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  1. #1

    Fast-Food Chains Cut Worker Hours, Blame Obamacare

    By Lisa Scherzer | The Exchange – 8 hours ago

    Count Wendy’s (WEN) as the latest fast-food restaurant to respond to Obamacare with a reduction in worker hours. Following some other chains that have made headlines recently, a Wendy’s franchise owner in Omaha, Neb., told about 100 workers in the area that their hours would be cut in anticipation of mandates in the Affordable Care Act (ACA).

    According to a local TV station, the store said that employees in non-management positions will have their hours reduced to 28 a week. A spokesman blamed the cuts on the new law that, beginning in 2014, will require employers to offer health coverage to employees who log at least 30 hours a week, or pay a penalty starting at $2,000 per worker. The Wendy’s spokesman said, as a small-business owner, he can't afford to stay in operation and pay for everyone's health insurance. Under the law, any company that has more than 50 full-time workers falls under the new health insurance mandate.
    According to a report from an Oklahoma station on Monday, a Taco Bell (YUM) in Guthrie, Okla., adopted a similar policy.

    And in October, Darden Restaurants (DRI), which owns Olive Garden and Red Lobster, said it has stopped offering full-time schedules to many hourly workers in at least a few of its restaurants in an “experiment aimed at keeping down the cost of health care reform.” Soon after the company said it would back off somewhat from its plan, presumably and at least in part because of the negative reaction following the announcement.

    Higher prices to come?



    According to a recent survey from consulting company Mercer, 51% of employers who do not currently provide health coverage to employees working 30 or more hours a week indicated they’d change their workforce strategy so fewer workers will be eligible.

    More important for consumers is that many companies are likely to pass on to them the higher health-care costs associated with Obamacare. “Ultimately, consumers may see higher prices for some goods and services,” says Tracy Watts, national health care reform leader at Mercer.

    Restaurant chains tend to be fairly low-margin businesses. “They can’t really absorb the change without either taking costs out of their operations somewhere or passing costs onto consumers," says Helen Friedman, director of workforce analytics and planning practice at Towers Watson, a consulting firm. "You just don’t have a lot of options.”

    And company analysts are assuming costs will rise and thus are baking those expectations into their forecasting models. “I do expect to see overall health care costs go up for most quick-service restaurants, even though they’re looking for ways to offset the costs,” says RJ Hottovy, a Morningstar analyst who covers several casual dining chains, including McDonald’s (MCD), Darden and Yum Brands (YUM).
    “I think some of these companies are going to face a significant cost burden and I would expect to see prices to go up generally for a lot of them,” Hottovy says.

    Damaged reputation



    Last year Papa John’s (PZZA) CEO John Schnatter said he would raise pizza prices and cut employee hours because of Obamacare’s expected higher costs. According to a Politico report, Shattner said, "Our best estimate is that the Obamacare will cost 11 to 14 cents per pizza, or 15 to 20 cents per order from a corporate basis."

    Anti-Obamacare comments by Shattner and Zane Tankel, the CEO of Applebee’s franchisee Apple-Metro, put a dent in the public image of the companies, as measured by YouGov BrandIndex. (The class action lawsuit in November accusing Papa John's of sending unsolicited text messages to customers probably played a part, too.)

    When it comes to Obamacare and other such issues, it's important for companies to consider the business consequences associated with their actions. “When you’re evaluating options, some of these employers are between a rock and a hard place," says Jane Jensen, senior consulting actuary at Towers Watson. "Our clients are looking to their corporate image. The viewpoint of their potential workforce and the viewpoint of their customer base all come into play.”

    http://finance.yahoo.com/blogs/the-e...224911846.html

  2. #21
    What a great concept pay off the debts you owe already.Shrew this is an absolute great statement but unfortunately these dopes will not do that.Imagine if there were a flat tax?Ofocurse it wouild need tinkering.But that wouod prevent these corrupt politicians from getting all their kickbacks and fattening their wallets

    Quote Originally Posted by shrewsbury View Post
    I hate taxes, but they are needed.

    Any new tax that will be squandered I am against.

    Obamacare came with something crazy like 6500 earmarks that result in 8-9 billion dollars going to other things besides healthcare.

    and the earmarks are crazy!!! some of it is going to a charity????? how about paying the bill first before donating the money away.
    "Sell crazy someplace else, we're all stocked up here". Jack Nicholson
    The true hypocrite is the one who ceases to perceive his deception, the one who lies with sincerity. ~André Gide
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  3. SCC End 2017
  4. #22
    and until they do the middle class, which includes me, is going for a long walk off a short pier.

  5. #23
    Amen brother I am with you.Living check to check while others have it fall in their lap


    Quote Originally Posted by shrewsbury View Post
    and until they do the middle class, which includes me, is going for a long walk off a short pier.
    "Sell crazy someplace else, we're all stocked up here". Jack Nicholson
    The true hypocrite is the one who ceases to perceive his deception, the one who lies with sincerity. ~André Gide
    My Bucket
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  6. #24
    You could have it too. Just go to a poor inner city area with little police, terrible schools and 2-3 hour wait times for fiurefighters. Live in a one-room, fifth floor walk-up above a bowling alley and below another bowling alley with 6 other people.

    Yeah, they have it sweeeeeeeeeeeeeeeeeeeeeet.

  7. #25
    Maybe it is like that where you live but I have lived in NY and PA and let me tell you welfare gets MORE than i will ever get.The city of harrisburg PA redid over 600 homes for section 8 housing in hte last 10 years.Their homes are better than ny 130,000 townhome that I work very hard to pay for.So please dont crfy me the poor boy on the corner.It is not all like that not even 30% are like that


    Quote Originally Posted by Wickabee View Post
    You could have it too. Just go to a poor inner city area with little police, terrible schools and 2-3 hour wait times for fiurefighters. Live in a one-room, fifth floor walk-up above a bowling alley and below another bowling alley with 6 other people.

    Yeah, they have it sweeeeeeeeeeeeeeeeeeeeeet.
    "Sell crazy someplace else, we're all stocked up here". Jack Nicholson
    The true hypocrite is the one who ceases to perceive his deception, the one who lies with sincerity. ~André Gide
    My Bucket
    Hidden Content

  8. #26
    You don't need to tell me the evils of welfare. I too see it every day and yes, it's very easy to take advantage and yes changes need to be made.
    Just remember, there are people on it who need it and deserve it. Don't think you're only hurting the crooks.

  9. #27
    Never said that there is like 20% that actully need it.But most are lazy and don't want to work and keep popping out kids to keep milking the system

    Quote Originally Posted by Wickabee View Post
    You don't need to tell me the evils of welfare. I too see it every day and yes, it's very easy to take advantage and yes changes need to be made.
    Just remember, there are people on it who need it and deserve it. Don't think you're only hurting the crooks.
    "Sell crazy someplace else, we're all stocked up here". Jack Nicholson
    The true hypocrite is the one who ceases to perceive his deception, the one who lies with sincerity. ~André Gide
    My Bucket
    Hidden Content

  10. #28
    Quote Originally Posted by ajcorleone View Post
    Never said that there is like 20% that actully need it.But most are lazy and don't want to work and keep popping out kids to keep milking the system
    Just to clarify. You think 80% of people on welfare don't need it and are screwing the system?

  11. #29
    From what I see and since we are so statistical here yes.Maybe 70% but definitely way more than 50%

    Quote Originally Posted by Wickabee View Post
    Just to clarify. You think 80% of people on welfare don't need it and are screwing the system?
    "Sell crazy someplace else, we're all stocked up here". Jack Nicholson
    The true hypocrite is the one who ceases to perceive his deception, the one who lies with sincerity. ~André Gide
    My Bucket
    Hidden Content

  12. #30
    As I said before I have a relative that works for NY state in welfare fraud.I will have to get the numbers if you like and of course that is only one state but her fraud claims are more than 70% of NY city welfare folks
    "Sell crazy someplace else, we're all stocked up here". Jack Nicholson
    The true hypocrite is the one who ceases to perceive his deception, the one who lies with sincerity. ~André Gide
    My Bucket
    Hidden Content

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