The Restaurant Development and Finance Conference occurs every year in Las Vegas. The conference brings together the finest minds in sales and finance and is well-attended by chain restaurants, franchisees, franchisors and capital sources.
A preconference workshop titled “Health Care Strategies for Restaurant Companies” dealt with challenges that health care reform presented to restaurant companies. The key point is that the law creates access to health care and not health care reform. Individuals will be responsible for purchasing coverage but companies with over 50 full-time employees will have to offer coverage or pay penalties. There will be new duties for employers and the speakers suggested that health care reform may result in a nation of part-time workers, similar to the Wal-Mart model. In an effort to avoid purchasing health care, employers may convert their full-time workers to part-time, and have them work for different paymasters, effectively doing the same work at different locations. Many in attendance thought this was a viable strategy for their chain restaurants, but others disagreed. One said, “I feel fortunate that I was able to amass a chain requiring 5,000 employees and I want to show my gratitude by giving them health care. It is good for them and good for business.”
