Monday, April 22, 2013

McDonald's Corporation about to be wacked by Obamacare



What will be the full economic effect of Obamacare? Is this just another story about rich businessmen crying or will small businesses really be laying off tens of thousands workers? Will Obamacare cause another recession? Does anyone have an answer? 
Here's one thing you likely won't find a McDonald's franchise owner happy to ask his employees anytime soon: “Would you like a side of health care with that shake?”
That’s because some of the fast food chain’s franchisees say that the costs associated with President Obama's health care reform law will cut deep into profits, according to a recent survey of 25 McDonald’s owners conducted by Janney Capital Markets obtained by The Huffington Post.
One franchisee even went so far as to say, “Obamacare will negatively hit us like nothing else," according to the survey.
Some franchisees said they're suffering from McDonald’s overemphasis on discount deals. Others claimed the chain's new product, the McWrap, isn’t a sure bet.McDonald’s has seen slumping sales since last summer and Obamacare, some franchise owners say, is only going to make things worse.
“Obamacare is going to destroy already low profits, [and] McDonald‟s Corporation does not seem to care,” adding, “the future looks BLEAK.”
McDonald’s did not return a request for comment from The Huffington Post.
McDonald's franchisees are not they only people worrying about the costs associated with Obamacare, which requires businesses with 50 or more full-time workers to provide health care coverage to employees. Corporate chains and small businessesalike have expressed concern that the new health care law will hurt their bottom lines.

7 comments:

  1. Anonymous4/22/2013

    Looks like the taxpayers are just going to have to start paying more. After all McDonalds takes the Link card I assume. Im havin a Big Mac Attack

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  2. Anonymous4/22/2013

    Well, if any McDonald franchise owners were stupid enough to vote for Obama they deserve a solid financial whipping since they are obviously dumbasses.

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  3. Anonymous4/23/2013

    This comment has been removed by a blog administrator.

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  4. Anonymous4/23/2013

    Every small business will be hurt from this.

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  5. Anonymous4/23/2013

    It's all Bush's fault.

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  6. Anonymous4/26/2013

    I have consistently opposed Obamacare. Medicare for all--everyone pays $100 a month---is a better solution to our health insurance crisis.

    Generally, I am not a big fan of franchises; they are only marginally more successful than non-franchise restaurants. It really makes no sense to pay the franchise start fee---and there are renewal fees---and then a percentage of each sale and advertising fee. Then, when you finally sell it, you have to pay additional fees. You can fees of 8% (4% royalty and 4% advertising) to 12%. Nevertheless, franchise resales are a good opportunity after the original franchisee was soaked by the franchisor.

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  7. Anonymous4/27/2013

    and then a percentage of each sale and advertising fee. Then, when you finally sell it, you have to pay additional fees. You can fees of 8% (4% royalty and 4% advertising) to 12%. Nevertheless, franchise resales are a good opportunity after the original franchisee was soaked by the franchisor.

    Geez...sounds like eBay!

    ReplyDelete