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pvtjokerus
Restaurateur to impose surcharge for Obamatax........
November 16, 2012 at 6:38 AM

Florida restaurateur to impose surcharge for ObamaCare

  • dennysplit.jpg
    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.
“I have a choice: try to live within the rules, or go out of business.”
- John Metz, Florida restaurateur
“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.”


Read more: http://www.foxnews.com/us/2012/11/15/florida-restaurateur-to-impose-surcharge-for-obamacare/#ixzz2CJUY9vAH

Replies

  • pvtjokerus
    November 16, 2012 at 6:39 AM

    We will see this happen more times than not.

  • AMBG825
    by AMBG825
    November 16, 2012 at 6:54 AM

     This is not going to be the only business that will raise their prices or cut costs in other ways. ANYTIME you raise the cost of doing business it gets passed on. Either by raising prices or by cutting overhead/labor.

     

    The Obamacare bill is extremely expensive. Contrary to what many of its supporters believe, it's not free. It's not even affordable. Just because you (personally) are not footing the bill for it does not mean no one else will be. That 1.7 trillion dollars in taxes generated by this bill has to be paid for somehow.

     

    And you know what, those of you who support/ed this bill ......I told you so. We told you so. We've been telling you guys before this bill was even passed that this would happen.

  • AdellesMom
    November 16, 2012 at 7:07 AM
    So? Denny's is already extremely cheap. It'll be a couple bucks more...and? But, doesn't he have to run that buy corporate first?
  • Suzukigirl710
    November 16, 2012 at 7:09 AM

    agreed.  This will be the norm across the board. 

  • mikiemom
    November 16, 2012 at 8:21 AM
    No skin off my back, there food is nasty and I don't go to any of those places.
  • Iconoclast
    November 16, 2012 at 8:28 AM
    Lets see, so what's going on is that a restaurant with poor quality food and service is going to charge more to sell their slop although they are hanging on by a thread as it is and then what blame the President for going out of business? There is no such thing as a free lunch and there are a lot of things that we freely enjoy right now with no thoughts to the cost or who's paying, so please stop... Just stop.
  • brookiecookie87
    November 16, 2012 at 8:28 AM

    Why the heck hasn't this happened sooner?

    If there was a restaurant that advertised for an extra dollar they cover their employee's health insurance I would make a point to go there over places that try and screw over their employee's.

    I also find it comical that someone said contrary to what 'many' believe it is not 'free'. The only people who seem to be suggesting it is free is Republican/Conservatives and it's directed at Democrats/Liberals. But I don't see Democrats/Liberals ever saying that.

    It's only ever Republican/Conservatives that imply it is said. Guess that is the echo chamber effect.

  • KimmyShaw
    November 16, 2012 at 8:30 AM

    Of course, I am sure we will be seeing this much more now.

  • KimmyShaw
    November 16, 2012 at 8:33 AM

    The only people I have heard say its free are those who are waiting to benefit from it. The republicans are the ones pointing out how it will hurt the economy more.

    Quoting brookiecookie87:

    Why the heck hasn't this happened sooner?

    If there was a restaurant that advertised for an extra dollar they cover their employee's health insurance I would make a point to go there over places that try and screw over their employee's.

    I also find it comical that someone said contrary to what 'many' believe it is not 'free'. The only people who seem to be suggesting it is free is Republican/Conservatives and it's directed at Democrats/Liberals. But I don't see Democrats/Liberals ever saying that.

    It's only ever Republican/Conservatives that imply it is said. Guess that is the echo chamber effect.


  • timeforprogress
    November 16, 2012 at 8:39 AM
    The dude is a whiny douche. Don't like it, then take it up with Congress. I don't like healthcare being tied to employment either, but it is for some reason how we have decided to do it. I like whiny businessmen even less though. Especially ones who threaten to cut hours and raise prices, instead of just manning up figuring out how to cover his employees.

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