LUCIANO’S, a popular restaurant in eastern New Providence, is closing down permanently with the COVID-19 crisis “being the final nail in the coffin” after several years of declining fortunes.

Ash Henderson, director of marketing for Restaurant Services Limited, said Monday that “72 managers and staff are sadly affected by the closure” of the restaurant.

In addition to providing fine Italian dining services, Luciano’s hosted hundreds of events “ranging from weddings, birthdays, corporate events and charitable events” since opening in late 2004, according to Mr Henderson.

The company said in a statement Monday: “Due to the current economic climate, the restaurant’s reliance on the tourist market, and the economic uncertainty in the coming months, it is unable to continue as a viable business.

“Despite increased competition in the industry, and a shift in the customer base, Luciano’s management had remained committed to its staff despite mounting losses each month. The economic impact of COVID-19 was the final nail in the coffin, leaving no choice but to close and make its team redundant.

“The sad reality is that the restaurant industry operates on very slim margins, and Luciano’s was no exception. The owners and management team have been struggling to make ends meet for the last couple of years, and have exhausted every avenue to keep the restaurant open and to keep the team employed. Nobody could have predicted the effects from COVID-19 on the economy and, sadly, the fallout that necessitated the permanent closure of the restaurant.”

Mr Henderson said in a bid to remain open over the years, Luciano offered new menu offerings, tested various marketing programmes, partnered with brands, limited price increases despite rising food costs, invested in technology, injected owner funds into the business to keep the restaurant afloat and had capital investment to provide alternative experiences.

“We didn’t open for the takeout throughout the lockdown,” he said after being contacted by The Tribune. “Our menu is best experienced fresh from the kitchen, and we didn’t want to compromise the food quality that we were known for.

“The restaurant has struggled for a few years. Competition across the island has increased dramatically, and there has been a shift in our customer base to other parts of the island. The opening of Baha Mar, with its array of restaurants, certainly had an impact.”

Prime Minister Dr Hubert Minnis has said many businesses may not reopen after the COVID-19 lockdown.

“We are in very difficult and uncharted waters. Tourism, the leading engine of our economy, is being devastated. Many businesses that closed during the lockdown are not confident they will be able to reopen once the restrictions are lifted,” he said during a national address this month.

Across social media Monday, many Bahamians reacted with sadness to news of Luciano’s closure.