Oak Brook outsources Bath and Tennis Club banquets
Oak Brook officials are expecting a huge financial turnaround for the villageowned Bath and Tennis Club banquet facility, after contracting with an outside vendor to handle catering there.
The village has had an average loss of more than $200,000 annually with that operation, but anticipates a $500,000 turnaround after signing a contract with Chic Chef Catering to handle all of the catering at the Bath and Tennis Club, which is booked often for weddings and other events.
“With the Dec. 12 approval of Chic Chef Catering as operator and caterer for the facility, we are presently projecting that the village will reverse that $200,000 loss, turning it into at least a $300,000 annual profit, a half-million dollar per year turn around,” Village Manager Greg Summers said. “In addition, Chic Chef Catering will also pay a base rent, utilities, and collect sales tax locally for all of their catering, whether on site or off-site.”
In a November 2022 advisory referendum, 68% of Oak Brook voters did not support the village to continue subsidizing the Bath and Tennis Club banquet operation.
“Voters sent a message to the village,” Summers said. “The village took that charge seriously and set about redefining the business model, finding a way to continue the tradition of the Bath and Tennis Club, while also ensuring a profitable operation with no costs to the village.”
Longtime Village Board member Michael Manzo supported the contract in a 5-1 vote, saying, “I want to be out of the catering business. I would rather be a landlord.”
But fellow board member Jim Nagle had some strong words before casting the only vote against approving the contract with Chic Chef Catering.
“It’s irrelevant that we had ridiculous deals before,” he said. “With this deal, if you look at what the deals are going in Oak Brook now for real estate, even with leasehold deals, even after they invest $4 million, like over at Hines (Oak Brook Commons) and over at the mall (Oakbrook Center), they’re still paying $400,000 a year in ground lease.
“Everyone’s coming in here because it’s Oak Brook, and they’re putting money up, not for a stove or an oven. We’re giving them a prime piece of real estate. I think we can do a lot better. To show the commitment, whoever it is, should have the skin in the game — I’m not saying they have to come and put in $4 million. But just because we had a bad deal before, doesn’t mean this is a good deal. And this is not a good deal. This is a horrible deal.”
Manzo responded to Nagle’s comments by saying while some other restaurants in Oak Brook may have had a large initial expenditure before opening, those same businesses are paying no more than 8 % a year their costs to lease space.
“This is 15% — double that,” he said. I think (Chic Chef Catering’s) paying it through the years. Over the years we’ll be getting an adequate amount of money.”
While the new contract with an outside caterer is what is expected to be a very successful move for the village, financially, a contract also was signed with an outside company, FigBoz LLC, for operating of the food and beverage service at the Bath and Tennis Club’s Poolside Cafe and the Golf Club grill.
Summer said those entities, as operated by the village, were profitable, generating about $74,000 annually after all expenses and management costs.
“But that number would have eroded in 2024 with the addition of the new Illinois Paid Leave for all Workers Act, which would have additional costs for every employee that was retained for the seasonal staffing of the operation,” Summers said. “Under the contract with FigBoz LLC, our projections show that the village will collect at least 50% more revenue between monthly rent and a share of profits, without having to retain our own seasonal staff and carry the overhead associated with that staffing.”
The contract with FigBozz LLC received support from five of the six board members. Naveen Jain was the exception, questioning the length of the five-year contract and abstaining during the vote. Jain didn’t have a problem with contracting with an outside company for the food and beverage service, but was in favor of a shorter deal.
Summer said the contract includes sales requirements that allow for the village to cut the deal short if not met.