Reply to Red Lobster and Olive Garden restaurants to shift more workers to part time to avoid ObamaCare

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]This was completely foreseeable. Health insurance is a huge cost for employers. I would blame Obama for this, not the employers.

We need a system that doesn't base health insurance on employment. [/quote]

They don't have to make profits by harming employees, though. They can shift costs to the consumers. Paying a few cents more for a lobster is no big deal.[/quote]

It might not be a big deal to you, but I bet these companies have done the research and determined that more people on the margin will stop coming to their restaurants if they raise the prices than if they change more of the staff to part-time.  [b]I'm sure that if they thought they could charge a buck (or whatever amount) more per lobster and make a greater profit compared to shifting to part-timers they would do so.[/b] [/quote]

That's the problem.  The only thing that matters is money.  Why not make a smaller profit (still a profit) but treat employees well?  [/quote]

It's a business that survives by making money. If it can't make a profit, it goes out of business, which would be bad for the employees.  If it can make a profit, why are we all better off if the customers lose more money in prices than if the employees get paid less? [/quote]

I didn't say they shouldn't make a profit.  I just don't think they should [b]maximize[/b] profit at the expense of employee welfare.  It's easier to spread the cost among millions of diners to cover the cost of health insurance for thousands of employees.  So yes.  I'd rather spend $2 more (or however much) on my dinner if it helps employees get $400 month health insurance. [/quote]

Even if that works for some restaurants it won't work for all. The Bertucci's in Arlington just closed. Big successful chain but it couldn't make it in this economy. Maybe it could have if it could have lowered prices or paid less for health care.

In addition, most businesses need investors. An investor won't buy your argument. If I can make a slightly higher return with my  money in one restaurant than another, I'll pull my money out of the one that is more generous than the market requires to its employees.

I assume you agree that if they charge more per lobster they will get fewer customers. At some point they've already discovered the right combination of price and willing customer that maximizes profit. There's no reason to assume they'll be able to charge enough more to cover the increase in health care cost without losing too many customers. [/quote]

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