Papa John’s is anticipating the effects of Obamacare. The CEO of the popular pizza place believes it will have to raise its prices.
CEO and founder “Papa” John Schnatter says that Obamacare will result in more expensive pizzas. If Schnatter supplies healthcare to all of his uninsured full-time employees, the restaurant will have to increase prices to make up the difference.
“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 during a conference call last week, as reported by 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,” he added. “If Obamacare is in fact not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders [sic] best interests.”