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White Castle V.P. Jamie Richardson on the financial impact of the health-care law for companies.
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So -- the health care a lot -- jobs because of the potential price mark.
Across the country just trying to make a political point.
Example Darden Restaurants which owns chains like -- garden and red lobster.
Employs 180000.
People well they're now testing -- pilot program cutting many workers down a part time.
So they can avoid paying health care costs it begs the question.
Really necessary or is it just -- -- What does it mean for these companies and their employees joining me now in a Fox Business exclusive this white castle vice president.
Jamie Richardson Jamie thanks for coming on the program.
I'm what do you think I mean do you think that this is Smart business decision -- -- the -- We know one of the things we found with the Affordable Care Act for many of us in the restaurant business.
There's not much that's affordable about it so far we're still waiting for regulations trying to understand what the implications of those will be.
But it almost seems like the people in Washington when they're making perhaps well intentioned decisions don't realize -- me we make a dollar in sales.
We don't get to keep that dollar they take some of it but then we make two important investments in people and in food and those are two biggest investments we make so we do that.
Other big cost -- big investments and so as we look at the affordable tracked down and wonder what's gonna come next everybody's going to be trying to find ways they can cope with that and understand how they can invest in the people -- the best way.
To me you know I thought there's only two reactions that restaurants could have they either make all their employees part time.
You know which is bad for the economy you have fewer people working in full time jobs or -- are you just create fewer jobs or.
They pass along the price to their consumers by raising the price of their goods and services.
Also kind of bad the economy is where you know at a time when people -- out there buying that much stock do you think politician Democrat understand basic economics.
We know Melissa one thing it's really interesting about it to note is that.
They arbitrarily decided what the definition of full time should be -- white castle for decades now 35 hours a week has been full time.
The law stipulates that it's thirty hours per week so right away they're fundamental shifts in terms of how -- done business how we've gone to market.
There really make it difficult we compete against each other fiercely.
You know with our colleagues and appears in the industry this just adds another dimension another -- trying to cope with the uncertainty of what comes next so what -- being your own reaction -- your business what are you guys -- you doing to -- -- that's.
You know white castle were Stanley -- -- we just celebrated her 91 anniversary 91 birthday.
And for us we're trying to understand what it means we've offered health care since 1924.
So right around the time Calvin Coolidge was president we came up with a health care plan because our founder believes in providing freedom from anxiety -- -- team members so it's something -- fundamentally invested in.
We understand the merits and and how important it is but what it causes us to do is consider what comes next because.
As we look at our costs and 2014 when things are beginning to be fully implement our health care costs are gonna increase point 4%.
And so as we look at that we're trying to understand how can we best invest -- -- people and do what's right for the.
Are you saying that you are are -- going you already -- health -- -- doesn't really change the number of people within your own business who are being covered -- you think it's just going to increase the cost of covering those same people is that your analysis.
Did -- absolutely there's a lot of different factors and a lot lot of different mandates that really start to raise the cost carriers there's a lot in the law that provides more coverage there's not much in the law that we found that lowers costs.
So as we prepare for that we're trying to understand how can we do first and foremost what's best for our team members so we're investing back in them.
But at the same time.
We're facing catastrophic increases in costs have commenced on the other uncertainty do you think about ethanol policy in what that means that the you know blend with the mandate son and ethanol production.
And what that translates to is more cost commodity costs are rising as a result and now we're using corn for fuel it's at a foods that's just another dimension of one thing -- -- -- that is -- really distressing so what are you doing right now are you expanding -- -- hiring -- you're taking a wait and see attitude with your business.
We're holding steady more investing in our people like we have been from the get go but for us it's really done trying to understand.
What the implications are gonna be so.
We would probably be going into new markets right now for wasn't probably -- certainly -- only go into new market we'd open fifteen to Tony restaurants this is testimony we share with a house oversight committee.
That we be creating 40500 new jobs we put that on hold because we simply don't know what -- cross -- are gonna look like -- dollar sales we get.
We're fortunate to deal -- -- Keep two cents three cents for drugs.
I think sometimes the people Washington think that.
That top line revenue as our bottom line and a profit and unfortunately this is not the case Jamie Richardson thank you so much for coming on the show that was a lot of incitement -- come back soon.
Trade on my friend but.
