The atmosphere was buzzing inside one of the two newest offerings from Atlas Restaurant Group late Thursday morning.

Staff members moved around, wiped down surfaces and prepared to greet customers and begin service at Armada, a cantina featuring tacos, Tex-Mex and plenty of tequila.

Armada is one of two new Atlas restaurants that opened Thursday in the Annapolis Waterfront Hotel, prime waterfront real estate. The other is Marmo, an upscale Italian chophouse featuring fresh pasta and steaks.

The openings bring Atlas Restaurant Group’s footprint in Annapolis to five restaurants, four of which sit on the waterfront in the heart of the historic downtown.

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It’s the latest example of the group’s impressive growth. Starting with a deli in Baltimore’s Harbor East, Atlas has dominated the real estate in that neighborhood with upscale restaurants, taken ownership stakes in beloved haunts in Baltimore and Baltimore County, and expanded into other states such as Delaware and Texas.

Marmo and Armada were celebrated ahead of the official openings last week with a ribbon cutting attended by Mayor Jared Littmann, County Executive Steuart Pittman and Rep. Sarah Elfreth, who represents Annapolis in Congress.

Atlas first came to Annapolis in 2022, when it opened The Choptank right on the water. Then in 2023, Atlas announced it was taking over the hotel space, replacing Pusser’s Caribbean Grille.

At the beginning of this year, Atlas purchased a majority stake in the Boatyard, an Eastport staple covered in nautical decor and bright colors. Dick Franyo, the longtime owner, was ready to retire.

Shortly after, the restaurant group opened The Admiral’s Cup, a full-service bar concept imported from Baltimore, at the corner of Dock and Randall streets.

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Though Atlas has expanded to more than 50 properties nationwide and says it employs around 3,000 people, it’s not universally beloved.

The group attracted controversy in Baltimore in 2020 over a series of reported racial incidents and policies, including accusations that dress codes were unfairly enforced on Black customers. In 2024, a federal judge dismissed a racial discrimination suit brought against Atlas over one such incident involving a Black child reportedly being denied entry to Ouzo Bay in Harbor East.

A classic margarita sits next to a bowl of red rice and beans and a vegetable enchilada at Armada’s bar. (Cody Boteler/The Banner)

The conservative political tastes of David Smith, a partner in some Atlas restaurants, have also been cited by some as a reason to avoid Atlas restaurants. Smith, executive chairman of Sinclair Broadcast Group and owner of The Baltimore Sun, is the uncle of Alex Smith, president and CEO of Atlas Restaurant Group.

Atlas did not respond to a request for comment Thursday.

As the restaurant group has quickly grown its footprint in Maryland’s capital, some heated debate and small-town drama have followed.

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Rachel Gontkovic, a real estate agent, said she had a feeling that talking about Atlas on social media would get people engaged. She saw lots of discussion when she talked about construction at City Dock earlier in the year.

Gontkovic said she posted a video about the opening of Marmo and Armada in part to “see how the town feels about it” and give people a place to discuss.

Her Instagram post garnered more than 500 comments. Some commenters celebrated Atlas for bringing jobs to the city and occupying otherwise empty storefronts. Others were more skeptical, saying Annapolis was getting along just fine with its local offerings.

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One commenter, a small business called DJ Raptor, said they would “gladly” hear from a local business able to open a restaurant downtown.

They wrote that it’s “becoming harder for the smaller ones to survive with rising operating costs.”

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Another commenter, identified in their profile as Jason Howell, said Atlas has a great building with a great atmosphere at The Choptank, but said the food is “overpriced and mediocre at best.”

“I am a big fan,” someone identified in their profile as John Reith wrote. Reith said Atlas is “great for Annapolis.”

Armada offers a view of Annapolis’ waterfront. (Cody Boteler/The Banner)

Another small business, Graze by the Bay Cheese & Charcuterie, wondered whether there would be more opportunities for local chefs and others in the industry.

“We have so much local talent with creativity, passion, and authentic stories to share through food,” they wrote. “I would love to see more opportunities for homegrown concepts to grow and become part of the fabric of our town.”

Gontkovic said she had no problems with Atlas, especially if it’s providing good food and service.

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“But at the same time, I also don’t want small, local businesses who are our friends and family who live here being pushed out,” she said.

Annapolis Alderman Harry Huntley, a Democrat who represents the historic downtown, declined to comment directly on Atlas Restaurant Group.

Big businesses and corporations benefit from how difficult it can be to open a store or restaurant in Annapolis, Huntley said.

“I think we would all like to see more small businesses open downtown,” he said.