Papa John's CEO Warns Obamacare Will Mean Higher Pizza Prices -- Okay, Slightly Higher Pizza Prices -- Okay, Barely Noticeable Higher Pizza Prices -- But Still, GRRR!

Categories: News

papajohnschnatter2.jpg
Jason Merritt/Getty Images
Papa John's Pizza CEO, John Schnatter
Strong words of warning from John Schnatter, founder and CEO of Papa John's to those who love themselves a slice of chain-store pizza.

Last week, Schnatter (a Mitt Romney backer) said during a phone call with shareholders that if Obamacare is passed, the new healthcare law (set to go into effect in 2014) will result in higher costs for Papa John's that the company plans to pass on to its customers.

So just what kind of price hike are we talking about?

"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," Schnatter said, according to Politico.

Oh, yes, people of Papa's. You will suffer. You will suffer like no pizza chain pizza eaters have ever suffered before.

That's right. The "Papa" of Papa John's says his company (the third-largest pizza takeout and delivery chain in the country) is threatening to rain a shit-storm of higher pizza prices (more like spare change) if Obamacare is passed, because it will have to provide its employees with affordable health insurance.

"If Obamacare is, in fact, not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders' best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," Schnatter vowed, according to Politico.

If this is true, will anyone even notice the price hike? And is Papa John's alone in its concern over Obamacare?

According to Businessweek, McDonald's is planning on handling the extra costs, but the Wall Street Journal reports that Burger King, Quiznos, and Dunkin' Donuts have expressed concern the new healthcare law may hurt business.

If Obamacare is hurting anyone, it may be the CEOs of the companies themselves. The progressive tax laws that will help pay for the new healthcare law mean company heads like Schnatter, who Forbes reported made $2,745,219 last year, may be squeezed for more of their personal earnings.

(via: Politico, Huffington Post, Gawker)


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28 comments
JKGrence
JKGrence

Oh no, heaven forbid they have to treat their employees like they're worth something.

Alicia Geier
Alicia Geier

Only a douche press releases a possible hike but then again his customers are dumb enough to think thats pizza so they may be dumb enough to not see this as a political ad.

fairymagic13
fairymagic13

I ran a great pizza joint for a guy back in the 1980s while putting myself through school at ASU (Business Management).  He made GREAT pizzas.  My wife ordered one of these disks last weekend and it was HORRIBLE!  The sausage tasted and looked like cut up slim jims, the peppers were miniscual, the crust was like industrial white bread and the tomato sauce was barely there.  It was a disgusting example of what a pizza should be.   I will NEVER eat that crap again.

karenpalensl
karenpalensl

Too bad!

 

Once upon a time they had decent Pizza, but now I will hardly miss them.

Paul Benjamin
Paul Benjamin

I have only ordered from Papa John's once, about 15 years ago. I was thinking about giving them another chance. Thank you Mr. CEO for convincing me not to bother.

phxjustice
phxjustice

Just one more reason (other than super crappy pizza) for me never to order from Papa John's.

teknik
teknik

hey, it's cop orate. they only care of the bottom line.  15c a pizza doesn't sound like much but how many pizzas is that a year?

 

when the bottom line is more important then the hardworking folks who actually make that money for you something is wrong. 

 

It's also wrong putting your shareholders before both your product and your employees.

Drew Burke
Drew Burke

But so will the price of fuel , weak point

teknik
teknik

that's right, if we don't give the rich tax breaks they'll just charge us more then we can pay..

 

*rolls eyes* 

 

why do the upper class hold the lower class hostage in this manner?  It's a crock.

 

to think the GOP has villainized  health care in an attempt to filet  Obama, what will they do when he's gone?

 

Oh wait, I forgot. The GOP voters have such a short attention span they believe obama bailed out the banks and was in office when our country crashed under the same policies that are supposed to "Save" us/  The funny thing is that if the rich are not effected by the economy why do they need more money?

 

The middle class needs a break, but the GOP sees us as a secret stash to come pillage!

ShittyPizza
ShittyPizza

Shittier ingredients, shittier pizza ... and 12-14 cents more expensive per pie in the near future.

Nathan Campbell
Nathan Campbell

Beaten to my first point by Ms. Bridges-Jones, but I'd also like to point out that if it comes down to choosing whether to pay 11 cents more for a mediocre pie vs making sure my employer offers health insurance to keep me from dying of treatable cancer, that's not a hard choice for me.

Stereolab
Stereolab

More money for shitty pizza.  Now that's what I call a good business model.

david_saint01
david_saint01 topcommenter

LMAO what a joke...seriously, Pizza places have one of the highest profits...costs maybe a buck for them to produce a 10$ pizza. Nice try at scare tactics though..either way, their pizza sucks. 

Manuel Marquez
Manuel Marquez

"...if Obamacare is passed, because it will have to provide its employees with affordable health insurance." If the corporation doesn't then the taxpayers do. Which is better for all?

Gabrielle Fox
Gabrielle Fox

Eff him. You made almost $3 million last year and you're worried about a 15¢ increase cost to the consumer for your pizza because your employees will have health care? No problem. Shave a few 100k off your annual salary and that should cover it.

Nancy Heimstra
Nancy Heimstra

honestly...a few more cents to provide health care insurance for workers....yes, hell yes...i will pay it

Evan Wilson
Evan Wilson

i personally miss the low, low prices of the dickensian hellhole papa john's pizza i ordered every weekday during the 19th century

Jett Anderson
Jett Anderson

Think how much child-labor laws added to the cost of a Papa John's pizza; not to mention how much outlawing slavery added to them.Wo

Jett Anderson
Jett Anderson

Think how much child-labor laws must have added to the cost of a Papa John's pizza!

Evan Wilson
Evan Wilson

is there something in our water or do you have to be functionally retarded to own a business in the united states?

Bill Campana
Bill Campana

the only time i ever ate a papa john's pizza i got food poisoning. i didn't realize botulism was one of their toppings. i guess their product and obama care kind of go hand in hand.

Pete Koblinski
Pete Koblinski

Seems like the kind of guy who will pay the tax rather than provide healthcare to his employees. Good to know.

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