(National Restaurant News) In light of the passage of the Patient Protection and Affordable Care Act, restaurant companies and franchisees are looking into ways to lower costs to save money, including cutting employee hours.
"What we're seeing is that this health care law puts unique challenges on chain restaurants," said Rob Green, executive director of the National Council of Chain Restaurants. "The law will have cost implications on a lot of different business sectors, but restaurants and retail are in the bull's eye."
Specifically, two parts of the PPACA may raise costs for restaurant chains: The definition of full-time employees as those who work 30 or more hours per week, rather than the traditional 37-40 hours per week, and the fact that the law applies to any business with more than 50 employees — a number some say will discourage franchise growth.
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