Top of mind: Election anxietyTop of mind: Election anxiety

The following story is part of “Top of Mind,” a special report covering today’s largest concerns among the restaurant operator community. This report was created in anticipation of MUFSO, taking place Sept. 30-Oct. 2, where hundreds of operators gather to share ideas and best practices. Find MUFSO coverage at NRN at the Show.


Aziz Hashim sounds like many other restaurateurs across the nation when he talks about the upcoming U.S. presidential elections. The one thing he knows for sure is that they are creating a lot of uncertainty around how he should proceed with his company’s business plans for the future.


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The winner on Nov. 6, whether it turns out to be President Barack Obama or former Massachusetts Gov. Mitt Romney, could make dramatic changes to the health care law, the tax codes and labor regulations — policy issues that greatly impact restaurant operators and potential investors, he said.


“I think a restaurateur is just like any other entrepreneur: The first fundamental premise is certainty about the economic future,” said Hashim, chief executive of National Restaurant Development in Decatur, Ga., a franchisee of 23 Domino’s Pizza, 13 Popeyes Louisiana Kitchen and 14 Rally’s Hamburgers locations. “It’s really hard to invest and create growth when one doesn’t know whether there are going to be changes in the tax code or if Obamacare is going to be fully implemented.”


Theoretically, once the next president has taken office, many of those questions should be clarified. But just because a politician says something during an election, Hashim noted, doesn’t necessarily mean it will happen.


“We don’t know what other policies and regulations can be imposed,” said Hashim, who also serves as a board member of the International Franchise Association in Washington, D.C. “Romney could put in a bunch of regulations. Nobody knows.”


So far, however, the two presidential candidates have hammered out very different platforms. Republican nominee Romney said he wants to promote opportunity by lowering taxes, reducing regulations, pushing for more private involvement in health care and creating an environment that would nurture business growth. 


Democratic candidate Obama, while also saying he supports business growth and a strong economy, sees the federal government as being a source of services and support for those who need better education, health care, training and other forms of aid.


No matter who wins, though, Hashim said he hopes the next president will make business development a priority.


“They should look toward making a more business-friendly 
environment in America because that’s what creates jobs,” he said.


Rob Green, executive director of the National Council of Chain Restaurants in Washington, also pointed to the problem of developing business plans before the election has been decided. Green said no policy makers are going to be formulating any decisions until well after the election cycle is over. 


“We’re not necessarily going to see a lot of clarification until after the election, no matter how the election plays out,” he said. “Obviously, the areas of concern include labor policy and health care.”


National Restaurant Association executive vice president of policy and government affairs Scott DeFife said if this were a normal year, restaurant operators would be planning their 2013, if not 2014, budgets already. But with all of the possible changes likely to come by as soon as the end of 2012, it’s difficult to map out a fiscal plan.


If Obama is re-elected, it’s expected that the health care law will continue to play a central role as additional regulations are hammered out. If Romney wins the race and Republicans pick up more House and Senate seats, the health care mandate is likely to be in jeopardy, perhaps resulting in the law’s repeal or its reform.


Obama and Romney also differ in how they believe businesses should be taxed, adding to the uncertainty that lies ahead of restaurateurs in 2013.


And that makes it very difficult for restaurant operators to plan for their futures — be it paying for commodities, health care or labor costs.


“We need to think more expansively than just one issue, one election,” DeFife said. “Certainly, there’s going to be change next year, regardless of the outcome.”


This special report was originally published in the Sept. 17 issue of Nation’s Restaurant News. Subscribe here.

Contact Erin Dostal at [email protected].
Follow her on Twitter: @ErinDostal