John Metz, A Denny’s franchisee in FLA joins ranks of executives cutting hours to skirt Obamacare
From the Huffington Post:
While some business owners threaten to cut workers’ hours to avoid paying for their health care, a West Palm Beach, Fla., restaurant owner is going even further. John Metz said he will add a 5 percent surcharge to customers’ bills to offset what he said are the increased costs of Obamacare, along with reducing his employees’ hours.
“If I leave the prices the same, but say on the menu that there is a 5 percent surcharge for Obamacare, customers have two choices. They can either pay it and tip 15 or 20 percent, or if they really feel so inclined, they can reduce the amount of tip they give to the server, who is the primary beneficiary of Obamacare,” Metz told The Huffington Post. “Although it may sound terrible that I’m doing this, it’s the only alternative. I’ve got to pass the cost on to the consumer.”
Metz is the franchisor of Hurricane Grill & Wings, which has 48 locations, five of which are corporate owned, and president and owner of RREMC Restaurants, which runs approximately 40 Denny’s and several Dairy Queen locations. He planned to use the 5 percent surcharge tactic in all his restaurants starting in January 2014, when Obamacare is fully implemented.
Like John Schnatter of Papa John’s, Metz claims he can’t afford to provide all of his full time employees with insurance:
Despite the one-two hit his employees might take with possibly fewer hours and lower tips, Metz said he is not anti-insurance. His current coverage for full-time employees costs him $5,000 to $6,000 annually, he said. “Obviously, I’d love to cover all our employees under that insurance,” he said, “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.”
Of course…Obamacare is going to break your back. I believe you…NOT!
From Think Progress:
While Metz makes it sound like that requirement spells the end of business as usual, he might be pleasantly surprised by the positive effects of choosing to provide employer-based health care. Studies have shown that Obamacare will ultimately decrease health care costs for small businesses. On top of that, providing insurance coverage generally leads to higher retention rates, more satisfied employees, and a more competitive hiring market.