The East Hampton steakhouse, The Palm at the Huntting Inn, unexpectedly laid off the majority of its staff on New Year’s Day. Thirty-nine employees attended a meeting at the restaurant, where they were given letters signed by the Senior Vice President and COO of The Palm, Scott Crain, which informed them of the news and encouraged them to seek unemployment insurance.
The Palm, an eatery enjoyed by celebrities such as Jon Bon Jovi, Jerry Seinfeld, and Gwyneth Paltrow, is part of Landry’s hospitality group, which is owned by Texas billionaire Tilman Fertitta. The Palm’s plans to renovate its kitchen between busy seasons are driving the shutdown.
“As you are aware, we will be operating the restaurant on a reduced menu and schedule at The Palm at Huntting Inn location effective today so we can begin construction work on the kitchen,” read the letter signed by Crain. “Although we hoped to remain open for regular operations during the renovation, we have determined that doing so may delay construction so that it could extend into our busy season. Therefore, we believe that this partial closure is the best decision to permit construction to be completed promptly and return employees to work.”
The letter went on to state that The Palm is planned to reopen on March 15 and that employees who choose to return will be eligible for a $500 bonus.
Lawyer Edmond Chakmakian, who had been contacted by The Palm’s employees about possible legal action, said in a statement published by the New York Post, “They obviously knew at Christmas they would be closing. They could have given people ten days’ notice, but they would have faced an exodus. So they used them for the holiday season and tossed them aside. It’s not cool.” Chakmakian went on to say, “People were crying at the meeting. They have mortgages and kids. What are they supposed to do? It’s the middle of winter. East Hampton is not exactly hopping. In January, after the holidays, it’s a ghost town out there.”
The planned renovations to The Palm are part of larger plans to renovate the entirety of the acclaimed Huntting Inn, a local landmark that has been a notable Hamptons business since it opened in the 1980s. The 5-million-dollar renovation does allow for The Palm’s bar to open with a limited menu starting in mid-January. Ten employees have been retained along with managers to operate the bar on a skeleton crew.
The Palm’s chain, including the Huntting Inn, was purchased by the Landry’s hospitality group out of bankruptcy in 2020. The steakhouse chain had been in dire financial straits, partially due to disputes between the then-owner’s family members. The original Huntting Inn had not included The Palm, which was only added in a previous sale in 1980. After so many changes in management, few would contend that the Huntting Inn and The Palm are not in serious need of renovation. The Huntting Inn itself still uses the original building, which was erected in 1699.
