Denny's CEO Shuts Down Franchise Owner's Obamacare Threats

[doggie]

poor old John got his ass handed to him. Now all these worthless CEO's are getting their lives and their wealth examined because they opened their mouths. This is gonna be fun.

http://www.huffingtonpost.com/2012/11/2 ... 46735.html

Don't expect to hear more about an Obamacare surcharge from Denny's franchisee John Metz.

Denny's chief executive John Miller privately reached out to Metz to express his "disappointment" with the Florida franchisee's controversial statements about Obamacare, which sparked a wave of backlash for the national restaurant chain over the past few days. Metz released a statement Monday night expressing "regret" over his statements.

"We recognize his right to speak on issues, but registered our disappointment that his comments have been interpreted as the company’s position," Miller said in an email to The Huffington Post.

Miller is rushing to put out the fire sparked by Metz's controversial proposal to charge restaurant customers a 5 percent Obamacare fee. "Customers have two choices: They can either pay it and tip 15 or 20 percent, or if they really feel so inclined, they can reduce the amount of tip they give to the server," Metz told HuffPost in an interview last week.

Some Denny's franchisees have since dealt with angry customers, calls for a boycott and declining sales. A spokeswoman for Metz said he will not conduct more interviews.

Metz, whose RREMC Restaurants owns more than 30 Denny's locations, said in a statement, "We regret that the statements we made may have been interpreted as representative of the Denny’s brand or of other franchisees, which they are not. Our stores do not have a 5 percent surcharge. Despite recent media coverage, RREMC Restaurants is committed to exploring viable and effective ways to deal with the changing economic climate, including the implementation of The Affordable Care Act. We have always been and will continue to be 100 percent dedicated to our employees and customers and will work tirelessly to find solutions that are in their best interests. It is our intention is to fully comply with the law."

After Metz's original comments went viral, Abdo Mouannes said sales and traffic dropped "overnight" at his seven Denny's locations in Florida. Angry callers immediately jammed the phones at his restaurants. "The manager said it was so frustrating, she wanted to unplug the phone," Mouannes told HuffPost. "People didn't like what they heard and were saying they wouldn't support Denny's, but we have nothing to do with that decision. I am not a fan of the idea. We are opposing the 5 percent [surcharge] -- it's not even a consideration for us."

Mouannes, who co-owns the restaurants with this brother, said he would never have laid off employees or cut hours due to Obamacare. But now he may have to, he said, if Denny's boycotts take hold. "I'm not in favor of cutting employees, but if there is no demand, we will be pushed to do this," he said. "Unfortunately, if there are boycotts, it's going to come down to hurting our operations, hurting our employees. There will be people hurt across the board."

Unfortunately for Mouannes, many consumers don't understand the complex relationship between franchisees and their parent corporations, or that owners of individual outlets within Denny's, Ace Hardware, Applebee's, Papa John's and Jimmy John's may not represent the whole company when speaking against Obamacare.

Franchises expand by selling their operating systems and brand rights to independent business owners, who become franchisees and must abide by those systems. For example, entrepreneurs can buy a McDonald's franchise, but not a Starbucks, which has expanded through non-franchised, company-owned units. "When you walk into a Denny's, it sure looks and smells like a corporate restaurant, but it's not," said Joel Libava, franchise advisor and founder of TheFranchiseKing.com. "The biggest minus [to being part of a big brand] is a rogue franchisee deciding to jump into the political fray or do something that goes viral and affects the whole system. Someone in West Palm Beach, Fla., can affect someone in Boise, Idaho, who has nothing to do this this surcharge."

Mouannes struggled to explain the distinction to Denny's customers expressing disapproval and threatening to boycott, he said. Only about half of his customers understood that he was an individual franchise owner whose business decisions were unrelated to Metz's, while the others "were still in confusion and not satisfied," he said.

Denny’s Corp. is also trying to protect its brand and other franchisees by publicly distancing itself from Metz's statements. "While we respect the decision of an independent business owner to speak out on this or other topics and express their personal views, his statements do not capture the respect by Denny’s, the Denny’s Franchisee Association or our franchise community at large for our hardworking employees or for our valued customers," John Miller, CEO of Denny's Corp., said in a statement.

"Unfortunately, the comments of this franchisee, who represents less than 1 percent of our system and who owns restaurants in other concepts, has been portrayed as reflective of the entire Denny’s brand," Miller said. "I am confident his perspective is not shared by the company or hundreds of franchisees/small business owners who make up the majority of the Denny's community. Specifically, his comments suggesting that guests might reduce the customary tip provided to their server as an offset to his proposed surcharge are inconsistent with our values and approach to business throughout our brand."

As for consequences to those who damage the brand, a Denny's spokesperson said, "We have a variety of options depending on the circumstances to respond to franchisee actions that are not in the best interests of the brand and deal with those on a individual franchisee basis as required."

There may also be fallout in franchising beyond the Denny's system, as potential franchisees become wary of buying into brand names due to the "politics and noise" from franchisors and franchisees, Libava said. "Most people get into franchising to be their own boss, not to get into the middle of something political," he said. "I have a feeling that some of the bigger franchise law firms are thinking about ways both parties can be protected against this."

Libava added that "it doesn't help that the biggest franchise association in the world, [the International Franchise Association], is getting into politics as well. It sets a precedence."

The International Franchise Association's public opposition to Obamacare was based on analysis and feedback from franchisor and franchisee members, leading the trade organization to conclude it "was misguided public policy that wouldn't result in better health care, but in job loss and a dramatic impact on the industry," Judith Thorman, the group's senior vice president for government relations and public policy, told The Huffington Post.

"I hope people still have ability in this country to speak out on the impact of public policy issues on their businesses," Thorman said. "That's all they're really trying to do is to say this policy will have a dramatic economic impact. We may not all agree, but I think it's good if everyone comes forward with their opinion, and that we have a dialogue on it."

[Minerva]

Looks like someone got smacked down. :violence-stickwhack:

[Talitha Cumi]

All Denny's has to do for me is provide a list of Metz's restaurants, so I can go to other-owned Denny's with a clear conscience.

[BravaAmica]

So are Metz's restaurants closed or did corporate take them over so the staff there would keep their jobs?!

[linnea27]

Good. I am glad they have been made to toe the line, but I am disgusted with the comment that they may "have to" lay off workers if boycotts happen. Hey, folks, we said we were going to lay people off and you got mad so now we will blame it on you! Spend your money here or it is YOUR fault when we do what we planned to do all along.

[nokidsmom]

Good. I am glad they have been made to toe the line, but I am disgusted with the comment that they may "have to" lay off workers if boycotts happen. Hey, folks, we said we were going to lay people off and you got mad so now we will blame it on you! Spend your money here or it is YOUR fault when we do what we planned to do all along.

Glad to see that the Denny's CEO shut down this "Obamacare surcharge so reduce your tips" thing but having another franchise owner state in the same article that he may have to lay off employees anyway due to boycotts did not help. And it is only going to add to the confusion mentioned in the article.

Methinks, Mr. Miller will be doing a LOT of damage control over this.

[StarrieEyedKat]

Good. I am glad they have been made to toe the line, but I am disgusted with the comment that they may "have to" lay off workers if boycotts happen. Hey, folks, we said we were going to lay people off and you got mad so now we will blame it on you! Spend your money here or it is YOUR fault when we do what we planned to do all along.

If I'm reading the article correctly, that was said by a different franchise owner, who originally had no plans of introducing an addition charge or laying off employees. He seemed to be saying "I wasn't going to fuck with anyone's money or hours, but if these other asshole's political stances cause a nationwide boycott, then I might have to lay off people since we won't have as much demand, unfortunately." That makes sense, it's not his fault that Metz is an ass and causing backlash, but he might have to pay the price for it.

[Sola]

This is the only thing these people understand; money. Bad publicity and backlash = fewer customers and less money. Most of the USA understands that Obamacare is good for the country, even though the fundies would have us believe that isn't the case. I think over time the other companies who have said they will cut hours and add surcharges will toe the line because they know their profits will be hit. In another ten years people will wonder what all the fuss was about and the USA will be a lot stronger and healthier for it.

[StarrieEyedKat]

This is the only thing these people understand; money. Bad publicity and backlash = fewer customers and less money. Most of the USA understands that Obamacare is good for the country, even though the fundies would have us believe that isn't the case. I think over time the other companies who have said they will cut hours and add surcharges will toe the line because they know their profits will be hit. In another ten years people will wonder what all the fuss was about and the USA will be a lot stronger and healthier for it.

I really wish the bolded were the case, but it seems to me that a good portion of the US is not a fan of "the government messing with our healthcare." :?

[salsa]

If I'm reading the article correctly, that was said by a different franchise owner, who originally had no plans of introducing an addition charge or laying off employees. He seemed to be saying "I wasn't going to fuck with anyone's money or hours, but if these other asshole's political stances cause a nationwide boycott, then I might have to lay off people since we won't have as much demand, unfortunately." That makes sense, it's not his fault that Metz is an ass and causing backlash, but he might have to pay the price for it.

That's how I read it, too.

The thing is, I wouldn't know which restaurants were which, and so I'd avoid them all. I'm glad the CEO stepped up.

[nokidsmom]

I really wish the bolded were the case, but it seems to me that a good portion of the US is not a fan of "the government messing with our healthcare." :?

I have to say I agree. Remember Tea Party protestors holding signs "Keep the government out of my Medicare"?

[Austin]

I have to say I agree. Remember Tea Party protestors holding signs "Keep the government out of my Medicare"?

While it's true that public opinion regarding "Obamacare" remains soft, it is strengthening. After the Supreme Court ruled on health care last June, abut 52% of those polled approved of health care. And even in April, before the ruling, only 38% believed that it should be repealed entirely.

And if citizens are asked about specific elements of the Affordable Care Act as opposed to "government health care", their approval tends to climb much higher. When people are asked if they agree with giving young people have the ability to stay on their parents' health coverage until they are 26, they overwhelmingly agree. Same is true with insurance companies not being able to deny coverage to someone with a pre-existing condition or drop coverage if the insured becomes ill. Many people have kneejerk reactions to loaded terms like "government health care" and "mandate" (originally a GOP idea) because they really aren't very informed about what the ACA will actually do for them and their families. As the law is progressively rolled out, it is becoming more popular.

And Americans are pretty widely dissatisfied with the our system overall, so they actually support the status quo less than they disapprove of the ACA.

I encourage anyone who supports the ACA, even as a first step, to find out all they can about it, and when you have the opportunity, kindly correct others' misconceptions.

http://abcnews.go.com/blogs/politics/20 ... tatus-quo/

[linnea27]

If I'm reading the article correctly, that was said by a different franchise owner, who originally had no plans of introducing an addition charge or laying off employees. He seemed to be saying "I wasn't going to fuck with anyone's money or hours, but if these other asshole's political stances cause a nationwide boycott, then I might have to lay off people since we won't have as much demand, unfortunately." That makes sense, it's not his fault that Metz is an ass and causing backlash, but he might have to pay the price for it.

my bad. it said that Mouannes, the guy who talked about having to lay off due to a boycott, co-owned the restaurant with his brother. I assumed the brother was Metz, since the article was about Metz's statements, and as such Mouannes is co-owner of the restaurants that were going to lay off and add a 5% surcharge. Now in rereading I dont think that was the what was meant to be implied.

[OkToBeTakei]

While it's true that public opinion regarding "Obamacare" remains soft, it is strengthening. After the Supreme Court ruled on health care last June, abut 52% of those polled approved of health care. And even in April, before the ruling, only 38% believed that it should be repealed entirely.

And if citizens are asked about specific elements of the Affordable Care Act as opposed to "government health care", their approval tends to climb much higher. When people are asked if they agree with giving young people have the ability to stay on their parents' health coverage until they are 26, they overwhelmingly agree. Same is true with insurance companies not being able to deny coverage to someone with a pre-existing condition or drop coverage if the insured becomes ill. Many people have kneejerk reactions to loaded terms like "government health care" and "mandate" (originally a GOP idea) because they really aren't very informed about what the ACA will actually do for them and their families. As the law is progressively rolled out, it is becoming more popular.

And Americans are pretty widely dissatisfied with the our system overall, so they actually support the status quo less than they disapprove of the ACA.

I encourage anyone who supports the ACA, even as a first step, to find out all they can about it, and when you have the opportunity, kindly correct others' misconceptions.

http://abcnews.go.com/blogs/politics/20 ... tatus-quo/

I have been trying recently to find unbiased opinion pieces with some success. ACA in itself is easy to research if you have a degree in economics/healthcare or just the ability to give it time rather than judgement.

The percentages you mentioned seem to tally with what I have seen . I realise here on FJ we are predominately talking about the far right/fundie view. If *I* just an interested European can research accuracy it says little for their intelligence.

One theme I see (although irrelevant in my view) is that it is the name or assumed name 'Obamacare' which rankles with them.

I am petty enough to wish it was actually called that. It will be known as that historically anyway. In 60 yrs I hope it is spoken of with pride as the NHS is for UK.

[YPestis]

Regardless of the debate surrounding Obamacare, this is just bad business to have someone shooting their mouth off on a controversial topic. I believe a good CEO knows to stay away from such business if don't want blowback from it.

I share the same opinion over the Chik-Fil-a / gay controversy. The issue isn't about whether the CEO was right or wrong, it was whether someone representing a high profile company could afford to alienate a chunk of his clients. It's not an issue of exercising the right to share an opinion, it's the responsibility to one's stock holders to not piss off the people buying your products. I think Denny's CEO realized which way public opinion was going and did his duty to make sure things don't get out of hand.

[duplessis3]

Everything I've read indicates that Metz's restaurants are in Florida.

[Coconut Flan]

Remember Tea Party protestors holding signs "Keep the government out of my Medicare"?

The ignorance level always astounds me. Do they have a clue who is managing their Medicare? Apparently not.