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Politics : Mainstream Politics and Economics
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From: Brumar8911/8/2012 11:53:30 AM
2 Recommendations  Read Replies (1) of 85487
 
Restaurant / bar employees to suffer from Obamacare:


Restaurants are going to be among the hardest hit for several reasons.

a) Typically, the number of employees is just under or just over 50. That means they can easily become subject to the law by hiring a few, or eliminate the requirement by firing a few. A single outlet restaurant will find it attractive to pay a couple of people overtime to avoid hiring, or just cut a few a loose and get by. Or as in the case of Darden, who employs 135K, see if they can't put everyone on 30 hour schedules. Employee scheduling is already a problem; it will just be a little more complicated.

b) Restaurants expand operations not by adding employees at a location, but by adding locations. Since the law will make adding a second store cost prohibitive, it creates a huge uphill battle for chain operations like Chilis or even McDonalds to get off the ground.

I can state with certainty that there would be no McDonalds OR Chilis had this law been in effect at the time these businesses were adding their second stores. The profit margin simply wouldn't have been there.

I grew up in this business, my dad had a restaurant and four fast food joints at one point, and he would never have been able to expand beyond the restaurant and first fast food place with these laws in place.

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