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Restaurant Owner to Imposes Surcharge For Obamacare

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posted on Nov, 16 2012 @ 11:03 AM

Originally posted by spinalremain
Thats their right of course.

Although I would think his clientelle would eat elsewhere due to the rising cost. Customers will eat where the owner isn't pouting and gouging prices. There are plenty of places who's ownership responsibly pay and benefit their employees without whining. There are businesses who do not put profit over employee well being and cost of living.

Eat there

Posted Via ATS Mobile:

Shop there as well. Statistics show that employers who treat their employees with dignity and respect have better profits.

Nearly everyone who's looked at Wal-Mart's practices as an employer—its union busting, sex discrimination, low wages, and minimal benefits—has concluded that it's America's retail bad guy. By contrast, many who've examined the practices of Wal-Mart's competitor Costco—including New York Times labor reporter Steven Greenhouse in his recent book The Big Squeeze: Tough Times for the American Worker—conclude that it's the good guy. Costco CEO and founder Jim Sinegal repeatedly insists to Greenhouse that treating employees well is "good business."

It's not hard to make a case that Costco pays employees more. The most relevant comparison is between Costco and Sam's Club, Wal-Mart's membership warehouse, since both business models rely on membership fees for a large percentage of revenues. A Sam's Club employee starts at $10 and makes $12.50 after four and a half years. A new Costco employee, at $11 an hour, doesn't start out much better, but after four and a half years she makes $19.50 an hour. In addition to this, she receives something called an "extra check"—a bonus of more than $2,000 every six months. A cashier at Costco, after five years, makes about $40,000 a year. Health benefits are among the best in the industry, with workers paying only about 12 percent of their premiums out-of-pocket while Wal-Mart workers pay more than 40 percent

Some proponents of corporate generosity argue that better-paid workers are more productive. That may be the case here, since Costco's revenues per employee are about five times as high as Wal-Mart's

Wal-Mart’s legendary obsession with cost containment shows up in countless ways, including aggressive control of employee benefits and wages. Managing labor costs isn’t a crazy idea, of course. But stingy pay and benefits don’t necessarily translate into lower costs in the long run.

On the benefits side, 82% of Costco employees have health-insurance coverage, compared with less than half at Wal-Mart. And Costco workers pay just 8% of their health premiums, whereas Wal-Mart workers pay 33% of theirs. Ninety-one percent of Costco’s employees are covered by retirement plans, with the company contributing an annual average of $1,330 per employee, while 64 percent of employees at Sam’s Club are covered, with the company contributing an annual average of $747 per employee.

Costco’s practices are clearly more expensive, but they have an offsetting cost-containment effect: Turnover is unusually low, at 17% overall and just 6% after one year’s employment. In contrast, turnover at Wal-Mart is 44% a year’close to the industry average. In skilled and semi-skilled jobs, the fully loaded cost of replacing a worker who leaves (excluding lost productivity) is typically 1.5 to 2.5 times the worker’s annual salary

In return for its generous wages and benefits, Costco gets one of the most loyal and productive workforces in all of retailing’and, probably not coincidentally, the lowest shrinkage (employee theft) figures in the industry. While Sam’s Club and Costco generated $37 billion and $43 billion, respectively, in U.S. sales last year, Costco did it with 38% fewer employees—admittedly, in part by selling to higher-income shoppers and offering more high-end goods. As a result, Costco generated $21,805 in U.S. operating profit per hourly employee, compared with $11,615 at Sam’s Club. Costco’s stable, productive workforce more than offsets its higher costs.

posted on Nov, 16 2012 @ 11:11 AM
reply to post by CALGARIAN

Free you say?
So, we should go to another country to get things like surgery because it would be free for us?
Why not just get it done here in the US and not pay your bills?

Unless you're from Canada, then I can assure you, as well as people in UK that it is not FREE. There simply is no such thing as free healthcare, someone always pays.
Obama care will not be free, in fact it is a tax on the people who can't afford healthcare.

This guy may have 20 restaurants, but we will see how many he has after his %5 fee.
In my opinion he is asking people to avoid his restaurants.

posted on Nov, 16 2012 @ 11:11 AM

Originally posted by NavyDoc

Originally posted by MidnightSunshine
reply to post by Raist

I find it funny just how this thread is going. In this thread you see irony, hypocrites, and lovers of nanny state. It is like some cute jumbled up funny farm. That is why I am so happy the guy is doing this, it makes ATS more entertaining.
reply to post by Raist

Originally posted by Legion2024
reply to post by Sissel

that is not telling you they are passing it on. At lest this guys is honest

Yes he is being honest, but he doesn't want his customers taking it out on him.... so he suggests that they compensate the extra tax on the bill with the amount they intend to tip.

So, from what I understand, the healthcare will be provided to the entire staff and not limited to the tipped employees.

It's just plain Shady.

edit on 15-11-2012 by MidnightSunshine because: (no reason given)

edit on 16-11-2012 by MidnightSunshine because: (no reason given)

This makes no sense. Why is it not shady for the government to force some people to cover other people's healthcare through taxation, but it is shady for this employer to do the exact same thing?

I wasn't talking about whether or not the idea of the 5% tax is shady. Plenty of things the government forces us to participate in are shady, and we have to go along with them...until you 'obama care' haters get your people elected and can change the policy that is.

So until then, it is required that a restaurant pay an extra 5% of it's sales to cover the new attempt to offer healthcare to people in positions that have NEVER even had an opportunity to be covered. If the business owner chooses to pass the buck off to the customer that's his choice, but for him to suggest (and for you to defend) the customer steal the cost from his servers pay is undermining and unethical.
edit on 16-11-2012 by MidnightSunshine because: (no reason given)

posted on Nov, 16 2012 @ 11:11 AM
reply to post by defcon5

My suggestion to you is, stop working for these greedy dirtbags, and start your own business. Try out your bisuness theory, and let us know how it works out.

posted on Nov, 16 2012 @ 11:13 AM

Originally posted by bigfatfurrytexan
reply to post by defcon5

something to keep in mind is that while they may not be paying income taxes, they are paying payroll taxes.

Roughly, for every dollar you spend in taxes, your employer spends as well to employ you. It is nearly dollar for dollar between SS EE and SS ER (while MED EE and MED ER are always the same).

There are 5 taxes in the state of Texas related to payroll (FUTA, SUI, Medicare, SS, and FICA) that you pay every pay period. Only 3 include the employee (Medicare, SS, and FICA). I would imagine it is very similar in other states.
edit on 16-11-2012 by bigfatfurrytexan because: (no reason given)

BFFT we are in the same business. So tell me how much Work Tax Credit does your company receive each year? Don't forget to add the offset of the SUI towards a FUTA credit due to low wages.

posted on Nov, 16 2012 @ 11:15 AM
Why do a majority of these posts confuse the idea that if someone is for the healthcare act they assumed it was free.?

posted on Nov, 16 2012 @ 11:16 AM
The business owner could have just added an extra amount to the food without anyone even knowing about it. I think he made a smart move. Now that he is doing so, other businesses can add a surcharge as well. If Obama-jad wants to FORCE his health care down people’s throats, than businesses have every right to oppose him in any way possible.

I just don’t understand how people here can cut down the business owner for making such a move, but have NO problem with Obama forcing his health care plan onto business owners who don’t want it. Can’t you people see how hypocritical that sounds? If you want to be pizzed off, than be pizzed off at the guy who made all of this possible! I just don’t understand the logic of some people! Are people really that ignorant?

posted on Nov, 16 2012 @ 11:16 AM
reply to post by Propulsion

How old are you?

Just wondering because your comical approach to posting is best reserved for cheap joints like GLP, etc.

posted on Nov, 16 2012 @ 11:18 AM
reply to post by seen2much

Thank you. Yes I was blessed, and they always tried to make sure that us kids got good educations, though we never had any excesses by any means. Us kids used to hear a lot of “well we can't afford that right now with your father not drawing a salary”, but we understood and always got by okay. Luckily my mother was in the medical field and pretty much supported the entire family on her job.

Originally that plant was owned by another big, well known, corporation. That corporation did nothing to protect the patent on the product, because the owner really had no interest in the product. The owner of that corporation even went so far as to burn the original plant down in an insurance scam (though because of the money the owner had, it was never proven), in which the owners race cars, which were stored in the plant, magically escaped the fire and ended up in the parking lot. Eventually, they dumped the company on my father, and he kept it running only to protect the employees. 3M made billions off the product, and its still something that people use to this day.

Another bigger company eventually bought my father out, but he made sure they kept the employees when he left. However, that entire thing ruined my father, and he was never the same until the day he died.

edit on 11/16/2012 by defcon5 because: (no reason given)

posted on Nov, 16 2012 @ 11:24 AM
I hate to say this, but this business man is a bit of a scum bag. I know that is a strong word to use but please allow me to explain.

This man is a capitalist in the true sense of the word. He is a owner of production and controller of capital. He makes money by sucking up the surplus value of labor which labor themselves produce. In effect, all profit is coming from labor.

The new healthcare structure in America is meant to allow workers to take a percentage of the surplus value of labor and use it to provide healthcare for all workers. Yet, in this case the capitalist is refuses to give up any of the surplus value from labor. So, his solution is to spread the fractional wage, which he affords to labor, even more thin in order for workers to have healthcare. That is exactly why I am referring to this man as a scum bag. He, in the actual material condition, is not producing anything. Yes he is a capitalist or sometimes referred to as the gift class(due to the fact that others to the work while he demands a gift from the labor value of the workers)

posted on Nov, 16 2012 @ 11:25 AM

Originally posted by VaterOrlaag
reply to post by Propulsion

How old are you?

Just wondering because your comical approach to posting is best reserved for cheap joints like GLP, etc.

I’m 44 y/o, and I have been around long enough to see common sense. People have no problem cutting down my comments, but have a very difficult time answering them. Your 1 liners and dethklok character speaks volumes. Maybe you can answer my questions I’ve addressed, No?

posted on Nov, 16 2012 @ 11:27 AM
Effing lil crybaby..

posted on Nov, 16 2012 @ 11:30 AM
reply to post by buster2010

I hope that's exactly what happens to him.
I hope his employees find a better job and boss.

For those taking the owners side, remember what the difference
is between his standard of living and his employees.

The employees may have to go without groceries.
Maybe he'll only be able to order 6 of those 10 exotic birds he wanted
to fly around the grounds of his east wing infinity pool.
He can afford 10. He's just being an A-hole.

posted on Nov, 16 2012 @ 11:41 AM
reply to post by greydaze

The following is my opinion as a member participating in this discussion.

This guy lives in West Palm...

Yeah, I’m sure he's financially hurting too much to pay his employees healthcare costs.

He's also talking about cutting his employees to all part time, another sleazeball tactic.
Especially when you consider that Rick Scott has opted Florida out of Obamacare anyway...
Rick Scott: Opting out of Obamacare the 'right decision for our citizens'

So he is going to cut employee hours, and add surcharges, on something that he isn't even required to pay. In other words, he is doing this just to make more personal profits at his employees expense.

As an ATS Staff Member, I will not moderate in threads such as this where I have participated as a member.

edit on 11/16/2012 by defcon5 because: link

posted on Nov, 16 2012 @ 11:42 AM

Originally posted by mrnotobc
I wouldn't say it the way he is, but it's a fact of life all business's will raise their prices to cover the extra expense of Oboma care. I would just put on the menue a statement that all prices reflect a 5% increase to cover the cost of Oboma care.

The only businesses whose costs will go up are those with more than 50 full-time employees who do not currently provide shared-cost health insurance. Honestly, this will mainly affect franchise restaurants. Most grocery stores even provide healthcare coverage. The 60-employee business I work for provides shared-cost coverage...its a $50M+ revenue business with EBIT of over $7M.

Those with less than 50 employees will get a tax credt. The vast majority of businesses in the US are either large employers who DO offer health coverage already, and will thus be unaffected, or small businesses who are not part of the mandate, but will benefit if they DO offer coverage.

Anyone who thinks this is a sky-is-falling scenario for US businesses knows very little about the situation.

posted on Nov, 16 2012 @ 11:53 AM
reply to post by defcon5

Ok then.

Sounds like it is time for a new job. Or just stay there and deal with it.

Can't really complain about something that you can either change or remove yourself from.

posted on Nov, 16 2012 @ 12:00 PM

Originally posted by dogstar23
. The vast majority of businesses in the US are either large employers who DO offer health coverage already, and will thus be unaffected, or small businesses who are not part of the mandate, but will benefit if they DO offer coverage.

Anyone who thinks this is a sky-is-falling scenario for US businesses knows very little about the situation.

If this is true then what was the problem in the first place, since the vast majority was already covered.

Please explain how a small business that doesn't offer coverage now will benefit by offering coverage under Oboma care.

posted on Nov, 16 2012 @ 12:07 PM
reply to post by defcon5

It must have scarred him but sacrifice entails that and you were shown what it means to be a human being.

People like that give me hope in humanity. Their like distant stars against a dark sky, and help one navigate to true north.

posted on Nov, 16 2012 @ 12:14 PM
To all of you: Just imagine for one second that almost EVERYONE supported "Obama Care", say, none of us here found any really big fault in the Obama care plans.

So the guy HAS to pay 5%, now what?

Pay it, shut up, do nothing else...
Pay it, raise prices do nothing else...
Pay it, add it to the tab and do nothing else...
Pay it, share half of the tax with the customer with a 2.5% tax added into the tab and market it in a more positive light.

He had a world of more imo morally correct choices. He thinks it's a good idea to NOT support his own staff? A REAL restaurant owner would NEVER EVER NEVER suggest to the customer that it's okay to steal from only the waitstaff's paychecks because we Can get our hands on that money...

" Sorry my Denny's customers: Very sorry I can't get away with letting you stick your hands in the cook's paychecks or I'd let ya
Feel free to take what you like from our severs though"

NOW forget that you HATE Obama and his idea's or what ever you political minds call it and tell me that's okay??

edit on 16-11-2012 by MidnightSunshine because: (no reason given)

posted on Nov, 16 2012 @ 12:18 PM

Originally posted by ThirdEyeofHorus
reply to post by Grimpachi

The guy is an @ hole because the way he is doing this will hurt his employees tips because he is trying to make a statement. I will take my business elsewhere and business will follow that means jobs will follow.

So you want everyone to think he is just raising the cost to make a bigger profit or because of inflation when the exact cause of it is forced govt law, and so you are going to be the righteous one and say he is hurting his employees instead of taking the hit in his profit margin, and when people show you that he has to do it to stay afloat you insist this is all about his attitude and not about the core reason which is Obamacare. I am telling you, and others here too, that before long this will be the norm because everyone is in the same boat.
It seems to me the end result here is you are excusing Obamacare and being angry at people who have to do these things to stay afloat.
Do you think he wants to pass on the cost to customers and lose his customer base? Like others here said, when the customer base is gone, the employees will be out of a job.

Again, we come to you want someone to pay for it, but you won't do it yourself as a customer. I just would like you to acknowledge that Obamacare is the reason and not because he's a greedy evil guy, because when the guy down the street raises his cost and he doesn't explain it was due to Obamacare will you think oh this guy is really great he is paying for his employees healthcare I think I will enjoy paying the higher cost and by golly I will pay higher tips too...yah right! I bet you think that guy is ripping you off too because he is an evil greedy capitalist.
edit on 16-11-2012 by ThirdEyeofHorus because: (no reason given)

Its a statement he is making. Prices go up all the time, for ingredients, rent, energy you name it. I am willing to bet he never cited any of these reasons for hiking prices.

Well I wanted to know from the guy who wants the nanny state obamacare but won't patronize restaurants who tell them the rising cost of the meal will have to pay for the healthcare. I want to know why people want Obamacare but won't pull the cash out of their own pockets to pay. You see because the people who want Obamacare want someone else always to pick up the tab. When every restaurant has to do the same we will find Obamacare isn't so fun.

Yes, because if it wouldnt be for Obamacare prices would stay stable.

edit on 16-11-2012 by Merinda because: (no reason given)

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