CASH-strapped restaurants are transforming dining areas into nightclubs, hoping that bar sales will improve their bottom line.

A dramatic increase in overhead costs and fewer diners had forced restaurateurs to become creative, said Philip Barnett, chairman of the restaurant division of the Chamber of Commerce and owner of Barracuda Grill, Hog Penny and Pickled Onion restaurants.

"Restaurateurs are just amazed this year at the escalation of administrative costs while sales have stayed the same or decreased," he said yesterday. "Our only option is to raise prices ? which no one wants to do ? or try to maximise sales for any one day.

"Lunch is basically two hours, dinner is four. A night component can add four or five hours to a business. The lights are always on anyway, the electricity is always running, technically, the staff is always there. It makes it more efficient. It's really about restaurants being forced to be creative. It's astonishing how hard we've been hit."

Only this week La Coquille announced it would follow a path already taken by Fresco's Restaurant & Wine Bar and Sapori Restaurant & Terrace ? open the restaurant to patrons more interested in music, dancing and socialising.

According to Mr. Barnett, the decision could have been the result of any number of factors. The past year saw a leap in the cost of inflation; terrorism threats increase the cost of importing goods; Watlington Waterworks raise its water prices and gas and electricity prices soar.

"Most restaurants don't even start going into the black before July or August. When everything goes up one or two per cent it has an exponential effect on the bottom line," he explained. "It also makes it that much more expensive to attract people to Bermuda.

"Waiters and pot washers can't live here unless they get more money. They can't afford to pay $1,000, $1,500 rents. It means we have to offer more. People don't want to come to Bermuda when they know we have such a high cost of living here.

"So, I say all power to the people for getting creative. We'd like to see even more opportunity to expand on that but there are so many hoops we have to jump through ? I can't begin to tell you how difficult it is to get entertainers even when, literally nobody, is applying for the job who is Bermudian."

Mr. Barnett admitted that during the busy season restaurateurs could be driving away late diners by closing their kitchens earlier, but in the winter months, residents did not seem to care either way.

"The only answer I have, is that in the middle of the winter months, everyone wants to come in at 7.30 or 8 p.m. Nobody wants to eat at 6.30. Nobody wants to eat at 9 p.m.

"If there's just one sitting, it becomes impossible (to make money). Understandably, there are people who do want a quiet dinner. Barracuda Grill will never have live entertainment. But Hog Penny and Pickled Onion ? absolutely.

"The choice is for the restaurant to either close, or try and be aggressive and change things to make sure they stay in the business."

Limited public transportation was not helping the situation, he added. Diners who imbibed had two choices ? an expensive taxi ride home or driving under the influence, in which case they risked harm to themselves and others and also risked being caught by the police.

"At the moment, someone who lives in Somerset isn't going to want to pay $40 or $50 to take a taxi home but even if they were willing, getting a taxi at 1 a.m. on Front Street is difficult. There aren't any.

"When is the Government going to do something? You can't get a ferry after 7 p.m. Buses should be running until half an hour after the the last bar closes. It should be a public service. It would save lives. It would protect other road users from drunken drivers. Government needs to make sure there is a choice; to make sure there are buses running and taxis available.

"People either stay at home ? which is bad for us ? or drive home after drinking, which is bad for everyone. When people drink they don't think straight, they'll drive home because there is no choice. If a bus is around, most people will jump on it and pick up their car or bike the next day.

"Government needs to put facilities in place so that people can get home safely after they've had a good time."