Following in the footsteps of Papa John’s CEO John Shattner, Zane Tankel who is the CEO of Applebees Restaurant franchise announced on Sunday that he will be laying off workers and stop hiring new employees as President Barack Obama’s Affordable Care Act – Obamacare – is implemented.
As Zane Tankel, the CEO of Apple-Metro which owns 40 of the Applebees’ eateries in the New York area, spoke to Fox News television, he said:
We’ve calculated it will <cost> some millions of dollars across our system. So what does that say – that says we won’t build more restaurants. We won’t hire more people. If you have 40 or 50 employees at a restaurant, and the penalty is $2,000, and you’re going to pay $80,000 or $100,000 penalty, there goes the profit in your restaurant. I want to simply say we are looking at it, we are evaluating. If it’s possible to do without cutting people back, I am delighted to do it, but that also rolls back expansion, it rolls back hiring more people, and in a best-case scenario, we only shrink the labor force minimally. Best case.
Any employer who has 50 or more employees must provide federal government-approved health care for its employees under President Obama’s Obamacare or pay a $2,000 fine. Currently, Applebees employs 80 to 300 persons per restaurant.
Despite Tankel’s openness and honesty regarding the future of his company in an Obamacare world, he is being criticized for speaking the truth regarding the financial impact of President Barack Obama’s reelection and even threatened with a boycott via social media for speaking out.
By: Scott Paulson
The primary source of this article is Fox News.