Papa Johns, Denny's, etc raising prices and cutting employee hours for Obamacare
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16-11-2012, 09:56 PM (This post was last modified: 16-11-2012 10:07 PM by Buddy Christ.)
Papa Johns, Denny's, etc raising prices and cutting employee hours for Obamacare
So to preempt the costs of providing employees healthcare under Obamacare, random companies have been coming out to the news 2 years early that they're going to have to raise their prices and cut employee hours in order to cope with Obamacare. Denny's is claiming they're going to add a 5% fee to each bill, Papa John needs to raise the price of his pizzas by 14 cents... so he's raising the price by 20 cents? AND in all price raising cases, the companies are also promising to cut employee hours. This all seems like an extension of the whine-fest that's happening in petition land right now. Rich CEO's are mad that they have to provide a benefit to employees and so instead of taking it out of their giant ass paycheck or another part of their business, they're taking the money from us and their employees. Denny's only needs 5% of sales to solve the problem? Anyone who has worked in the food industry knows that you can do something as small as change the brand of butter your company uses to find that 5%.

Another thing that baffles me is that these people are claiming that it already costs 6,000 dollars a year per employee to cover them. What health insurance are they providing that costs 500 dollars a month? That's more than my rent costs.

I was peeved that no one was calling these people out, but since the original stories came out, there have been a plethora of correct responses.

http://tv.msnbc.com/2012/11/16/dennys-ra...s-warfare/

http://www.slate.com/articles/business/m...pizza.html

http://www.huffingtonpost.com/2012/11/13...22412.html

http://www.thedailyshow.com/watch/tue-no...ne-country






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16-11-2012, 10:02 PM
RE: Papa Johns, Denny's, etc raising prices and cutting employee hours for Obamacare
(16-11-2012 09:56 PM)Buddy Christ Wrote:  So to preempt the costs of providing employees healthcare under Obamacare, random companies have been coming out to the news 2 years early that they're going to have to raise their prices and cut employee hours in order to cope with Obamacare. Denny's is claiming they're going to add a 5% fee to each bill, Papa John needs to raise the price of his pizzas by 14 cents... so he's raising the price by 20 cents? AND in all price raising cases, the companies are also promising to cut employee hours. This all seems like an extension of the whine-fest that's happening in petition land right now. Rich CEO's are mad that they have to provide a benefit to employees and so instead of taking it out of their giant ass paycheck or another part of their business, they're taking the money from us and their employees. Denny's only needs 5% of sales to solve the problem? Anyone who has worked in the food industry knows that you can do something as small as change the brand of butter your company uses to find that 5%.

Another thing that baffles me is that these people are claiming that it already costs 6,000 dollars a year per employee to cover them. What health insurance are they providing that costs 500 dollars a month? That's more than my rent costs.

I was peeved that no one was calling these people out, but since the original stories came out, there have been a plethora of correct responses.
It's interesting that these bosses are making so much hay over their workers having access to healthcare. Remember, we're not talking about these things causing the corporation to lose money... we're just talking about them making profits which are less obscene.

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16-11-2012, 11:21 PM
RE: Papa Johns, Denny's, etc raising prices and cutting employee hours for Obamacare
(16-11-2012 09:56 PM)Buddy Christ Wrote:  So to preempt the costs of providing employees healthcare under Obamacare, random companies have been coming out to the news 2 years early that they're going to have to raise their prices and cut employee hours in order to cope with Obamacare. Denny's is claiming they're going to add a 5% fee to each bill, Papa John needs to raise the price of his pizzas by 14 cents... so he's raising the price by 20 cents? AND in all price raising cases, the companies are also promising to cut employee hours. This all seems like an extension of the whine-fest that's happening in petition land right now. Rich CEO's are mad that they have to provide a benefit to employees and so instead of taking it out of their giant ass paycheck or another part of their business, they're taking the money from us and their employees. Denny's only needs 5% of sales to solve the problem? Anyone who has worked in the food industry knows that you can do something as small as change the brand of butter your company uses to find that 5%.

Another thing that baffles me is that these people are claiming that it already costs 6,000 dollars a year per employee to cover them. What health insurance are they providing that costs 500 dollars a month? That's more than my rent costs.

I was peeved that no one was calling these people out, but since the original stories came out, there have been a plethora of correct responses.

http://tv.msnbc.com/2012/11/16/dennys-ra...s-warfare/

http://www.slate.com/articles/business/m...pizza.html

http://www.huffingtonpost.com/2012/11/13...22412.html

http://www.thedailyshow.com/watch/tue-no...ne-country





It's premature to raise prices already. But if the companies are going to manage the additional costs through reduction in hours, they would likely need to phase that in over time and likely do that over the course of 2013. The additional taxes and penalties that kick in under the law for employers that are considered "large" under the law (more than 50 full time equivalent) is based on the previous year's employee account. So employers have to make the adjustments in 2013.

$6000 as an average cost per employee is probably about right. I'm sure that is an average which includes employees who have family coverage which certainly costs a lot more than $6000 per year.
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16-11-2012, 11:30 PM
RE: Papa Johns, Denny's, etc raising prices and cutting employee hours for Obamacare
(16-11-2012 11:21 PM)BryanS Wrote:  
(16-11-2012 09:56 PM)Buddy Christ Wrote:  So to preempt the costs of providing employees healthcare under Obamacare, random companies have been coming out to the news 2 years early that they're going to have to raise their prices and cut employee hours in order to cope with Obamacare. Denny's is claiming they're going to add a 5% fee to each bill, Papa John needs to raise the price of his pizzas by 14 cents... so he's raising the price by 20 cents? AND in all price raising cases, the companies are also promising to cut employee hours. This all seems like an extension of the whine-fest that's happening in petition land right now. Rich CEO's are mad that they have to provide a benefit to employees and so instead of taking it out of their giant ass paycheck or another part of their business, they're taking the money from us and their employees. Denny's only needs 5% of sales to solve the problem? Anyone who has worked in the food industry knows that you can do something as small as change the brand of butter your company uses to find that 5%.

Another thing that baffles me is that these people are claiming that it already costs 6,000 dollars a year per employee to cover them. What health insurance are they providing that costs 500 dollars a month? That's more than my rent costs.

I was peeved that no one was calling these people out, but since the original stories came out, there have been a plethora of correct responses.

http://tv.msnbc.com/2012/11/16/dennys-ra...s-warfare/

http://www.slate.com/articles/business/m...pizza.html

http://www.huffingtonpost.com/2012/11/13...22412.html

http://www.thedailyshow.com/watch/tue-no...ne-country





It's premature to raise prices already. But if the companies are going to manage the additional costs through reduction in hours, they would likely need to phase that in over time and likely do that over the course of 2013. The additional taxes and penalties that kick in under the law for employers that are considered "large" under the law (more than 50 full time equivalent) is based on the previous year's employee account. So employers have to make the adjustments in 2013.

$6000 as an average cost per employee is probably about right. I'm sure that is an average which includes employees who have family coverage which certainly costs a lot more than $6000 per year.
To think, if these people weren't out to screw their workers any chance they get (I had a buddy who delivered for them, he got no reimbursements for milage or gas and he got paid waiters' wages despite the fact that he seldom got tipped), this wouldn't be such a shock for them. If people can't figure out how to make profits without adequately providing for workers' material needs, then perhaps they should find a different line of work. Bosses are not entitled to screw workers.

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16-11-2012, 11:44 PM
RE: Papa Johns, Denny's, etc raising prices and cutting employee hours for Obamacare
Quote:Bosses are not entitled to screw workers.

I beg to differ.


But yeah this is just a 2year old tantrum because their guy didn't win the election (like those petitions).

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16-11-2012, 11:44 PM
RE: Papa Johns, Denny's, etc raising prices and cutting employee hours for Obamacare
(16-11-2012 11:30 PM)themanchicken Wrote:  
(16-11-2012 11:21 PM)BryanS Wrote:  It's premature to raise prices already. But if the companies are going to manage the additional costs through reduction in hours, they would likely need to phase that in over time and likely do that over the course of 2013. The additional taxes and penalties that kick in under the law for employers that are considered "large" under the law (more than 50 full time equivalent) is based on the previous year's employee account. So employers have to make the adjustments in 2013.

$6000 as an average cost per employee is probably about right. I'm sure that is an average which includes employees who have family coverage which certainly costs a lot more than $6000 per year.
To think, if these people weren't out to screw their workers any chance they get (I had a buddy who delivered for them, he got no reimbursements for milage or gas and he got paid waiters' wages despite the fact that he seldom got tipped), this wouldn't be such a shock for them. If people can't figure out how to make profits without adequately providing for workers' material needs, then perhaps they should find a different line of work. Bosses are not entitled to screw workers.
Margins for the restaurant business are very thin--on the order of a couple percent. It's not an excuse, but an explanation for why they are doing what they are doing. If the restauranteur is going to compete in the market, they have to consider what their competitors do. Unfortunately, the law provides a financial incentive to reduce staff below a count of 50 and to reduce hours below 30hrs per week where they no longer pay penalties under the new law. An employer that doesn't follow the most cost effective path will not be able to compete with a company that does go that route. So the choice isn't really much of a choice--you cut staff or you close up your business.

It would be different if the law didn't provide these perverse incentives to cut staff. If all employers had the same higher costs, they would all just pass that onto the consumers with higher prices. You aren't going to get around the price increases, but if there was a way to write the law without incentives to reduce staff, then there wouldn't be as many lost jobs from the legislation.
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17-11-2012, 01:45 AM
RE: Papa Johns, Denny's, etc raising prices and cutting employee hours for Obamacare
(16-11-2012 09:56 PM)Buddy Christ Wrote:  Another thing that baffles me is that these people are claiming that it already costs 6,000 dollars a year per employee to cover them. What health insurance are they providing that costs 500 dollars a month? That's more than my rent costs.
Prior to my Joining the Air Force in 1998 I worked as a machinist for a major plumbing fitting manufacturer. When it came time to redo the unions contract with the company (United Steelworkers) the company came to us with, what I felt was a very well thought out and very fair benefits package. Along with their offer they gave us a copy of the companies budget which laid out very clearly where every penny was going, how much everything they were offering us actually cost and accounted for the companies expected profit and they explained that we could make any adjustments to that contract we wanted but anything we increased in one benefit would have to be paid for by taking something away somewhere else. If we wanted an extra $0.25 raise we'd have to take that $0.25 from somewhere else in our benefits package to pay for it. It made sense and it was fair. While looking through the package I noticed that the offered health insurance package was a co-pay. My part of the co-pay was around $50.00 a month. The companies part was $1200 a month.

Depending on where you work and what you are doing there is a statistical chance that you may or may not get hurt and how badly you may get hurt. If you work around machinery such as the common dough mixer you'll find in any Pizza Shop what doesn't order their crusts pre-made your insurance will probably be more expensive that someone who works in a typical office setting. I worked in a machine shop running multi-spindle milling machines that took fingers off three employees in the two years I worked there so our insurance was crazy expensive. $500 a month for insurance doesn't surprise me at all in a business setting. heck, I pay almost $300 a month for my fiance and her 8 month old babies health insurance and she is a happy healthy 24 year old who's never had a medical issue in her entire life that Tylenol and some sleep couldn't fix.
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17-11-2012, 06:47 PM (This post was last modified: 17-11-2012 06:50 PM by GirlyMan.)
RE: Papa Johns, Denny's, etc raising prices and cutting employee hours for Obamacare
Papa John's and Denny's and their fast-food cohorts are major contributors to the USA's health care problem. They're fucking selling type 2 diabetes in a box or on a plate, respectively. I don't eat their poison and couldn't give less of a shit if they take a fucking hit. What I can't understand is why these supposedly "smart" businessmen think that pointing this fact out helps their bottom line. ... Bunch of fucking rich ass retards is what I see.

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17-11-2012, 06:55 PM
RE: Papa Johns, Denny's, etc raising prices and cutting employee hours for Obamacare
(17-11-2012 06:47 PM)GirlyMan Wrote:  Papa John's and Denny's and their fast-food cohorts are major contributors to the USA's health care problem. They're fucking selling type 2 diabetes in a box or on a plate, respectively. I don't eat their poison and couldn't give less of a shit if they take a fucking hit. What I can't understand is why these supposedly "smart" businessmen think that pointing this fact out helps their bottom line. ... Bunch of fucking rich ass retards is what I see.
Is it not obvious?
They do it in the hope that people will cause an uproar that prices are going up and hence be against Obamacare and hence it wont happen and hence they wont have to pay higher healthcare costs.
It's not a bad strategy, but it's not a good one either.

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18-11-2012, 12:38 AM
RE: Papa Johns, Denny's, etc raising prices and cutting employee hours for Obamacare
Most of these businesses are doomed now. All they will do by not providing benefits and cutting hours is show their employees that they don't mean shit. They are just there to be used up and then tossed away. I can't think of a better reason to stop washing hands, start spitting in food, and who knows what other things employees who are upset can do. This can cause lawsuits and businesses to fail. After all, getting fired while still full time will entitle the employee to unemployment based on full time hours. Once they go part time, they won't get shit from unemployment.
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