Watchhttp://www.huffingtonpost.com/2012/08/07/papa-johns-obamacare-pizza_n_1752126.html#slide=more235698
After President Obama's health care law takes full effect, the slogan for national pizza chain Papa John's may need an update. Instead of, “Better ingredients. Better Pizza,” may we suggest, “Better health care. Pricier pizza."
Papa John's CEO John Schnatter says that Obamacare will result in a $0.11 to $0.14 price increase per pizza, or $0.15 to $0.20 cents per order, Pizza Marketplace, a trade publication, reports.
Under Obamacare, the company, which is the third-largest pizza takeout and delivery chain in the United States, will have to offer health care coverage to more of its 16,500 total employees or pay a penalty to the government.
The National Restaurant Association pointed out following the health care law's Supreme Court approval that it may adversely affect restaurants’ ability to maintain already slim profit margins because it requires companies of more than 50 employees to provide affordable health insurance.
One Papa John's franchise owner in Texas, Judy Nichols, says the law could interfere with her ability to open more restaurants.
“I have two options, I can stop offering coverage and pay the $2,000 fine, or I could keep my number of staff under 50 so the mandate doesn't apply,” she told Legal Newsline. Nichols added that the law may cost her between $20,000 to $30,000 extra in taxes. “Obamacare is making me think about cutting jobs instead," she said.
But with strong sales last quarter and more than 1,500 new retail locations planned in the near future, Schnatter doesn't seem all that bothered -- perhaps because he intends to pass those health care costs on to customers.
“We're not supportive of Obamacare, like most businesses in our industry,” Schnatter was quoted as saying in Politico. “But our business model and unit economics are about as ideal as you can get for a food company to absorb Obamacare."
McDonald’s also expects Obamacare to cost each of its 14,000 franchises between $10,000 and $30,000 annually, according to Businessweek. But, like Schnatter, the company remains optimistic it is well placed to handle the extra costs.
Representatives from other restaurant chains may be less hopeful, however, including Burger King, Quiznos and Dunkin’ Donuts, all which have expressed concern the law may hurt business, according to the Wall Street Journal.
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Buffalo, NY
Boo hoo. Companies that have been nickle and diming their workers for years finally have to offer them health insurance and they're wining about it. So long as Obama wins relection, by 2015 the whole bruhaha will be forgotten.
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Reston, VA
So, government requiring them to pay 14 cents more per pizza in health care costs is not good. How much does Papa Johns save per pizza due to gov't subsidized cheese?
Was Dominoes complaining when the government stepped in and got them to use more government subsidized cheese, and then paid for the advertising to save Dominoes from the scrap heap of failed business? Maybe Papa Johns could have complained at that point.
http://thinkprogress.org/yglesias/2010/11/07/199018/tax-dollars-going-to-subsidize-cheesier-dominoes-pizzas/?mobile=nc
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futuresmc says
You mean when the average "Middle class"(you know the assholes actually paying the taxes around here) worker will be paying 50% of their earnings in a mandated tax to private corporations, that have to show a quarterly profit, which the bar keeps rising because the lemming workforce ups the anty on their 401K contributions into bio/health sector, every time the needle on the DOW goes south?
Yup forgotten indeed.
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"whining".
They are whining on your behalf, as, they will just pass the costs on to the consumers, like every other business will....
futuresmc says
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Papa John's shouldn't complain, they didn't build that business anyway.
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Republicans would have us believe Obamacare is bad for America. Is there any doubt that a Romney administration would favor the rich and increase the income gap in our country while leaving millions of our citizens uninsured and unprotected? Mitt is a pariah in Mormon Clothing and will stop at nothing to expand an empire of greed for the rich in this country. Can his sacred Mormon underwear gain him enough donations to buy this election? See for yourself as Mitt dons his tighty-whities sent from the Good Lord Himself at http://dregstudiosart.blogspot.com/2012/05/mitt-romneys-magic-mormon-underwear.html
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Aptos, CA
zzyzzx says
Dam, I don't think that is going to be enough to drive type II diabetes patients away. What's an extra 20 cents when your insulin isn't working well?
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CaptainShuddup says
Well it is after all the republican plan that Obama copied-hailed by the Heritage Foundation and Tea Party titan Jim DeMint and first implemented by Mittens. Modern day politics has become such a comedy :)
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lostand confused says
You wont think it's so goddamn funny when you're bent over a barrel and forced to shell out $1700 a month there Clownboy will you?
The best part is, you as a citizen are mandated to be covered, your employer has now lost the impetus to insure their employees.
"♫Be a clown-be a clown-be a clown♫"
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Same old , same old. Can't you come up with some new insults-oh about Obamacare being a republican plan??
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I don't really care who's plan it is, it's NOT socialized medicine.
Nothing of the sort, it's not anything that the poor will be glad to have 10 years out. In fact I envision it the cause of American's Democratic unpinning. There will be revolt, from all socioeconomic levels, well from those who's livelihood is not coupled to Health/Bio/Pharm related industries. And the President at that time will show the Arab Spring nations how to squelch an uprising. Then that will be that, elections will be suspended, and we will be feudal society hence forth.
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Baltimore, MD
oliverks1 says
It's the extra .20 added to everything else as well that can really add up and wreck the economy.
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Monterey, CA
Papa John's pizza is terrible.
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joshuatrio says
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Aptos, CA
zzyzzx says
The loss of Papa Joes, if it comes to this, is a tragedy beyond comprehension. The humanity, the pain, the anguish, it is overwhelming. It makes the burning of the library in Alexandra seem insignificant.
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San Jose, CA
My girlfriend is allergic to dairy and cannot eat cheese.
She can eat papa john's pizza just fine.
Don't feel too bad for Papa John's because they likely use fake stuff.
She can also eat Tostino's Pizza Bites. It's funny that their competitor was the one who called out that they used fake cheese. We immediately bought some.
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Wheeling, WV
CaptainShuddup says
I'll agree with that - Obamacare is a bastardized public/ private health hybrid that combines the worst of public and private into what I believe will become an expensive rationed mess.
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I'll always have a soft spot for Papa John's because of when they gave free pizzas to anyone who had a Camaro...back when I had a Camaro. Good times.
Their pizza isn't anything special though.
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Baltimore, MD
StoutFiles says
When was this?
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Boca Raton, FL
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There should be a $5 per slice heath insurance tax on Papa John's pizza to pay for the care of all the obese customers that company fattens up with their crappy pizza.