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

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RustyNails

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Papa John’s CEO: ObamaCare Means Higher Pizza Prices

John Schnatter, CEO and founder of pizza chain Papa John’s, took a critical look at President Obama‘s Affordable Care Act recently, warning that the legislation will result in price increases for pizza.

The law changes that go into effect in 2014, he said, will increase the company’s costs — and those increases will be passed on to consumers. “Our best estimate is that the Obamacare will cost 11 to 14 cents per pizza, or 15 to 20 cents per order from a corporate basis,” said Schnatter, who is a Mitt Romney supporter (and fundraiser).

He added, “We’re not supportive of Obamacare, like most businesses in our industry. But our business model and unit economics are about as ideal as you can get for a food company to absorb Obamacare.”

Those added costs, he promised, will make their way to consumers:

If Obamacare is in fact not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders best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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1. Papa Johns Pizza sucks
2. Good for Dominoes and Pizza Hut's business. Go for it, Papa John Schnatter.
3. You are an asshole if you want to shift costs on consumers for giving your employees healthcare.
4. Papa John Schnatter should shut the fuck up.

Edit:
RDreamer said:
Also, remember this is from the company with a 41.51% profit margin
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RustyNails said:
1. Papa Johns Pizza sucks
2. Good for Dominoes and Pizza Hut's business. Go for it, Papa John Schnatter.
3. You are an asshole if you want to shift costs on consumers for giving your employees healthcare.
4. Papa John Schnatter should shut the fuck up.
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First post nails it.
 
Oh noes. You made a business out of selling unhealthy food, now you're going to punish your consumers for being unhealthy because the president wants more people to be healthy.
 
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.
 
Sick of these companies having a political agenda. Just serve me my food, assholes.
 
I like the way he promises to screw the consumer ultimately. At least he's honest about that.
 
Yeah, well screw him and his funky marinara. Even Cici's is a step up from his salty crap.
 
Papa John's is just so bad, even if I agreed with them I could not support them. Nasty sauce and nasty cheese. If you fuck those two things up on a pizza, you are dead to me.
 
stuminus3 said:
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.
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Seriously.

Also, too bad Papa John. The insurance industry has invested too much in adapting to the new reality, and they're not going back.
 
So, what? We're talking about what looks to me to be a roughly 1% increase in the cost of a pie assuming that these numbers aren't just being made up. Truly, the sky is falling.
 
“Our best estimate is that the Obamacare will cost 11 to 14 cents per pizza, or 15 to 20 cents per order from a corporate basis,” said Schnatter, who is a Mitt Romney supporter (and fundraiser).
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Ya dont say
 
Oh no, an extra 11 cents per pizza, guess I can't afford pizza anymore :(

This guy is a moron. If anything he should be worried about the price of cheese, meat and gas. Droughts + growing population + rising middle class in other countries is going to make pizzas increase by a whole lot more than 11 cents.
 
The op nails it but basically he just wants to raise prices and voila, handy excuse. Plus he's probably an asshole too.
 
My friend works for a company that was in charge of re-branding Papa John's a couple years ago. (I don't know what happened with that, because I haven't noticed their branding change much subsequently).

My friend told me a long story about having several sit-down face-to-face meetings with Papa John himself, and how kind of weird the guy was.

I wish I could remember more details about it. This was a couple years ago but my lasting impression is that Papa John is sort of strange.

All that said, I like Papa Johns pizza.
 
I used to work for Papa John's a couple years back. This is not the first time they've passed the cost along to the consumer, or their employees. It's an attitude that's reflected in a lot of their franchise owners as well.
 
stuminus3 said:
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.
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You mean to say, customers aren't walking wallets to companies in USA?
 
This is not only Papa John's, look forward to having prices jump up on nearly everything that is sold in the US, don't get pissed off at John for telling the truth. Prices are already going higher but now it's going to get even higher much faster.
 
Awesome said:
This is not only Papa John's, look forward to having prices jump up on nearly everything that is sold in the US, don't get pissed off at John for telling the truth. Prices are already going higher but now it's going to get even higher much faster.
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Healthcare costs were on a precipitous rise in the last decade. This was a clear reality that was happening regardless of political circumstance. That is why a health care solution was enacted - not out of some righteous sense of universal health care. Spending 20%+ of household wages on healthcare by 2020 was going to cripple our economy outright.

The reality is that the problems that face us are a dozen-fold. For one, people are divorced from the actual reality of healthcare costs because a good chunk of the working public is provided healthcare by their employers. On top of that, there are tax incentives for corporations to pay for healthcare.

Beyond that, we've seen greater consolidation of hospitals, entrenching their bargaining power when it comes to cost. Health insurance, in reality, is a very low margin business. It's around 1%, and they rely on scale more than anything else. Hence, their tacit support.

An even more basic problem is that the cost of healthcare is complete opaque. It's like no other service that we use. You don't know how much an EKG, an MRI, an X-Ray, etc. will cost you until after the fact - for many with health insurance, up to 6 months after the fact.
 
His home chain is in my city. Heard from a friend before that said he knew someone who used to do coke with 'Papa' John Schnatter. Explains a lot.
 
I'm surprised Papa John's is still around. Most of the time when someone suggests ordering one, its as a joke. I mean Domino's and Pizza Hut are not great by any stretch, but they are both leagues better than any Papa John's I've had.
 
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