Posted on 09/04/2014 1:15:15 AM PDT by 2ndDivisionVet
On Tuesday, LA Weekly reported that several upscale restaurants in the City of Angels will be adding a 3 percent surcharge to cover their employees' healthcare costs, a trend that has been gaining steam since the Affordable Care Act launched nearly one year ago.
Beginning on September 1, restaurants Lucques, Tavern, A.O.C, and a few offshoots all added a 3 percent surcharge to customers' checks, explicitly stating in a press release their decisions hinged on covering employee healthcare costs.
Lucques Group, Suzanne Goin and Caroline Styne, owners of the restaurants, also named several other restaurant groups that will be duplicating their efforts; Restaurants Rustic Canyon, The Hungry Cat and Melisse were among those mentioned.
In the press release, the restaurant owners made sure to mention the business decision had nothing to do with politics, only business. They stated:
“The major point is that this is not a political statement or endorsement of any kind. Our desire to offer health benefits is not tied to the Affordable Care Act, which at this point wouldn’t require businesses to provide health benefits to their employees until January 2016 at the earliest, and where ultimately businesses of our size might not be required to provide health benefits at all. We are doing this because, quite frankly, we believe it’s the right thing to do, and that as a community of independent and family run restaurants we want to provide the best work environment we can so that we can provide long term jobs and careers for our staff instead of the usual transient employment that is associated with the restaurant business."
As to why they don't just raise their menu prices, the owners had this to say:
“The cost of offering these benefits is significant and the reality is that restaurants, particularly smaller restaurants like the ones many of us own, have a very high ratio of staff members to revenue and run on very slim profit margins. Successfully run restaurants generally make between 5-10% net profits so a health care benefit which eats away 3% of gross sales will take away anywhere from 30% to 50% of annual profits for a restaurant. We’ve discussed simply raising menu prices, but ultimately food prices are tied in many ways to the ingredients we purchase. Those ingredient costs have increased astronomically recently so we’re already struggling with working creatively to keep menu prices down and don’t feel it’s right to try to factor health care costs into menu prices as well. We’d rather keep our menu costs as an accurate refection of our ingredient prices so that customers know that if we have to raise them it’s because we can’t avoid passing on our increased costs."
This decision comes almost one year after another upscale LA restaurant, Republique, announced they'd also be adding a 3% surcharge for the same reason. Some on Yelp have condemned the restaurants for exercising their rights as a business, calling the move both greedy and misleading, with some vowing never to visit them again.
The obamaphilics will be delighted to pick up that 3 percent for the entire gathering at the next office luncheon.
And this is how higher taxes kill an economy.
What drivel—customers already cover most staff costs with their tips. It should just go into their prices like it does for all other businesses.
Proof that liberals are morons. They continue to believe that every business has this never ending pile of cash lying around to pay for all these benefits. Oh, the libs can call these businesses greedy and refuse to patronize them, but sooner or later, every business will in one way or another have to pass these costs onto the consumer. Going to be hard to boycott every business that does so. What are these fools going to do? Starve?
They should make it 5%. Just for anticipated inflationary and bureaucratic paperwork matters.
Better yet, do what the government does. Make the surcharge HIGHER the more you spend at the restaurant...like a progressive tax. Although that would hurt the restaurant itself.
Hm..
But we're told there is no inflation. I'm glad I live in an area most would love to bug out to when our currency fails.
Actually, this could be a good thing, since it uncovers what is normally a hidden cost.
Think about how withholding income taxes has allowed the unchecked expansion of income taxes. If everyone had to write a check payable to the IRS quarterly or monthly instead of have it withheld, it would get everyone’s attention.
How many of really know the amount of gasoline taxes they pay? We don’t because it’s hidden in the total pump price.
The same here. If costs are itemized and exposed, it at least tells us how much and what for.
“Those ingredient costs have increased astronomically recently…”
Yet the lying government economists at the Fed tell us month after month that there is no inflation. Anyone who buys food, gasoline, health insurance, or gets a haircut knows that is a bald-faced lie.
California can stew in it.
Aca the gifting scheme that keeps on giving.
Fast food walkout today for his 15 an hour you deserve it wage.
Natural gas electricity rate skyrocket.
What’s not to like /s
The liberal patrons will merely take the surcharge out of their already niggardly tips and go back to demanding higher minimum wages.
But what about Back of the House employees? They don’t get tipped. BTW, tipped employees in CA earn the Federal min. wage not that special tipped wage of $2 something an hour.
What about them? And wait staff at decent restaurants clear more than twice the minimum wage.
There’s still no reason for a health insurance surcharge unless it’s a combination of moral preening for providing something that’s not absolutely mandated by government and deceptive advertising to make their prices appear lower than they are.
Three percent this year, an additional 3% next, and so on until most restaurants go out of business within a few years.
Not counting the 3% increase for every business that supplies restaurants and on it goes until the whole economy is crushed, in very short order.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.