Skip to comments.Restaurants to mitigate health care costs by cutting hours
Posted on 11/05/2012 6:03:35 PM PST by tobyhill
In light of the passage of the Patient Protection and Affordable Care Act, restaurant companies and franchisees are looking into ways to lower costs to save money, including cutting employee hours.
What were seeing is that this health care law puts unique challenges on chain restaurants, said Rob Green, executive director of the National Council of Chain Restaurants. The law will have cost implications on a lot of different business sectors, but restaurants and retail are in the bulls eye.
Specifically, two parts of the PPACA may raise costs for restaurant chains: The definition of full-time employees as those who work 30 or more hours per week, rather than the traditional 37-40 hours per week, and the fact that the law applies to any business with more than 50 employees a number some say will discourage franchise growth.
These are going to be costs, and companies have to figure out how to manage them the options are limited, Green said. Many restaurant companies dont know exactly how the health care law will impact them, he added, so this early analysis may be crucial.
Orlando-based Darden Restaurants Inc., which operates more than 2,000 restaurants under the Olive Garden, Red Lobster, LongHorn Steakhouse and other brands, is currently testing limiting some employees to 29.5-hour work weeks in some markets.
(Excerpt) Read more at nrn.com ...
Maybe they’ll cut food costs, too. *Ruff!* *Ney* *Whinny* *Meow*
Work them 5 days a week, only 5 hours a day.
How long before the Unions try to claim that anything over 30 hours is OVERTIME???
Or 4 days a week- 6 hours a day.
Leftists get really confused, and ANGRY, when people act in ways to avoid the left’s stupid policies.
We’re not chess pieces, and you’re not our “overlords”.