The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Red Lobster franchise yesterday said it has finally received the required Ministry of Works permits to start constructing its first New Providence restaurant which has increased in cost by 25 percent.

James Owen, Pinnacle Franchise Brands’ director, told Tribune Business that the $350,000 financing raised through the ArawakX crowd funding platform has been invested “solely” in The Bahamas location. The remaining $1.5m that was secured for the business, and its expansion, came from Pinnacle’s late chairman and chief executive, Chris Mortimer, who obtained it from “his people”.

Confirming that he was informed that the relevant Ministry of Works permits were obtained last week after a year-long wait, Mr Owen said: “We have to build the location still, and that is why we’re waiting on the Ministry of Works permit. We had our permit application in since August 2022. Once they give us the permit, we still have to buy everything and then construct and erect it.

“Our original plan was for the site to be $2m, but that cost has obviously increased since we originally planned it in 2018, so we are looking at roughly $2.5m for the Nassau location. Construction is scheduled to begin by the 2024 first quarter, but Mr Owen declined to disclose the location due to a non-disclosure agreement with the prospective landlord.

“The project is still ongoing and we’ve tried to tell everyone that Trinidad is going to be the first restaurant while, unfortunately, we wait for Nassau’s permits to be reviewed and issued,” he added. Pinnacle is the Red Lobster franchise for other Caribbean territories, including Jamaica, Trinidad and the Dominican Republic.

Mr Owen, speaking to Pinnacle’s financing, said: “There was $1.8m raised, and $1.5m of that was from Chris Mortimer’s investment. It was not his personally, but from his people that were external, and the $350,000 that was Bahamian raised has been spent in The Bahamas thus far.”

In a note to Pinnacle’s shareholders, Mr Owen added: “Pinnacle Franchise Brands secured an area development agreement (ADA) with Red Lobster Hospitality in 2020. This agreement conferred the rights to establish Red Lobster restaurant(s) in The Bahamas, Trinidad & Tobago, Jamaica and the Dominican Republic in the first phase of development.

“At the current time (August 2023), Nassau has a site leased (since April 2022) for its restaurant and awaits permits to commence construction (applied for since August 2022). Work on this 7,300 square foot restaurant should start in January 2024.

“Whilst the restaurant in Nassau is being considered by the authorities, the other territories in the ADA have been pursued. Trinidad & Tobago was approved by Red Lobster Hospitality in September 2022, and construction has recently started with a target opening date of the 2023 fourth quarter.

“For both Jamaica and the Dominican Republic, we have ongoing consultations with interested prospective partners and anticipate restaurants can be open in 2024 (Jamaica) and 2025 (Dominican Republic). Interest has been expressed towards Guyana, and we have been allowed to consider this territory although it is in our second tranche of the area development agreement.”