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Denny's CEO backs off Obamacare surcharge

DENNYS111612_optBY BOB HOLT
NEWJERSEYNEWSROOM.COM

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.”

 
Comments (3)
3 Tuesday, 20 November 2012 16:46
mjc
well, I guess i wont go to Olive Garden or red lobster anymore. How would you feel if your mother worked there and had no health care. Then she gets sick and dies because she has no health care . To bad for your family and your idiotic morals.
2 Saturday, 17 November 2012 13:08
lnj4a
John Metz is only saying what every other business is going to do.
B4 you demonize him know this for sure.
Every business is going to up their prices BECAUSE IT IS INEVITABLE!
They just are not going to be so bold as to say why.
Because there is now more takers than givers in our great country, and people have the love of socialism more than the love of freedom, prices for everything will go up even as your wages are going down.
HHHMM guess you all didn't understand the benefits of capitalism.
Jeremiah 6:13~ “For from the least of them even to the greatest of them,
Everyone is greedy for gain.
It is not only the rich that are being greedy for gain. Recently the greedy ones are those who have a entitlement mentality thinking that the Government is a magical, money tree.
The Government is you and I, for the people and by the people.
What you thought was going to be something given to you for free, is going to cost so much more in the end.
Obama had better put his charitalble giving up against John Metz.
Obama only gave 1% of his income. If he cares so much about the uninsured and poor he had better start shelling out some of his own dough. Put up or .... .. and sit down.
1 Saturday, 17 November 2012 12:35
Bill Daly
And the Republicans wonder why there is a disconnect with the electorate. Keep your surcharge, vut your employees hours, and go out of business. We need business people that can evolve and you are NOT that.

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