I read today that the operator of several Denny’s restaurants in Florida will be adding a 5% surcharge to meals to cover Obamacare when it is implemented in 2014. Big news story! Actually this is nothing new. All businesses add to their prices to cover all kinds of costs; overhead, labor, materials and supplies, insurance, real property, and yes, even taxes. That’s the way businesses stay in business. They sell their product or service for cost plus an additional markup for profit. If new costs are laid upon them, they just add it to their sales price.
What is different, and smart, about this move is that rather than folding the increase into the total cost of the meal, the surcharge will be evident and everyone will know exactly what it is for. Continue reading