On Monday's CBS This Morning, Cheesecake Factory CEO David Overton spotlighted the looming economic impact of Obamacare's implementation, especially on small enterprises: "For those businesses that don't cover their employees, they'll be in for a very expensive situation." Overton also warned that the cost of the law would be passed on to customers.
Anchor Norah O'Donnell raised the issue of the still-controversial health care law: "One of the things that's going to change, of course, in the new year is ObamaCare, or the Affordable Care Act. How do you implement that at Cheesecake Factory, and how will you pay for health care for all of your employees?"
The restaurant chain executive pointed out that, unlike many businesses, The Cheesecake Factory is "already...paying a great deal in health care. So, we're not sure how much more it will be - or how much less - or what exactly we'll do. So, for us, it won't be as bad as it will be for others, which it will be very costly."
O'Donnell followed up by asking about the possibility increased prices for customers: "When you say it will be very costly, it will be passed on to who - the customers?" Overton confirmed that this would be the case: "Well, I believe most people will have to do that or cheapen their product."
It's surprising that the liberal morning newscast would bring on a critic of ObamaCare. The decision could be explained by anchor Charlie Rose mentioning ex-Al Gore adviser Dr. Atul Gawande's compliment of The Cheesecake Factory in a recent article in The New Yorker.
Rose later rephrased his co-anchor's earlier question: "Are you worried about this - ObamaCare - and how you provide the health care?" The CEO replied by again pointing out the high cost to businesses:
DAVID OVERTON: Not worried yet - and, when I hear the numbers, I might be. But, again, because we spend millions and millions of dollars today on health care, we don't know exactly how much more we'll pay. For those businesses that don't cover their employees, they'll be in for a very expensive situation.
When Papa John's CEO John Schnatter sounded the same warning earlier in 2012, liberals called for a boycott of the pizza chain. Conservatives responded by organizing a National Papa John's Appreciation Day online. It shouldn't be a surprise if left-of-center activists target The Cheesecake Factory next.
Read more: http://newsbusters.org/blogs/matthew-balan/2012/12/03/cbs-cheesecake-factory-ceo-warns-obamacare-will-be-very-costly#ixzz2E5djW3Pn
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