However, he said since then they had made the decision not to reopen because it didn't make enough money. He said they would instead concentrate on running their boutique hotel, The Black Swan, at Kawaha Point on the shores of Lake Rotorua.
Mr Gray, who had owned Bistro 1284 for 18 months before the fire, said the winter turnover at the restaurant had struggled in the past few years. He said that was due to two factors, the rise of popularity of Eat Streat and the fact Bistro 1284 had doubled in size.
"It was really successful when it was half the size but has struggled since. If the right person was owning and working in the restaurant it might have worked but my wife and I are not chefs."
Mr Gray said they had hoped to turn the businesses around but admitted now they didn't have the expertise.
"Rotorua doesn't have a big enough population for a destination restaurant, especially during winter."
Mr Gray said he understood the building's owner would rebuild the site and lease it as office space.
