opening a branch in Bermuda.

TGI Fridays manager of public relations Ms Rebecca Reasons said yesterday: "We have someone talking with someone in Bermuda. But it is too early to say anything. We haven't entered into any formal arrangements.'' The chain, headquartered in Texas, consists of 265 restaurants located in eight countries.

Mr. John Roach, owner of the recently-closed restaurant Shutters on Burnaby Street, has said that one of the ideas for the site currently being investigated is the opening of a TGI Fridays restaurant.

When asked whether he would operate the restaurant as a franchise, Mr. Roach said: "I would not do that.'' An advisor from the Ministry of Finance has said there is no specific government policy about operating franchises.

"It's not a clear cut situation,'' said the Ministry spokesman.

"Any relationship with an overseas company has to be looked at to see whether the overseas company is doing business in Bermuda.'' "If it is deemed to be doing business in Bermuda, then a licence has to be applied for and permission to set up a company rests with the Minister.

Companies that do business in Bermuda must meet the conditions of the Companies Act,'' said the Ministry advisor.

Food franchises have been disallowed in the past because the Ministry "perceived that food franchises brought with them a certain image that is not popular''.

The TGI Fridays spokeswoman said the restaurant chain was "decorated with eclectic memorabilia''.

Its distinctive interior design features are wooden floor and brass railings, red and white striped table cloths and red and white striped awnings.

The menu runs to about 100 items, including hamburgers, French fries and steak, pasta and also ethnic food from Italy, China, Thailand, and Mexico.