Will the restaurant business survive a second Obama term? Can it? Since the president’s reelection earlier this month, four large restaurant chains,Papa Johns, Applebee’s, Denny’s andDarden Restaurants (the company that owns the Olive Garden, Red Lobster, and LongHorn Steakhouse chains) have all recently released statements about their companies’ plans to respond to the increased costs of complying with Obamacare regulations. According to the healthcare law, every full-time employee must be provided with comprehensive medical coverage if the company employs more than 50 full-time workers. If a company refuses to comply, they will be faced with fines of $2,000 per year, per employee, as of January 1, 2014.
The announcements from companies grappling with the increased costs of Obamacare have, expectedly, been met with disbelief and consternation by the left, still seemingly unaware of basic economics. Appearing on Fox News Business early last week, Applebee’s CEO Zane Tankel explained the steps his business would have to take in order to stay in operation:
About time people starting their obama vote.
ReplyDeleteThis is just the beginning. There will be many restaurants that will open at 10:00 am and close at 8:00 pm. Many full time employees will become part time and then they will be approved for food stamps. America now has over 47 million people on food stamps and many of them are not citizens. With Obamacare there will be another 10 million on the program. It is his plan to Socialize America.
ReplyDeleteUh yeah, God forbid we stop letting employers work the hell out of people and price the insurance so high it's unaffordable. If you truly believe that any of these restaurants will suffer because they will actually have to pay people their fair due your out of your minds. I own a business and while yes, it sucks to pay for health care and other benefits, it's what's right. And guess what at the end of the year we still have a six figure profit. Don't fall for the hype. I'm not a Obama fan at all, but this isn't as horrible as the big boys would have you believe. Just like taxes, there is always a loophole. There is a thing called the real cost of doing business.
ReplyDeleteI see this as an opportunity for the mom and pop restaurants (who were pushed out of business by the big chains) to make a come back.
ReplyDeleteI guess the employee's of these fine establishments making minumun wage should be forced to pay out of pocket the several thousand for insurance. Let's do the math $7.25 hr x40 hrs=$300 Wk before taxes minus $125. wk for family insurance policy, rent, electric, food, Hmmm I'm backwards and working full time. If the companies don't pay for the insurance we all do with our premiums. Pick your poisen.
ReplyDeletefirst of all I never understood the concept of even why employers offer health care insurance. An employers only requirement should be they pay you after you work. Anything else is a perk.
ReplyDeleteThis idea of employers going to all part time workers is an example of a bill that wasn't thought out properly. It was rushed through with no thought of the ramifications it will cause. Businesses are in the business to make money-period. Had prudent people worked this healthcare bill that would have been foremost in the writing of it.
Like everything else Obama's dreamed up this too will turn into a first class fiasco.
all the people here opining that restaurants should just roll over and provide health insurance for all employees have probably never owned one and would also be the first to whine about the significantly increased menu prices that would necessarily result .
ReplyDeleteThe job market for restaurant jobs was already tough. True family run restaurants are becoming a thing of the past. Be nice to see Mom and Pop restaurants make a comeback and stick a fork in the franchises.
ReplyDeleteThe only thing I expect from a job is a living wage, health insurance is a perk.
When I did have insurance a couple of my medications were $20 co-pay, now that I don't have insurance and pay cash they are less than $15 each. Something is also wrong with that picture especially since I had been paying the bulk of my healthcare myself.
10:44-Agreed.good point.I wonder if the restaurants that were slated to come to our area (pre election)are still coming.I don't want to mention names,but there are several,indicated by roadside signs.A couple have started or completed their buildings and at least one is moving into an existing bldg.
ReplyDeleteTo 7:29,
ReplyDeleteI wholeheartedly agree! I run a business, and have employees. It's construction, because that is what I'm good at. I am NOT an insurance broker, have no idea what insurance needs my employees' need, and I'm pretty sure that whatever plan I would pick to suit my needs or the majority of my workers would certainly fall short for other employees! Why on earth would anyone in this whole wide world think that I know how to pick an insurance policy for you? I do construction! Want something built? Want a renovation? I'm your guy! Want insurance? Go to the GD INSURANCE COMPANY!!!!!!! They don't do construction. Want to know WHY?
BECAUSE THEY ARE NO GOOD AT IT!
I'll quit now before my head explodes....
I read somewhere that employers started offering health care insurance many years ago to offset the somewhat low wages they were able to pay. At the time, the health insurance was not exorbitantly priced, but was a nice perk. Unfortunately, prices have changed. It is a nice perk, but not affordable for the employer anymore.
ReplyDelete