Skip to comments.Five Guys: Obamacare will boost burger prices [job losses because of Obamacare]
Posted on 03/11/2013 9:22:40 PM PDT by grundle
The fight over Obamacare, so far held at the 30,000-foot level, is about to hit home. The latest impact hot off the grill: prices of burgers and hot dogs at Five Guys, the national chain that started in Washington, are going to rise to cover the president's mandated insurance coverage.
"Any added costs are going to have to be passed on," said Mike Ruffer, a Five Guys franchise holder with eight of the popular restaurants in the Raleigh-Durham, N.C. area. He will need all the profits from at least one of his eight outlets just to cover his estimated added $60,000-a year in new Obamacare costs.
What's more, he's iced plans to build another three restaurants until after the administration explains the exact rules and penalties employers will face. The law's plan to have those available March 1 has been pushed back to October.
"I'm kind of in a holding pattern," said Ruffer, a former Marriott executive who added that many franchise owners are in a similar situation.
Ruffer was the star witness at a Monday Heritage Foundation seminar on the impact Obamacare will have on small businesses. He is typical of many: Because he has enough full time employees to activate the law, he faces either coughing up the money to provide health insurance or paying a fine of up to $3,000 per worker.
Ruffer initially thought he would escape the law because he created each restaurant as its own company. But the law doesn't recognize that distinction, so now he's trying to determine if he can fire enough workers, or cut enough hours, to slide out of the grasp of Obamacare.
He said that "scorched earth plan," however, would hurt his restaurants, so Ruffer is likely to either pay the fine or buy insurance. But spreading the costs over his basic menu of fries, drinks, burgers and hot dogs, could scare off customers, he worries. He said that the recent spike in gas prices cut into his profits since fewer people were stopping at his restaurants.
And the health care law isn't only going to hit Ruffer. He's quizzed his workers to ask if they understand that they will be fined if they don't get health insurance. Just one of 20 workers were aware of the $95 tax penalty that rises to $695 by 2016.
Their burgers are already 40% higher than most other burger joints.
Sounds like someone is aching for a drone strike. I think criticizing Obama like this makes them enemy combatants.
Tell me about it! That is one reason I refuse to eat there!
The sick part about it: Five Guys is Obama’s favorite burger joint! He has said so in the past.
it is so wrong muslims are exempt from all this crap. either we all are or none of us are.
Well, the term “burger joint” comes out of the what, 70’s? Five Guys is right in line price wise with similar restaurants - the home made burger restaurants that give huge servings of fries and all kinds of condiments.
It’s only just begun...
BeeeCuzzzz They are way better than CrapDonalds....
At least Mickey D’s does not allow EBT unlike BK, Subway etc...
Yes. A bit higher price for a far better burger.
The socialist dictatorships of Chavez, Castro, and Hussein Baraka wouldn't be possible without it.
Some Mickey D’s do accept EBT.
They just opened a few in Memphis. I didn’t know the One liked them.
I don’t have a real problem with EBT at Subway, BK, etc.
I do have a problem with purchases of sugar laden foods and alcoholic beverages.
My mileage and we are probably on the same page.
A competitor in Pocatello posted a remark on his own sign: One guy. Better burgers. Faster. Cheaper. Correct on all accounts.
I would make this bet...by 2016, a delux Five Guys burger will likely run around $14.
“Ruffer initially thought he would escape the law because he created each restaurant as its own company. But the law doesn’t recognize that distinction...”
How does it not “recognize that distinction”? If you have SEPARATE COMPANIES how can it hold those as legally one?
What if a small businessman owns several completely unrelated companies? Are they all lumped into one?
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