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?
Yeah. I ate there ONCE. T that was enough.
Across the street from Five Guys is a locally owned restaurant that serves good burgers in a wide variety.
So, I get a bacon Tillamook cheddar burger with FFs and a glass of red wine. And there is this huge fireplace...all for less that $16.00.
But those are full service restaurants, no?
I have a problem with EBT at any kind of restaurant.
Given that taxpayers are footing the bill, they should be preparing cheap food at home!
I think you can see where creating multiple small companies to evade regulation as a larger company could be problematic for regulators.
Many moons ago, I walked into a Roy Rogers’ and ordered a “Trigger Burger”. They kicked me out.
For purposes of Obamacare, yes.
Vendome - BeeeCuzzzz They are way better than CrapDonalds....
Didn't CrapDonalds get an exemption from zerocare?
I went to one here in Houston. The peanuts were soggy. Winds up that they were something like 2 months old, and unsealed for a while...and that may work in DC, but not in Houston. So I told them, and they laughed. No big deal, I think we’ll get the last laugh in on these clowns.
Isnt this the chain that hires all illegals?
Wonder how many voted for "The Won"?
So, The rise in the price of the $ menu at Wendy’s from $1 to $1.29 is attributable to Obamacare, not inflation of underlying food prices?
I’ll have to ponder that because I was convinced the general rise in fast food was the result of the rise in the price of beef and flour and potatoes
Good grief! Failure to comply with the law doesn't apply to those who made it.
Obama...thinks he's King Midas but everything he touches turns to shi'ite!
I hate these burgers. Worst I have tasted. Although I don’t want to see people losing jobs especially because of the dreadful Obamacare.
5 Guys needs to file a suit against the federal government since their rights are being denied under the 14th Amendment.
They are 40% better than Mickey D’s or BK.
Yes, but this super hot economy will allow wages to move up, so that will be in line.
( you have to know this is sarcasm.)
I can't understand why the Catholic Church and others aren't fighting back on these grounds.
But prices don''t seem to be getting much higher at places like Applebee's, Denny's, Cracker Barrel, etc.
Those places are in mortal danger. They have reduced portions and changed the menu to sell two for $20 or such.
I know a guy that works at Cracker Barrel in Florida and he said that his bosses told him to be sure to vote for obmama because Rommney would get rid of medicare and medicade. He does not vote.
Got it... thanks
Something like that...
On News/Activism ^ 01/06/2008 5:00:33 PM PST · 86 of 169 ^
Inflation has pretty much been uniformly positive since the 1930s.
Using non-inflation adjusted dollars will ultimately put us all in the top tax bracket.
This is why I am confedent that I will get back every single penny I have put into Social “Security” in the past 4 decades.
Of course, by then a hamburger might cost $1999.99, still, I’ll get every penny...
I agree, Five Guys is hardly different in price from other places. A Five Guys combo is about the same price as a large sized McDonald’s combo. The portions at Five Guys are huge (particularly the fries).
I’ll take a place like Five Guys any day over the meat paste from McDonald’s.
jaydubya2 ~ I believe that is an internet hoax.
Nope. Muslims and Anabaptists (Amish, Mennonite, Hutterite) are exempt on religious grounds.
The Amish take care of their own as part of their religion.
The muslims regard insurance as gambling, it is specifically forbidden. (Even Snopes says that as such they can apply for exemption, while denying they have one!)
You didn't read the bill before you passed it didja?
Well, now you've found out what's in it...