CEOs and Restaurant Experts Say Less Full Timers Due to Obamacare

Many senior management executives and restaurant experts believe that hospitality and foodservice are moving to an industry of part-timers as a result of the Patient Protection and Affordable Care Act, commonly referred to as Obamacare. The provisions of the new law has already started impacting large employers and has pros and cons depending on whether you are the employer or employee. One of the primary cost issues for restaurants, hospitality businesses such as hotels, and retailers is the requirement to provide health insurance for staff members that are full-time employees: – According to principal Matthew Stevenson at Mercer “In a July survey, 32% of retail and hospitality company respondents told the consulting firm that they were likely to cut the number of employees working 30 hours a week or more.” Restaurant experts and consultants have also warned that companies that use more part-time labor risk productivity losses from high staff turnover and lower morale. – In another example of this movement toward shorter working schedules, restaurant management chain Darden Restaurants, who operates Olive Garden, Red Lobster and Longhorn Steakhouses, is experimenting with reducing workers to only part-time at several of its Florida locations. However, while foodservice owners and restaurant management consultants are looking for ways to keep costs in line because of Obamacare, 10,000 Americans a day will be retiring over the next 19 years according to the Pew Research Center. At the same time, these older members of society are still looking to work. Combined with longer job experience and a greater desire for part time rather than full time employment, this portion of the population could be the solution for restaurant and foodservice operators to curtail insurance costs and still maintain productivity and high morale. Are you an owner or operator and hospitality and food service larger employer or a restaurant expert working with these same types of clients? If so, please share your strategy with our readers on how you intend to deal with the upcoming health insurance mandates.