Restaurants fear hot competition following McDonald's ruling
The reversal of a ban on McDonald's by a Supreme Court judge yesterday sent shock waves through Hamilton's restaurant business.
And several restaurateurs facing competition from a Big Mac attack on their profits said the House of Assembly's ruling against fast food franchises with a foreign flavour should never have been overturned by the Supreme Court.
Delivering his ruling on Tuesday, Puisne Judge Vincent Meerabux said the principal beneficiaries of what were prohibited restaurants were the applicants, ex-Premier Sir John Swan's Grape Bay Ltd "as well as other persons in the restaurant industry.'' And he said that a fair balance had to be struck between the interests of the community and the rights of the applicant whose property interests were adversely affected.
But Lee White, owner of the Hamilton and Paget Ice Queens, said: "They need to go back and listen to the people.'' He added: "The pie is only so big -- when you slice it small, it will affect some small restaurants.'' Mr. White said: "I have always said most people didn't want McDonald's -- the decision came down to one man and his interpretation of the law. I know McDonald's will be successful, but do we really want it and at what price are we going to have it?'' The Prohibited Restaurants Act 1997, signed into law in August after a stormy trip through Parliament, outlawed foreign fast food franchises opening in Bermuda after May 10 last year.
Mr. Meerabux's judgement also ruled that various agreements between Grape Bay Ltd and others were contracts and property -- of which they could not be deprived without compensation.
Attorney-General Elliott Mottley has said his chambers will take the matter to the Court of Appeal -- and, either way, the fight is set to go on to a ruling from Bermuda's final court of appeal, the Privy Council in London.
Dudley Furbert, a 50-year veteran of the burger business and who operates Dinty's Lunch Wagon on Front Street, said Hamilton was already suffering from a surfeit of restaurants.
He predicted a McDonald's in Hamilton, slated for the corner of Parliament and Victoria Streets -- one of two planned by Grape Bay, with the other at the airport -- would cut into trade.
Mr. Furbert said: "Everybody's going to get a little cutback if it did happen.'' But he was bullish about his burgers and said: "I have been making them for quite a few years -- I don't think they can make burgers better than me.'' At the Spot on Burnaby Street, manager Peter Schuepp said: "Any new restaurant will cause a problem. It's not just us.'' He added: "We have customers who think both ways on the issue -- I would think the majority are against it.'' Dorothy Emery-Middleton, who runs Dorothy's Coffee Shop in Chancery Lane -- noted for its burgers -- declined to comment.
And Graham Redford of Kentucky Fried Chicken, Queen Street, said: "I don't really want to get into the fray because we are a franchise.'' Ann Bates, manager of The Deli in Washington Mall, said she catered to a different market and expected no problems.
She said: "We don't really do the hamburger market. If it opens everybody will try it -- but I don't think people want it and I don't think the tourists want it either. Tourist aren't going to find it right round there anyway.''