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View Diary: Denny's CEO not happy about franchisee's Obamacare surcharge threats (214 comments)

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  •  Your way is how all businesses USED to do it... (1+ / 0-)
    Recommended by:
    kurt

    ...and how he reputable ones still do. But the name of the game in large chains is to maximize profits and minimize costs. And in highly competitive industries like casual dining chain restaurants, pricing is critical. Olive Garden suffered mightily when they tried to move upscale just before the recession hit. Now they're offering a lot more "value priced" menu items. If Papa Johns or Dennys raise their prices to far above that of their competitors, they'll get their clocks cleaned, especially in a tight economy. That makes it harder to respond to rising costs they can't control. So the answer is to cut costs they CAN control - which usually means labor. It's crappy, but until a living wage is mandated, it will continue to be the norm.

    I vote we run Rick Scott out of Florida on a high-speed rail.

    by ObamOcala on Tue Nov 20, 2012 at 05:04:15 PM PST

    [ Parent ]

    •  The thing is (1+ / 0-)
      Recommended by:
      kurt

      in theory, the competing businesses will all be facing the changes from Obamacare, so it should be an even playing field.  If Papa John's is going to have to raise the cost of pizza 10-14 cents per pizza, in theory Dominoes and other chains will likely have to do similar.

      So I guess I don't see the problem.

      •  Not true. What if the actual cost was only 5 (0+ / 0-)

        cents a pizza but you decided to take advantage of it and claim you needed to raise the cost by 50 cents a pizza to make up for Obamacare?  In other words, lie about the cost of Obamacare so you can make a greater profit.

        You have watched Faux News, now lose 2d10 SAN.

        by Throw The Bums Out on Tue Nov 20, 2012 at 08:54:14 PM PST

        [ Parent ]

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