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

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If anything this should be damning evidence that corporations were posturing in regards to Obamacare killing businesses. A 1% increase seems pretty damn small, and threatening an increase of $0.20 on a $20 order just further diminishes the impact of a 1% increase in the mind of the layman. It would have been better if he simply stated how much it would cost the company annually, and left it at that large, more incomprehensible number.


But thanks for doing the left's work for them, Papa John. I will continue to not eat your Dominoes-quality but Pizza-Hutt-priced goods.
 
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.

Their earnings per share this year is estimated at $2.55/share. That's millions and millions of dollars in profit, all operating expenses included. They even increased their EPS predictions after the past quarter:
http://www.nasdaq.com/article/papa-johns-announces-second-quarter-2012-results-20120731-01661
 
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.

Of course they don't want it to dip in their profits. It's a business after all, you can't have your cake and eat it too.
 
I would gladly pay a quarter more to help cover the cost of their employees healthcare..even if it keeps the corporate cats out of their own pockets.
 
Let's assume this isn't healthcare; let's think in terms of minimum wage, instead. Wages and healthcare, they're both similar concepts; both cost money for an employer to supply, and both reflect directly on an employee's quality of life.

Our best estimate is that paying our employees minimum wage will cost 11 to 14 cents per pizza, or 15 to 20 cents per order from a corporate basis

That'd be unacceptable.


In other words: Isn't he basically saying that he hasn't been providing a reasonable level of healthcare for his employees in the past, and now meeting the minimum requirements is going to increase costs?
 
I'm not from the USA, so please excuse me if I'm speaking out of turn or misunderstanding something here, but I find it absolutely torrid that a company would so vocally drag their customers into their politics regardless of their opinion. He "promises" to pass costs on to customers? That just strikes me as being completely unaware of what a customer actually is to them.

Your mistake is believing that Papa John's "customers" are the people who buy their pizza. The satisfaction of the people who buy their pizzas is merely incidental to the satisfaction of the shareholders.
 
In other words: Isn't he basically saying that he hasn't been providing a reasonable level of healthcare for his employees in the past, and now meeting the minimum requirements is going to increase costs?

Yes, that is what he is saying. Of course, the increase in costs is only temporary, as health care costs on average will be rising a little slower than they otherwise would. So long term, it's a wash.

Of course, it is not a virtue of the ACA that it may strengthen the tie between employment and health care. Let's hope most businesses opt for the penalty so that that tie gets severed and we can move towards a system that really helps people obtain health care at a reasonable cost.
 
I actually rather enjoy their pizza.

But I value the health of my fellow citizens more than my loyalty to a pizza chain (and we Hispanics are fiercely brand loyal). I'm done with Papa Johns. Time to start shopping around to other chains (it's all we got in Miami).
 
Imagine how much cheaper the pizzas would be if we'd just get rid of that goddamn minimum wage. The government is stealing your pizza!
 
Little Caesar's is already beating them in cost and quality.

Had one of their 3 meat pizza's the other day and have to agree. The crust, cheese, and amount of topping were much better than the uncooked shit we usually get if we order from papa johns.

Caesar's and Hungry Howes can have my money from now on.
 
Wow look at all the outrage over this.

But uhh, this is going to happen in every single corporation and small business.

You think health care is free to the business owners to hand out to everyone? Somebody has to pay for it. Businesses aren't going to sink their own profits to pay for this. It will be passed along to the consumer, just like every new tax, regulation, or fee. Every business does this, so I'm a little surprised at all the outrage.
 
I actually rather enjoy their pizza.

But I value the health of my fellow citizens more than my loyalty to a pizza chain (and we Hispanics are fiercely brand loyal). I'm done with Papa Johns. Time to start shopping around to other chains (it's all we got in Miami).

If you value the health of your fellow citizens, you should encourage everyone to very rarely eat things like pizza, junk food, fast food, etc.

I get what you mean about healthcare costs, but avoiding these sorts of foods is fundamentally important to a healthy population.
 
"Waaaaaaa - I sell garbage to people and now my profit margins won't be as big. Mr Obama and those evil liberals are just a bunch of big meanies."

-John Schnatter, founder & CEO of Papa John's
 
Same tactics as Chik Filet

Completely anti-consumer

Was mentioned in Romney campaign.



well, i have no reason to ever order Poppa Johns again. Good riddance you fuck
 
Well I'm glad I'm essentially viewed as the bad guy to be fought against in the war to protect their shareholders.

Oh wait, no I'm not. Eat a dick with extra toppings, Schnatter.
 
Wow look at all the outrage over this.

But uhh, this is going to happen in every single corporation and small business.

You think health care is free to the business owners to hand out to everyone? Somebody has to pay for it. Businesses aren't going to sink their own profits to pay for this. It will be passed along to the consumer, just like every new tax, regulation, or fee. Every business does this, so I'm a little surprised at all the outrage.

Yeah I'm surprised as well. We all voted for a Democrat, we all wanted better healthcare, now we have to pay a little more. That's how shit works. I have no problem with this or Papa Johns wanting to maintain their profits. If you're going to cry over that small of a bump in price you probably can't afford a pizza anyway. Lol.
 
Yeah I'm surprised as well. We all voted for a Democrat, we all wanted better healthcare, now we have to pay a little more.

Actually, done right, enacting universal health care would cause us to pay half as much as we do now. Of course, the ACA will slow the rise in health care costs at least a little bit. So, even if some businesses increase prices, American consumers will still come out slightly ahead of where they would be without the ACA.

These business gimmicks require consideration of all the circumstances. You may pay $.15 more for a pizza, but you're going to be saving on your health care costs as a result (and/or receiving a slightly higher wage).
 
Maybe Papa John's should start a Kickstarter asking for donations to please their shareholders. Donate 20 bucks and you get a free cup of garlic dipping sauce. What do you guys think?
 
Maybe Papa John's should start a Kickstarter asking for donations to please their shareholders. Donate 20 bucks and you get a free cup of garlic dipping sauce. What do you guys think?

Do not give that cockmongler any more ideas. Fuck him and fuck his support for the ChameleoMormon.
 
Wow look at all the outrage over this.

But uhh, this is going to happen in every single corporation and small business.

You think health care is free to the business owners to hand out to everyone? Somebody has to pay for it. Businesses aren't going to sink their own profits to pay for this. It will be passed along to the consumer, just like every new tax, regulation, or fee. Every business does this, so I'm a little surprised at all the outrage.

It's not the price increase. It's his dickish attitude.

Also, costs like these are usually diffused between the business and the consumer in some way. Publicly claiming that the consumer will have to pay the full brunt of it... is... unclassy in business circles.

If you value the health of your fellow citizens, you should encourage everyone to very rarely eat things like pizza, junk food, fast food, etc.

I get what you mean about healthcare costs, but avoiding these sorts of foods is fundamentally important to a healthy population.

I agree fully. In fact, the reason we've even ordered Papa John's pizza recently is because my dad gets random cravings for them due to his chemotherapy. Otherwise, it was a "once every 4 months" thing.
 
Wow look at all the outrage over this.

But uhh, this is going to happen in every single corporation and small business.

You think health care is free to the business owners to hand out to everyone? Somebody has to pay for it. Businesses aren't going to sink their own profits to pay for this. It will be passed along to the consumer, just like every new tax, regulation, or fee. Every business does this, so I'm a little surprised at all the outrage.

That's the funny part. The costs for the apocalyptic 'Obamacare' are hilariously low, so his thirst for profits looks fucking insane when he's running 40%+ profit margins. I'd happily drop an extra quarter per pie to not only cover his employees' new health insurance but to make sure he never opens his herpes-riddled pie-hole on the subject again.
 
The people that should really be up in arms are current PJ employees. This is what it would have cost for them to have fucking health insurance.
 
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