Seeking Alpha

Small restaurant chain adds ACA surcharge to diners' checks

  • A restaurant chain in Florida is passing the additional costs on its business of the Obama administration's healthcare program directly to consumers.
  • Gator's Dockside restaurants patrons report seeing a 1% ACA surcharge. Signs in the restaurant explain the rationale behind the surcharge.
  • Extra healthcare costs and the threat of a minimum wage increase remain risks to the restaurant industry.
Comments (17)
  • Mack66
    , contributor
    Comments (33) | Send Message
     
    They lost me as a customer but hey they have the right to voice there ideology.
    28 Feb, 03:16 PM Reply Like
  • Tomm H
    , contributor
    Comments (11) | Send Message
     
    "...voice there (sic) ideology" ???? What in the world are you talking about? What is ideological about telling the truth to their customers? Like Obamacare or not (you apparently do), it definitely raises the cost of doing business. Why shouldn't the customers be advised? I think your ideological slip is showing!
    1 Mar, 03:45 AM Reply Like
  • Mack66
    , contributor
    Comments (33) | Send Message
     
    I know your ideology is showing Tomm H.
    3 Mar, 10:12 AM Reply Like
  • kgerickson
    , contributor
    Comments (148) | Send Message
     
    I don't eat at "Gator's" but I suspect (as a tax payer) that I am already paying for his employees healthcare and minimum wages.
    28 Feb, 03:18 PM Reply Like
  • DrP79
    , contributor
    Comments (552) | Send Message
     
    and will pay MORE as a taxpayer due the terrible effects of this bill. The cost alone has been woefully underestimated to the tune of TRILLIONS of dollars.
    4 Mar, 02:20 PM Reply Like
  • Brad Kenagy
    , contributor
    Comments (1453) | Send Message
     
    This is how business works, whether they specifically call it an ACA "Surcharge" or just built that into the price of the food & you never know, the point is businesses pass on the charges to customers.
    28 Feb, 03:22 PM Reply Like
  • labas112
    , contributor
    Comments (304) | Send Message
     
    Yes but ideally you would not want to alienate your clientele by labeling a surcharge after the most divided reform in recent years in America. If you roll it into the price, then you do not have to disclose why. Bad business move in my opinion.
    28 Feb, 03:28 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2793) | Send Message
     
    So why don't they just incorporate that into the price of the food.

     

    Raise the prices and see if the customers return or not ...
    28 Feb, 03:30 PM Reply Like
  • DrP79
    , contributor
    Comments (552) | Send Message
     
    Firms should make all costs and taxes explicit.

     

    This is an example of cost shifting that was expected to take place. The costs were going to go up under this law.

     

    Yet the proponents of the law still believe that there IS a free lunch somewhere.
    1 Mar, 10:11 AM Reply Like
  • bgold1955
    , contributor
    Comments (1929) | Send Message
     
    Costs going up? Depends. Small businesses under 25 employees, which is majority, actually get tax credits for offering health care insurance. My neighbor's small business, per him, is saving $400 a month over last year's health care costs.

     

    http://1.usa.gov/NgCahk

     

    Increase expense for small business (>25 employees) are those that did not provide insurance previously, however, that part has been delayed until next year.
    1 Mar, 12:38 PM Reply Like
  • DrP79
    , contributor
    Comments (552) | Send Message
     
    The law has NOT changed, Obama has unilaterally decided not to enforce it against his oath of office. Yet the cost structure will still still go up and that will hurt the small business owner from expanding his business.

     

    Requiring a employer to provide something that he did not in the past IS a cost.
    1 Mar, 04:31 PM Reply Like
  • SlingWing9
    , contributor
    Comments (473) | Send Message
     
    Eating out is convenient, eating at home is healthy.
    28 Feb, 03:26 PM Reply Like
  • SoldHigh
    , contributor
    Comments (995) | Send Message
     
    They should just pass the surcharge along to the Obama supporters. "If you like your president, you can pay for him."
    28 Feb, 03:29 PM Reply Like
  • kgerickson
    , contributor
    Comments (148) | Send Message
     
    That would be fun.... of course who would we charge for the medicare prescription drug benefit.... or the iraq war... the bank bailout? We've been blessed with so many great (unfunded) benefits/programs.
    28 Feb, 03:38 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8130) | Send Message
     
    The only solution is free market, choose-any-doctor-you want price competition healthcare.

     

    The answer is obvious.
    28 Feb, 04:15 PM Reply Like
  • stockdunn
    , contributor
    Comments (97) | Send Message
     
    They could also surcharge the cost of their food, labor, rent, utilities, etc., Oh, right. That's part of the cost of doing business, just like the ACA. I'd much rather have the restaurant make sure employees who handle my food have health insurance than have to pay for them anyway, when taxpayers pick up the tab for their trip to the emergency room if they don't have insurance.
    2 Mar, 01:21 AM Reply Like
  • rvshaw
    , contributor
    Comments (89) | Send Message
     
    You mean Obamacare ain't free? Really? But O promised us costs will go down! You mean he lied? Really?
    2 Mar, 10:03 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|