Hard Rock “disappointed” with Cyprus franchise

 * Café closes after 7 months *

After just seven months of operation, Hard Rock Café Nicosia closed last week in what seems to be a conflict between the international brand and the local franchisee, probably exacerbated by the economic crisis.
Staff at the multi-storey location in the heart of Nicosia went on strike last Wednesday after they said they were not paid for two months. There were several posts on facebook pages, but no official statement from the company, despite initial comments that the café would reopen after resolving “technical problems”. This never happened and the property remained shut throughout last week.
On the contrary, an advertisement in a local paper a few days earlier caused great confusion as it said that a “restaurant of a well known American chain in the centre of Nicosia and fully operational” was for sale, with prospects for expansion islandwide.
A spokesman for Hard Rock International said in a statement sent to the Financial Mirror that initially “we were excited to open this location last year and disappointed that the franchisee in Nicosia was unable to fulfil its obligations and keep the location open.”
The statement confirmed rumours of payment problems and clarified that “the franchisee has consistently failed to pay vendors, as well as required franchise fees, and failed to follow Hard Rock’s International restaurant brand standards. Hard Rock has been pursuing its available legal rights to protect the famous Hard Rock Cafe brand in the Nicosia market. Due to pending litigation will not comment further.”
The HRI spokesman added that “employees with questions should contact the local franchisee, Renos K. Michaelides, majority shareholder and managing partner of Hard Rock Restaurants (Cyprus) Ltd.”
After a delay of more than a year, Hard Rock Café opened in Nicosia on October 14 but quickly received mixed reviews, especially as regards value-for-money, while others suggested the café should have first opened in Limassol, where a more cosmopolitan market with a multi-national profile was better suited to cater to the Hard Rock image as a an alternative food destination with a variety of musical events.