Affordable Care Act’s Impact on One Small Business

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Oct. 4 (Bloomberg) -- Don Fox, CEO at Firehouse Subs, discusses the impact of the Affordable Care Act on his small business. He speaks on Bloomberg Television’s “In The Loop.”

How do you know it will cost $4000 for each restaurant?

That is our best estimate.

The calculation at this point is fairly simple.

A typical firehouse subs restaurant employees 17 people.

We have always divided insurance to employees.

We have 16 hourly employees.

Three are full-time employees.

This is looking back at our 2012 history.

We are not making any changes in our workforce composition.

We will go forward with the exact number of full-time employees we had previously.

We will add an additional three to the insurance program.

One of your prior guests spoke about this.

We cannot say with certainty what percentage of those employers will -- employees will accept the insurance.

The $12,000 would be our portion of it.

The employee would be paying $1000. you are talking about $12,000 a year?

The maximum.

We are looking at the annual cost.

You mentioned this will not change your workforce composition.

Could it slowdown hiring?

Could you foresee having to cut jobs because of this?

The impact will vary with every restaurant and branch.

One thing i can tell you with certainty.

This applies to all small businesses, if not all businesses.

If businesses are trying to grow, they require capital.

In the case of firehouse subs, a typical restaurant requires 200 $80,000 in investments.

Everyone -- $280.000. every restaurant wants to grow.

The formula is simple.

They have to save $18,000 in after-tax earnings.

-- $80,000. it is all a matter of degree.

We are approaching our franchisees through the impact of the affordable care act.

I am happy to extend the benefit of insurance to full-time employees.

It makes sense what you are saying.

If you have to put money toward health care, it takes away the money you would normally put into your restaurants.

We had someone on from boston robberies.

He is opposed to obamacare.

This is what the boy -- boston properties.

This is what he said.

88% of the jobs we have created this year are part-time jobs.

That has never happened in america.

That is a disaster for working families in america.

It means companies are going to hire people on a part-time basis.

Does this all by the care legislation make you want to hire more part-time workers?

Are you going to go more toward that route?

The key for us is we have to fundamentally manage the way we handle our workforce.

We are going to have the same number of full-time employees we had previously.

One thing is important to keep in mind, especially for our business.

We depend on our people.

We are trying to do the best adding and managing them.

We are blessed to have a successful company.

I want to address the comment you just played.

There is an inherent assumption on the part of the government that just because a business is large at it is profitable.

That is avg careless at -- that is avg careless assumption.

-- riduiculous assumption.

They have to reduce the hours of their employees or they have to do that type of things that that portrays.

That is not the case for the majority of cases out there.

Bank -- thank you for joining us.

It is day 4 of the government shutdown.

We have talked out -- about all of the negatives of this shutdown.

It is getting late night talk show hosts 20 of material.

This country's most beloved fire safety spokes bear is smoking.

Jo soy not on the job right

This text has been automatically generated. It may not be 100% accurate.


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