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ATLANTIC CITY - The Stephen Starr experiment at the Chelsea Hotel ended abruptly Tuesday after both Starr Restaurants and the Chelsea confirmed Starr's company no longer would be associated with the boutique hotel.

The famed Philadelphia restaurateur's association with the hotel was a big selling point when the Chelsea announced that Starr would oversee food and beverage operations for the hotel's two restaurants - retro cafe Teplitzky's and gourmet steakhouse Chelsea Prime - as well as its pool and room service.

The Chelsea's management team now will oversee all of the hotel's food and beverage operations, and Chelsea Prime and Teplitzky's will remain at the hotel. Chelsea management said the same standards will remain as most of the staff was retained, including Executive Chef Thomas von Muenster and Chelsea Prime Executive Chef Jason Hanin.

"Starr Restaurants have made the Chelsea renowned for excellence in food and beverage," Chelsea developer and co-managing partner Curtis J. Bashaw in a statement. "I thank Stephen Starr for his vision and ongoing personal involvement throughout the first year of operation. I also thank Stephen's entire team for their relentless dedication to excellence and for identifying and training the team that will continue to run our restaurants, bars, catering service and kitchens."

"With the Chelsea set up for success, we are confident in the Chelsea team's ability to manage these venues in keeping with the high standards for which Starr Restaurants is known," Starr said in the same statement. "We look forward to collaborating with Cape Resorts Group, developer and owner of the Chelsea, on future projects."

Starr and Bashaw would not elaborate on their statements.

Starr's departure comes almost exactly a year after the Chelsea and Starr's restaurants made their debut. Featuring 332 guest rooms, a spa and a nightlife hub that includes a rooftop pool, the Chelsea advertises itself as the city's first non-gaming boutique hotel to open since the early 1960s, offering a "sexy" alternative to the casinos.

The restaurants inside the Chelsea received critical acclaim, particularly Chelsea Prime, which received a rare four-star review in The Press of Atlantic City. But the economic downturn and long winter forced Starr and the Chelsea to adapt their hours. Teplitzky's, for example, originally was scheduled to be open seven days per week for breakfast, lunch and dinner. But in the off-season, the restaurant did not offer dinner any day of the week.

Stephen Prakash, a restaurant and hospitality consultant in Hammonton who has worked for China Grill Management and served as vice president of non-gaming operations for Caesars Atlantic City, said losing Starr is an obstacle, but one that can be overcome.

"You have two extremely successful entrepreneurs in Curtis Bashaw and Stephen Starr who put together excellent concepts here," Prakash said. "Unfortunately, they opened the Chelsea and these restaurants at the worst time. The economy is difficult everywhere right now to open anything, whether it's here or Los Angeles or anywhere. And Atlantic City is certainly having its troubles right now. That said, while not having Stephen Starr's cachet is a blow, they can still put out a great product in restaurants that are quite beautiful."

Prakash said there's "no plus" in losing Starr, but he added that if they follow the Starr model, Teplitzky's and Chelsea Prime could be successful.

"Starr's not pulling out the furniture and wall coverings, so they will remain very nice places with cool concepts," Prakash said. "It's also going to be easier for the Chelsea because they don't need a third party to help make decisions. But the key to all of this is for them to secure solid management. If they continue on as Starr would have wanted them to, I think they can survive this and do very well."

The marriage between Atlantic City and Starr, who operates 19 restaurants around the country, has not exactly been a happy one. In April, the restaurateur filed a $20 million lawsuit against The Pier Shops at Caesars, its developers and landlord, claiming he was duped into opening Buddakan and Continental, according to an Associated Press report.

In the suit, filed in U.S. District Court in Philadelphia, Starr is seeking permission to close the restaurants and have his leases rescinded, claiming he had second thoughts about opening the restaurants there because of construction delays and related problems. He said he agreed to go forward with the restaurants after the defendants told him restaurateur Jeffrey Chodorow of China Grill Management, which operates Red Square in The Quarter at the Tropicana Casino and Resort, had a binding lease for a nightclub and restaurant at The Pier, which the suit claims was untrue. Chodorow never opened those venues.

E-mail Scott Cronick:

SCronick@pressofac.com

6 comments:

• vwsteve (99) posts 7:25 pm

  It would be a loss to lose The Continental and Buddakan at The Pier. While they may not be the best restaurants or even real stand outs with the menu offerings, etc. Surely we can all agree that those establishments are a major asset to the resort as a whole and a big draw even if only in namesake for The Pier. Although, my wife and I do frequent Buddakan quite a bit. I would personally be bummed out to see it go. Starr knows his business and knows it well. He won't leave if there is money to be made and it's clear it wasn't to be made over at the Chelsea. I tend to think The Pier is a different story. Money talks in Starr's world these days. The culinary integrity that defined him years ago with his eateries fizzled out long ago. Still unique and fun places to go without a doubt and that is Starr's claim to fame from my perspective. He creates more of an atmosphere. I'm gonna rebrand him an atmosphereur if I may. ;)

• UPPERFIRST (180) posts 6:54 am

  The place is going down the tubes - you don't want your name associated with a failing establishment - I give it less than a year before filing bankruptcy - Atlantic City and Upscale are 2 words that unfortunately have never and will never mix.

• UPPERFIRST (180) posts 6:54 am

  The place is going down the tubes - you don't want your name associated with a failing establishment - I give it less than a year before filing bankruptcy - Atlantic City and Upscale are 2 words that unfortunately have never and will never mix.

• nightlifer3 (1) posts 10:48 pm

  That's unfortunate about Starr but are you coming to the Atlantic City area Thursday night? As the main promoter for the Chelsea Hotel and Cabana Club 5 I invite you to sign up with me for VIP Access at the Cabana Club 5 @ The Chelsea. but if you want to get on the guest list and receive front of the line access you have to click on the link below. I own and operate 1 Source Entertainment and Consulting and if you want any of the following at The Chelsea this Thursday night then I need you to click on the link below and sign up for our newsletter and email me with what service you would like. www.1sourcenj.com Services Offered: 1. Priority table seating along with various bottle specials depending on the night. 2. Waived entry fee! 3. IMMEDIATE front of the line access! 4. $3 Vodka Cocktails and $3 Coors lights until 12! I highly encourage you to come out to The Chelsea Cabana Club 5 to take advantage of these specials. You might also be considering holding a special event (bachelor/ bachelorette party, birthday, company event, etc.) at The Chelsea as well. Please feel free to let me know what you have in mind and I will be delighted to set that up for you. *Special events receive even more special services then listed above* Email me at Steve@1SourceNJ.com for guest lists submissions and table reservations.

• sandinshoes (27) posts 8:09 pm

  I am sorry to read that Stephen Starr is no longer involved with the Chelsea. Chelsea Prime is superior! Best meals I have had in long time, consistently wonderful. I glad the executive chefs will be staying on, and hope Curtis and staff can maintain the top notch quality that Stephen Starr brought to the hotel.

• BernieSchwartz (645) posts 6:15 pm

  Wow! This hurts. Bashaws team can barely run a hotel let alone a five star restaurant. Somethings amiss with this place, top management turnover is to high. I hope they succeed but I wouldn't put my money on it.

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