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  • VIDEO: The Obama Economy Is Killing Jobs, Restaurant CEO Explains

    Want to know the true impact of Obamacare on job creation in America? Listen to what the job creators have to say. Last month, Andy Puzder, CEO of CKE Restaurants, testified before Congress about the law’s impact on his business. And in this new video he explains how government regulations are costing America jobs.

    CKE, which owns and franchises 3,182 restaurants in 42 states and 23 foreign countries under the Carl’s Jr. and Hardee’s brand names, employs about 70,000 people in the United States. As Puzder explains, his company is “a job creation machine,” but he fears that Obamacare, or the Patient Protection and Affordable Care Act (PPACA), will be the wrench that grinds it to a halt.

    “I’m very concerned that in the coming years we’ll be unable to create as many jobs as we would like due to the increased expenses necessitated by laws such as the PPACA,” Puzder testified.

    Puzder points to two aspects of Obamacare that pose concerns for his company: the menu labeling provision which requires disclosure of the caloric content of their food on menu boards, and the law’s health insurance mandates. Puzder says the menu requirement alone will cost CKE approximately $1.5 million—17 percent of what it invested in new restaurants in 2010. And Obamacare will increase CKE’s health care costs by an estimated $18 million per year—a 150 percent increase. Puzder says that the money to pay those costs would have been used to grow the company—in other words, to create jobs.

    The money to comply with the ACA must come from somewhere. We use our revenue to pay our bills and expenses, to pay down our debt, and we reinvest what’s left in our business. That’s how we create jobs. There’s no corporate pot of gold we can go to to cover increased health care costs. New unit construction will cease if we have to allocate moneys for that construction to the ACA. And building new restaurants is how we create jobs.

    When CKE builds a new restaurant, Puzder says, the company invests about $1 million in the community and ultimately employs 25 people at the new location. Last year, CKE spent more than $1.25 billion on capital projects, media and advertising, and supplier products and services—all of which supported jobs in those related industries. If CKE must allocate those dollars elsewhere, the company’s job-creation engine effectively shuts down.

    Puzder isn’t the first restaurant CEO to speak out on Obamacare. Indiana small-business owner Scott Womack fears the effects the law will have on his business, which includes 12 IHOP restaurants in Indiana and Ohio. As we wrote in March:

    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.

    And if Obamacare isn’t repealed, Womack’s plans to expand his business will be in jeopardy, along with the construction, real estate, and manufacturing jobs that would go along with them.

    Even the Obama Administration, it seems, has recognized the problem. Last year, it granted Obamacare waivers to McDonald’s and Jack in the Box, and the list keeps growing (the total number of companies receiving waivers now stands at 1,471.) CKE and Womack haven’t been so lucky, though, and the threat to their businesses remains. If Congress and the President truly care about job creation, they should repeal Obamacare and allow America’s job creators to get back to work.

    Click here to watch Heritage’s interview with Andy Puzder in which he discusses job creation, how it works, and why government doesn’t understand it.

    Posted in Obamacare [slideshow_deploy]

    21 Responses to VIDEO: The Obama Economy Is Killing Jobs, Restaurant CEO Explains

    1. nugykent says:

      obama on his magical mystery tour with a bus built in canada.isn't this tour about putting americans back to work yet why not buy bus built with american jobs.maybe the magical mystery tour is about creating jobs in other counties.and where are the union voices on this?

      • Wowza says:

        Maybe you should scream your banshee gripes to the very people who created the 'you won't have to pay taxes if you shut down manufacturing and outsource millions of jobs overseas" . . instead of the people who inherited the destructive policy at the behest of massive campaign donations…but we know you forgot all the 'protect America' talking points from 2001 – 2009.

      • Real America says:

        hahahaha

    2. Bobbie says:

      unions are working for the same government agenda, nugykent.

      Mr. Womack, don't worry, Mr. President has a really good idea for job growth he's going to share with the world…after his holiday!!! totally facetious with another slap in the face as to what is holding back America!!!!
      GOVERNMENT!!!!!!

    3. commonsense247 says:

      But President Obama has a thorough understanding of economics and free market capitalism… why, he's started several err.. uh.. okay, he's run several um.. err… well, at least he's managed quite a few uh.. err.. um… yea alright, so he's organized several groups to get pissed and go activist about things they aren't getting from others through government redistribution in the name of fairness and social justice and equality (or equal outcomes). See?
      No?! Hmm… yea, I guess you're right, Mr. Carl's Jr. CEO.

    4. DaGump says:

      Oh gee, how many minimum wage jobs is he going have to cut. God knows we need Obamacare after eating at Carl Jr's. He should be supporting it so all his patrons can get triple bypasses from the junk he peddles. IF anything his fast food chains that hire at slave wages is the cause for the need of universal health care. Don't worry, I know you wont post this because it doesn't fit your narrative.

    5. mugsysrapsheet says:

      Unless Mr. Puzder is paying each of those Burger-Flippers more than $68K a year, I'm not sure what he's whining about. Employees making less than $68K/yr receive subsidies to reduce employer expense.

      Now, do we factor in the money he saves from having employees taking fewer sick days because they have health care? And how many more employees would he hire if he didn't have to pay that extra $1160 (8%) a month? The man is truly offensive.

    6. Sooz says:

      We The People are to believe (roflmao) that Puzder spends his nights tossing and turning in bed trying to figure out how to create jobs. . . . and not spending each and every hour how to make money!

      Isn't he just precious to sacrifice his waking hours concerned about some teenager earning money for the newest X-box game.

    7. SgtJoe says:

      Is this Burgermeister's thinly veiled hatred of Barack Obama brought to us by the geniuses at the Heritage Foundation . . . you know the people who scored the first Bush Tax Mega Cut and reported the cuts would:

      1) Effectively pay off the federal debt;
      2) Reduce the federal surplus by $1.4 trillion;
      3) Substantially increase family income;
      4) Save the entire Social Security surplus;
      5) Increase personal savings;
      6) Create more job opportunities.

      Wrong, wrong, wrong, wrong, wrong and wrong . . . no wonder the religiously insane community loves these wingnuts . . . it takes real faith to believe the garbage they spew.

    8. Joe says:

      I am not the world's biggest advocate of healthcare reform. But I find this report absurd.

      So let me get this straight. The guy spends $1.25 billion in annual capital projects and is actually stating that a plan that will require $1 million to state caloric count in foods and an $18 million annual expenditure in healthcare costs will cause him to stop making investments? Is he serious? And you wonder why people

      • Cowboy says:

        What he ACTUALLY said is that the regulations will decrease his investment in jobs by that amount. Unless you are government, $19 million translates into a lot of jobs.

      • Cowboy says:

        And what he ACTUALLY said was, "CKE spent more than $1.25 billion on capital projects, media and advertising, and supplier products and services"

    9. Bobbie says:

      You guys don't get it. Obamacare or whatever they are calling it that they're not offended by, is unconstitutional and is being unlawfully imposed. Our health care is already costing us more then we can afford because of the implementation of obamacare and it's cluttered costs taken now that won't sustain it AT ALL! corrupt from the start. Shoved down our throats, verifies the corrupt aspect. ignorance to the peoples concerns makes it even more clear. etc…more trouble NOW then it will EVER be worth.

      I don't know why any of you would disrespect the business man who provides employment at the choice of those employed, servicing patrons by patrons choice AND who ISN'T being bailed out with your tax dollars to conduct his business. He exemplifies a true business man. you guys read in comment, hoping government will make right what government influence convinced you is wrong.

    10. Eagle Eye says:

      Centralized healthcare is a job killer…period.

    11. Rick says:

      Awe Gee Gosh. In solicialistic countries businesses aren't supposed to make a profit, and that is what these fans of brother obama want. Redistribution of wealth so they can sit ont their butts and wait for someone else to support them. Sorry you don't have the initiative nor the desire to make yourselves more marketable for employment, so you can support all your babies out of wedlock. And sorry too, you didn't find a man willing to do more than make the baby and then disappear. No one owes anyone anything in this country, bt it's those liars you listen to that do owe you an apology for lying to you about what they can get you for free. I don't feel sorry for any of you though. You get what you deserve.

    12. Rick says:

      If any of you knew anything about running a business then you might have a logical perspective on how you should live your own life. Business owners owe nothing to anyone. The people they hire should be thankful they have a job, as I am. I was once told by a loyal liberal from Chicago, "You are always happy; why is that?" I told him I am thankful for the job I have and there are a lot of people who wish they had what I have. I appreciate coming to work, and I am glad to be here. He said, "I've never felt that way." That's a prime example of someone who doesn't know a good thing when they have it staring down at them.

    13. Rick says:

      Those who take the govt entitlements are simply slaves of the govt, waiting for the check to perpetuate the miserable lifestyle you live in. A simple bit of initiative would enable you to make something better of yourself and improve your lives expotentially. But your leaders want you to be beholding to master govt so they can buy your vote and loyalty, thus perpetuating your status at the lower rung of society. Sure, welfare pays more than a minimum wage job, BUT two jobs will earn you more than welfare, AND would help you improve your prospects of getting a better job. Any prospective employer who has an applicant working to jobs to better himself would recognize that this person is making a huge effort to better himself, and this person would be more likely to get hired. Nearly everyone starts at the bottom of the job market, so why is it so difficult to understand that hard work is the best way to make something of yourself. Sorry that you have such pittiful people to represent your causes. You should represent yourself. You'd be much better off.

    14. Jon says:

      Wow, there is virtually zero info in this article. To sum it all up, 2 CEO's say Obamacare will kill their ability to create jobs, w/o a lick of supporting evidence. Is this what you guys consider proof, give me a break?

      • Cowboy says:

        But theories by economic advisers who have never had a job in business, about what businesses OUGHT to do according to their theories, are more accurate than what CEOs tell us?

    15. Chris says:

      None of you really get it do you? The proof some of you claim does not exist is theoritical and based on numbers, and while it is theoritical it uses a little something known as logic , something i'm sure many of you have forgotten in your biligernt suppourt of what your told to beleive in ,to suppourt itself. Second, This man pumps money back into his companies to expand and make more money, so that 150 percent is not just what he's making now but money form assets that don't ,and probally won't at this rate, exist. A Franchise can't grow by spending 50 percent more then what it makes, nor can it stay afloat.
      Simply put, Obamacare has unrealistic standards and is too idealistic to actually work. Besides with 1,471 business being expemt from this and jumping ship is there still any point to having Obamacare anymore then just being another governent handout we can't afford.

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