Wintery Knight

…integrating Christian faith and knowledge in the public square

Obamacare in action: Denny’s to charge 5% surcharge and cut employee hours

Story here from the UK Daily Mail.

Excerpt:

President Obama’s election victory ensured his Affordable Care Act would remain the centerpiece of his first term in power – but that has left some business owners baulking at the extra cost Obamcare will bring.

Florida based restaurant boss John Metz, who runs approximately 40 Denny’s and owns the Hurricane Grill & Wings franchise has decided to offset that by adding a five percent surcharge to customers’ bills and will reduce his employees’ hours.

With Obamacare due to be fully implemented in January 2014, Metz has justified his move by claiming it is ‘the only alternative. I’ve got to pass on the cost to the customer.’

The fast-food business owner is set to hold meetings at his restaurants in December where he will tell employees, ‘that because of Obamacare, we are going to be cutting front-of-the-house employees to under 30 hours, effective immediately.’

I think it’s a terrible thing. It’s ridiculous that the maximum hours we can give people is 28 hours a week instead of 40,’ said Metz to the Huffington Post.

‘It’s going to force my employees to go out and get a second job.’

Obamacare requires businesses or franchises with more than 50 workers must offer an approved insurance plan or pay a penalty of $2,000 for each full-time worker over 30 workers.

The program mandates that only employees working more than 30 hours a week are covered under their employers health insurance plan, chains like Olive Garden and Red Lobster are already considering reduced worker hours.

‘Obviously, I’d love to cover all our employees under that insurance,’ said Metz.

‘But to pay $5,000 per employee would cost us $175,000 per restaurant and unfortunately, most of our restaurants don’t make $175,000 a year. I can’t afford it.’

Claiming that he is not anti-insurance Metz has said that he understands the problems this will cause for his employees.

Several other restaurants including Papa John’s, Apple Metro and Jimmy John’s have announced plans to skirt Obamacare by reducing employees hours to make them part-time.

[...]Earlier this week Papa John’s CEO John Schnatter told shareholders in a conference call this week that Obamacare would cost the company 11 to 14 cents per pizza, a cost that would be passed on to customers.

My hope is that many of the people who voted for Obama will face these higher prices. But they are probably too stupid to connect cause to effect. After all, you don’t learn about economics by watching “Dancing with the Stars” and MTV. My big fear is that after Obama inflates the gas prices with his energy regulations carbon taxes, the insurance prices with his regulations and taxes, and so on, that the people will turn against business and demand communism. I pray that it doesn’t go that far, but many Americans are so bad at understanding economics these days.

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Papa John pizza CEO: cuts to employee hours likely, because of Obamacare

Fox News reports. (H/T Dad)

Excerpt:

The CEO of popular pizza chain Papa John’s says his employees may face reduced hours and he expects his business costs to rise because President Obama’s re-election most likely insures the president’s health care reform law will be implemented in full.

NaplesNews.com reports John Schnatter made the remarks to a small group at Edison State College’s Collier County campus the day after the election.

Schnatter, who supported Mitt Romney in the election, said all Americans having health insurance under ObamaCare is a good, but estimates the change will cost Papa John’s $5 million to $8 million annually.

Schnatter estimated that these rising costs could adversely affect his workers. Since only full-time employees working 30 hours or more must be covered under the new law, he said he expects franchise owners will be forced to cut employees’ hours because they can’t afford the costs of health insurance plans.

“That’s probably what’s going to happen,” he said according to NaplesNews.com. “It’s common sense. That’s what I call lose-lose.”

The comments were not Schnatter’s first statements on ObamaCare. He made headlines in August for telling shareholders the law may lead to increases in the price of his pizza.

In addition, the Applebee’s family restaurant chain is under public attack, including the threat of boycotts after New York-area franchisee Zane Tankel told Fox Business Network that cost increases related to implementing ObamaCare might result in no expansion or additional hiring. Critics appear to have interpreted Tankel’s comments to mean he will layoff customers as a result of ObamaCare.

It’s too bad that Obama’s policies will hurt people who want to work for a living, but it’s a hard lesson that we all need to learn: socialism means that we have higher unemployment, less take home pay, lower quality goods, and higher prices. It means having less prosperity and less liberty. And we voted for it.

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