Is Regulation Hurting the Restaurant Industry?

February 23, 2012

Andy Pudzer, CEO of CKE Restaurants, Inc. explained on Fox News how new provisions in the recently passed health care act, will cost the restaurant industry $315 million dollars. Out of that total number, his company alone will pay $1.5 million to replace menu boards to include caloric information. Nutritional information for all of CKE restaurants, like Hardee’s and Carl’s Jr., is currently available online and is already legally required to be posted in every restaurant.

While Mr. Pudzer emphasized that there are many good regulations, unnecessary regulations only increase costs and these costs are inevitably passed on to consumers in the form of higher prices. Like the R.H. Peterson Co’s struggle, featured in the latest installment of our “Story of Business” series, these new regulations have placed new costs on companies and consumer’s in every industry. Without Congress taking out such regulations, we can expect that companies will be forced to invest in compliance and oversight, instead of investing in jobs and growth.

Watch our latest “Story of Business” feature here.

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