Obamacare Casualty, Papa John’s Pizza To Raise Prices To Cover Costs Of Health Care
John Schnatter, CEO of Papa John’s Pizza, has announced that he is going to have to raise prices on average about $.20 per order in order to compensate for the increased cost to his business to implement the Affordable Care Act (Obamacare). Schnatter joins a slew of CEO’s who say that the price of Obamacare is going to increase the cost of doing business.
Under one of the mandates of Obamacare Papa John’s, the third largest pizza delivery service in the country, is going to have to offer its 165,000 employees health care benefits or pay the government a penalty.
This mandate applies to all businesses with more than 50 employees. The National Restaurant Association has warned that the mandate can be devastating to the restaurant industry’s already slim profit margins.
Judy Nichols, a Papa John’s Franchisee says that the law is going to limit her ability to open more restaurants.
She told Legal Newsline,
“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. Obamacare is making me think about cutting jobs instead,”
Schnatter is not so worried about the mandate because his business has shown strong sales and anticipates growth over the next few years. He also knows that any additional cost burden is going to be passed on to the customers.
Schnatter told Politico,
“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.”
McDonald’s has also told various publications it expects the additional costs of $10,000 to $30,000 dollars that will be added to each franchise will be able to be absorbed successfully.
Burger King, Quiznos and Dunkin Donuts have all expressed concerns that the mandate will hurt business.
Tags : Affordable Care Act, Health Care Law Restaurants, Health Care Law Small Business, john schnatter, John Schnatter Obamacare, Obamacare Costs, Obamacare Small Business, Papa John's Health Care, Papa John's Obamacare, Papa John's Pizza Health Care, papa johns, Papa Johns's Pizza, pizza
Posted: August 8, 2012
![Howard Stern’s New Mansion Worth $52 Million [Report]](http://cdn.inquisitr.com/wp-content/uploads/2013/05/Howard-Stern-Mansion-100x100.jpg)
![Rob Kardashian Weight Loss Fight A Fat Failure As His Belly Gets Bigger Than Kim’s [Video]](http://cdn.inquisitr.com/wp-content/uploads/2013/05/rob-kardashian-weight-loss-struggle-100x100.jpg)
![Amanda Knox’s Ex Raffaele Sollecito ‘A Hero’ [Video]](http://cdn.inquisitr.com/wp-content/uploads/2013/05/amanda-knox-ex-100x100.jpg)
Aug 8, 2012
Seriously… This guy is Making Obama's argument FOR HIM! If I and most Americans with a heart and brain, has to shell out another 2 dimes for that crap pizza (I am from New York and KNOW what REAL pizza is supposed to taste like) then I can live with that. Who exactly is her targeting with this complaint? The scrooge population? It is just as absurd as saying, "I have to charge and extra 13 cents for this pizza because Obama wants me to pay for the rescue of drowning puppies". ALSO, this wont take effect until 2 years from now. Wont the prices be raised more than that anyway?
Aug 8, 2012
He's so full of it, over 90% of his employees are part timers who get no medical benefits.
Aug 8, 2012
Well, that's too bad I always liked Papa Johns, but I'm not paying anymore for their pizza's and I'm not buying what he's selling.
Aug 8, 2012
well at least their employes will have health care, what are they crying about?
Aug 8, 2012
You may be right about him, Alto. But, a lot of businesses that have full-timers will do this. Any time you tax or penalize a business, you and I pay it. This is not the last you'll hear of this or some other consequence of Obama.
Aug 8, 2012
Every business will do this, big and small. Another casualty of obama. If you think things are bad now, go ahead and vote for him and see what happens. Higher prices everywhere and higher unemployment, higher debt. All things higher that we don't want higher.
Aug 8, 2012
What a lame excuse to not cover employees. The rise in cost is too many hands in the pot. Blame doctors, insurance companies, phama,…..
Aug 8, 2012
Higher prices. It is going to bite him in the butt, I will buy my pizza somewhere else. In fact he just lost my buisness forever and I will tell everyone I know not to buy from Papa Johns. Alto Springs is right, his empolyees are part time anyway so they don't get health care anyway. Your a turd bucket Papa John.
Aug 8, 2012
This is bullshit… A bunch of republicans bent on screwing their employees are raising prices before the election hoping to sway public opinion.. How many Pappa Johns employ more than 50 full time people? I just can't understand why seemingly smart folks would vote republican.
Aug 8, 2012
That's Horse Manure! won't be buying 'his' anymore..
Aug 8, 2012
I think that is reasonable. I am more than willing to pay an additional $.20 to see that his employees have health care. People need to get their respective heads out of the sand, and realize that nothing comes for free, and that he has a business to run.
Aug 8, 2012
I think that is reasonable. I am more than willing to pay an additional $.20 to see that his employees have health care. People need to get their respective heads out of the sand, and realize that nothing comes for free, and that he has a business to run.
Aug 8, 2012
What a tool. Twenty cents? His margins are NOT THAT TIGHT. He doesn't have to raise prices to cover that, and if he wants to pass twenty cents on to his customers, no one will even notice.
Aug 8, 2012
What a tool. Twenty cents? His margins are NOT THAT TIGHT. He doesn't have to raise prices to cover that, and if he wants to pass twenty cents on to his customers, no one will even notice.
Aug 8, 2012
You try running a small business with the cost of TODAY's healthcare. It will be worse with Obamacare…
Aug 8, 2012
I just read the article… 20 cents a pizza??? Really?? Tell me when you order Papa Johns and I will send you the 20 cents.
Aug 8, 2012
Their pizza makes me sick anyway.
Aug 8, 2012
I do run my own business.. This is just a political ploy to screw the little working guy..
Aug 8, 2012
In San Antonio, we have many fast food restaurants and grocery stores that offer full health benefits (as well as education benefits) to part time employees. And remember, Obamacare is about EVERYONE receiving health care benefits. Not just full time. So if he can do this with a 20-cent cost addition, that would translate to about 50-cents additional purchase price….
Aug 8, 2012
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.
Aug 11, 2012
Wrong. People working fewer than 30 hours a week get nothing from their employers. They must hope that their state does the medicaid expansion, and pray that doctors continue to accept medicaid patients.
<http://www.cutimes.com/2012/08/09/employers-working-to-avoid-obamacare-requirements>
Aug 11, 2012
Sorry…. in San Antonio we already have employers that offer full benefits to part-time employees… I have worked for one, and I have a good friend who owns the other… It is not impossible. It does require some work, and most will not do so simply because it does drive prices up. Both are niche employers with a strong customer base but little competition. Obamacare will force everyone to change the way that they view this… go back and re-read the article that you cite… there is a formula that must be used. A chain such as Papa Johns would have more than 50 FTEs based upon the methods used to determine coverage.
Oct 25, 2012
cunt
Oct 25, 2012
The healthcare bill says EVERYONE and if you don't get it either through work or on your own you will be fined/taxed whatever you want to call it. Oh yeah, don't forget the 3.8% tax on your house when you sell it too. Great place hide this – in a healthcare bill. What a weasle.
Nov 10, 2012
Oh God forbid a business owner has to insure its employees! What does Papa Douches house look like? Maybe reduce the size of your house take that extra savings and pass it along to the employees. A lot of these employers aren't suffering so why should their employees?
Nov 11, 2012
Don't have to eat Papa John pizza. There are plenty other competitors out here….
Nov 12, 2012
Who says that employees are entitled to health insurance? As a business owner I can tell you this: I'm in business to make money, not give it away. If someone wants a better job, get a better education and get one. People like you like to blame everyone else for your shortcomings. Stop relying on others for help and do something for yourself for once