Denny’s to Charge 5% ‘Obamacare Surcharge’ and Cut Employee Hours to Recoup Costs

photo credit: eric t. morrisPresident Obama’s election victory ensured his Affordable Care Act would remain the centerpiece of his first term in power, but that has left some business owners baulking at the extra cost Obamcare will bring.

Florida based restaurant boss John Metz, who runs approximately 40 Denny’s and owns the Hurricane Grill & Wings franchise has decided to offset that by adding a five percent surcharge to customers’ bills and will reduce his employees’ hours.

With Obamacare due to be fully implemented in January 2014, Metz has justified his move by claiming it is ‘the only alternative. I’ve got to pass on the cost to the customer.’


The fast-food business owner is set to hold meetings at his restaurants in December where he will tell employees, ‘that because of Obamacare, we are going to be cutting front-of-the-house employees to under 30 hours, effective immediately.’

Claiming that he is not anti-insurance Metz has said that he understands the problems this will cause for his employees.

‘I think it’s a terrible thing. It’s ridiculous that the maximum hours we can give people is 28 hours a week instead of 40,’ said Metz to the Huffington Post. ‘It’s going to force my employees to go out and get a second job.’

Obamacare requires businesses or franchises with more than 50 workers must offer an approved insurance plan or pay a penalty of $2,000 for each full-time worker over 30 workers.

Read more from this story HERE.

  • Thanks to ObamaCAre this is the new ‘normal’. We’ve been lied to about the actual cost of ObamaCare. It’s our own fault, though, because there have been plenty of warnings from numerous experts, both inside and outside the government. As for Denny’s, their prices were already too high for our family. Up until about 3 years ago we were regular visiters to the local Denny’s. When they began raising their prices (their $1.99 Grand Slam is now $4.99) we began visiting the fast food emporiums. Now, even there, a good hamburger costs $8.00! Our salaries sure aren’t increasing by those amounts! Not only that but many ‘normal’ 40 hour jobs won’t pay the bills anymore. We will end up with most people working TWO part time jobs with NO benefits! Thank you, Mr. President, for this long-awaited hope and change! What a slap in the face for everyone who voted for him! I did not: not the first time and NOT the second time, either.

    • Youre right Bob, NOT under gun point, but by the Grace of God, i saw this man was NO good for this country!! He can’t lead anywhere except to destruction!! No Muslim can, that is why all 57 muslim countries are 3rd world!!

  • DENNY’s you just cut your own throat! I will NOT eat at your restaurants again! i may wind up cooking and eating at home but…I will NOT support this dasterdly health care obama thinks is good because they attribute it to him! I KNOW better, he may get credir but it is the work of socialist crooks who desire to put this nation into the One New World order!! Forget it dennys!!

  • elizabethksmith

    Looks to me like these will be the taxes for the Middle Class that O claimed he would not do. There will be plenty of these indirect taxes coming, we are doomed!!!

  • reggiec

    How about this idea?
    Businesses instead of hiring “employees” they should retain individuals as “contractors” to perform services or labor needs for their business. This would accomplish several things.
    1. The business would no longer be an unpaid accountant for the government, saving quite a lot of revenue.
    2. The individual “contractors” would be responsible for performing all required paper work themselves to comply with deductions, taxes, Social Security, unemployment insurance, health care and all other reporting requirements. They would soon be screaming bloody murder when faced with the paperwork and in realizing how much the government will take.
    3. Unions, what unions? Since each contract for each separate individual could be renewed or canceled for non-compliance with the contractual performance; valued contractors could be rewarded and those not performing to contractual standards could be terminated.

  • Gelatinous

    It’s clear Mr. Metz is more interested in punishing people for their political views than he is in running his business. Guess what, Mr. Metz? Someone else will come along and figure out how to do this without charging more OR bitching and complaining and thus alienating potential customers. They’ll take away your patrons and you can figure out how “going out of business” works. Best of luck to ya.

    /Never seen such a bunch of supposedly strong-and-independent whiners in my entire life.

    • Death by a 1000 taxes

      I suspect you’ve never run a business or had to make payroll. We’re being taxed and regulated right out of the market. I’ll support Denny’s for being honest and upfront with its customers regarding costs. I think every business should line item the taxes on the receipt.

  • DebbyS

    Metz has already backtracked (I googled this story). If I thought the “taxes” were going to help the employees and not right into upper management’s pockets, I’d consider it like a tip. But when they say theye are “taxing” and reducing hours, I know exactly where the extra $ is going. Well, it won’t be my money going to any business that does that.

  • D. Koss Uber

    I would gladly pay an additional 5% at Denny’s for employee health insurance because as I see it, I’m already paying MORE than that on the back end by paying for the emergency room visits of Denny’s employees. Not to mention that many Denny’s employees are also on food stamps and public assistance. So the REALITY is that the taxpayers subsidize, heavily, those minimum wage businesses like Denny’s. The owner should be thanking the taxpayers for subsidizing his employee healthcare keeping his employee wages low. I’m sure our subsidizing his business has allowed some nice profits over the years.

  • Barry_Suxx

    Don’t be too hasty to ill-judge Denny’s without considering the whole picture. Consider the fact that no matter what store you go to, or what you’ve been buying lately, you’ve NO DOUBT witnessed shrinking-sizes of their packaging, (along with price increases). This little “shorting trick” comes from an obummer Czar, in order to conceal the real levels of inflation that’s already well upon us, thanks to our Usurper-n-Chief.

    “Businesses”aren’t just some Big Fat Cats,,, like our Gvmnt officials.
    Remember the FIRST rule of Business: To Make Money; because if you cannot make money, then you are OUT of Business!

    Do you actually believe Denny’s is the ONLY business that’s gunna have to Jack-Up their prices and cut-costs in order to cover their added operational costs caused by this obamanational obamacare? REALLY?

    If you DO, then I’ve got a bunch of Ocean-Front Property to sell ya here on the West-Coast of KS. I can Guarantee EVERYone that EVERY place you now visit will begin to reflect Jacked-Up rates. What,,,, you thought that THEY would ‘just take it in the shorts themselves’? forget THAT. Remember that First Rule of Business. Every time you promise to Gouge Industry, Business, Free Enterprise, or these so-called Fat-Cats, all you do is cause the Bills to Fall On Yourself, (the Consumer!!!).
    Always has, always will be.

  • Canucklehead

    My two cents… In Canada I pay a “health care” deduction, taken from my pay cheques, matched by my employer. I pay nothing more to go see a doctor or stay in hospital or have an operation, which happened in 1979 and 2004. Saved my life both times (appendectomy and quadruple bypass). I am so accustomed to the deduction that I don’t even think about it. Thank you.

    • Really..the exception is NEVER the rule…The long waits the extreme CONTROL by the Govt….yeah I know socilaized meds work…NOT!! FREE ENTERPRISE works and is proven to work! When the govt stays small and out of mens business’ then things work better! EVERY time the govt gets control they screw things up!!! 1 Tim 6;10 KJV They “COVET” wealth everyone else makes! they make NO money, they just covet ours!! They TAX the H E double hockey sticks out of the masses to get it !!

      • Barry_Suxx

        Yeah,,, and it would appear that the Canucks will have to go to India now for their Surgeries, because all our Docs, Clinics, and Hospitals have been socialized now. (bummer huh?)

  • Maybe Metz should only charge those surcharges to Obama voters.

    I heard today that a gun shop owner put a sign on his shop that said, “if you voted for Obama your business is not welcome here as you have already proved you are irresponsible.”

  • I don’t mind paying an extra 5% either. If I can afford a $20 bill for two or three people at Denny’s I can certainly pay an extra dollar.

    Granted I don’t know about Florida specifically, but here in Virginia Metz’s argument would be a little specious since most Denny’s employees don’t work 40 hours a week anyway. And I don’t know of a single one that employees 50 people or more. As Metz should know if he doesn’t already, the health care law also provides tax credits for companies employing 25 people or less–which is the normal size for a Denny’s up this way. It sounds to me like he’s cutting expenses by blaming the law.