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Denny's to charge 5% 'Obamacare surcharge' and cut employee hours to deal wit


               
2012 Nov 14, 10:34pm   9,767 views  47 comments

by zzyzzx   follow (9)  

http://www.dailymail.co.uk/news/article-2233221/Dennys-charge-5-Obamacare-surcharge-cut-employee-hours-deal-cost-legislation.html

Florida based restaurant boss John Metz, who runs approximately 40 Denny's and owns the Hurricane Grill & Wings franchise has decided to offset that by adding a five percent surcharge to customers' bills and will reduce his employees' hours.

With Obamacare due to be fully implemented in January 2014, Metz has justified his move by claiming it is 'the only alternative. I've got to pass on the cost to the customer.'

Which will kill off even more jobs as people will have an additional incentive not to eat out.

#politics

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41   AD   2025 Feb 19, 9:55am  

Homeboy says

But where else can you get a Lumberjack Grand Slam, that contains almost an entire day's recommended allowance of fat, and almost 2 days worth of cholesterol and sodium?


When I order the "All Star Special" at Waffle House I make sure I maximize my calorie intake for free by selecting sausage (not bacon), hash browns (not grits), and grilled biscuit (instead of toast). This adds 470 calories to my meal without increasing any cost for it.

https://order.wafflehouse.com/menu/waffle-house-1491/products/67134659

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42   WookieMan   2025 Feb 19, 10:01am  

AD says

Denny's shut down 88 stores last year and plans to shut down 70 to 90 this year.

Not really a surprise. Local breakfast joints make more money. I think chains are slowly going away in that realm. If you can get a liquor license, breakfast is a high margin food service industry. You can charge $13-15 per omelette and walk with 20-30% after wages which is high in food service.

A steak dinner not so much. 10-20% at a good place. A skillet or omelette with a mimosa or two and you're making good money if you got a decent lease and cook.

My son pole vaults every Sunday. I go get breakfast the first hour before he jumps. Breakfast place is packed. They don't do dinner. So hours aren't shit for staff. I'd never open a restaurant, but breakfast is the way to go.
43   AD   2025 Feb 19, 10:03am  

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Denny's market cap is $261 million for 1,323 stores, or roughly $197,000 per store.

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44   AD   2025 Feb 19, 10:36am  

WookieMan says

Not really a surprise. Local breakfast joints make more money. I think chains are slowly going away in that realm. If you can get a liquor license, breakfast is a high margin food service industry. You can charge $13-15 per omelette and walk with 20-30% after wages which is high in food service.


Yep, either they re-invent or innovate, or they go the way of Kmart and Sears :-/

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45   beershrine   2025 Feb 19, 2:15pm  

Everywhere I see a Denny's building they are closed up. End of franchises around here just going into one would be embarrassing.
46   HeadSet   2025 Feb 19, 5:48pm  

Denny's have all closed around here as well. Maybe they should not have changed their name from Sambo's.
47   AD   2025 Feb 19, 8:16pm  

drew_eckhardt says

Federal minimum wage is $7.55 an hour; although employers only need to pay tipped employees $2.13 provided they earn enough in tips for their net pay to equal or exceed the minimum wage.


Drew's post was in 2012, now its $10.98 for tipped workers (with a $3.02 per hour tip credit) in Florida. They used to pay around $9 an hour in 2014 for fast food in Panama City Beach, but now pay around $15, so about a 5% annual increase in hourly wages from 2014 to 2024.

The costs get passed on to the customers and that's why places like Dennys have not fared well, in addition to competition from Waffle House.

Though Denny's has better prices than Waffle House

https://www.dennys.com/location/dennys-8886/menu/2468-value-menu

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