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  • VIDEO: IHOP Owner Fears Obamacare's Impact on Jobs and Economy

    TERRE HAUTE, Ind. — In 2006, when Indiana small-business owner Scott Womack purchased a development agreement to expand his IHOP franchise into Ohio, he had no idea Congress would pass a massive overhaul of the health care system four years later.

    Today, one year after that legislative overhaul became law, Womack is very aware of Obamacare — and of its effects on his plans for growth.

    Under the year-old law, Womack must provide health insurance to all full-time employees beginning in 2014. Right now, he employs nearly 1,000 full- and part-time workers and already offers insurance to his management staff. He simply does not know how he’ll generate the revenue to do more.

    Womack estimates the cost of the law to his company will be 50 percent greater than his company’s earnings — in other words, beyond his ability to pay.

    That’s not because his company of 12 IHOP restaurants in Indiana and Ohio is unprofitable. Quite the opposite, in fact. By industry standards, he’s doing well. But labor-intensive restaurants generate profits of just 5 percent to 7 percent per employee.

    With fears about how he’ll afford to provide health insurance with those low profit margins, Womack is worried about his expansion plans in Ohio. He can’t exactly cancel his development agreement. But he’ll only be able to fund his new restaurants — and the construction, real estate and manufacturing jobs that would go along with them — if Obamacare is repealed.

    “If the health care reform law is not repealed or if the employer mandate doesn’t go away, we’re going to have to take drastic action,” Womack explains.

    From his perspective, the law represents Congress’ fundamental misunderstanding of important differences among industries. He’s frustrated that so few lawmakers sought input from people like him — but he’s doing what he can to speak up now to offer a glimpse into the law’s effects on small-business owners.

    Learn more about the impact of Obamacare and Heritage’s Solutions for America.

    Posted in Obamacare [slideshow_deploy]

    9 Responses to VIDEO: IHOP Owner Fears Obamacare's Impact on Jobs and Economy

    1. Lloyd Scallan (New O says:

      Most of us that reads thie Morning Bell realize that Scott Womack is correct

      about what ObamaCare will do to thousands of small business owners all over this nation. But there in lies the problem. We realize the truth. But yet most all major news media outlets, where the majorty of citizens get their daily news, are deliberly hiding the truth to continue to support their hand picked president and his agenda.

      Then, their are the present Dem members of the Senate, like my unfortunate

      Senator Mary Landreau, that accepted bribes and cut deals to vote YES on

      ObamaCare. Everyone of thes liars and despots must be removed from public office. They have proven their dishonesty and their blind devotion to the socialist

      that now resides our White House.

    2. Pingback: VIDEO: IHOP Owner Fears Obamacare’s Impact on Jobs and Economy | Big Propaganda

    3. West Texan says:

      Lloyd hit the proverbial nail on the head when he said " … the present Dem members of the Senate … that accepted bribes and cut deals to vote YES on


      It's funny how my far left social progressive friends claim the 17th Amendment stopped senate corruption. My rebuttal to their misinformed opinion is the 17th unconstitutionally stripped states of their federal representation which greatly weakened our union's structural integrity. Texas, as well as other states, had every right back in 1913 to secede. There's no statute of limitation on the abomination of the 17th. It needs to be repealed now.

    4. West Texan says:

      Back to your story. My sincere empathy is with small business owners like Scott. They work hard to get ahead. Unfortunately when federalism is subverted by socialist wannabes in national government, prosperity predictably vanishes.

    5. Bobbie says:

      Congress’ fundamental misunderstanding of important differences? This isn't a misunderstanding of congress. Not the 111th! They stand behind the bill WITHOUT THE DIGNITY TO READ IT and still try to convince this take over is a good thing. Nobody's problems are (those that stand behind this bill,) a concern.

      They look forward to the chaos this already creates. It's nothing but a trap. ALL FOR 30 MILLION PEOPLE, THAT CAN'T BE HELD ACCOUNTABLE BY OBAMA'S STANDARDS!? KEEP THE WEAK, WEAK, RIGHT MR. OBAMA? according to his own actions, Obama, expectations cannot be equally applied as if we're not equally human!! He protects his made up number of 30 million (costs do not add up) at the cost of all other livelihoods? Government is suppose to apply equal protection to all without discrimination. Please impeach this anti-American.

      Repeal please, it is UNCONSTITUTIONAL and if the President isn't man enough to accept the fact, his removal before 2012, is necessary as he continues to hold America back.

    6. Pingback: Starbucks and IHOP not so thrilled about Obamacare « Eric Odom - Planes, Trains and Politics

    7. Larry Cunningham - T says:

      We own a small construction company in the industrial market. We have on the average of 250 employees depending on the budget spending of our chemical plant and refinery clients. We elect to provide Health Insurance for our staff of 12 at a cost of approximately $460.00 per month or $5520.00 annually.

      Many of our field craft employees are not full time or change jobs frequently so in conservative count of additional eligible employees for which we would have to provide insurance coverage is 188. This would cost our company $1,037,760 or pay the penalty that we understand will be approximately $2,000 per employee without coverage. The penalty will amount to $376,000 which is more than half of our net earnings annually.

      This will virtually eliminate the bonuses we have been paying to key employees for 20 years due to the reduction of net earnings which equates to about 15% of their income.

      One option we will explore as a matter of survival is reducing the wage rates of all personnel to pay for this insidious tax. If we provide full coverage this would reduce hourly rates by approximately $2.65. If we pay the penalty it would reduce the hourly wages by $.96.

      Let's say one option is to pass this cost on to out customers (which we are not sure they will accept) who in turn passes the cost on to their customers which eventually is paid for by the consumer. This is just another gift from the current liberal administration without regard to the consequences to the American People.

      Depending on weather Obamacare is repealed we will more than likely loose key personnel and all employees will lose base wages even if we pay the penalty. I cannot see how other companies our size will have any other option with the exception of closing the doors. That would be 250 personnel form our company that no longer work that other wise make a fair living in our industry.

      Obamacare is the most anti-capitalism and anti-business socialist tax I have heard of in my career. We must repeal Obamacare and replace the current administration including so called conservatives that ride the fence when they vote on legislation.

    8. Pingback: HDR 134: How About a WTF Prize? « Hump Day Report

    9. cathy, maine says:

      can't we just have the Physicians for National Health Program….pnhp.org….as an alternative to Obamacare or doing nothing????? please?????

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