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Will the Healthcare Law Mean Higher Prices at Restaurants?

The Supreme Court’s upholding of the Affordable Healthcare Act could have some unintended consequences for Americans who like to dine out.

Experts report that the health care law could mean higher menu prices at restaurants, along with staffing cuts and reduced service. Ultimately, it could mean lower wages for restaurant employees, says Karen Bremer, Executive Director of the Georgia Restaurant Association.

Bremer explained that restaurant profit margins are already as low as 4 percent. They could dip even lower when restaurants are required to provide costly health insurance policies for millions of service employees who have never been covered by their employers’ insurance.

The National Restaurant Association reports that restaurants are the nation’s second-largest private sector employer – with a workforce of nearly 13 million – almost 10 percent of the U.S. workforce

Most of the bill’s key provisions are set to take effect two years from now, on January 1, 2014.


1 Comment

  1. Dorothy Banks on July 6, 2012 at 9:04 pm

    Most restaurants hire immigrants, who earn minimum wage, having no benefits. If prices change in restaurants it’s due to greed of the owners. When the minimum was raised a several years ago, business owners complained, saying they would have to lay off employees or close. None of these businesses closed their door because of a pay raise.

    If a business owner does not feel a needs to look out for his/her employees, providing health care, and the usual benefits, then their employees are not going to perform`100%. I worked for an employees who had health care for herself, but the eight of had to fend for ourselves. None of us performed at our best because of her attitude. We loved what we were doing, but we all eventually fired ourselves.

    Employees should learn that a happy, healthy employee is a productive employee. And when they talk about where they are employed, it not surprising to hear them use the word “we” when talking about the company. That applies to restaurants, too. As a customer I certainly want these employees to he healthy and happy!