Applebee's under fire for franchise owner's remarks on health law

The restaurant chain Applebee's is one of the latest companies to come under fire for grim predictions relating to President Obama's health care law, after one of its franchise owners suggested he'll have to stop hiring or cut workers' hours because of the law.

Apple-Metro CEO Zane Tankel said Friday on the Fox Business Network that the new rule requiring businesses with over 50 employees to provide health insurance or pay fines will "in a best-case scenario... only shrink the labor force minimally."

"We've calculated it will be some millions of dollars across our system," said Tankel, who runs 40 Applebee's franchises, each with between 80 and 300 employees. "So what does that say? That says we won't build more restaurants, we won't hire more people -- exactly the opposite effect" of what Mr. Obama intended.

Tankel was addressing a specific rule in the 2010 Affordable Care Act that goes into effect in 2014. At that time, businesses with more than 50 full-time employees that don't offer insurance -- and have at least one employee getting health care subsidies -- will have to pay a fine of $2,000 per worker (beyond the first 30 workers). In subsequent years, the fine will increase to match growth in per capita insurance premiums.

"If it's possible to do without cutting people back, I'm delighted to do it," Tankel said. "But that also rolls back expansion, it rolls back hiring more people."

Tankel's remarks sparked some backlash online, prompting Applebee's president Mike Archer to release a statement saying that Tankel's remarks "were not the views or opinions of either Applebee's or other franchisees, although we respect his right to speak freely as an American."

"Our franchisees will comply fully with the law and take every measure possible to continue doing right by their employees -- the lifeblood of their businesses," Archer said. He pointed out that Tankel opened a new restaurant just last week that created about 200 jobs and will be opening another one next month.

Tankel is far from the only employer concerned about the health care rule. Papa John's founder John Schnatter has been one of the most outspoken business owners with concerns about the impact of the health care law, similarly warning last week that employees' hours may be cut to prevent their stores from reaching the 50-employee threshold. The Wall Street Journal earlier this month reported on several other businesses in the retail and service industries that may replace full-time workers with part-time workers or make other moves to avoid the new health care requirement.

The Obama administration has insisted the rule doesn't amount to a "mandate" on employers and refers to it as "a matter of fairness."

The Health and Human Services Department (HHS) says that as few as 10,000 U.S. businesses out of six million (less than 0.2 percent) will be hit with the requirement. The vast majority of businesses -- 96 percent -- have fewer than 50 employees and thus will be exempt, according to the department. Furthermore, of those firms with more than 50 employees, more than 96 percent already offer health insurance to their workers.

Another aspect of the health care law aims to make it cheaper for small businesses to provide insurance for their employees: Starting in 2014, firms with up to 100 employees will have access to state-based Small Business Health Options Program (SHOP) Exchanges, which are intended to increase competitive pressure on insurers and bring down costs.

[DanFromPhilly1958]

I would like to thank you for our very successful campaign against Papa John's, Darden Restaurant (Olive Garden, Red Lobster) as well as Applebee's® corporate office. As of this e-mail we have over 121,800 signatures and counting. http://signon.org/sign/tell-papa-johns-apple?mailing_id=7497&source=s.icn.em.cr&r_by=489420 These corporations were threatening to cut their workers hours in order to save money, and put bigger profits in their pockets due to the implementation of the Affordable Healthcare Act aka. Obama care. Papa John's, Darden Restaurants and Applebee's® corporate office have done an about-face, because of the public backlash and have stated that they will no longer be implementing these changes. This is great news for these hard working, low wage workers and their families who will now be able to afford to go to a doctor when they are sick or for preventive care.
You should be proud of the work we did to pressure these powerful corporations.

But there appears to be ONE holdout from the Applebee's®chain. Mr. Zane Tankel is the Owner and CEO, of Apple-Metro Inc and operates 33 Applebee's® in the five boroughs of New York, Westchester and Rockland Counties. Mr. Tankel has yet to denounce his comments, and is still threatening to cut his workers hours so he does not have to offer or pay for their healthcare. For that reason, we need to contact this owner, and demand that he not cut is workers hours in order to put more profits in his pockets, and give them the health insurance they NEED and DESERVE. This Tuesday, December 18 we are asking you to call or fax his office at the numbers below. Let Mr.Tankel know that there will be major consequences to his franchise if he implements his GREEDY plan.

He may be reached at Phone: [phone] X109, Fax: [phone].

When you call, here's an example of what you can say:

"Hello, my name is XX from City, State. I am very disappointed by the statements Zane Tankel made about cutting workers hours at his Applebees' franchises in order to avoid giving them health care. That is very un-American, and until he reverses his decision and promises not to cut workers' hours, and promises to provide them with health care, I will not be visiting ANY Applebees. Thank you."

When you are finished contacting him, please report your call: http://signon.org/tools/call.html?id=7497-489420-raP3I7

[stupa5]

Hey Applebee your right up there with Olive Garden your food suqs..
and the customers need to worry about their health after eating there!

[GossamerWings]

So true. I wouldn't miss them.

[tsigili]

Being critical of the truth, will accomplish nothing.

All business is going to be singing this tune, because it is the TRUTH!

[GossamerWings]

Not any company I ever worked for. Corporations and S corporations have done pretty good providing Healthcare. They also write it off.

[DJ_32_1205]

BishopRobme replies:
linkicon reporticon emailicon
The next time you have the misfortune of hearing a Wall Street titan or other one-percenter whine about how their trickle-down contributions are not appreciated by the masses remember this tidbit, courtesy of Garrett Haake at NBC:
From the moment Mitt Romney stepped off stage Tuesday night, having just delivered a brief concession speech he wrote only that evening, the massive infrastructure surrounding his campaign quickly began to disassemble itself.
Aides taking cabs home late that night got rude awakenings when they found the credit cards linked to the campaign no longer worked.
In case you are wondering, this did not have to happen. The Mitt Romney for President entity does not end with Romney's Tuesday night loss. There are papers to be filed with various federal commissions and bills to be paid ...but Bishop Robme couldn't resist screwing his supporters for not winning
-----------------------------------------------------------
You have evidence to support this, or is it another lie that you love to tell? Grow up dummy and become that educated person you claim you are

[GossamerWings]

It was also covered in the news.

[Fargonone]

Another greedy non-American who doesn't care about his employees. Get on the island with the rest of those who only care about themselves jerk. I won't be going to Applebees, ever!

[humberston]

btw, w/ our most expensive system in theworld, we are 37th in outcomes, 50% more expensive, and one of the least efficient. and we still have millions uncovered even w/ the new plan. I have medicare now - it is cheaper, better coverage and simple to use as a consumer.

[humberston]

Too bad business doesn't " get " it-- they should be advocating for universal, single payer health care. they would pay a tax ala soc sec as would the employees to fed gov. patients could go to any dr they wished who would then bill gov for services. again, ala medicare get insurance co's out of primary care where they take 30 plus % off the top . cheaper for all concerned, less billing expense for dr.s etc most other advanced countries have somethinf similar and no one I have spoken to from other countries dislikes their coverage and mopst think ours is crazy. nothing in this approach would prevent someone from purchasing additional insurance but primary care would be covered for all.

[dalaine]

Would you please do a report on the restaurant chains that are NOT going to cut employee work hours to skirt the law? I think that would much more useful information for me as a consumer.

[PourpaixPourpaix]

Sorry, I don't get it. Mitt Romney assured us that it always works better to take tasks away from government and turn it over to corporate America. Small government, corporate expertise. So, instead of government running health care like they do with Medicare, ObamaCare instituted a system run by corporate America instead of letting the government screw it up.

So, exactly why are the Republican types whining about getting what they want? Surely, it's not because these champions of patriotism figure they can reap higher profits if they deprive their workers of both health care and a reasonable wage that allows them to buy their own health care?

[hovlandpreamp]

How about if we found out that insurance rates would go down as more people are being covered, thus the net effect would be minor in terms of cost but major in terms giving health care to those that cannot afford it on their own (and that's a lot of people).

Don't know if it is true, but it is worth investigating further.