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Restaurants brace for big bite from healthcare law

Megan Rowe

September 25, 2013

1 Min Read
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How much will the Affordable Care Act cost your restaurant? In considering that question, Bloomberg Businessweek asked Firehouse Subs c.e.o. Don Fox to analyze the impact the healthcare law will have on one of his company’s units. He concluded that the law’s requirements will add about $4,000 a year to costs in the first year, not an insignificant sum considering that the average pretax profit for those units is $63,555.

As time goes on, the law mandates penalties for being uninsured, which will increase the number of employees enrolled—and the cost to employers will spiral.

An increasingly popular way to control these new costs is to cut workers’ hours to stay below the 30-hour threshold. The University of California at Berkeley’s Center for Labor Research and Education estimates that about 16 percent of restaurant workers might be impacted by these cutbacks.

About the Author

Megan Rowe

Megan Rowe (@ontherowed) is an award-winning business writer and editor based in Cleveland. She has written extensively for foodservice, lodging and meetings publications and websites. Before launching her own editorial services firm, Rowe was a staff editor for Restaurant Hospitality for more than a decade. She is an avid cook, photography hobbyist and intrepid world traveler.

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