Papa Johns CEO wants to raise Pizza prices in order to offset Obamacare costs

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Used to be a Papa Johns delivery driver.

Fuck that place and its overpriced pizza.

Edit: $5 large pepproni at Little Ceasars. If you want somethin' better, you can get two Mediums at Dominos for $12. Large Papa Johns is over $10. With Dominos you are essentially getting 10 inches more in diameter in pizza for roughly a dollar more.
 
Wazzim said:
Anyone who is concerned about a price increase of 20 cents in exchange for healthcare is part of the problem.
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The employees get the healthcare regardless. Its not like, "Oh well, they wont get the healthcare if we dont charge you a little extra." Papa John's just doesn't want it to dip into their profits.
 
I'm going to stick my nose in here to echo a popular thread sentiment: Fuck everything about this political food trend. I don't care what my fucking friends politics are, I have zero interest in hearing what my fucking dinner thinks about it.
 
Funny considering pizza chains are really kind of almost too cheap lately with all the $10 specialty pizza deals going back and forth in competition between Papa Johns, Pizza Hut, and Dominoes.
 
lol at the boycott responses
KuGsj.gif
 
Gotta love these CEOs who are making money hand over fist complaining about giving their employees benefits. Selfish smug pieces of shit.
 
Really this demonstrates a few things:

1) Healthcare cannot and should not be tangled up in private interests. We have living proof right here that this man would do whatever he can to "protect" his shareholders while not giving a crap about his employees and their health. This isn't some special company, either. This is business as usual. I can't really fault him for it, because that's how it goes. But what we can do is rip essential things that the people need in this country away from their grasps and put them into a system whose number 1 priority is care and not profits.

2) This points to an even more pressing need to tax the rich. How's that, you say? Well, because as we see here anything and everything thrown onto the corporate business end will just get thrown back down to the bottom rung of the totem pole. We all end up paying it no matter what. The rich have protections against costs going up. We don't. So, we need to take it where we can, from their individual taxes, and make sure our system is progressive. You need to counter the fact that costs will always go downward while profits go upward with a good tax system, which ours is not doing well enough right now.

alphaNoid said:
lol at the boycott responses
KuGsj.gif
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This brings me partially to my third thing, as well as a retort to idiots like this. The people on the right espouse the virtues of the free market. It'll fix everything they say. They'll have to provide for their workers, because workers will go elsewhere (they won't) and because if they're not, then people won't buy from them. And here you come in laughing at those who would boycott these types of things. Well, it's what the right tells us to do in this free market system. It's how we are supposed to affect these things. Why would you tell us that the free market will fix all these things through the power of consumer choice and then laugh as we use that power of consumer choice? Your whole beloved free market system falls apart without it! We're just helping prop it up!

But anyway, my 3rd point, is also demonstrated by this. A boycott isn't going to do much good, anyway, because people laugh at boycotts, and also because we just don't have the time and resources to boycott every single thing that we disagree with. Someone in here pointed out that Dominoes may be even more conservative in their political leanings than Papa Johns. Now I don't know what Dominoes does or how it treats its employees either, but you very well could be going from the fryer into the oven by shifting your dollars there. This whole thing demonstrates to me that a stronger government in things like healthcare especially is needed.
 
Domino's was bought by Romney and owned by Bain Capital. Little Caesars gives to both parties. In fact, a LOT of fast food places give much more money to Republicans. Better start all those boycotts.
 
I think the last time I had Papa Johns was when there were hundreds of free medium pizza codes that were released last year or so.
 
KHarvey16 said:
Can you substantiate this? Have these companies demonstrated their method of determining the net cost impact to them due solely to legislation?
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Everyone is just estimating and guessing really, but many of the big corporations are aware. Just a few weeks ago McDonalds spokesman talked of the healthcare reform and how they estimate it costing them almost half a billion a year, and that rising various menu prices will likely be done to offset. http://stocksonwallstreet.net/2012/07/will-obamacare-raise-the-price-of-a-mcdonalds-big-mac/

But they didn't make it a political statement, just financial info being put out there unlike Papa Johns. Lot of companies are going to be raising prices, much of it will likely be hidden with little bits here and there. Papa Johns will likely be doing the same, most likely each pizza is suddenly not going to have .20$ extra tossed on, they will just raise prices here and there to hide their increases.

These companies can take the losses to their profits, but you know they aren't going to just sit and take it because investors are seeing these big losses. So the companies will react and it's the consumers who will be paying in the end to satisfy the investors.

Are people going to call for McDonalds boycott? No, because they aren't making any political statements while they raise their prices.
 
Is there a way to delete your account at papajohns.com? I am so sick and goddamn tired of businesses mouthing off about their politics and refuse to do business with the asshatted ones that do.
 
Buddha Beam said:
This is what has always bothered me about publically traded companies in general. One of the most destructive pieces of law ever was the one stating that these companies are legally obligated to make money for their shareholders over all else.
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If some business tried to take that "I had to make money" defense to court they would be ass-raped by any jury in America. While a business is obligated to look out for their shareholders, that is just one of many responsibilities that they have - and if they neglect the others they get sued just as easily.
 
Did Chik-Fil-A's whole gay marriage fiasco recently help them or hurt them, profit-wise? I hear a lot about protesting it, but at the same time, there was that one day where a shit load of people went to show support which led to hour long lines in some places.

If that ended up benefitting Chik-Fil-A and they made tons of money from it, maybe this is just Papa Johns' way of trying to copy that. A lot of people will get angry, then a lot of people will be angry that others are angry and stage a huge "Papa John's Day" and he'll get tons of money!

Or maybe I'm overthinking this.
 
BattleMonkey said:
Everyone is just estimating and guessing really, but many of the big corporations are aware. Just a few weeks ago McDonalds spokesman talked of the healthcare reform and how they estimate it costing them almost half a billion a year, and that rising various menu prices will likely be done to offset. http://stocksonwallstreet.net/2012/07/will-obamacare-raise-the-price-of-a-mcdonalds-big-mac/

But they didn't make it a political statement, just financial info being put out there unlike Papa Johns. Lot of companies are going to be raising prices, much of it will likely be hidden with little bits here and there. Papa Johns will likely be doing the same, most likely each pizza is suddenly not going to have .20$ extra tossed on, they will just raise prices here and there to hide their increases.

These companies can take the losses to their profits, but you know they aren't going to just sit and take it because investors are seeing these big losses. So the companies will react and it's the consumers who will be paying in the end to satisfy the investors.

Are people going to call for McDonalds boycott? No, because they aren't making any political statements while they raise their prices.
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Well the other option they have is that they could, strangely enough, reduce the amount of product that they deliver. This has the benefit in both health care of the general public as well as benefitting the bottom line of the business. Consumers wouldn't even notice if you reduced the size of a pizza enough to cover the $0.20. They don't HAVE to pass the cost onto the consumer, they are just throwing a tantrum.
 
If Obamacare is in fact not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders best interests.
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He got this wrong. Protecting consumers interests (i.e. no price increases) should ultimately reward the shareholders (more sales).
 
adamsappel said:
Papa John's is my daughter's favorite pizza, so we have it a couple times a month. I think it's terrible; the sauce is so sweet. It's not even that cheap, since most of the specials are for multiple-toppings, and she only likes cheese. I'd gladly pay 15 cents extra to give their workers health insurance, though I'd rather pay more in taxes and give it to everyone. I think he made a mistake with a hard number cost, though. If it becomes a bigger expense, everyone will think he's gouging the customer. If not, that seems pretty cheap for health insurance. Maybe he could offset it by not including that little tub of garlic grease that I simply throw away.
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hahaha i do the same thing. that stuff is nasty
 
BattleMonkey said:
Everyone is just estimating and guessing really, but many of the big corporations are aware. Just a few weeks ago McDonalds spokesman talked of the healthcare reform and how they estimate it costing them almost half a billion a year, and that rising various menu prices will likely be done to offset. http://stocksonwallstreet.net/2012/07/will-obamacare-raise-the-price-of-a-mcdonalds-big-mac/

But they didn't make it a political statement, just financial info being put out there unlike Papa Johns. Lot of companies are going to be raising prices, much of it will likely be hidden with little bits here and there. Papa Johns will likely be doing the same, most likely each pizza is suddenly not going to have .20$ extra tossed on, they will just raise prices here and there to hide their increases.

These companies can take the losses to their profits, but you know they aren't going to just sit and take it because investors are seeing these big losses. So the companies will react and it's the consumers who will be paying in the end to satisfy the investors.

Are people going to call for McDonalds boycott? No, because they aren't making any political statements while they raise their prices.
Click to expand...

The strange thing at our company was they went through our annual benefits meeting and noted the estimated increases in premiums due to Obamacare (along with snickering and snide comments), but I went back and looked at our previous years slides ... and it's been the same if not more increase in premiums for the last 5+ years. Why is it a big deal if it's the same increases in premiums we had before anyone even heard of Obamacare? It's like people are acting that health insurance premiums wouldn't go up if there wasn't Obamacare.
 
Phoenix said:
Well the other option they have is that they could, strangely enough, reduce the amount of product that they deliver. This has the benefit in both health care of the general public as well as benefitting the bottom line of the business. Consumers wouldn't even notice if you reduced the size of a pizza enough to cover the $0.20. They don't HAVE to pass the cost onto the consumer, they are just throwing a tantrum.
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Well often enough instead of raising the prices, companies will do something like that of course. Reduce quantities of an ingredient, slightly decrease size of so and so. Wouldn't be surprising that they do similar to hide any real price increases.
 
Hmm...I like papa johns. It isn't anymore overpriced than any other pizza place. $10 for a large pizza seems decent enough of a price.

I like the garlic dipping sauces :P
 
“Our best estimate is that the Obamacare will cost 11 to 14 cents per pizza

Not that I even eat Papa John's pizza anymore, but does he believe $0.14 will stop people from ordering pizza from his fucking establishments?

REALLY?

YoungHav said:
I used to love Papa John's, but Domino's reboot a few yrs ago has taken over.
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I'm out of the chain pizza business for good. Local NYC style pizzas are the only acceptable pizzas now.
 
EskimoJoe said:
Did Chik-Fil-A's whole gay marriage fiasco recently help them or hurt them, profit-wise? I hear a lot about protesting it, but at the same time, there was that one day where a shit load of people went to show support which led to hour long lines in some places.

If that ended up benefitting Chik-Fil-A and they made tons of money from it, maybe this is just Papa Johns' way of trying to copy that. A lot of people will get angry, then a lot of people will be angry that others are angry and stage a huge "Papa John's Day" and he'll get tons of money!

Or maybe I'm overthinking this.
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There are two things to consider in what you're saying: impact to profits and impact to brand. Profit is something that happens in the short term and you can do/say things to change your profit picture in the immediate.

However if you damage your brand by coming out and taking a political stance on things you are doing long term damage to your profits. I was recently on Georgia Tech's campus and while there was no rally/boycott at the ChikFilA - there also wasn't a long line there while there was at EVERY OTHER location in the student center. Brand damage is very expensive repair IF the consumer even moves you back into consideration. For example, when Texaco got caught doing the race glass ceiling thing - they exited "purchase consideration" for a sizable number of black patrons. When Denny's did the same thing the backlash was so significant that you don't even see Denny's near black neighborhoods (or at all really) anymore. Godaddy saw a substantial drop in people using their service, and they were so stupid that they didn't realize how substantial a long term impact that would be.

You can do things in the public eye and be an activist for a cause, but it always always always has an impact on brand. It is curious to see how Apple's brand is going to be impacted over the next 18 months from all the lawsuits and other foolishness. Once you poison the well, people may move on and never come back.
 
You know what's good for your shareholders? Shutting the fuck up about your politics and making good food. Why do these fools insist on relaying their political or moral beliefs, when a good businessman would keep their mouth shut?

I don't give a shit about any establishments views, but I can respect the ones who don't need to sound off about it. Kind of like political bumper stickers, or those little stickers that show how many kids and cats you have. No one gives a shit.
 
Aselith said:
So, I looked at Papa Johns financials and they made about 57 mil last year so they definitely couldn't eat the 48 mil cost like people were proposing.

http://finance.yahoo.com/q/is?s=PZZA&annual

I agree they should just shut the fuck up and raise prices a bit though for the good of their employees.
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I'd like to see exactly what they're losing 48 million to, and check their math a bit. What in the ACA is making them lose so much? Were they not providing healthcare to that many people? Or are they attributing normal rise in healthcare cost strictly with "Obamacare?"

I mean, really, if you're saying this would cost them 48 million, and they only made 57 million that means they're making like 18 cents per pizza? That's really impossible to believe. They have to be making at least a couple bucks on those pizzas.
 
Nostalgic Nightmare said:
You know what's good for your shareholders? Shutting the fuck up about your politics and making good food. Why do these fools insist on relaying their political or moral beliefs, when a good businessman would keep their mouth shut?

I don't give a shit about any establishments views, but I can respect the ones who don't need to sound off about it. Kind of like political bumper stickers, or those little stickers that show how many kids and cats you have. No one gives a shit.
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So you don't mind that KFC, Pizza Hut, and Taco Bell give ~90% of their donations to Republicans as long as they keep quiet about it?
 
BattleMonkey said:
Everyone is just estimating and guessing really, but many of the big corporations are aware. Just a few weeks ago McDonalds spokesman talked of the healthcare reform and how they estimate it costing them almost half a billion a year, and that rising various menu prices will likely be done to offset. http://stocksonwallstreet.net/2012/07/will-obamacare-raise-the-price-of-a-mcdonalds-big-mac/

But they didn't make it a political statement, just financial info being put out there unlike Papa Johns. Lot of companies are going to be raising prices, much of it will likely be hidden with little bits here and there. Papa Johns will likely be doing the same, most likely each pizza is suddenly not going to have .20$ extra tossed on, they will just raise prices here and there to hide their increases.

These companies can take the losses to their profits, but you know they aren't going to just sit and take it because investors are seeing these big losses. So the companies will react and it's the consumers who will be paying in the end to satisfy the investors.

Are people going to call for McDonalds boycott? No, because they aren't making any political statements while they raise their prices.
Click to expand...

But does anyone show their work? Of course not, because why would they. It benefits them to have a scape goat and they gain nothing from actually quantifying the cost of the legislation alone outside the increases due to the general rising cost of healthcare everyone sees every year. We can't just accept their word at face value.

Also, that article makes a point others have made here:

"Still, says Funtleyder, it’s in consumers’ best interest for companies to keep their wage workers insured because they typically represent the young, healthy portion of the insurance market — and therefore their premiums subsidize the cost of care throughout the system. “If you have to pay more for your happy meal, you might have to pay less elsewhere,” Funtleyder says."
 
RDreamer said:
I'd like to see exactly what they're losing 48 million to, and check their math a bit. What in the ACA is making them lose so much? Were they not providing healthcare to that many people? Or are they attributing normal rise in healthcare cost strictly with "Obamacare?"

I mean, really, if you're saying this would cost them 48 million, and they only made 57 million that means they're making like 18 cents per pizza? That's really impossible to believe. They have to be making at least a couple bucks on those pizzas.
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They make a 40% gross on pizzas which is then eaten into by operating costs. 48 mil was estimated by someone in this thread. I dunno if it's right or wrong.
 
Bulbo Urethral Baggins said:
So you don't mind that KFC, Pizza Hut, and Taco Bell give ~90% of their donations to Republicans as long as they keep quiet about it?
Click to expand...

If you want to do the research and boycott company "X" on your own principles that's fine, it's your dollar, spend it where you want. Yes I have more respect for a company that doesn't announce their political or moral views, that also goes for celebrities.
 
Aselith said:
They make a 40% gross on pizzas which is then eaten into by operating costs. 48 mil was estimated by someone in this thread. I dunno if it's right or wrong.
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I know that, but even with operating costs and such it seems like a really fucking terrible business if you're only making what amounts to an average of 18 cents per pizza when everything's taken into account. That's awful. There's no way that's true.
 
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