Conservative Hideout 2.0 Rotating Header Image

ObamaCare Damage: Denny’s Franchisee Adds 5% Surcharge, Cuts Employee Hours

Share

One of the ObamaCare damage scenarios that we have been describing since the law passed was that employees hours would likely be cut to be under 30 hours a week, to escape going out of business.  And, just as predicted, that very scenario is unfolding at 40 Denny’s Restaurants in Florida.  The Daily Mail has more…

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.’

A Florida restaurant owner who runs 40 franchises of the Denny’s restaurant chain has threatened to add a five percent surcharge to customers bills in an effort to combat Obamacare

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.’

John Metz also owns Hurricane Grill & Wings which has 48 franchises around the country and falls under the umbrella of his firm RREMC Restaurants

‘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.’

Note that if he paid the tax, many of his restaurants would have to close.  ObamaCare would cost them more money than they make.  Since the MSM will not report this, the blogosphere will.

And, for you Obama voters, who voted for this to happen, elections have consequences!

Share
  • http://www.ldjackson.net LD Jackson

    It is extremely unfortunate that this is happening, but not altogether unforeseen. Who knows how many more such news items we will see as Obamacare is implemented across the country.

  • http://americaswatchtower.com Steve Dennis

    Yes elections do have consequences and we are beginning to see them already. THis was something many of us predicted and now sadly we are seeing it come to pass. Perhaps if people actually see an Obamacare surcharge on their bill they will realize that free insurance isn’t as free as they thought it was.