Five Guys franchise owner says Obamacare will force him to raise prices

Five Guys is my favorite place to go for a reasonably-priced cheeseburger. But the reasonable prices might be changing now.


Business owners across America say they’re experiencing poor sales, holding back hiring, and planning layoffs because of “Obamacare,” or so says the Federal Reserve’s latest Beige Book (an overview of the business conditions in each of its 12 districts).

But in case you don’t trust the Beige Book’s anecdotal reporting, here’s something else to consider: Five Guys franchise holder Mike Ruffer said on Monday that the cost of The Patient Protection and Affordable Care Act, President Obama’s landmark healthcare bill, will force him to raise the price of burgers and hot dogs, according to the Washington Examiner’s Paul Bedard.

“He will need all the profits from at least one of his eight outlets just to cover his estimated added $60,000-a year in new Obamacare costs,” Bedard’s report notes.

“Any added costs are going to have to be passed on,” said Ruffer, who operates eight Five Guys in the Raleigh-Durham, N.C. area.

But wait! There’s more: Ruffer also said that he had to scrap plans to build three additional restaurants because he’s still waiting for after the Obama administration to explain all the rules and penalties involved in the healthcare bill.

[…]The report goes on to explain that Ruffner thought he’d be exempt from “Obamacare” because he built each restaurant as its own company. However, the healthcare law doesn’t recognize this distinction – so now he’s exploring whether laying off employees or cutting back hours will keep his franchise safe from “Obamacare.”

“He said that ‘scorched earth plan,’ however, would hurt his restaurants, so Ruffer is likely to either pay the fine or buy insurance,” the Washington Exmainer reports. “But spreading the costs over his basic menu of fries, drinks, burgers and hot dogs, could scare off customers, he worries. He said that the recent spike in gas prices cut into his profits since fewer people were stopping at his restaurants.”

“And the health care law isn’t only going to hit Ruffer. He’s quizzed his workers to ask if they understand that they will be fined if they don’t get health insurance. Just one of 20 workers were aware of the $95 tax penalty that rises to $695 by 2016,” the report adds.

The recent spike in gas prices is also caused in part by Obama’s blocking of American energy development. It as if everything he does hurts the individual consumer.

Maybe next time, people will turn off their televisions and hit the books before voting. In the meantime, the fairest way to decide which employees to lay off is to take a walk through parking lot and pick every employee with an Obama sticker on their car.

3 thoughts on “Five Guys franchise owner says Obamacare will force him to raise prices”

  1. The solution you provide in your last paragraph is great – thank you! Unfortunately, there are so many brainwashed sorts who want MSNBC to tell them what to think instead of doing the hard work themselves.


  2. Your last sentence is hilarious (and I like it!). I’ll pay the higher price at Five Guys. I’m glad that chose not to lay off employees. But this is tragic.

    My dad retired from a dredge ship in the Army Corps of Engineers. During his retirement, the plan was for him to teach classes from time to time, helping train newcomers. That plan has now failed, due to the sequester. Not only will my dad not be able to teach, but they are beginning lay offs. The chief told my dad that they may have to shut down the operation altogether.


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