ObamaCare Results in 5 Percent Surcharge at Denny’s and Dairy Queen


Taxes don’t have to be direct. They don’t have to come in the mail. They can be indirect. Like ObamaCare which is chock full of those indirect tax hikes.

Financial fallout from Obamacare will spur dozens of eateries in South Florida to tack a five-percent surcharge onto all meals, one restaurant mogul says.

John Metz — who runs 40 Denny’s and Dairy Queens and owns the Hurricane Grill & Wings franchise — says his business will be hit hard by the January 2014 start of President Barack Obama’s healthcare mandate.

When patrons see they have to cough up a five-percent surcharge, one possibility is they could end up reducing the amount of the tip they leave for their server.

In addition, Metz will reduce the hours of 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,’’ the West Palm Beach businessman said. “It’s going to force my employees to go out and get a second job.’’

Welcome to ObamaCare. To afford it, you’ll need to work two part time jobs and good luck finding them.

  • Parenthetical Phrase

    To every Dairy Queen or Denny's eater who voted for Obama: Enjoy! If you decide to stop eating this stuff, you might get healty. You will also kill the jobs or just shred the income of those Obama supporters who work there. Many of these restaurants will go out of business as customers can't afford such non-essentials anymore. You will then have boarded up eyesores in your town which will be used for or will just encourage criminal activity. It's called the law of unintended consequences and it works like dream.

    • Be Healthy

      you should not eat at these establishments anyway. these are for unhealthy fat people. support your local farmers and healthy food joints.

      • Mary Sue

        that's great, but local farmers cannot grow bananas. Local farmers have their place but they can't keep the entire area supplied.

        Actually these places are for skinny people so they'll put some meat on their bones.

  • The Truth

    It is good that these proprietors are loudly announcing their open hostility to the customer. Their businesses will be easy to avoid.

    • Mary Sue

      hey, better to announce it than have a firestorm of customers going HEY WTF IS THIS when they get slapped with the surcharge.

  • http://twitter.com/MomCat_Reviews @MomCat_Reviews

    Most of us would not mind a small raise in the cost to support the employee. It is the openly hostile owners who do not give a rats behind for their own employees that I have a problem with. Greed over the health of the worker is not a business model to be proud of.

    • rdh

      how about he close down take all his money with him … and those highly skilled workers go find employment else where… I mean there are jobs every where. ..Right? that owner took the chances invested his money on something that could have failed. i took my life savings and started this business I have and I have over 20 families praying I make the right decision and keep the company going and Obummer care has made it so I can't afford to grow my business. But rest assurd it is worht several millon and I could retire on that. But I won't close till my people can. And obummer care just made it harder.

  • AC Points

    Daniel writes, "Welcome to ObamaCare. To afford it, you’ll need to work two part time jobs and good luck finding them."

    You don't get it do you. The people whose hours will be cut were not getting an insurance benefit anyway. Cutting their hours to 28 allows the employer to continue to not provide an insurance benefit for them.

    I'd certainly like to see some real numbers but I suspect most of those 40 hour employees couldn't afford health insurance out of their own pocket before anyway, and if you throw a child or two into the policy I'm certain the couldn't afford it. Also keep in mind that 38% of all people who apply for individual policies are declined. So even if they wanted to buy it, currently a large proportion can't.

    What the ACA says is if they are low income, beginning in 2014 they don't have to pay for it all. The government will help them pay for it. But, in the case where they were actually paying for their own health insurance before, its entirely possible that working 28 hours and getting government help with the health insurance bill will leave more money in their pocket than previously when they were working 40 hours and paying for the insurance themselves.

    So the question is … Where does that money come from? How much of an additional tax is it? ACA proponents argue that efficiencies and economies of scale in the new law will more that offset the government supplemental funds. I'm highly skeptical. Some people will most certainly lose out and pay more taxes, and the overhead for the insurance exchanges will have to be accounted for somewhere. I think this whole area will be in a high state of churn for the next decade or so as problems are encountered and solutions negotiated.

    • Mary Sue

      You forget. Obamacare FORCES people to buy insurance and fines them if they do not. So either way they lose.

  • Jos. Maroni Smith

    ………".ObamaCare Results in 5 Percent Surcharge at Denny’s and Dairy Queen"

    …………no wonder Mormons endorsed Romney

  • Mike M

    People forget that Dairy Queen and Denny’s are CORPORATE chains! These aren’t normal small businesses with your Average Joe, these are multi-million dollar companies who will whine and bitch over spending the smallest amount for their employees, even though they’ll have a little bit less in their pockets (and by a little less, I mean still more than enough to support their families). There still may be some downsides to Obamacare, the man isn’t god, but let’s be honest with ourselves, in the long run it’s the fat cats who are complaining about this and making it a middle-class issue, which it definitely should NOT be.