The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Downtown Nassau’s revitalisation “remains on track” despite the Hard Rock Cafe’s collapse into liquidation, the organisation leading this effort yesterday saying over 100 new restaurant and bar jobs had been created since 2008 despite the recession.

Gevon Moss, the Downtown Nassau Partnership’s (DNP) project manager, in a series of e-mailed replies to Tribune Business questions, said that while the closure of any downtown business was “disappointing”, Hard Rock’s closure was not indicative of how most area restaurants and bars were performing.

He added that several other restaurant and bar investments were “in the planning stages” for downtown Nassau, with their owners hoping to open within a year - a development that might help absorb some of the 38 employees let go by the Hard Rock Bahamian franchise.

“We believe the revitalisation of historic downtown Nassau remains on track, as indicated by continued incremental improvements in infrastructure, amenities and business offerings,” Mr Moss told Tribune Business.

“Over the past five years we have seen considerable restaurant and bar investments in downtown Nassau. Despite the global recession, we’ve seen over a dozen new food and beverage investments in downtown Nassau open up over the past six years, creating well over 100 new jobs.”

Mr Moss said the new market entrants included Cafe and Kalik, John Watlings, Fat Tuesdays, Sur Club Sushi, the Zivino Wine Lounge and Via Cafe.

“At least another 10 food and beverage establishments have been refurbished or expanded,” he added. “Presently, several other restaurants are in the planning stage and should open within less than a year. Hopefully, some of those employees displaced by Hard Rock will find opportunities there and elsewhere.”

The Hard Rock franchise in the Bahamas was placed into voluntary liquidation on Monday by its three shareholders, with Paul ‘Andy’ Gomez of Grant Thornton (Bahamas) named as the liquidator. Its 38 Bahamian employees received nothing, and must now stand in line in the creditors’ queue with others that the business owed money to.

The franchise’s problems seem to have been ‘business specific’ rather than a symptom of any wider malaise among downtown Nassau’s restaurant and bar trade. The writing seems to have been ‘on the wall’ for the Bahamian franchise after one of its owners was forced to close his Hard Rock Cayman franchise last year, amid a legal dispute with Hard Rock International, the franchisor.

Hard Rock International told Tribune Business last week that it pulled the Bahamian franchise’s rights to use the brand on January 6 this year, meaning the latter operated for almost three months without having permission to use the name.

Mr Moss said of the closure: “It’s disappointing to see any business close in downtown Nassau. While we are not fully aware of the circumstances behind the closing, we are hopeful that a new operator will surface soon, given the appeal of the location and its readiness as a bar/restaurant.”

The landlord for the Hard Rock Cafe building, Marvin Pinder, has already changed the locks to the property - a move likely designed to both protect it from unwanted intruders and secure potential collateral for himself, given that he is likely owed rental income.

And, while international brands such as Hard Rock remain important for the Bahamian tourism product, Mr Moss said local brands - and their success - should not be overlooked.

“While internationally-recognised quality brands have appeal and draw, one only needs to look at the success of places like the Arawak Cay Fish Fry and Marina Village, where local brands predominate,” he told Tribune Business, “and are in high demand by visitors and residents.

“The commitments, which both the Government of the Bahamas and the Downtown Nassau Partnership (DNP), have made recently towards creating new public spaces like Pompey Square and Marlboro Square have helped to create new restaurants and generate additional revenue for the businesses in those areas.

“We need to look at continuing to create environments which support and facilitate investments.”