Chaps Pit Beef’s alcohol application approved

Delaware Alcoholic Beverage Control Commissioner John Cordrey approved the application of Chaps Pit Beef during a hearing Nov. 21. The restaurant, 19791 Coastal Highway in Rehoboth, applied for a restaurant, Sunday and patio license, which permits the sale, service and consumption of alcohol. The applicant also applied for patio variances to permit external speakers, a paging system, live entertainment and a wet bar on the patio.

Brothers Christopher and Gary Desch are the owners/operators of the Rehoboth franchise, which will be located in Coastal Station on Route 1, abutting the new Iron Hill Brewery, and will be the first Chaps outside Maryland. The pair are Baltimore-area natives; Gary moved to Rehoboth seven years ago, Christopher more recently.

The original Chaps opened 31 years ago in Baltimore; a second restaurant, serving as the corporate prototype, opened in Aberdeen, Md., two years ago. A third, the first franchise, opened in June in Frederick, Md.

One condition was placed on the approval. As part of the franchise agreement, the franchisor receives a 6 percent royalty fee from any source of revenue. The problem, Cordrey said, is anyone who profits from the sale of alcohol in Delaware has to be licensed in Delaware. He said as part of the approval, the Deschs have to work with the franchisor to rework the wording in the franchisee contract prior to opening.

During the hearing, Christopher said he would do that, and he said he hoped the restaurant would be open by February. There were no members of the public in the audience to contest the request.