The Cheesecake Factory Spins a Healthcare Tale

While the CEO of The Cheesecake Factory is complaining of the new Obamacare's (ACA) premiums etc… Saying, in this video, the cost may be passed down to their customers.  The truth is on their investor and store websites. Both illustrate how they may cheat their hourly employees from healthcare insurance.

Cheesecake Factory Hourly Restaurant Staff Benefits

"Generally, to initially qualify for our hourly staff member level Group Health Plan, you must meet the average hours per week as required by that location/restaurant/concept through the initial eligibility period which varies by concept. If you meet these requirements, you and your eligible dependents may apply for Medical, Dental, Life and AD&D coverage, effective the first of the month following the initial eligibility period. To maintain eligibility, you must continue to work the average required hours at your location/restaurant/concept."

Something in their statement is missing.  An explanation of eligibility.  To be eligible, an hourly employee must work a minimum of 25 hours or more weekly.  It's more generous than most companies but it could also encourage restaurant managers to cut hourly employees to less than 25 hours a week, in turn denying the healthcare insurance benefit. With the new laws, all Cheesecake Factory employees will be eligible for healthcare insurance regardless of how many hours they work.

The top five officials don't worry about their health insurance coverage. All together they earn a combined salary of $8,447,314 a long with health insurance. They're not suddenly going broke. In fact they're quite successful.  Their "sales have more than tripled from $540 million to approx. $1.8 billion over the last ten years."  They plan new store openings and continued growth. Their bottom line may be affected by the new law but if their fiscal trend continues, I don't see prices going-up.

Why all the fuss?

The negative news networks need an audience in order to sell advertising spots. What's the best way to keep those ads running?  Fear mongering. Fear creates stress. Stress creates illness. Illness necessitates health insurance. Health insurance buy ads. Ads create jobs and all Americans will have health insurance.

The CEO stops complaining and it's a win-win for everyone.