Brooklyn Pizzeria adds 3 Percent Obamacare Surcharge to All Checks

Under the Obama administration’s Affordable Care Act, all companies incur an added cost of giving employees health coverage. The Affordable Care Act requires all companies with 50 or more full-time employees to provide their staff with fairly priced health insurance. To cover the extra costs incurred, Franny’s, a famous Brooklyn Pizzeria, will add a 3 percent surcharge to all of its checks in order to “cover the affordable care act for all Franny’s employees.”

Franny’s is not only adding a new surcharge but will also hike prices to increase employee wages and keep up with the rising minimum wage across fast-food restaurants. Franny’s co-owner Francine Stephens admits that the higher prices are a concern and will likely affect how often some guests are able to come in for dinner.

With new regulations increasing mandatory minimum wages and employee benefits, restauranteurs are coping with the higher costs in a variety of ways. Notably, Danny Meyers has taken an all-inclusive approach to pricing by eliminating tipping and absorbing costs into menu prices. Stephens says she wants to be transparent with prices but is also tracking Meyer’s move.

To read more, click here