Cheesecake Factory CEO David Overton On Obamacare: 'It Will Be Very Costly'

Big changes are on their way for most American businesses, courtesy of Obamacare, according to the CEO of the Cheesecake Factory.

"It will be very costly," David Overton told CBS This Morning on Monday. "I believe most people will have to do that [raise prices] or cheapen their product." Nearly two-thirds of employers say they will have to pay more for health benefits under Obamacare, according to a recent survey by Mercer.

Overton said he doesn't know whether his own company will need to raise prices, since he already provides health insurance to all employees that work 25 hours or more per week. That's fewer hours than required under Obamacare, which will force companies with 50 or more full-time employees to provide employees working at least 30 hours per week with health care coverage or face penalties.

"For those businesses that don't cover their employees, they'll be in for a very expensive situation," Overton told CBS This Morning. Some, such as the CEO of Papa John's and a Denny's franchisee, have claimed they will need to pass on those additional costs to customers. Others, such as an Applebee's franchisee, say the health care overhaul will limit their ability to hire more employees.

(Hat tip: NewsBusters.)

Loading Slideshow

• John Schnatter, CEO of Papa John's

  Schnatter claims that Obamacare has given him no other choice but to <a href="http://www.huffingtonpost.com/2012/11/09/papa-johns-obamacare-john-schnatter_n_2104202.html">cut his employees' hours</a> and <a href="http://www.huffingtonpost.com/2012/08/07/papa-johns-obamacare-pizza_n_1752126.html">raise the price of pizza</a> to cover the costs of Obamacare. Meanwhile, <a href="http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1352926800000&chddm=493051&chls=IntervalBasedLine&q=NASDAQ:PZZA&ntsp=0&ei=sbejUKCkKIvG0AGX6AE">Papa John's stock price has nearly tripled</a> since President Barack Obama took office.

• Jamie Dimon, CEO of JPMorgan Chase

  Dimon <a href="http://www.huffingtonpost.com/mark-gongloff/jamie-dimon-president-obama_b_2104054.html">has complained</a> that <a href="http://www.huffingtonpost.com/2012/05/08/jamie-dimon-fortune-500-dinner_n_1499873.html?ncid=edlinkusaolp00000003">the government</a> hasn't done enough to help business. Meanwhile, <a href="http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1352926800000&chddm=493051&chls=IntervalBasedLine&q=NYSE:JPM&ntsp=0&ei=e7ijUMjGNNDE0AGrIQ">JPMorgan's stock price</a> has spiked 64 percent since Obama took office.

• Steven Schwarzman, CEO of the Blackstone Group

  In 2010, <a href="http://www.huffingtonpost.com/2010/08/16/steven-schwarzman-obama-a_n_683178.html">Schwarzman compared</a> Obama's efforts to raise taxes on private equity firms to "war...like when Hitler invaded Poland in 1939." <a href="http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1352926800000&chddm=495006&chls=IntervalBasedLine&q=NYSE:BX&ntsp=0&ei=hbqjUMiRHNSj0AG7vAE">The Blackstone Group's stock price</a> has more than tripled since Obama took office.

• Ivan Seidenberg, CEO of Verizon

  <a href="http://www.huffingtonpost.com/2010/08/26/ceos-anti-obama_n_695405.html#s131470&title=Verizon_CEO_Ivan">Seidenberg has complained</a> that the Obama administration has created an "increasingly hostile environment for investment and job creation." <a href="http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1352926800000&chddm=493051&chls=IntervalBasedLine&q=NYSE:VZ&ntsp=0&ei=AbujULC8OqXB0AHAYQ">Verizon's stock price</a> has risen 40 percent since Obama took office.

• Muhtar Kent, CEO of Coca-Cola

  <a href="http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ajjfCTfQsM3s">Kent compared Obama's proposal to tax soft drinks</a> to communism in 2009. <a href="http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1352926800000&chddm=493051&chls=IntervalBasedLine&q=NYSE:KO&ntsp=0&ei=N7ujULC8OvKK0QH-ZA">Coca-Cola's stock price has spiked</a> 71 percent since Obama took office.

• Jeffrey Immelt, CEO of General Electric

  Immelt, though <a href="http://www.whitehouse.gov/administration/advisory-boards/jobs-council">the chair of Obama's jobs council</a>, <a href="http://www.huffingtonpost.com/2010/08/26/ceos-anti-obama_n_695405.html#s131474&title=General_Electric_CEO">reportedly</a> <a href="http://www.nypost.com/p/news/opinion/opedcolumnists/bam_angry_adviser_YOANZQkGODYVqFDAsI9LjP">has soured on Obama</a>. <a href="http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1352926800000&chddm=493051&chls=IntervalBasedLine&q=NYSE:GE&ntsp=0&ei=1byjUNj8PIbE0AGeCQ">GE's stock price has risen 70 percent</a> since Obama took office: a stark contrast to the financial crisis, when <a href="http://www.propublica.org/article/paulson-general-electric-immelt-financial-crisis-022010">GE could barely get the short-term financing</a> needed to keep operating.

• James Tisch, CEO of Loews Corporation

  <a href="http://www.huffingtonpost.com/2010/08/26/ceos-anti-obama_n_695405.html#s131475&title=Loews_Corp_CEO">Tisch has accused</a> the Obama administration of giving business "very little confidence in what’s been going on and very little visibility." Meanwhile, <a href="http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1352926800000&chddm=493051&chls=IntervalBasedLine&q=NYSE:L&ntsp=0&ei=0L2jUPD6Osm50QGPNw">Loews' stock price has risen 64 percent</a> since Obama took office.

Comments

[RootsWings]

12:29 AM on 01/21/2013

Cheesecake Factory, huh. What do they think they're selling--gas?

[dustup101]

12:26 AM on 01/21/2013

Smoke and mirrors. What better way to deflect critisim for layoffs or bad management than to say its Obama care.

[Adalis]

08:42 PM on 12/07/2012

My boycott sense is tingling... :-)

[Marc Hutton]

06:22 PM on 12/07/2012

Yet another stupid CEO opens his mouth, sticks his foot in his mouth, and ensures that I will NEVER eat at a Cheesecake Factory again. I will readily admit I don't eat there much, usually dragged by someone else but I will veto that now. Good Job David, like we do not understand that all you are interested in is keeping your profit margin up at the expense of everything else. Well your Restaurant is crap, the cheesecake is crap and I do not eat pesticide contaminated canned food, which is what you serve anyway. Bye bye.

[Annette S]

01:57 PM on 12/07/2012

What concerns me about Obamacare is the 20 or so new taxes that are causing lay offs, causing companies to move out of the country and increasing the cost of our healthcare. To name just a few:

1.) Medical Device Tax...imposes a 2.3% excise tax on the gross sales for Medical Device Manufacturers.
2.) Investment Income Tax... a surtax on investment income of 3.8% ($23 billion)
3.) Medicare Payroll Tax...increases on all wages and self employment profits.

How is this myriad of tax hikes affecting jobs and expansion?

Medronic.. Warned that Obamacare would cause layoffs in 2010. Reality...the company will cut 500 over the summer and another 500 at the end of 2013.

Boston Scientific...CEOs warned that proposed taxes in Obamacare would lead to job loss. The company is now cutting between 1200 to 1400 jobs while simultaneously shifting workers and investments over seas.

Stryker...A medical device company that is closing locations in Orchard Pk, Ny which will affect 96 people and slashing 5% of their global workforce which will affect an estimated 1170 positions.

Dana Holding Corporation...Obamacare is costing them $24 million. they have layed off several white collar staffers...next is the workforce.

Future Layoffs

Smith & Nephew - 770 layoffs
Abbott Labs - 700 layoffs
Covidien - 595 layoffs
Kinetic concepts - 427 layoffs
St Jude Medical - 300 layoffs
Hill Ron - 200 layoffs

Let's hope we can survive Obamacare.

[wildonetwo]

02:17 AM on 12/08/2012

Good facts and well written. These Obama Addicts remind me of Zombies. They serve the person without regard to the damage to the country - just zombies that repeat what he says without using common sense.

Forget that 52% (never did believe the 47% comment) are not going to pay because they can't or won't and then we will have to pick up the tab. The old will suffer because Obama is more of a socialists when it comes to life and death decisions and while he is young and has a dfferent health insurance all together that we pay for him and his family for life - that bab/health policy is nothing like the one we are going to have to pay for. Since none of our Congressmen are on the same coverage - don't expect to see their policies and don't expect any of them to settle for the one they are going to make you get, even though we are paying for theirs, too. Yeah, they are entitlements and they, just like the rest, don't want anything cut there, pay no ss... Just ridiculous persons.

[Ray Hill]

10:43 AM on 12/07/2012

Take the difference out of executive compensation. I wonder why they did not think of that?

[fortressfountain]

09:43 AM on 12/07/2012

So if someone is paying $39.99 for a cheesecake they will not buy if it is $49.99? Very expensive, surprised they have many customers.

[frytanya]

09:37 AM on 12/07/2012

I don't get why there is a slideshow with a title stating "Anti-Obama" companies that have thrived under Obama. What a ludicrous title! What do the two necessarily have to do which each other? Do you have some facts to prove causality? I'm open to reading an article with facts and supportable figures proving this point. Sounds like an interesting read. But, just taking two facts, and just by the fact that they occur at the same time, and implying that they are dependent on each other is ridiculous. If you change the word "under" to "despite", you have made an equally true, but logically invalid comment, depending your politic bent. As using this flawed train of thought all companies that have failed during that time are also his fault! The sun rising every day is his fault! Anything that has happened in the last four years was caused by Obama! Just taking two statements of fact, A- Obama has been president, and B - The companies have done well, shows no causal relationship. I'm sure you can find numerous companies that have "thrived", under any president that has ever been elected, or that ever will be, in the history of the USA. Does that mean the president waved a wand and made the companies profitable? He is the president, not an omnipotent wizard! Lol!

[Puzzlr]

10:49 PM on 12/06/2012

It just occurred to me. These companies that have been making bank, have the most uninsured employees of almost any company. Greedy jerks! They have been putting money ahead of the health of their employees.

[wolfe310]

10:39 PM on 12/06/2012

You can keep your food.j..it is too calorie dense anyway.

[Chris Morrison]

10:17 PM on 12/06/2012

No offense, but The Cheesecake Factory is part of the reason we need universal health care coverage.

[RootsWings]

12:20 AM on 01/21/2013

Olive Garden is loaded with calories too. Let's see, finally some restaurants I actually used to frequent, before this rediculous show of corporate power.

[ken vincent]

09:15 PM on 12/06/2012

I would Be Happy To Pay Extra So All People Can Have Health Insurance.

This Is Going To Make America Strong.

Forward !!!!!!!!!!!!!!

[lagrua5]

07:38 PM on 12/06/2012

He doesn't know if he'll have to raise prices because he already provides health insurance for employees that work more than 25 hours but he'll take this opportunity to criticize Obamacare anyway! Listen, a businessperson can raise prices anytime for any reason. Because wholesale costs rise, because their drug habit has become more expensive, or because the wife needs a new fur coat. Don't have to tell us why and we don't have to tell you why we are moving on to a better or more affordable place to spend our money. Free Market!

[NotSoOldHippy]

05:57 PM on 12/06/2012

Another corporation that needs to be boycotted.

[RootsWings]

12:27 AM on 01/21/2013

So far I have Red Lobster, Denny's, Applebee's, Papa John's, Olive Garden, Cheesecake Factory, Hobby Lobby, Chickfilet. If I have to pay more $ for the same food, I might as well frequent a really good business that has quality food/products and respects its workers, like McCormick and Schmick, Ruth's Chris, Il Fornaio... It's worth the time to find out who they are and who they aren't!

[judibluiz]

05:06 PM on 12/06/2012

How costly can it be when it would add only .13 to the cost of a Pizza at Papa Johns?