Denny’s to charge 5% ‘Obamacare surcharge’ and cut employee hours to deal with cost of legislation

DailyMail.co.uk – Cross-posted at True Health Is True Wealth:

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.’

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

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.’

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

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

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.’

Obamacare supporters and protesters gather in front of the U.S. Supreme Court to find out the ruling on the Affordable Health Act June 28, 2012 - the Court upheld the controversial legislation

Obamacare supporters and protesters gather in front of the U.S. Supreme Court to find out the ruling on the Affordable Health Act June 28, 2012 – the Court upheld the controversial legislation

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.

Indeed, Metz is adding the surcharge because he believes that eventually firms will be fined for not covering staff who complete over 30-hours in a week,

In November, a poll for Kaiser Health Tracking found that 43 percent of the United States had a favorable opinion of Obamcare, while 39-percent had an unfavorable one.

‘Instead of indirectly charging customers by raising prices, he is directly charging and making a political statement,’ said Paul Fronstin, director of the health research program at the Employee Benefit Research Institute in Washington.

Here to stay: President Barack Obama's landmark health care legislation has been cemented into law by his re-election

Here to stay: President Barack Obama’s landmark health care legislation has been cemented into law by his re-election

‘Potentially 43 percent of this person’s customers may find the explicit charge a turnoff, and vote with their feet and their money and choose not to eat there.’

Despite this, Metz has admitted he is willing to take the heat should the decision backfire on him.

‘We’re trying to get more restaurant operators rallied around the concept of adding a 5 percent surcharge to their bill to cover the costs of Obamacare as opposed to raising prices,’ he said.

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.

Related:

Finally giving in: John Boehner says ‘Obamacare is the law of the land’ and he won’t fight it

Calls to boycott Applebee’s after CEO threatens hiring freeze and layoffs over Obamacare

How Many Businesses Have Announced Closings or Lay-Offs Since Obama Won A Second Term?

Now, How Do We Get Rid Of Obamacare? Nullify It!

About Ask Marion

I am a babyboomer and empty nester who savors every moment of my past and believes that it is the responsibility of each of us in my generation and Americans in general to make sure that America is as good or even a better place for future generations as it was for us. So far... we haven't done very well!! Favorite Quotes: "The first 50 years are to build and acquire; the second 50 are to leave your legacy"; "Do something that scares you every day!"; "The journey in between what you once were and who you are becoming is where the dance of life really takes place". At age 62 I find myself fighting inoperable uterine Cancer and thanks to the man upstairs and the prayers from so many people including many of my readers from AskMarion and JustOneMorePet... I'm beating it. After losing our business because of the economy and factors related to the re-election of President Obama in 2012 followed by 16-mos of job hunting, my architect-trained husband is working as a trucker and has only been home approximately 5-days a month since I was diagnosed, which has made everything more difficult and often lonely... plus funds are tight. Our family medical deductible is 12K per year for two of us; thank you ObamaCare. But thanks to donations from so many of you, we are making ends meet as I go through treatment while taking care of my father-in-law who is suffering from late stage Alzheimer's and my mother-in-law who suffers from RA and onset dementia as well as hearing loss, for which there are no caretaker funds, as I continue the fight here online to inform and help restore our amazing country. And finally I need to thank a core group of family, friends, and readers... all at a distance, who check in with me regularly. Plus, I must thank my furkids who have not left my side through this fight. You can see them at JustOneMorePet.
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8 Responses to Denny’s to charge 5% ‘Obamacare surcharge’ and cut employee hours to deal with cost of legislation

  1. Jan says:

    I don’t really care about Denny’s or Lowe’s or Walmart any of the chain stores, I have bought all I need years ago and don’t need to shop there then..We don’t have a Denny’s anyway here where i live….I do like their menu but nowadays most of them cook with GMO Canola oil and have GMO’d foods….which will just ruin our health anyway…so who needs them….Restruants are probably still paying the waittress’s $2.50 hr anyway and expect their patron’s to tip them …..now plus this 5% tax…as far as I am concerned let them all go bankrupt and jobless…..companies used to pay our medical insurance all of my work life. And now the doctors want us to pay Obamacare so they can get bailed out for their practicing toxic medications that are killing us anyways and vaccines for our children which provide no immunity…..the Health care system is really a Disease Care for Profit! It has nothing to do with healthy nutritional supplements and healthy farming or healthy American made non GMO’d foods ……it just a way to pacifiy the citizens into thinking they are getting something “good” for the money…when it will all cause death in the long run. death to all jobs , death to all poor and unworking……if people continue to depend upon government to toxify them with their toxic drugs and barbaric surgeries and barbaric vaccines and foods loaded with chemicals they are drinking and eating their way into a death camp

    • Jan says:

      “MY GRANDSON was VACCINATED WITH MMR AND FLU shots AT ONCE, HE IS IN THE HOSPITAL WITH A HORRID SKIN RASH COVERED FROM HEAD TO TOE. HE HAS TESTED POSITIVE FOR MEASLES, MONO, EPSTEIN BARR, AND ONE OTHER I CAN’T REMEMBER. IT IS HORRID, I HAVE PHOTOS! HE IS 1 YEAR OLD AND IN QUARANTINE. IT MAKES ME SICK TO MY STOMACH! I hope he has a chance!!! Dr’s are stumped. dahhh!”

      Young mothers think twice!!!!and if we didn’t have Federal control of the education, these mothers would not get into trouble for not vaccinating their child….Having had all of the Childhood diseases, I have natural immunity , which is the only way the child can get natural immunity as this article states…I wish all mothers would realize this and stop their child’s health damage from vaccines…..this article is very good at comparing the difference between natural immunity and that vaccines do not provide immunity at all…..
      Elaine Dietrich-Nichols For those that are not aware… vaccination is NOT immunization!! There is only one kind of immunity and that is natural immunity which is achieved by battling the infectious diseases itself. Vaccination is merely the artificial triggering of temporary responses to manmade pathogens. Vaccines are both harmful and dangerous and are leading to generations of humans with no natural defenses to disease.

      Vaccines do not provide long-term immunity; only temporary at best. In vaccines, an antigen is injected into the body to produce a reaction and the immune system responds in the form of antibodies, but antibody presence does not confer immunity. People still catch the diseases that they are vaccinated against. Vaccines actually skip the normal immune responses to activate killer cells which can trigger an overproduction of cytokines in response to the toxic vaccine adjuvants and can damage tissues and organs and even stop the heart and block air pathways.

      Vaccines should never be called immunizations because that is a misnomer. Immunity and vaccinations are two different subjects altogether. In fact, breast milk is so potent with immune energizing effects in the infant that researchers at the CDC recommend women withhold breastfeeding their children in order to boost the “effectiveness” of childhood vaccines. The paper claims that women should stop breastfeeding long enough for the man-made poison to work on artificial/temporary “immunity.” Learn more: http://www.naturalnews.com/035871_vaccination_immunization_myths.html#ixzz2CRmhYdlGhttp://www.naturalnews.com/035871_vaccination_immunization_myths.html

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