Denny’s says they are always open, and their menu prices will still remain the same after all—at least for now.
Due to added expenses anticipated when the Affordable Care Act is implemented in 2014, John Metz, the owner of about 40 Denny’s franchises, had planned to add a 5 percent surcharge to his customers' bills.
Metz said the surcharge would not be added and had merely been speculation, but his employees would be limited to a maximum of 28 hours starting in the first quarter of 2013. ABC News reports that the Affordable Care Act states that employers who employ over 50 full-time workers but do not offer health insurance will be penalized for every worker they have above 30 full-time employees.
Metz had said, according to Mail Online, “I've got to pass on the cost to the customer.”
Other restaurant chains seem to be expecting problems from the new law. Zane Tankel, CEO of about 40 Applebee’s franchises, said the plan would cost millions of dollars across his restaurant chain. “So what does that say -- we won't build more restaurants. We won't hire more people," Tankel said, according to The Huffington Post.
The owners of Olive Garden and Red Lobster planned to increase its numbers of part-time workers to get around the plan, while Jimmy John Liautaud, founder of Jimmy John's Gourmet Sandwiches restaurants, said he is considering cutting his workers' hours. Papa John's Pizza boss John Schnatter said this week that he would be raising pizza prices as a result of the health care plan.
“It’s a great concept,” Metz said , according to Fox News, about the Affordable Care Act. “The problem is, who is going to pay for it and how are we going to accomplish this?”
“I have a choice,” he added, “Try to live within the rules, or go out of business.”