The former McDonald's restaurant in Southside has closed its doors -- causing some 20 people to lose their jobs.

Longtail Burgers, which stood at the Coregidor Avenue site of the former McDonald's restaurant on the old US Naval Air Station, was open for a little over 12 months.

It is closed until further notice, owner Dan Grayson said last night, adding a "lack of business'' was the restaurant's undoing.

"The area is still a bit secluded. The business has not lived up to its potential.'' The restaurant, which Mr. Grayson took over last year after running the McDonald's at the location, employed about 20 people who were informed of the bad news yesterday morning.

Their pay has been taken care of and the company is now in the process of settling its debts.

Mr. Grayson declined to comment when asked about the restaurant's future.

In March, 1997 -- while in negotiations over a lease for the building with the Bermuda Land Development Company -- he told The Royal Gazette that opening the restaurant could be a gamble.

"We are trying to get a feel for what is happening. It is unique in Bermuda and I thought I would go for it. It has been sitting dormant for so long. We are hoping we will be the catalyst to help rejuvenate this area and possibly encourage other businesses to move in.'' The other restaurant at Southside is the Clearwater Beach Cafe which is owned and operated by Reid's Restaurant owner Sinclair Reid.