The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Indigo Cafe’s former owner yesterday said he and his business partner had exited the restaurant “at a good time”, with Value-Added Tax (VAT) and other changes to the business environment making them “a little nervous”.

Accountant Bennet Atkinson told Tribune Business that he and Marissa Malone enjoyed “many great years” during their decade-long ownership of the popular Cable Beach eatery, but a failed attempt to reinvent the concept had finally prompted them to sell.

Tribune Business revealed earlier this month that Indigo, now called the Pot and Cake, was in the process of being sold to Paolo (Palumbo) Donato, operator of a European-style coffee and sandwich shop in downtown Nassau.

Confirming both the sale’s completion and identity of the buyer, Mr Atkinson said the restaurant’s performance had been impacted by Cable Beach’s “struggling” tourism industry and the “gloomy environment” prevalent in Nassau.

And he indicated that his and Ms Malone’s outlook had also been clouded by the “many changes” anticipated in the Bahamian business environment, which include not only VAT but also the tax increases on key products, such as alcohol and cigarettes/tobacco, that were contained in the 2013-2014 Budget.

“Marissa and I tried to reinvent our restaurant, and it didn’t work out for us,” Mr Atkinson told Tribune Business.

“We put it on the market, and Paolo came along and made the right offer. It’s as simple as that.”

While declining to reveal the purchase price paid for the former Indigo restaurant, which was extremely popular with Bahamian professionals, politicians and expatriates, Mr Atkinson said both parties were satisfied with the deal.

“They’re astute business people,” he added of the Donatos. “They didn’t overpay, I can assure you of that. We’re both happy with it.”

Mr Atkinson and Ms Malone had been seeking a buyer for Indigo for some time, but decided to pull it off the market last year, renaming it the Pot and Cake and investing a further $35,000 into it, including a menu revamp.

Confirming that the duo had several times “taken it off the market, put it back on the market”, Mr Atkinson said the combination of the failed revamp and increasingly tough business climate, together with the quality of Mr Donato’s offer, was enough to clinch the deal.

“The environment in the Bahamas, Nassau, is quite gloomy,” he told Tribune Business. “I just think the tourism business, Cable Beach, is struggling until Baha Mar opens, and business is down. Until Baha Mar happens it’s going to stay down.

“With all these taxes coming along, it’s more and more difficult. We went out at a good time. Alcohol and cigarettes went up in the Budget, and who knows what’s going to happen with VAT and changes to NIB, with employers paying contributions on tips.

“There are lots of complications, but is makes it harder to run a business. It’s a changing environment, and there are just too many changes coming along, making is a little nervous.”

Acknowledging that Indigo had not been performing well, Mr Atkinson said he and Ms Malone had hoped a restructuring and new menu would “bring new life to the business”.

“But it really didn’t. It was disappointing,” he added. “I do believe that anywhere in the world, from what people tell me, restaurants come and go.

“Nassau seems to have a few that stay a long time, like Cafe Matisse, which has an excellent product, but restaurants come and go. Marissa also wants to move on and do other things.”

Praising Indigo’s former 14 -strong staff, Mr Atkinson said they had been paid all that was due to them, and he and Ms Malone were “trying really hard to help them find jobs elsewhere.

“Hopefully we can,” he said. “They’re all happy, and there are no disgruntled staff. There are a couple of new things happening at Cable Beach. I know a few of the players, and we’re trying hard to place them. Paolo may take on one or two.”

Mr Atkinson said he understood the Donatos were set to send out an ‘e-mail blast’, possibly as early as this week, to inform New Providence of the new restaurant concept and its opening.

“By the sounds of what they said, they’re going to be making their own pasta, so it seems pretty interesting,” he added.

“I’m quite excited by it, and they might be on to something good. Marissa and I had many great years over the past 10, and I hope Paolo has the same.”