regulations

Obama Pizza Regulation Set to Take Effect, Will Adversely Affect Small Business Owners

 

The government has gotten extremely bloated over the course of 240-plus years, but up until this year, none of that bloat had anything to do with pizza.

But, as with all things, our government cannot stand idly by and allow the free market to dictate the lives of the American people.  Worse yet, when the government decides to get involved with your daily life, things rarely get simpler or safer or more streamlined.

When you add disastrous, leftists politicians like Barack Obama into the mix, things can get downright ugly.  Take, for example, a new Obama-era regulation set to take affect in a few short weeks.

“Thanks to Obamacare, franchise restaurants (with more than 20 locations) will have to provide calorie counts for every item on the menu – and every possible variant of that item. That’s no big deal for a franchise with relatively simple offerings, but think about all the different possibilities on something like pizza, or the number of ways you can customize a drink at Starbucks, and it becomes a logistical nightmare.”

While this sounds like the kind of job that Papa John’s or Pizza Hut will likely give to an unpaid intern in their accounting department, Mom and Pop’s pizza shop around the corner might have a difficult time making all of that information available on a menu in accordance with the Obamacare guidelines.

Are you unsure whether or not this new regulation will really affect the way a business operates?  Let one of the megaliths of the pizza industry explain just how ridiculous the proposal is.

“According to the National Review’s Kevin Williamson, Dominos executive Tim McIntyre said ‘We did the math. With gluten-free crusts to thick to hand-tossed to pan pizza, multiple sizes, cheeses, toppings . . . there are about 34 million possible combinations. That is difficult to put on a menu.’

“Not that anybody is ever going to use it. The great majority of Domino’s orders are placed over the Internet and almost all the rest are placed by phone. The number of people who walk into a Domino’s outlet, look at a menu, and order a pizza is relatively small, representing only a few percentage points of Domino’s customers. Other pizza chains see roughly the same thing. So the signs are going to be largely useless, but they’re also kind of expensive, ‘Useless + Expensive’ being the classic federal regulatory equation. 

“McIntyre estimates a price between $3,500 and $5,000 per location. That isn’t very much to a big corporation like Domino’s, but the Domino’s corporation doesn’t operate all those Domino’s shops: Those are franchises, run by independent owner-operators. The profit margins are low, and five grand is a lot to put on a business that might only be throwing off $40,000 or $50,000 in profit a year. Or less: Franchise chains are pretty tight-lipped about what their stores actually earn, but if we assume a 5 percent profit margin, typical of such restaurants, and an average sales volume of about $730,000, as reported in 2013 by the Motley Fool, then that’s only $36,500 per store, meaning that a $3,500–$5,000 sign could easily eat up a tenth of a year’s profit.”

This is absolute lunacy and just another reason that all Americans should fear an unwieldy, behemoth of a government that spend their time micromanaging the ever-living crust out of you.

 

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