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By: Hal C Clarke
In a surprising turn of events, the iconic Palm steakhouse in East Hampton, a celebrity-favorite spot frequented by stars like Jon Bon Jovi, Jerry Seinfeld, and Gwyneth Paltrow, announced on New Year’s Day that it would be laying off most of its staff. More than three dozen employees were informed at a hastily arranged meeting just a day after the restaurant’s bustling New Year’s Eve celebration.
The NY Post initially reported about the happenings in the Hamptons.
The employees, left stunned and in tears, received letters signed by Scott Crain, the Senior Vice President and COO of The Palm, stating that the restaurant would operate on a reduced menu and schedule for a temporary closure starting immediately. The reason cited for this abrupt decision was the need for construction work on the kitchen, part of a planned $5 million renovation at the landmark Huntting Inn, the restaurant’s location since 1980.
The letter advised the affected staff to seek unemployment insurance until The Palm reopens on March 15, with a promise of a $500 bonus for those who return. The laid-off workers were also assured that they would continue to receive their wages during the temporary shutdown. The spokesperson, however, did not disclose when the employees were informed of these changes.
The unexpected layoffs led to emotional scenes at the meeting, with workers expressing concerns about their financial stability, especially during the winter season when East Hampton tends to be quieter. Lawyer Edmond Chakmakian, contacted by upset workers considering legal action, criticized the restaurant for using them during the holiday season and then dismissing them.
The Palm plans to keep a skeleton crew of around 10 employees, along with managers, during the closure. The spokesperson mentioned that the restaurant would reopen its bar with a limited menu during this period. The Huntting Inn, a building dating back to 1699, is in need of significant repairs, contributing to the decision for a comprehensive renovation.
The Palm’s history in recent years involves a bankruptcy in 2020, resolved by Texas billionaire Tilman Fertitta’s acquisition of the chain for around $45 million just days before the pandemic. Fertitta’s hospitality group Landry’s also owns other renowned establishments like Del Frisco’s, Morton’s, and Mastro’s.
While The Palm faced challenges, including the closure of its Beverly Hills outpost in 2020, the recent layoff announcement in East Hampton has brought to light the struggles faced by iconic establishments amid changes in ownership and management. The unexpected closure and renovation add a layer of uncertainty for both the affected employees and the restaurant’s future in the Hamptons.
In the broader context, this incident raises questions about the delicate balance between preserving the heritage and culture of iconic establishments and the practical considerations faced by new owners in navigating economic challenges and adapting to evolving consumer preferences. The fate of The Palm in East Hampton serves as a microcosm of the challenges faced by the hospitality industry as it grapples with changing times.
