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

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Aselith said:
I'm sorry but it doesn't have a 40% margin. The ingredients do. But a huge majority of th at margin is eaten up by the cost of doing business. As I said earlier, they make 5ish% margins in the final reckoning.

Saying otherwise makes your argument weak and easy to refute.

Somebody just remarked earlier how suprised he was that their margins could be so bad.
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Alright. 5%.

It's 15 cents for healthcare. For piece of mind and security for those on the bottom.

If anything, this strongly reinforces that depending on benefits and wealth to trickle down from the top is the worst idea. They will retain as much money and power as legally possible.

Piecake said:
Scola for president
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!
 
Aren't there pizzas like $X.99? I can't imagine them actually pricing their pizzas at $X.10 or $X.13 because of this. And they probably can't get away with a one dollar price hike. He's bluffing, I say. (or maybe it will be a price increase to drinks instead?)
 
What's with fast food CEOs saying incredibly stupid things lately?

I usually like Papa John's pizza whenever I have it, but if the guy is going to be an asshole about all this I'm more than happy to eat somewhere else.
 
Vard said:
Aren't there pizzas like $X.99? I can't imagine them actually pricing their pizzas at $X.10 or $X.13 because of this. And they probably can't get away with a one dollar price hike. He's bluffing, I say. (or maybe it will be a price increase to drinks instead?)
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Of course they can get away with a dollar increase, just like every other restaurant chain and fast food chain that raised prices on a regular basis just without making silly political statements about it. If you're going to buy a $10 pizza, an extra dollar isn't going to chance your mind.

You can go to Wendy's and one value menu meal is the price of an entree at an actual sit down restaurant now. And people still go because prices are always going to go up and people immediately accept it.
 
If you ever thought that a corporation's first responsibility was to its customers or employees, you were always wrong. Corporations are responsible to their shareholders over anyone else. The moment a CEO doesn't focus on maintaining and improving profit margins is the moment he gets ousted or his shareholders bail.

Once you understand that, you understand how economics actually works and how we got ourselves into this financial mess in the first place.
 
masterofcoin said:
What's with fast food CEOs saying incredibly stupid things lately?

I usually like Papa John's pizza whenever I have it, but if the guy is going to be an asshole about all this I'm more than happy to eat somewhere else.
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Pretty much. I really enjoy the pizza too! But passssssssssss.
 
Hey there's nothing better for corporate leadership to let your employees know that you care so little about their well being that you'll grudgingly raise your prices a few cents to give them health care. It totally fosters loyalty and will ensure you have the best teams.

Honestly though, how hard is it to keep your damned mouth shut? All you can do in this position is:
1) Piss off your employees
and worse
2) Piss off a large swathe of your potential customer base.

As a GAFer once posted "executives are the smartest dumbest people I've ever met."
Nothing truthier has been said.
 
strobogo said:
You can go to Wendy's and one value menu meal is the price of an entree at an actual sit down restaurant now. And people still go because prices are always going to go up and people immediately accept it.
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Yeah, that's complete bullshit. A meal is like $8 now, and for what? Bottom grade meat, cheap filler, and liquid diabetes? No thanks, Wendy's.

Also, the shareholder bit is very telling, not surprising, but it's nice that John Schnatter came right out and let everyone know just where is interests are. Glad I don't ever fuck with Papa John's.
 
Aselith said:
I'm sorry but it doesn't have a 40% margin. The ingredients do. But a huge majority of th at margin is eaten up by the cost of doing business. As I said earlier, they make 5ish% margins in the final reckoning.

Saying otherwise makes your argument weak and easy to refute.

Somebody just remarked earlier how suprised he was that their margins could be so bad.
Click to expand...

lol 5%


the delivery fee alone on a 20 dollar order is 10%. I don't care how much rent is and whatnot, it's not 5%


get a clue
 
masterofcoin said:
What's with fast food CEOs saying incredibly stupid things lately?

I usually like Papa John's pizza whenever I have it, but if the guy is going to be an asshole about all this I'm more than happy to eat somewhere else.
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He said nothing in there that I would consider incredibly stupid. It's quotes from a business owner speaking to his investors on a conference call. No one is going to get on that call and tell his investors that if Obamacare isn't repealed that his plan is to eat the increased costs out of the companies profits thus hurting their stock prices.
 
He said this on a conference call with shareholders. I don't see how this is in anyway surprising, it's an increase in the cost of doing business and the shareholders want to see it offset in some way. These companies were never going to just absorb the cost.

Anyways, pizza from all of the pizza chains is terrible. Homemade all the way!
 
papa johns.... WHY THE FUCK DID YOU CHANGE THE BUTTER??!?!?!?!?!

Actually... when I last had papa johns... the pizza didn't taste as good either.
 
SyNapSe said:
He said nothing in there that I would consider incredibly stupid. It's quotes from a business owner speaking to his investors on a conference call. No one is going to get on that call and tell his investors that if Obamacare isn't repealed that his plan is to eat the increased costs out of the companies profits thus hurting their stock prices.
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He had two ways to put it:

1) Due to possible health insurance premium increases, we will have to raise prices by X amount

2) Unless we do something about Obamacare, we will have the customers pay for it by raising prices by X amount

Which is more stupid?
 
Why does it always feel as though shareholders are such arseholes?

'shareholders' and 'confidence' seem like the two biggest pain in the butts to social progress!
 
I have to wonder when papa johns started was the end game always to appease shareholders or was it about making a good pizza and making a decent living. Im not even sure or not if he is the founder but how can you even look in the mirror if you come from a humble single pizza joint, realize its hard work , and then shit on your employees.
Money sure can make you forget whats important in life, and where you came from.
 
I haven't eaten Papa Johns in about 6 years, but I remember liking their pizza a hell of a lot more than pizza hut or dominoes. As far as national chains go, I felt they were among the tastiest. A lot can change, I guess?

Find it funny how a lot of posts in this thread act as if they believe other companies aren't going to be doing the same thing. Most will, they just won't be so dickish about announcing it.
 
Wazzim said:
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.
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You said that you dont mind paying extra 'in exchange' for people getting healthcare, as if it was a choice for them. You're not paying for their healthcare, though. You are paying them more so they make more money and dont have to take a hit on providing healthcare.

Its shitty, its greedy, but its the way it is, I know. I just think those saying they 'dont mind' paying an extra 15-20 cents so the employees get healthcare aren't really seeing it properly.
 
Papa Johns used to be cheaper than Pizza Hut and Dominos. Now their damn pizzas are premium ever since they got popular. Damn this thread, I feel like buying some pizza to eat!
 
I didn't see this thread yesterday so I'm super late and probably not providing anything new.. But if it only costs $.14 per pizza to give their employees healthcare, then I don't care about that. But we all know that they'll use that $.14 cost to necessitate a raise in prices of a couple bucks. It's because of Obamacare, ya'll!
 
Bought from a local pizza joint last night instead of Papa Johns.

I figure this is the best way to not give Papa Johns any money, while still driving up their health care costs with my continued obesity.
 
Mister Zimbu said:
Bought from a local pizza joint last night instead of Papa Johns.

I figure this is the best way to not give Papa Johns any money, while still driving up their health care costs with my continued obesity.
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Not really an option for me. My local chains are just too fucking expensive. Last time I ordered 2 large pizzas from the best local chain, it was almost $40 and I had to go pick them up. I can get 2 large pizzas delivered from Papa Johns for around $25 including tip.
 
Mister Zimbu said:
Bought from a local pizza joint last night instead of Papa Johns.

I figure this is the best way to not give Papa Johns any money, while still driving up their health care costs with my continued obesity.
Click to expand...
Be prepared to see your local mom and pop joints increase prices as well. If anything, its them who will be most affected and desperate to limit profit loss. It might be a bit more justified in their case, but dont go thinking Papa John's is alone in passing extra costs to the consumers.
 
I can't speak with authority on the USA, but it's kind of an accepted fact in the UK that stuff is more expensive (in general) in part because of higher taxes because of needing to pay for stuff like the NHS.
 
bill0527 said:
Not really an option for me. My local chains are just too fucking expensive. Last time I ordered 2 large pizzas from the best local chain, it was almost $40 and I had to go pick them up. I can get 2 large pizzas delivered from Papa Johns for around $25 including tip.
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Here at a local place run by two brothers I can get 2 large pizzas with everything made from scratch, and cooked in a brick oven for $22.. $20 on certain days of the week. And they also make awesome baked goods in the oven in the morning.
 
Local pizza shop Randy's when I want to sit down and get a good pie. Hit up the Lil Ceasers down from the house when I get the taste for pizza any other time.

Big business run's the states and they want maximum profit minimum losses they've only taken that philosophy to the extreme the past few decades. Papa John is just saying he's going to do what every other company is going to do.

Better Ingredients
Better Pizza
Papa John's!!!
 
andycapps said:
Here at a local place run by two brothers I can get 2 large pizzas with everything made from scratch, and cooked in a brick oven for $22.. $20 on certain days of the week. And they also make awesome baked goods in the oven in the morning.
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People just need to look for deals. If you're ordering pizzas by size and then adding toppings straight off the menu, its gonna be expensive, be it a local place or a chain joint. Most places will have deals that make the prices bearable. My favorite deal is a local place that has a large(16") 1-topping pizza and 10 hot wings for $16.99. Considering its ridiculously good pizza(and 16" is bigger than most place's larges) and ridiculously good wings, its a fantastic deal. But I also get the two medium, 2-topping pizzas from Dominos for $12 once in a while. Or Papa John's you can get 3 medium pizzas(any type) for $21(great with a few friends around).
 
First of all, no pizza PJ's sells will be $XX.19 The price increase will be either .50 or an entire dollar. Second, as long as we are giving out numbers, how much would it cost to get a pizza delivered at a decent wage that doesnt have to be subsidized by a fraction of the customer base?

I bet PJ has more employees than shareholders. That's who should be their first priority.
 
Seanspeed said:
Be prepared to see your local mom and pop joints increase prices as well. If anything, its them who will be most affected and desperate to limit profit loss. It might be a bit more justified in their case, but dont go thinking Papa John's is alone in passing extra costs to the consumers.
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Small businesses are exempt from the ACA's coverage requirements.
 
Anslon said:
First of all, no pizza PJ's sells will be $XX.19 The price increase will be either .50 or an entire dollar. Second, as long as we are giving out numbers, how much would it cost to get a pizza delivered at a decent wage that doesnt have to be subsidized by a fraction of the customer base?

I bet PJ has more employees than shareholders. That's who should be their first priority.
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PJ needs to do everything, squeeze the blood out of every stone, to insure that stock price goes up. They are legally obligated to act in as a sociopathic manner as they can legally skate by with to make that happen.
 
SouthernDragon said:
I'm done with Papa Johns. Time to start shopping around to other chains (it's all we got in Miami).
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Not true at all, man. I could list the ones that destroy Papa Johns, if you'd like to try em:

Andiamo's
Sir Pizza
Miami's Best Pizza
Pizza Rustica
Montes de Oca
Rey's
Frankie's Pizza
Casola's
Naked Pizza
Whole Foods take-home
 
I can't believe GAF is acting like Papa Johns is shit pizza all of a sudden. It may not be as good as some mom and pop shop in your town or whatever, but to say Little Caesar's has superior quality is a damn lie. An offensive lie.
 
So, in a year I'll spend an extra .90 cents on pizza? I'm OK with that, the hundreds a year in saved income tax, sounds like a better deal. I mean, this is if I'm to believe the calculator that Barry e-mailed me.
 
daycru said:
PJ needs to do everything, squeeze the blood out of every stone, to insure that stock price goes up. They are legally obligated to act in as a sociopathic manner as they can legally skate by with to make that happen.
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We already subsidize their crappy pay with tips. They should be ashamed of how they run their business.
 
images


Tried this the other day...actually not too bad really. Alas, I don't know their political agenda. WHAT WILL I DO!
 
vas_a_morir said:
I can't believe GAF is acting like Papa Johns is shit pizza all of a sudden. It may not be as good as some mom and pop shop in your town or whatever, but to say Little Caesar's has superior quality is a damn lie. An offensive lie.
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Well, little caesars being better is a lie, but i've always had a problem with Papa Johns. They get too much credit just for their butter sauce, they skimp way too much on toppings. Dominoes has been my go to pizza and Pizza Hut really gives the most toppings. PH meatlovers the stuff is falling off the pizza, only problem with PH is it kicks my IBS up to max.
 
Ponn01 said:
Well, little caesars being better is a lie, but i've always had a problem with Papa Johns. They get too much credit just for their butter sauce, they skimp way too much on toppings. Dominoes has been my go to pizza and Pizza Hut really gives the most toppings. PH meatlovers the stuff is falling off the pizza, only problem with PH is it kicks my IBS up to max.
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The only pizza I can get from Pizza Hut anymore is their thin crust stuff. Everything else they make leaves me feeling horrible afterwards without exception.
 
Anslon said:
We already subsidize their crappy pay with tips. They should be ashamed of how they run their business.
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As we subsidize Wal-Mart workers because the Waltons being made to pay a livable wage is socialism but making everyone else pay in for their food stamps, subsidized housing, etc is fine I guess. It's all a flaming turd bag.
 
Does Papa johns still give you those things of garlic-flavored grease with your "pizza"?

vas_a_morir said:
I can't believe GAF is acting like Papa Johns is shit pizza all of a sudden. It may not be as good as some mom and pop shop in your town or whatever, but to say Little Caesar's has superior quality is a damn lie. An offensive lie.
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Shit A can be better than Shit B and still be shit nonetheless.
 
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