Thursday, August 18, 2011

ObozoReg/ObozoCare Does Have an Impact

A 3,100+ restaurant chain (Carl's Jr. and Hardee's franchises) has some concerns. comply with just one of the hundreds of new regulations in the health insurance law CKE will be forced to spend approximately $1.5 million to replace all restaurant menus. That equals 17 percent of what the company invested in new restaurants in 2010....

The CEO testified before Congress as follows:

Health care is probably the most significant unknown at the moment. People are unsure about how much it will impact their business, but they will know it will be significant and it will be negative. It’s very hard to model the cost because the bill is so complex. The range [CKE’s economic forecasters] gave us on our health care costs increasing was between $7.3 and $35.1 million. We spent about $9 million last year building new restaurants. That would be totally wiped out.

OK, that's about 25 jobs/restaurant and about $1million each in 'economic impact'.

But that's not all.  CKE can reduce its costs in other ways.

...We will automate positions such as the cashier. Right now they have those ordering kiosks like the ATM. We haven’t used those because we like the personal touch and they are a little expensive, but once you implement this health care bill, I think those kiosks are going to become much more desirable. So I will be reducing labor force and also automating positions.

Jobs?  Who needs jobs?  Vilsack has food stamps, Nancy has unemployment.  Lotsa money there!!

But not to worry.  Obama & family will not be eating at a Carl's Jr. or Hardees for the next 21 months, anyway.

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