BUSINESS
04/18/2013 10:39 am ET Updated Apr 18, 2013

McDonald's Franchisee: 'Obamacare Will Negatively Hit Us Like Nothing Else'

Alamy

Here's one thing you likely won't find a McDonald's franchise owner happy to ask his employees anytime soon: “Would you like a side of health care with that shake?”

That’s because some of the fast food chain’s franchisees say that the costs associated with President Obama's health care reform law will cut deep into profits, according to a recent survey of 25 McDonald’s owners conducted by Janney Capital Markets obtained by The Huffington Post.

One franchisee even went so far as to say, “Obamacare will negatively hit us like nothing else," according to the survey.

Some franchisees said they're suffering from McDonald’s overemphasis on discount deals. Others claimed the chain's new product, the McWrap, isn’t a sure bet. McDonald’s has seen slumping sales since last summer and Obamacare, some franchise owners say, is only going to make things worse.

“Obamacare is going to destroy already low profits, [and] McDonald‟s Corporation does not seem to care,” adding, “the future looks BLEAK.”

McDonald’s did not return a request for comment from The Huffington Post.

McDonald's franchisees are not they only people worrying about the costs associated with Obamacare, which requires businesses with 50 or more full-time workers to provide health care coverage to employees. Corporate chains and small businesses alike have expressed concern that the new health care law will hurt their bottom lines.

Others contend that these worries are overblown. A study last fall estimated that businesses with fewer than 100 employees can actually expect their costs to go down because of Obamacare. Besides that, most employers don’t appear overly concerned: Almost 90 percent say they would not cut employee hours in order to avoid paying for health insurance, a recent poll found.

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