Obamacare Won’t Cause Fast Food Shortage

May 18, 2013
59 Views

ACAMid-sized, low wage companies will feel the effect of Affordable Care Act (ACA) implementation. Currently, many of their workers are uninsured but that is meant to change next year. Health insurance will be an added cost for these employers, but government subsidies will soften the blow.

ACAMid-sized, low wage companies will feel the effect of Affordable Care Act (ACA) implementation. Currently, many of their workers are uninsured but that is meant to change next year. Health insurance will be an added cost for these employers, but government subsidies will soften the blow.

Opponents of the law have been making a big deal out of how it will harm businesses and stop their growth plans. But even though today’s Wall Street Journal article (Eateries Fear Health Law’s Bite) starts to take us down that well-trod path, if you read it closely you’ll see there’s little to fear.

The article leads off describing East Coast Wings & Grill, which is temporarily limiting its franchisees to ownership of 3 to 5 stores due to uncertainty about whether the stores are viable when they need to pay for insurance. The International Franchise Association shares survey data indicating 72 percent of franchisees say the law creates “some” or “significant” uncertainty for long-term planning. Rat burger purveyor White Castle is also planning to slow down its expansion.

Overall it’s a pretty feeble argument against ACA expansion. Certainly there are other things prospective Wing operators and franchisees in general are uncertain about, including the cost of food and how the sequester will impact the economy. It’s convenient to blame the Affordable Care Act for a chain’s problems. But if it weren’t that we might be hearing some other explanation, like bad weather.

Interestingly, the more well-established chains don’t seem overly worried about ACA. Wendy’s, Dunkin Donuts and McDonald’s are all aware of ACA and making plans for the modest impact it is likely to have.

(image: fast food / shutterstock)

You may be interested

Why Universal Healthcare is the Key to a Healthier and More Productive Society
Health care
344 views
Health care
344 views

Why Universal Healthcare is the Key to a Healthier and More Productive Society

Helen Heather - August 23, 2017

The United States remains the only country in the world without a universal healthcare system. Many critics have stated that…

Care On The Road: How Telemedicine Can Reach Truck Drivers
Mobile Health
17 views
Mobile Health
17 views

Care On The Road: How Telemedicine Can Reach Truck Drivers

Larry Alton - August 21, 2017

Telemedicine is considered a powerful tool for individuals living in rural areas, far from adequate services or in need of…

Where Is The Balance? Pushing Back Against Consumer Health Tech
eHealth
7 views
eHealth
7 views

Where Is The Balance? Pushing Back Against Consumer Health Tech

Larry Alton - August 18, 2017

When Republican Congressman Jason Chaffetz glibly remarked that Americans struggling to afford insurance should choose between that and their smartphones,…