Just good old american
know how DcSubject: Florida restaurateur to impose surcharge for ObamaCare
The
“free ride” that so many people voted for last week
is coming. Net incomes will go down because of tax increases, and
prices will go up to pay for things like ObamaCare. I hope the Obama
voters are happy. This is what they voted for. They only had one
chance to change their minds, and they threw that chance away on November 6th.
Bruce
-------
“To
renew ties with the past need not always be daydreaming;
it
may be tapping old sources of strength for new tasks.”
–
Simeon Strunsky
Florida
restaurateur to impose surcharge for ObamaCare
Published
November 15, 2012 | FoxNews.com
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John
Metz, who operates roughly 40 Denny’s locations and five Hurricane Grill &
Wings franchises, told FoxNews.com intends to add a 5 percent surcharge to
customers’ bill to offset costs for ObamaCare in January 2014 when the
Affordable Care Act is fully implemented.
Get
ready to pay more for your Grand Slam.
A
Florida restaurateur who operates roughly 40 Denny’s locations and five
Hurricane Grill & Wings franchises in Florida, Virginia and Georgia intends
to add a 5 percent surcharge to customers’ bills to offset costs from ObamaCare
beginning in January 2014 when the Affordable Care Act is fully implemented.
“People
are trying to find ways to avoid the penalties and to avoid having to pay for
ObamaCare,” John Metz told FoxNews.com. “Everyone’s looking for a way to not
have to provide insurance for their employees. It’s essentially a huge tax on
all us business people.”
To
further offset the costs, Metz, who oversees roughly 1,200 employees as
president and CEO of RREMC Restaurants, LLC, said he also will slash most of
the staff's time to fewer than 30 hours per week. That change will be announced
to employees next month, he said.
“I
want to explain it to everybody, to let them know what’s coming down the pike,”
he said. “We like to keep our employees informed.”
The
changes will force some front-of-the-house employees to look for second jobs,
Metz said, but he simply cannot afford the penalties associated with ObamaCare.
[pullquote]
“It’s
a great concept,” he said. “We want to have everyone insured. The problem is,
who is going to pay for it and how are we going to accomplish this?”
Under
the current law, employers with more than 50 full-time (or equivalent) workers
will be charged a penalty for the number of employees exceeding 30 full-time
staffers who are not covered. With an average of 35 full-time employees per
location, Metz said the $2,000 penalty would total roughly $70,000 per
restaurant. Current coverage costs Metz up to $6,000 annually per full-time
employee, he said. He currently provides coverage to about 250 employees.
“It’s
going to be a big issue for all of us — for my employees and for me,” said
Metz, who has been in the industry since 1975. “The ones that are working more
than 28 hours, they’re going to act as if I’m cutting their hours and they’ll
have to find another job.”
At
Denny’s restaurants operated by Metz, the average check is $9, he said, meaning
the ObamaCare surcharge if implemented would be 45 cents on that bill. At
Hurricane Grill & Wings locations, where the average bill is $14.50, the
surcharge would total 72 cents.
Metz
said he believes the entire restaurant industry — even high-end locations —
will ultimately embrace the idea.
“That
is what I foresee and that is the easier, least painful way to deal with these
added costs,” he said. “In a true playing field, everybody will impose this,
from McDonald’s to Denny’s to even maybe the fine dining restaurants in order
to have the funds to be able to pay for either insurance or the penalty for not
providing insurance to their employees.”
Metz
also is urging his employees to consider contacting their local elected
officials in hopes of finding another solution to offset his looming increased
costs.
“It’s
never good news, but it is what it is,” Metz said of increasing customers’
checks. “We really should look for a better or different way to pay for
[ObamaCare]. I think what we’re going to ultimately see here is a European-type
system where we have a value added tax or a national sales tax.”
Metz
continued: “I have a choice: try to live within the rules, or go out of
business.”
In a
statement to FoxNews.com, the National Restaurant Association said it’s
“premature” to assess precisely how the health care law will affect individual
businesses.
“We
have warned for some time that the mechanics of the health care law are very
difficult for the restaurant industry, which is a low-margin industry that
works to keep costs down in order to provide value to customers,” said Scott
DeFife, executive vice president of policy and government affairs for the
National Restaurant Association. “All costs, from gas and commodities to labor
and insurance, eventually impact the price on the menu. It is important that
operators get very familiar with the provisions of the law and start planning
for its implementation; however, it’s premature to make a specific assessment
of exactly how the law will affect any individual business because there are so
many details that are unknown.”
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