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Commentary | Restaurant industry decimated by Obamacare





Will the restaurant business survive a second Obama term? Can it? Since the president’s reelection earlier this month, four large restaurant chains, Papa Johns, Applebee’s, Denny’s and Darden Restaurants (the company that owns the Olive Garden, Red Lobster, and LongHorn Steakhouse chains) have all recently released statements about their companies’ plans to respond to the increased costs of complying with Obamacare regulations. According to the healthcare law, every full-time employee must be provided with comprehensive medical coverage if the company employs more than 50 full-time workers. If a company refuses to comply, they will be faced with fines of $2,000 per year, per employee, as of January 1, 2014.

The announcements from companies grappling with the increased costs of Obamacare have, expectedly, been met with disbelief and consternation by the left, still seemingly unaware of basic economics. Appearing on Fox News Business early last week, Applebee’s CEO Zane Tankel explained the steps his business would have to take in order to stay in operation:

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  • alanwillingham

    I saw what government did to good employees in the Restaurant Business many years ago with Minimum Wage. Those who were excellent employees or deserved some kind of bonus were robbed and their money given to brand new trainees, most of whom wouldn’t stay more than a few months. Minimum Wage went up, meaning trainees and the worst employees were given a raise by government by taking it away from those who actually deserved it. Also, it forced layoffs because government used oppressive legal force to take and redistribute the employee wage money, but there was no extra money coming in for wages, so fewer employees had to do more work as a result.

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