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John Schnatter: Papa John’s CEO Says Company Cutting Back Employee Hours Because Of Obamacare

John Schnatter: Papa John's CEO Says Company Cutting Back Employee Hours Because Of Obamacare

John Schnatter, the CEO of Papa John’s, said the pizza company is cutting back on employee hours and Obamacare is to blame.

Schnatter, who had previously threatened to cut back on hours if President Obama was re-elected and Obamacare upheld, said that in order to pay for health care increases he will likely reduce workers hours, The Huffington Post reported. In the summer John Schnatter told shareholders that if Obamacare were to go through, he would also be forced to increase the price of Papa John’s pizza by between 11 and 14 cents.

“I got in a bunch of trouble for this,” Schnatter told the Naples News. “That’s what you do, is you pass on costs. Unfortunately, I don’t think people know what they’re going to pay for this.”

John Schnatter is not the first CEO to threaten employees over the re-election of President Obama. On the day after Election Day, Murray Energy CEO Robert E. Murray read a prayer laced with anti-Obama rhetoric to employees and then immediately announced that there would be layoffs.

Murray, who earlier in the summer had been accused of forcing his company’s coal miners to attend a Mitt Romney rally, blamed Obama’s “war on coal” for the more than 150 employees who were fired.

Darden restaurants, the parent company of Olive Garden and Red Lobster, has also experimented with cutting back hours in anticipation of Obamacare.

Oddly enough, John Schnatter hasn’t tied his threats to any criticism of President Obama. He actually noted that the Affordable Care Act had its positives, and that “the good news is 100 percent of the population is going to have health insurance.”

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17 Responses to “John Schnatter: Papa John’s CEO Says Company Cutting Back Employee Hours Because Of Obamacare”

  1. Patrick Frye

    Papa Johns could have moved their employees over to state-run exchanges, which are projected to be cheaper for employers but unfortunately provide less coverage (I heard the coverage was worth $14,500 vs the previous $15,500; whatever that means). But in this case my guess is that the Papa Johns employees currently do not receive benefits, so their business model cannot afford the huge increase in overhead. If their competitors like Dominoes announced they were jacking pizza prices in order to compensate for the increased cost Papa Johns may change their minds. But that's likely waiting to see who jumps first.

    A workaround might be to hire based upon per diem, or to give employees 2 positions for which they're hired and paid separately. A hospital a friend works for does this. My friend does transportation and night-watching and technically they're 2 separate positions for the same employer. Thus he receives no benefits.

  2. Lisa Briggs

    So tired of these rich whining CEO who won't give employees insurance who help make your business what it is and make them rich.. I don't like the taste of their pizzas and NOW I have a very great reason to buy anything from them..

  3. Kimberly Huddle Brouillette

    Don't you all get it? IF OBAMACARE is implemented…it is going to hurt the entire country. It already has. Watch insurance rates sky rocket. That is B/c of Obamacare…You all wanted this. Half of the country DID NOT.

  4. Doug Hamilton

    Incorrect. I am a job creating business owner and I received a letter from my insurance company stating that due to the ACA my policy would cost me 5% less.

    Don't believe all the naysayers. Most have an axe to grind.

  5. Charles Craggett

    The president is right we have to work together and I think we should start with Papa John's Pizza. The owner says he has to layoff people because of the cost of health care (Obamacare). His estimate of the cost is 8 million dollars. The I see him in a commercial with Peyton Manning where they are doing a 2 million pizza giveaway. Something is wrong with that picture. Maybe he should sell the pizzas for $4.00 and that would be 8 million dollars to pay for employee's healthcare. I think he is a rich bigot trying to get back at America cause his candidate loss. I wish America would boycott Papa John Pizza. Pizza is not a necessity. Send Papa John a wake up call.

  6. Charles Craggett

    Wow I can't believe that 15 cent increase for a pizza is that big. I bet the CEO is upset cause he can't outsource his pizza business to China.

  7. Austin Wade Rozzell


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