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VodkaPundit

Hi, My Name is Steve and I Won’t be Your Server This Evening or Ever

November 23rd, 2012 - 12:34 pm

The law of unintended consequences strikes hard at the restaurant industry:

The costs of fines or healthcare for dozens of employees per restaurant have the potential to bankrupt individually owned chains across the country. The Applebee’s in New York City would face fines of $600,000 per year if insurance isn’t provided for full-time staff, and estimates for offering federally approved insurance would cost “some millions” across the Applebee’s system. Both scenarios, according to Tankel, “[would] roll back expansion, roll back hiring more people. In the best case scenario [it] would only shrink the labor force minimally.” The restaurant industry, already operating with razor thin margins, doesn’t have the ability to absorb tens of thousands more in healthcare expenditures without a considerable increase in sales.

See, that’s going to be a problem with so many people shunted to part-time work and unable to afford eating out.

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