CEO Andy 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.