Applebee’s CEO Zane Tankel hinted yesterday that the company will be likely be laying off several employees and will refrain from hiring more due to President Obama’s re-election and the roll-out of Obamacare.
For those of you unaware of Obamacare, it a new initiative put forth by the President which requires any employer with 50 or more employees to provide federal government-approved health care for its employees. If a company fails to do so, it will pay a $2,000 fine per person.
Tankel released the following statement to Fox News:
“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, ant eh penalty is $2,000 and you’re going to pay $80,000 or $100,000 penalty, there goes the profit in your restaurant.
He continues, “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 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.”
Tankel is the CEO of Apple-Metro which owns 40 of the Applebee’s restaurants in the New York Area.