The Ocean Pines Association of Ocean City, Md. has negotiated a two-year contract with Matt Ortt Companies, a Berlin, Md.-based restaurant development and management company that has operated a variety of fine- and casual-dining establishments, including TGI Fridays and Hooters. The contract does not apply to the Tern Grille at the Association’s country club.
Matt Ortt Companies, a restaurant development and management company, will take over food-and-beverage operations for the yacht and beach clubs of the Ocean Pines Association in Ocean City, Md., following approval of a new two-year contract, The Dispatch of Berlin, Md. reported.
The Board of Directors of the Ocean Pines Association (OPA) voted unanimously on April 5th to approve a negotiated agreement for a two-year contract with Ortt, which is based in Berlin, Md., after months of considering the concept of outsourcing its food-and-beverage operations, The Dispatch reported.
“I’m very excited,” said Doug Parks, president of the OPA’s Board. “I think the Board took a long hard look at this.”
The yacht club, in particular, has struggled to make money in recent years, The Dispatch reported, and Parks said the decision to outsource was an attempt to address the facility’s growing losses.
“It was in our best interest to move forward in a different, more cost-effective manner,” he said.
While the newly approved agreement does not grant the company management of the Tern Grille at the community’s country club, Parks says that is something that will be reviewed in the future, The Dispatch reported.
“The country club is under golf [management] for now,” Parks said. “At some point in the future we’ll revisit that. We didn’t want to muddy the waters at this point.”
The contract for the yacht and beach clubs gives the Matt Ortt Companies “skin in the game,” Parks added, and would motivate its leaders to turn the finances of the food and beverage operation around.
“It’s got to be an amenity that serves the folks of Ocean Pines,” he said.
A news release issued by the OPA said that Matt Ortt and Ralph DeAngelus, the company’s founders and managing partners, will be responsible for day-to-day management of the yacht and beach clubs, The Dispatch reported. The contract includes an expectation for the association to be provided with a detailed monthly report that includes “real-time access” to operating expenses, and the management company will be expected to conduct ongoing surveys to gauge customer satisfaction and then provide the results of those surveys to the OPA on a monthly basis.
“The contract objectives were to create an arrangement that empowers and economically incentivizes Matt Ortt Companies to perform well, institute financial and reporting controls, shift liability to Matt Ortt Companies, and create a mechanism to address poor financial performance,” the association’s news release said. “The contract shall be terminated for poor economic performance without penalty.”
Matt Ortt Companies was selected after the Board heard presentations from two management companies, The Dispatch reported. According to the OPA, the company was selected based on its “experience, business plan, staffing capabilities, and the fact that the terms of its proposal complied with the [association’s] bylaws.”
Ortt has operated various establishments, ranging from casual to fine dining, including TGI Fridays and Hooters, The Dispatch reported.
“[Matt] Ortt has experience and expertise in all aspects of restaurant operations including recruitment, hiring and training of managers and staff, profit and loss accountability, food cost reduction and back-of-house productivity,” the OPA said in its release. “He has overseen the development of multiple restaurants from the ground up, working closely with architects, engineers, and construction teams to bring his clients’ visions to reality.”
DeAngelus has served as Vice President of Operations for franchise-related establishments and has an extensive knowledge of industry operations, The Dispatch reported.
While the contract went into effect on April 6th, the yacht club was not currently open, Parks told The Dispatch.
“There are some changes [Matt Ortt wants] to make,” he said. “It’s going to take a while.”