Restaurants to mitigate health care costs by cutting hours

Restaurant News ^ | 10/17/2012 | Erin Dostal

[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 we’re 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 bull’s 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 don’t 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.

[JCBreckenridge]

Unexpected./sarc

[familyop]

Maybe they’ll cut food costs, too. *Ruff!* *Ney* *Whinny* *Meow*

[ridesthemiles]

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???

[ridesthemiles]

Or 4 days a week- 6 hours a day.

[MrB]

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”.
Got it?