The owner of a hot new restaurant in LA is charging his customers a 3% surcharge on their bill in order to pay for the Obamacare mandate which requires him to cover all his employees with health care. While some customers have complained about it, it doesn’t seem to be hurting business all that much. But that’s likely because the food is so good:
This is a perfect example of what happens when the cost of doing business goes up. Businesses pass on the cost to the consumer in one way or another, unless they are in such a competitive business that they have to eat it. At least this owner in LA is being honest about it though and telling his customers why they are being charged. Perhaps that has gained him some kudos for not hiding it, which is probably what most other businesses will do these days.
Either way, this is just more proof of how destructive Obamacare has been in that it is making so many things more expensive. And I dare say that many small business would be able to charge something so openly if at all. When the margins are tight some businesses have to eat these costs which means they risk going under.