The owners of a Pembroke eatery say they have been forced into an unfair kebabs pricing war at Harbour Nights in Hamilton.

Their competition is Joshua’s Bakery, a business owned by the president of the Chamber of Commerce — organiser of the weekly Wednesday night festival.

Chris and Elaine Lima, owners of Kebobs on the Curve on Curving Avenue, are selling their products at Harbour Nights for a second year.

On the first Harbour Nights this year, they did well but returned only to find Joshua’s Bakery installed right next to them selling the same thing they do — at a lower cost.

“We can’t sell something else,” Mrs Lima said. “Kebabs are what we do. As far as I know, Joshua’s was not selling kebabs until now.”

They complained, and Joshua’s moved out of the food court the next Harbour Nights, only to move right back the following week.

“It is a bit distasteful,” Mrs Lima said. “Harbour Nights has always been a small vendor platform designed for the little guy. We are just a small enterprise and we really depend on the event.”

She questioned what influence Chamber of Commerce president Marico Thomas had on the situation.

The Chamber of Commerce said: “Vendor placement, approvals and operational decisions are handled entirely by the event management team, not by the chamber’s board of directors or its president.”

They were aware of the matter, and said a formal response had been given.

“The chamber’s role is to provide oversight at a strategic level and to ensure the event supports Bermuda’s business community, as it has for more than 30 years,” a spokesman said.

The organisation added that it does not guarantee the exclusivity of products, saying: “Rather, we aim to foster a vibrant and creative environment that showcases a variety of local entrepreneurs, with a focus on economic stimulation.”

Responding to questions around potential conflicts of interest, the chamber said its board follows a formal conflict of interest policy, which requires members to disclose and recuse themselves from any decisions where there may be a perceived or actual conflict.

“We remain committed to ensuring that Harbour Nights continues to be an inclusive platform that benefits a diverse range of local businesses,” the chamber said.

Mrs Lima said the events committee had offered a different spot, but the Limas do not want to move.

“Right now, Joshua’s has been placed two stalls down instead of directly next to us,” she said. “Joshua’s moved back into the food court because they said their sales were dropping outside of it. What about our sales? The chamber does not seem to care about that.”

Joshua’s also offered to stop advertising the kebabs on their signage at Harbour Nights.

She said with only three Harbour Nights events left in the season, the problem did not seem likely to resolve itself.

Mr Thomas denied that Joshua’s Bakery was copying Kebobs on the Curve, saying kebabs were nothing new to FoodHub restaurants.

“We did not initially conduct a competitive price check for kebabs and inadvertently priced below a neighbouring vendor,” he said. “Once this was brought to our attention, we reviewed and adjusted our price to align with fair market practices. Our intention has always been to provide great value for customers without disadvantaging others.”

He said vendor placement at Harbour Nights is handled by Select Sites, a subcontractor of the chamber.

“We have no role in that decision,” he said. “Through Four Star Pizza, Four Star and now FoodHub, we have been part of Harbour Nights since its inception, and our location and menu have evolved alongside the event with one goal — to help attract more tourists and locals to the event and contribute towards them having a more enjoyable experience.”

He said that at Harbour Nights there have been multiple examples of vendors side-by-side selling various items.

“At the same time, there are vendors who prefer to be separate from the pack,” he said. “We are aware that in some seasons there are more vendors than spaces, and we do not envy whoever is tasked with sorting out electricity access and balancing everyone’s preferences.”