Friday, November 16, 2012

Grand-Slam to the "Man"

As most readers know, many business owners across the country were hanging on to every word on election night anxiously awaiting the outcome of 2012 presidential election. This widespread attention was followed by many policy changes once the world learned that President Obama would hold his seat as the President of the United States.
Because the President had been re-elected for a second term, many of his policies would soon be in full effect in the coming year. This includes the so-named “Obamacare” healthcare option enacted by the 2008 Obama term.
Many small businesses have shown their distaste for the Act to fully be put in place in 2013. Denny’s franchise owner, John Metz, has taken his disapproval one step further by publicly announcing an added surcharge at all of his franchises.
Metz has chosen to add a 5% surcharge to all of his checks starting in 2014, and has stated, "If I leave the prices the same, but say on the menu that there is a 5 percent surcharge for Obamacare, customers have two choices. They can either pay it and tip 15 or 20 percent, or if they really feel so inclined, they can reduce the amount of tip they give to the server, who is the primary beneficiary of Obamacare."
This public outcry has shown the ignorance of many in the United States. One can not predetermine the effect that the Affordable Care Act will have on each small business owner. I personally believe that this was less of an economic decision on Metz's part and more of a political statement.
His opinion is his own, but when he steals from the tip money of his workers it becomes a problem. If he wants to make up for the money that he will be losing in response to the Act being put in motion, he should raise the prices of his own products. This would still place the choice onto the consumer, not of whether they would like to tip more or less, but whether they will buy his cheap, pre-frozen, tastless product in the first place.
But, that's just my opinion.

1 comment:

  1. I did not know about this. Thanks for letting me know. Very interesting entry. I share your opinion on this one.

    ReplyDelete