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Five Guys Franchise Owner Says ‘Obamacare’ Will Force Him to Raise Prices

Mar. 11, 2013 6:50pm Becket Adams

Five Guys Owner Mike Ruffer Says Obamacare Will Force Him To Increase the Price of Burgers & Hot Dogs

President Obama dines at a Five Guys. (Getty Images).

Business owners across America say they’re experiencing poor sales, holding back hiring, and planning layoffs because of “Obamacare,” or so says the Federal Reserve’s latest Beige Book (an overview of the business conditions in each of its 12 districts).

But in case you don’t trust the Beige Book’s anecdotal reporting, here’s something else to consider: Five Guys franchise holder Mike Ruffer said on Monday that the cost of The Patient Protection and Affordable Care Act, President Obama’s landmark healthcare bill, will force him to raise the price of burgers and hot dogs, according to the Washington Examiner’s Paul Bedard.

“He will need all the profits from at least one of his eight outlets just to cover his estimated added $60,000-a year in new Obamacare costs,” Bedard’s report notes.

“Any added costs are going to have to be passed on,” said Ruffer, who operates eight Five Guys in the Raleigh-Durham, N.C. area.

But wait! There’s more: Ruffer also said that he had to scrap plans to build three additional restaurants because he’s still waiting for after the Obama administration to explain all the rules and penalties involved in the healthcare bill.

“I’m kind of in a holding pattern,” said Ruffer, adding that he’s not the only franchise owner to hold back.

“Ruffer was the star witness at a Monday Heritage Foundation seminar on the impact Obamacare will have on small businesses,” Bedard notes. “He is typical of many: Because he has enough full time employees to activate the law, he faces either coughing up the money to provide health insurance or paying a fine of up to $3,000 per worker.”

The report goes on to explain that Ruffner thought he’d be exempt from “Obamacare” because he built each restaurant as its own company. However, the healthcare law doesn’t recognize this distinction – so now he’s exploring whether laying off employees or cutting back hours will keep his franchise safe from “Obamacare.”

“He said that ‘scorched earth plan,’ however, would hurt his restaurants, so Ruffer is likely to either pay the fine or buy insurance,” the Washington Exmainer reports. “But spreading the costs over his basic menu of fries, drinks, burgers and hot dogs, could scare off customers, he worries. He said that the recent spike in gas prices cut into his profits since fewer people were stopping at his restaurants.”

“And the health care law isn’t only going to hit Ruffer. He’s quizzed his workers to ask if they understand that they will be fined if they don’t get health insurance. Just one of 20 workers were aware of the $95 tax penalty that rises to $695 by 2016,” the report adds.

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Featured image courtesy YouTube.

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Comments (41)

Kevin M
Posted on March 12, 2013 at 12:38pm
Test. I’ve been unable to comment for some reason. It says I need to be logged in – and I am. Anyway, disregard if this gets posted. Thanks!

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shorelineliz
Posted on March 12, 2013 at 11:55am
And the Supreme Court said this was just a tax. LOL! Welcome to Obama’s world. He won’t be satisfied until everyone is on the Government teat.

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jorge_washington
Posted on March 12, 2013 at 9:51am
Well, I guess there are three things that can be said about this,

1 – President Obama will never eat there again.

2 – At least they didn’t threaten their employees, well, at least not in public anyway.

3 – If they, a small business with 5 locations in one state says so, then it’s settled, discussion over. Turn off the lights and everybody go home.

A small business can be just as stupid as a large business as in papa johns pizza, just go ask them.

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- 1776boy
  Posted on March 12, 2013 at 5:10pm
  Hey BUCKO its the small guys who keep this country going it is wrong to put such a burden on the people as this OBAMACARE is evil and will kill freedom just alittle more it should be defunded as soon as possoble ,THIS IS NOT AMERICAN!!!!!
  
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GaryInTheMiddle
Posted on March 12, 2013 at 7:55am
Fortunately, 5 Guys isn’t in my area. If they were I wouldn’t patronize a business that obviously supported Obama and now whines that his policies are forcing them to raise prices. I know how to make a great burger and don’t need or want 5 Guys.

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- IndianaJan
  Posted on March 12, 2013 at 11:59am
  “Fortunately, 5 Guys isn’t in my area. If they were I wouldn’t patronize a business that obviously supported Obama and now whines that his policies are forcing them to raise prices. I know how to make a great burger and don’t need or want 5 Guys.”
  
  “Gary” is the problem we have in this country. You don’t understand and don’t care to. Make your burgers at home, but you will pay more for everything else, so your stupidity is staggering.
  Obama, and Obaamcare, and everything else he has done is horrible for this country. Obama hates America, and has comtempt for any and all criticism. He is dangerous, arrogant, and delusional. We will have stagnation and misery from the “bill that you have to pass to see what’s in it.”
  And stupid morons like Garyinthemiddle do not have a clue.
  
  Report this comment
- checkingbothsides
  Posted on March 12, 2013 at 4:24pm
  How did they support him? By letting him eat there? What should they have done, said, “No Mr. President, you aren’t allowed here. Please take your orders of several hundred dollars elsewhere”?
  
  Report this comment
- skunkbear
  Posted on March 12, 2013 at 9:07pm
  CHECKINGBOTHSIDES,”What should they have done, said,’No Mr. President, you aren’t allowed here. Please take your orders of several hundred dollars elsewhere’?”
  
  Um, yes, that is exactly what they should have done if they are against his policies. Or do you believe in selling out your beliefs for “several hundred dollars”?
  
  Indeed, if they would have thrown him out I would bet that they would have boosted their business a thousandfold and they would become instant heroes to the so-called right as well as instant enemies to the left. And the Righties would support them a la Chic Fil A while the Left’s attack machine would go into turbo overdrive.
  
  But in the long run, business is business for amerika and therefore the Five Guys will eventually not have the fortitude to sacrifice their fortunes or sacred honor.
  
  And the noose just gets tighter and tighter…
  
  Report this comment
- merton42
  Posted on March 13, 2013 at 7:34am
  I stopped at a Five Guys, got a burger, fries and coke. $11.50!!! NEVER EVER GOING BACK!
  
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NigelTufnel
Posted on March 12, 2013 at 7:33am
Obamacare is still over two years away from being fully implemented. The exchanges are supposed to be open by this coming October so America will finally have a “face” with the name….so to speak. We will have a store-front. A counter. People inside. A place to go and ask questions. What’s your product? How much? You think 5 guys is expensive? Wait till you walk into an exchange looking for insurance. The first of many down-payments started this year. Be prepared for more paperwork for your 2013 taxes. Soc. Sec checks were reduced by $50 in January and will be reduced another $150 in January 2014. You will now pay 3.8% on any capital gain. You will also have to provide proof of health insurance for tax year 2013. But this is trivial really. The miniumum coverage’s premiums are set at $12,500 a year. Once you make 147,000 combined the subsidies end. You will pay the full premium yourself. The problem is that by 2017 this bottom premium is expected to hit $20,000. A key-number to remember is 9.8%. That is the out of pocket Obama expects you to pay. The rest he will cover. So if you make 100,000 combined, you will pay $9,800 of the $12,500. Or $816 a month. So in 5 years the governments responsibility for you will go from $2,700 to $10,200. It’s now really clear that this system will cause major problems in the industry and a complete government takeover will be proposed.

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blackfeather
Posted on March 12, 2013 at 6:33am
they are not the only business that will be affected….all…businesses will be hosed by the black hitler…except of course, those that are ovomit donors.

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blkbelt7
Posted on March 12, 2013 at 6:19am
TOLD YOU SO…this is going to happen to ALL business, large and small….and HEY while we are at it let’s raise minimum wages to $20/hr….this will cut down the time it takes to raise inflation to 30%….and we can go right to a depression….thanks obozo…

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charleyrocks
Posted on March 12, 2013 at 4:31am
That is not new, every time a company is forced to raise employee’s wage, unions especially the prices always rise because they don’t want to give up any profit the company has made. Prices will always rise.

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sasquatch08
Posted on March 12, 2013 at 4:06am
This isn’t surprising, at all, but don’t look for libs to make any sense of it.

The other day I saw Pelosi whining about “…tax breaks for companies that ship jobs overseas…”. While I agree that this might sound like a good argument to… well… morons (sorry morons), it makes no sense.

Companies ship jobs overseas because doing business here is too expensive for a number of reasons, including taxes, regulatory compliance and the basic standard of living.

According to Pelosi-logic: It’s too expensive to do business here so companies, seeking a competitive advantage, ship jobs overseas. To stop them from shipping jobs overseas, we should raise the cost of doing business here, which will encourage them to bring jobs back to the USA… Completely back @sswards.

Liberals make no sense. There’s no point in arguing with them. When they feel they’re losing the argument they’ll make things up or call you a racist. They have no connection with reality.

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Kupo
Posted on March 12, 2013 at 2:25am
This makes me a sad panda. I love 5 Guys, but they’re already expensive as hell! Not sure I can allow myself the indulgence if they have to raise prices any more.

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Secret Squirrel
Posted on March 12, 2013 at 1:29am
Five Guys burgers are too expensive now.
Added cost will put them out of business.
Burger and fries, $10?? Not at my house.

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cowgirl
Posted on March 11, 2013 at 11:52pm
Doesn’ t this brother understand the obammys golf lessons with tiger are reallyy expensive? Geesh

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FANGS
Posted on March 11, 2013 at 11:51pm
Every Promise made by Barrack Obama about Obama Care is a Lie. Obama care is a huge Ponzie Scheme that will pillage America’s wealth and Put American Family’s into Slavery And cause a world wide Depression. If Obama Doesn’t scrap Obama care as outlined in Paul Ryan’s Budget, Millions of Americans who have been getting ready will start a Revolution. Democrat Thinking is a Disease, Based solely apon Greed. I know of no republicans looking for arms or ammo. God has directed us to stock up when Obama was first elected. Obama and Democrats are Classifyed as a Domestic Terrorists. Google everything He, Media,Unions and Democrats alone have destroyed about America. He sides with Muselums and their un-logical Traditions. This Budget deal is the Democrats last chance. Ready for War are 26 million Unemployed, 13 million who lost their home, almost 50 million who voted for Romney.All NRA Members, All Preppers/ Malitia’s , All Seniors and Children old enough to fire a gun.I’d say we’ve got an Army of about 125 million, give or take. God Please Protect us. God Please Protect our Christian Nation. God Please protect our Faith and Churches. God Please Protect us From the Corrupt Muselum evil running our Fragile Country. God Bless, Thank You.

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- CommonSenseTalk
  Posted on March 12, 2013 at 9:16am
  Its about power and money. They don’t care about the people, just what the people can do for them.
  
  Report this comment
neiman1
Posted on March 11, 2013 at 11:10pm
Don’t worry. Anyone that can’t get a job or loses one can get free food, housing, gas, and a phone from Obama’s stash.

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Jase
Posted on March 11, 2013 at 10:54pm
They already have the most expensive burgers out there. A cheeseburger, fries and a coke will cost you $10 at five guys. At In-N-Out it’s $5. I love their food, but I simply can’t justify the price to eat there on a regular basis.

Obamacare sucks, but if there is one business that SHOULDN’T raise their prices, it’s Five Guys.

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Snidely
Posted on March 11, 2013 at 10:48pm
I think Five Guys has reached the point where they will lose sales if they try to “pass it on to the consumer”. I ate there once. It wasn’t bad, but it was way overpriced already. They don’t have room to raise prices.

Which brings up another point. I’m not a marketing genius, but if I was running a business, and the market was willing to pay more for my product, I would raise my prices regardless of the input costs. What am I missing there?

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GoodStuff
Posted on March 11, 2013 at 10:28pm
Obamacare will destroy the economy…and Obama voters will blame Bush.

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- patton55
  Posted on March 11, 2013 at 11:12pm
  I can’t believe how stupid this is !!! raise taxes on bizz , bizz raises prices on the public! someone had to have an epiphany?!!! U.S.A. wake up!!! This is Obama Admin. taxing everyone. every move this Admin. makes is Chi-town politics. shake-down everyone to pay the bills, to pay the connected! the rest of us are chumps. the hispanics, the blacks, college kids. they’re using you! like sheep! it’s time my friends the men&strong women of the minority to stop being used by these greedy politicians, and show them we are not weak! we are men&strong women!
  
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MK2
Posted on March 11, 2013 at 10:17pm
What is he b!t€hing about he didn’t build those business’s
Besides why does he need to make a profit
OMG now he can’t open three more just think that many more people going to be able to ride the gravy train why the h€ll should thy have to get up and go to work every day
You think unemployment will be on the rise in the near future
It just keeps getting better under our suprem leader

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ktmrider1
Posted on March 11, 2013 at 10:09pm
come on bro, suck it up for your beloved obama he’s black just like yo— oh wait a minute obama is only half black. hey you should only have to suck up half the cost right?

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media-bias-steals-elections
Posted on March 11, 2013 at 10:02pm
Caption that picture?

OMG, if I eat any of this stuff, the 1st Lady is going to make me find a stick off a tree so she can whip me with it?

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media-bias-steals-elections
Posted on March 11, 2013 at 10:00pm
http://en.wikipedia.org/wiki/Patient_Protection_and_Affordable_Care_Act

When minimum wage is below the poverty line, and the establishment supports keeping them there, you people are nuts to go along with this? Minimum wage protects people that loose jobs and have to work in entirely new industries, which is likely to happen in the future because of automation?

Or will automation take care of basic needs and people won’t have to work, but reward those that make it happen? If that’s like going to the moon, then what are we waiting for?

Too simple?

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kegbuna
Posted on March 11, 2013 at 9:26pm
What does this owner pull in himself from the profits? Anyway this is another reason why private interests shouldn’t have been involved with the bill. They stripped it down from single payer to this hand out to the health insurance industry and now we have owners complaining about their profits.

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- Clownzilla
  Posted on March 11, 2013 at 9:55pm
  Does it matter what he pulls in? He should not be responsible for providing ANYTHING but a paycheck after the employee’s work period.
  
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- BADDOGGYDESCIPLE
  Posted on March 11, 2013 at 10:03pm
  Do you not get that net income from private enterprise gets invested back into the economy at greater mass and velocity than when the government redistributes it, after paying a gaggle of beuracrats to each get a cut.
  
  Our new health plan is about control, nothing more. A lot of this control is being administrated by the insurance company while the matching costs, per the law, are passed on to consumers.
  
  Report this comment
- team1blazer
  Posted on March 11, 2013 at 10:54pm
  Hey dumbarse, profits are what drives business. If you take the profit out, you eliminate the motive (the 3 stores this guy would like to open, but won’t due to the uncertainty created by odumbo care). You probably have a hard time understanding simple business logic since you were obviously educated by communists. It’s probably best for you to go live in Cuba, Venezuela, North Korea or some other communist utopia.
  
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- 1776boy
  Posted on March 12, 2013 at 5:16pm
  Why wold you own or start a company ? to make money RIGHT? . So the owner shuld make money thats how it works!
  
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ObserverOnTheHill
Posted on March 11, 2013 at 9:20pm
Just hire all illegal aliens – that way they’ll get FREE healthcare

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ObserverOnTheHill
Posted on March 11, 2013 at 9:20pm
But we were promised sunshine and lollipops. What went wrong ?

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armyofnibiru
Posted on March 11, 2013 at 9:12pm
welcome to this obamanation

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- iampraying4u
  Posted on March 11, 2013 at 9:59pm
  But dont feel bad obozo has never had a real job.We are all hurting
  
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