”
The Ayuyu Family: JCA Inc. (McDonald’s of Saipan)
Founded: 1993
Founder: Jose C. “Joe” Ayuyu
Generations: Two
Affiliates: JCA Guam LLC, which does business as McDonald’s of Guam
Original number of employees: 100
Number of employees: 500
(From left) Jose C. “Joe” Ayuyu, president; Marcia E. “Ruri” Ayuyu, owner-operator of the McDonald’s franchise on Saipan; Ashley Ayuyu, assistant human resources manager on Guam; Natalie E. “Mable” Ayuyu, personal assistant to the president; and Joe E. Ayuyu Jr., manager for the Middle Road store in Saipan, all three children of Jose and Marcia.
From Happy Meals to Big Macs, McDonald’s has long marketed its meals toward families. For the Ayuyu family, which owns and operates the international franchise in Guam and Saipan, “family friendly” isn’t just advertising rhetoric — it’s their business model.
Jose C. “Joe” and Marcia E. “Ruri” Ayuyu and three of their five children operate the McDonald’s franchise on Saipan and as of May 1, the Guam McDonald’s as well.
In addition to two generations of Ayuyus, JCA Inc. employs 75 people in Saipan and 430 in Guam. The family also operates a real estate enterprise, RJ Commercial Apartments, on Saipan.
JCA Inc. was born in 1993, after more than a year of training in Guam and at Hamburger University in Chicago, when Joe Ayuyu was finally awarded the McDonald’s franchise for Saipan. After four years of success on Middle Road, he opened a second branch in Garapan in 1996. Earlier this year, the family launched JCA Guam LLC after acquiring the Guam franchise, with nine branches — six of which remain open.
While this marks the Ayuyu family’s greatest expansion, Joe Ayuyu is already looking forward.
“We are renovating our restaurants. The Tamuning branch will be done by the end of the year. Most of these panels are from the 1960s, and the kitchen needs to be rebuilt for modern cooking,” he says.
In Hagåtña, the family is also looking to install a dual drive-through and open another Northern branch. Judging by Guam’s population size, Joe Ayuyu says he believes he can open two or three more branches in the coming years, and then he wants to expand beyond the Mariana Islands.
“My dream is to bring McDonald’s to Micronesia — to Palau and Pohnpei,” he says. “Maybe not now, but in the future as those islands are developing.”
In addition to expansion, Marcia Ayuyu is looking for ways to invest into Guam’s community, “We really do want to go into the community and really help out.” In Saipan, JCA Inc. sponsors youth track and field events, maintains bus stops and hosts the annual McFun Run.
“This is a family business, and I like to say I’m building something for the future,” Joe Ayuyu says. “Looking into the future, I can say if this business works well, then my [new] granddaughter will have opportunities here when she is grown.”
Joe’s son, Joe E. Ayuyu Jr., is already realizing those opportunities as manager of the Middle Road restaurant. “Ever since I was young, a lot of fond memories were in McDonald’s,” Joe Ayuyu Jr. says. “It always comes back to my family. Seeing the hard work they put into the company makes me want to work just as hard.”
The Kramer Family: Pacific International Inc.
Founded: 1976
Founder: Frank Jerome
Generations: Three
Affiliates: Marshall Insurance Agency, Pacific Unique Travel Agency, Pacific Wheels, Pacific International (Guam) Inc., Kramer Corp., Waffle-Crete International Inc., Majuro Marine Inc., Ajejdrikdrik Inc., Kabua & Kramer Corp., Diamond K Wholesale, Nimitz Towers and Guam Apartments
Original number of employees: Two
Number of employees: 311
(Standing, from left) David Kramer, shop and equipment manager, also a Marshall Islands senator; Melissa Kramer, procurement manager, Pacific International (Guam) Inc.; Lorraine B. Kramer, tourism operations and real estate management; Michelle Kramer, managing director, Pacific International (Guam) Inc.; Deborah K. Shoniber, secretary and human resources manager; Daniel Kramer, construction management; Kenneth Kramer, treasurer and chief operating officer, all children of Jerry and Mercy; (seated, from left) Joseph “Jerry” Kramer, president and CEO; and Mercy N. Kramer, vice president.
You’re asking for my life’s story,” says Joseph “Jerry” Kramer, the man who built Pacific International Inc. from the ground up. “Where do I begin? I came out to the Marshall Islands in 1961. Kwajalein Import Co. just turned 20, and we decided when I finished my business with Kwajalein, I would go into business with three guys from the Marshall Islands.”
In the 1960s the Marshallese economy was being developed by the U.S. Navy. Where many investors might pass over a remote island with little established enterprise, Kramer saw only opportunity.
“I raised chickens, sold copra and basically spun the wheels, enjoying life. … We tried again with Acme Importers in the mid-60s and formed Laguna Aviation to do medical evacuations,” he says.
“In the 1970s, Atkins Kroll in Guam monopolized copra processing, so I say, ‘Why don’t we process copra here and increase our value?’ Frank Jerome [who also made large investments in the Philippines] formed Pacific International Inc. and brought me on to open the Marshall’s first copra processing plant, Tobolar. I managed it for 30 years and slowly but surely, I bought them out.”
Today Pacific International Inc. employs 311 personnel throughout the Pacific and three generations of Kramers. While Kramer remains president and CEO, his seven children — all in their 30s and 40s — run the day-to-day operations. The company also employs a growing number of grandchildren, including the CEO’s personal assistant, Yale Kramer.
When she graduated college, Jerry’s daughter Melissa Kramer says, “It was natural to enter the family business. I never thought I would be going anywhere else. We’re there for each other [and] … there’s more trust between us because we’re family.”
Over the years, as the Kramer family found new markets left unfulfilled, they expanded, creating the Marshall Insurance Agency, Pacific Unique Travel Agency, Pacific Wheels, Pacific International (Guam) Inc., Kramer Corp., Waffle-Crete International Inc., Majuro Marine Inc., Ajejdrikdrik Inc., Kabua & Kramer Corp., Diamond K Wholesale, Nimitz Towers and Guam Apartments.
“[…] I’ve come to accept difficulties and hurdles as the next step,” Jerry Kramer says. “All it took was working seven days a week and instilling the same work ethic in the kids. We started with nothing and earned everything we have. I didn’t inherit anything, and now we are a multi-million dollar company.”
The Sharma Family: Jay’s Flower Shop
Founded: 1978
Founder: Harry Sharma
Generations: Two
Affiliates: Jay’s Flower Shop, Nikki Properties Inc., Nita’s International Trading Inc. and Haresh Development Corp.
Original number of employees: One
Number of employees: 14
(From left) Nikki Sharma, secretary; Harry Sharma, president; and Nita Sharma, vice president, both parents of Nikki and Vijay. (Not shown: Vijay Sharma, treasurer)
Year after year, we see the same people coming into our shop. We know them by name, and they know us by name,” says Nikki Sharma, a member of the family that owns and operates Jay’s Flower Shop. “We have people coming in saying, ‘You used to sell to my mother’ or ‘You used to sell to my grandmother.’”
Today the Sharma empire includes Jay’s Flower Shop, Nikki Properties Inc., Nita’s International Trading Inc. and Haresh Development Corp. These businesses are run by Harry Sharma, his wife, Nita, and two of their children, Vijay and Nikki. Additionally, the Sharmas employ seven full-time maintenance personnel and three part-time florists.
It all began in 1978, when Harry Sharma established Quality Impex on Guam, an offshoot of his Hong Kong–based import/export business.
“Real estate was my part-time business then. Now it’s entirely different — import/export is my side business, and real estate is full-time,” he says. The market changed drastically in the late 1990s when Kmart opened and many of the mom-and-pop stores he supplied closed. Sharma’s original shop, Jay’s Variety Sales, which sold electronics, clothing and flowers, managed to evolve into Jay’s Flower Shop.
“Luckily, Kmart is not selling these kinds of flowers,” he says, referring to the vibrant fabric blossoms the Sharmas arrange for cemetery displays.
All of Harry and Nita Sharma’s children — including Angie, who now works for FDIC, and Sanjay, who teaches at John F. Kennedy High School — spent their childhood watching their parents work in the family business.
“When I was younger, I would hang around the shop. I remember my dad showing me how to arrange flowers,” says Nikki Sharma, who returned to Guam after graduating from law school to help with the family’s accounting. “My brother, Vijay, is really the driving force. He’s the eldest son and has a lot of interest in the business. My dad trained him to be business-minded.”
While Harry Sharma doesn’t plan to add any subsidiaries in the near future, he is always looking to expand the family’s real estate holdings. “We are looking to buy properties and rent it out. The market is going to grow when the military comes, and with tourism growth.”
“It’s a very proud moment to be where we are now, compared to where it used to be,” Nikki Sharma says looking around their 3,000-square-foot store in Barrigada. “My parents mentioned it isn’t easy. They would tell me stories of how it was in the beginning and that times will change, but you keep working. Hard work pays off — I kept telling myself that through law school. It’s something that can help you in many places.”
The Shimizu Family: Ambros Inc.
Founded: 1948
Founder: Ambrosio Torres Shimizu
Generations: Four
Affiliates: Marianas Pacific Distributors Inc., Shimbros Inc., Shimbros Audio and American Samoa Inc. (So-Pac).
Original number of employees: 20
Number of employees: 132
(From left) Paul S.N. Shimizu, corporate secretary and treasurer; Joseph S.N. Shimizu, chief financial officer; Thomas G. Shimizu, general manager, all three sons of founder Ambrosio T. Shimizu; Shannon Phillips, operations manager, and son of Joseph; Frank G. Shimizu Jr., export manager; and Frank S.N. Shimizu Sr., president and CEO, son of Ambrosio and father of Frank Jr.
(Back row, from left) Paul S.N. Shimizu, corporate secretary and treasurer; Frank S.N. Shimizu Sr., president and CEO, both sons of Ambrosio; Shannon Phillips, operations manager, son of Joseph; Frank G. Shimizu Jr., export manager; John Shimizu, maintenance manager, both sons of Frank Sr.; (front row, from left) Joseph S.N. Shimizu, chief financial officer; Thomas G. Shimizu, general manager, both sons of founder Ambrosio T. Shimizu; Steven Shimizu, assistant manager, son of Joseph; Chelsey Shimizu, assistant marketing manager, daughter of Frank Sr.; and Frank A. Shimizu III, merchandising, and son of Frank Jr.
Ambros Inc.’s slogan says it all: Generations Serving Micronesia. Founded by the late Ambrosio Torres Shimizu in 1948, Ambros Inc. is not only one of Guam’s oldest businesses, but it also counts among its many employees four generations of Shimizus.
Today the company is run by Ambrosio’s sons, Frank Shimizu Sr. as president/CEO, Joseph S.N. Shimizu as chief financial officer, Paul S.N. Shimizu as secretary/treasurer and Thomas G. Shimizu as general manager. Also employed among the family are Frank’s children, Frank G. Shimizu Jr. as export manager, John Shimizu as maintenance manager and Chelsey Shimizu as assistant marketing manager, as well as Frank Shimizu Sr.’s grandson, Frank A. Shimizu III, who works in merchandising, and Joseph Shimizu’s sons, Steven Shimizu as assistant manager and Shannon Phillips as operations manager.
All of the family members involved at Ambros started at the bottom and worked their way up. In the late 1980s, Thomas Shimizu remembers being paid in free lunches to wash all of the trucks.
“To this day, if someone has trouble operating a forklift, we can show them. We know how long deliveries take because we’ve been there,” he says. “There’s pressure on all of the family members to be qualified because whenever you get promoted, there’s always questions.”
While Ambros has been hard on its sons, Ambrosio didn’t want to run the company without them. When his long-term partner Vance Smith retired in the 1970s, he even considered selling the business.
“My dad says if you and Joe are not interested in running the family business, I’m going to sell out,” Frank Shimizu Sr. remembers. “Boy, Joe and I had a lot to learn, but at least we had our dad to learn from.”
From just 20 employees in 1948, Ambros Inc. now employs more than 90 personnel on Guam and 42 throughout the region. The company also includes subsidiaries Marianas Pacific Distributors Inc., Shimbros Inc. in Palau, Shimbros Audio and American Samoa Inc. (So-Pac). And it is still growing.
“There are three areas for growth,” Thomas Shimizu says. “One area is to expand territory. I think our sights are set on Polynesia and those islands. Another area is to grow product opportunity, so if we see a product there is a need for, we look into that. The third arm — whether we like it or not — we’re in the real estate business. … In the future, I can see us needing to expand and formalize our real estate holdings.”
In addition to being the distributor for Budweiser, the island’s best-selling brand of beer, Ambros Inc. is also a great supporter of Guam’s iRecycle program.
“What really ties us together is beer, good food and music,” Paul Shimizu says. “Some of us have been in bands, and it has been known that some of us like to grab the microphone.”