Update: Fertitta to maintain employee benefits at posh Post Oak Hotel

Mastro's Restaurant near the Galleria in Houston TX Mastro's Restaurant near the Galleria in Houston TX Photo: Jamaal Ellis | J.vince Photography, For The Chronicle Photo: Jamaal Ellis | J.vince Photography, For The Chronicle Image 1 of / 12 Caption Close Update: Fertitta to maintain employee benefits at posh Post Oak Hotel 1 / 12 Back to Gallery

After employees of Tilman Fertitta's Post Oak Hotel were notified this week that their benefits would be cut as restaurants have had to shut down and dining room operations ceased, a company official said Wednesday that employees will actually keep those benefits.

Kelly Roberts, chief administration officer of Landry’s -- Fertitta's hospitality company -- said no hourly or salaried employees have lost their jobs at the Post Oak Hotel, at 1600 West Loop South.

Hourly employees whose work has been cut will be eligible to use their vacation pay, Roberts said in a statement. The Post Oak will maintain and pay and benefits for all employees currently enrolled in its health plan until normal hours resume, or until June 30, 2020.

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Fertitta and others in the hospitality industry are struggling to cope with dining rooms closures, lost conference bookings and room cancellations as the country stays home to prevent the spread of the coronavirus.

On Monday, county officials ordered bars and nightclubs closed for 15 days. Restaurants would be limited to take-out, delivery and drive-thru service.

Fertitta, a Galveston native who owns the Houston Rockets and a global restaurant empire, told CNBC's "Power Lunch" early this month that his business was off $1 million a day from a base of $12 million a day in restaurant sales.

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"But remember, that last million in sales is your most profitable," he said on CNBC, which airs his reality show "Billion Dollar Buyer." "That's where your heavy profit is, so if you don't cut expenses than what can you cut? We're not going to cut the quality of the product. You can only cut labor."

This story has been edited to reflect new information from the company.