There have already been a number of stories written on the effects of ObamaCare on many small businesses. Perhaps no enterprise has felt the impacts of the law worse than the restaurant industry.
ObamaCare requires employers with over 50 employees to offer insurance coverage to those who work 30 hours or more, which is considered to be “full-time” under the law, or otherwise pay a $2,000 fine per worker. This is known as the “employer mandate.” Opponents of ObamaCare warned that this mandate would hurt investment and many workers, who would either lose their jobs or face scaled back hours. Supporters of the law obviously didn’t care enough listen.
Last week, the Wall Street Journal highlighted the plight of restaurant franchisees who are struggling to remain profitable as the realities of ObamaCare hit their businesses:
Sam Ballas, chief executive of ECW Enterprises Inc., owner of East Coast Wings & Grill, a 26-unit chain in North Carolina and Texas, in March imposed a three- to five-unit limit, for the time being, on the number of restaurants that franchisees can own, because of worries about health-care costs.
Mr. Ballas said several East Coast Wings franchisees are up against that limit now and that one is considering selling a restaurant to remain below the threshold.