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First Edge Solutions CEO Robert Kraft and Famous Dave’s CEO John F. Gilbert on how the fiscal cliff deal and health-care law impact businesses’ op...
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For the fiscal deal is done and now businesses all over the country are dealing with -- new tax hikes and new regulations for more business reaction let's bring in our panel John Gilbert and CEO -- famous -- Robert Kraft is a CEO and president of first edge solutions they have had different perspectives on businesses -- I wanna go to you first.
Is the new tax -- gonna change the way you do business in any way shape or form.
I gain I don't think it'll change the way we do business I think it'll give us some comfort dead our our customers have a little more predictability.
In their lives and have little our little more settled down.
I think uncertainty as a related to the fiscal cliff created some.
Hesitancy to spend on the part of customers over the last few months and I'm I'm happy to say that that part is over it feels like we've got.
Situation where we've got half the battle figured out.
How about tax credits -- -- you have you have you been using them at all the president is always touting all of his tax credits is as a boon due to smaller businesses has it has it helped you at all -- you're gonna use them in anyway.
Absolutely we were concerned that maybe the tax credits would be phased out as part of -- -- of fiscal cliff solution but in fact they're still part of how we do business so things like the R&D tax credit we have used in we will continue to use going forward OK Robert.
Little different business said most people -- famous Dave's they might not know well first fix solutions what are you do quickly.
Whereas direct marketing parting company that also develops software to manage social media mobile in the email how many employees do you have.
-- we have a hundred employees and we have three plants Atlanta Georgia Phoenix Arizona headquarters in Milwaukee Wisconsin -- -- hundred employees that you fall right in that small business category of those who work kind of concerned about obamacare -- -- because yet just enough employees of that you have to begin to provide services that maybe you haven't been providing -- press.
Absolutely David I think the fine line with us is we also developed software solutions for the health care and insurance industries so.
As a result of Obama -- were actually able to help some of those insurance and health care providers.
Develop better communication strategies to reduce their costs in in.
-- better efficiencies and in reaching their consumers but as an employer Robert -- gonna affect your relationship with your employees and and your costs.
It did.
We didn't conversations.
About that because absolutely it is a fear and no question we don't think there is.
A free ride for anybody there's no such thing as free health care.
And it might sound good but when you put forty million people -- are uninsured on the program.
Some is gonna have to pay for and ultimately it's gonna fall back and all march shoulders which means downward pressure across the board at a at a macro level.
Now John we have been talking a restaurant two words who were particularly hit by Obama -- because they're they're concerned about.
Cost insurance costs -- -- -- before some people are thinking of switching their employees from full time to part time as a result of this have you thought about that.
-- -- -- -- -- and a wide range of options as we try to.
Understand the true impact of Obama care are feeling right now is that we think we can walk the fine line between creating shareholder value.
And doing right fire employees as it relates to health care we RD have health care programs they got -- we are -- to -- employees.
Some of those -- health care programs -- affordability and also in terms of benefits.
But we think like many restaurant companies that we can -- walk a fine line is we understand more and more.
What the true impact of obamacare is over the next two to three years but it's it doesn't sound like you've taken.
Off the table the idea of moving some full timers -- Now we have -- as somebody who waited tables years ago my south that that part of our -- employee base.
Does have flexibility in terms of not how many hours they work in where they work so we want to be able -- on be competitive in the marketplace and not for the best.
The vast array of benefits that still live up to the spirit a lot.
Now Robert for all of the tensions had a record -- -- put through.
Over the past several months over this whole fiscal cliff deal.
You're not bothered by divided government that much you think that one side really does restrain the other and for all of that the crazy hysteria that we have to go through.
Maybe a divided government is not a bad thing right.
Well I think that's a pretty darn bold statement I don't know if I'd live by those words but.
I think I'd I do think some -- some balance when these guys are arguing sometimes creates a level of certainty and essentially like John was talking about earlier.
The fact that we finally have a bill that was passed that at least gives us some certainty going forward so we know how to plan and and strategize for 2013 point fourteen and beyond.
But we certainly.
Are not out of that these spending.
Issue you know and that's a much larger issue than the tax issue I mean it's like.
You know we're using a garden hose to it to -- a bucket with a hole in the bottom and our -- and a fire hose to fill it I mean.
Your your your revenue -- even touch where your your expenses are.
And it hasn't been touched at all by the deal that was just that was just all attacks yeah we're gonna have to deal to spend he'll probably -- net debt issue comes yeah.
Gentlemen thank you get -- both very much appreciate today do you -- -- ideas from the front line of business.
Just children from famous -- and Robert Kraft from first edge solutions Liz over.
