Papa John’s Pizza to Raise Prices Due to Affordable Care Act

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  • Fans of Papa John’s pizza can expect higher prices after President Obama’s health care law takes full effect, reports The Huffington Post.

    The chain’s CEO John Schnatter, who is backing GOP candidate Mitt Romney for president, says “Obamacare” will force him to offer health care coverage to more of his 16,500 total employees or pay a penalty to the government. Therefore, he’s enacting a $0.11 to $0.14 price increase per pizza, or $0.15 to $0.20 cents per order, Pizza Marketplace, a trade publication, reports.

    The National Restaurant Association pointed out following the health care law’s Supreme Court approval that it may adversely affect restaurants’ ability to maintain already slim profit margins because it requires companies of more than 50 employees to provide affordable health insurance.

    One Papa John’s franchise owner in Texas, Judy Nichols, says the law could interfere with her ability to open more restaurants.

    “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,” she told Legal Newsline. Nichols added that the law may cost her between $20,000 to $30,000 extra in taxes. “Obamacare is making me think about cutting jobs instead,” she said.

    But with strong sales last quarter and more than 1,500 new retail locations planned in the near future, Schnatter doesn’t seem all that bothered — perhaps because he intends to pass those health care costs on to customers.

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

    Schnatter has thrown his weight behind Republican presidential candidate Mitt Romney this election season, even hosting a campaign fundraiser at his Louisville-area mansion in May. “Don’t you love this country?” Romney, who attended, asked during the event. “What a home this is, what grounds these are, the pool, the golf course.”

    McDonald’s also expects Obamacare to cost each of its 14,000 franchises between $10,000 and $30,000 annually, according to Businessweek. But, like Schnatter, the company remains optimistic it is well placed to handle the extra costs.

    Representatives from other restaurant chains may be less hopeful, however, including Burger King, Quiznos and Dunkin’ Donuts, all which have expressed concern the law may hurt business, according to the Wall Street Journal.
     

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    23 thoughts on “Papa John’s Pizza to Raise Prices Due to Affordable Care Act

    1. Really? seriously? .07 cents and this punk is cpmplaining about giving his employees health care? Wow SMH Oh and of course blaming President Obama

    2. You made your millions off the back of poor folks and now you don’t want to pay an increase of .07 cents for their healthcare?

    3. Pizza Hut, Papa John’s and Domino’s who eats that garbage I don’t care if they close down that stuffs not pizza. When me and my girl want pizza we spend a few more dollars and go to a real Italian restaurant for pizza you know the kind that the cheese drips down to your neck. Ya”

    4. mccarroll59 I agree I also work in health on the money side and what people dont understand it that regular check ups will saves lifes..

    5. What these ignorant greedy rich people don’t seem to understand is that we pay for people without healthcare every single day. As the HCAP/Charity Manager at OSUMC I was responsible for writing off millions and millions of dollars for those who couldn’t afford to pay. Is everyone stupid enough to believe that when I wrote those accounts off that was it? We just charged everybody with insurance more for whatever they were in need of i.e., $50 for an aspirin! The 1% can’t fool me so please stop letting them fool you!

    6. The negative side effects of the “Affordable” heal;th care law are:
      1. It is not affordable
      2. Health care delivery will get worse
      3. Business’s have slowed down hiring
      4. Prices will go up
      5. Doctor shortages

    7. WOW you would think after making millions that a increase per pizza would not break him….16.500 employees and no insurance at this time what the hell is he doing for his 16.500 employees? othe than a min wage job?no benefits

    8. Another arrogant Republican millionaire too tight to take care of the people who push his product. Well I’m a arrogant Democratic thousandaire who is tight with his money who plans to saves a few bucks by avoiding Poppa Jokes. Sorry for the employees but we cannot stop this practice if we don’t let our voices be heard through our wallets. Support Obama and vote!

    9. Another arrogant Republican millionaire too tight to take care of the people who push his product. Well I’m a arrogant Democratic thousandaire who is tight with his money who plans to saves a few bucks by avoiding Poppa Jokes. Sorry for the employees but we cannot stop this practice if we don’t let our voices be heard through our wallets. Support Obama and vote!

    10. The real issue is that Papa John’s has gotten away with NOT providing health care to its MILLIONS of workers—and now they want to act as if it’s a bad thing to have to STEP UP TO THE PLATE and do so. Their employees have GONE WITHOUT proper insurance–and they’ve made a windfall. Playing politics on this one has made them:

      1) Look Cheap

      2) Concerned only about MONEY and NOT the people who help you MAKE THE MONEY!!!!

    11. Okay Mr. Papa John, since you are using this as an excuse to speak out against the president, you just lost a customer. 0.00007 cents my eyeball. After all the money you have made over the years you should be ashamed of yourself, but that’s right white people are never ashamed of the their action, just worried about their profits. What a shitbag you are. I bet you benefitted from many of the presidents concessions to businesses though.

    12. The good thing about pizza is you can buy it anywhere and everywhere.
      This is about competetion and $ . Glad they told us , so we can go to the
      black and white game folk that start with” D” or the place that is called a Pizza 3 letter remote house.Not to mention, Little Roman man or “C’s ” it is always cheaper and just as good. they must be owned partially by Hermain the Pizza guy . GOP talk? Did not want to give free ads so, put on your thinking cap.

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