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Obamacare Pushes Up The Price Of Pizza

August 10, 2012 by  

Obamacare Pushes Up The Price Of Pizza
PHOTOS.COM
Papa John’s CEO John Schnatter believes Obamacare will cut into his profits.

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 “If Obamacare is in fact not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders [sic] best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.”

Bryan Nash

Staff writer Bryan Nash has devoted much of his life to searching for the truth behind the lies that the masses never question. He is currently pursuing a Master's of Divinity and is the author of The Messiah's Misfits, Things Unseen and The Backpack Guide to Surviving the University. He has also been a regular contributor to the magazine Biblical Insights.

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  • http://none Claire

    No doubt this guy has a number of full-time employees, BUT he also has a greater number of part-time employees. Part-time employees receive no benefits. The Papa John’s here in town certainly has more part-time employees than full-time, and they receive minimum wage with no benefits. Besides, his pizza here is greasy. I suspect that is why he has to increase his prices, especially here in my town.

    • Robert Smith

      The other side of that coin is that most pizza shops are NOT a big corporate chain. They are local businesses with under 50 employees and thus NOT impacted by Obamacare.

      I’ll simply support my local businessman who will make a pizza how I like it, not somthing from a corporate handbook. For example, when I say “camaralized crust, not carbonized” he knows what I’m talking about.

      Just think, in general if we had universal health care like other modern countries our business whouldn’t have to pay for any health care. They would be much more competative on the world stage. Retired folks wouldn’t have to rely on a company staying in business so they can get health care.

      Rob

    • ron . r

      Onl on this site and Fixed (Fox) News would this even be a story.

    • CHRISTOPHER ALLEN HORTON

      “Claire,” I LIKE GREASY PIZZA; IT GOES BETTER WITH CREAM-STOUT BEER.

      • http://none Claire

        Christopher Allen Horton—- Greasy pizza? Egads, grease and damp cardboard for crust. Papa John’s pizza is the worst in my town. We had a good restaurant that sold wonderful pizza. They always had a huge clientele–every night—then all of a sudden they closed. Back taxes. They never paid their taxes. The owners “had it made” and they blew it.

      • CHRISTOPHER ALLEN HORTON

        “Claire,”

        I LIVE IN MEMPHIS. YOU ARE THE SECOND PERSON IN THIS THREAD TO SAY “Papa John’s” CRUST IS LIKE, CARDBOARD. THAT HAS NOT BEEN MY EXPERIENCE; THEIR CRUST WAS ALWAYS SOFT AND “GOOEY” – THE WAY I LIKE IT – EVERYTIME. IN THE “FAST-FOOD PIZZA” CATEGORY, “Papa John’s” SURPASSES “Pizza Hut” AND “Little Caesar’s” IN REFERENCE TO THE ABUNDANCE OF MEAT TOPPINGS. “Papa John’s” CHEESE IS DELICIOUS.

        MAYBE, MEMPHIS’ “Papa John’s” ARE GOOD BECAUSE MEMPHIS IS AN ENTERTAINMENT TOWN; AND, THERE IS CONSTANT DEMAND. EVERY TIME I HAVE IT, THE PIZZA IS HOT AND FRESH.

  • Doc Sarvis

    Who would pay even 14 cents for a Papa John’s pizza???

    Known Romney supporter, John Schnatter, is no doubt looking for some post election “toppings”.

    • my 2¢ worth

      I hope the dumb ass does raise prices (for his investors sake).. Gives me one more reason NOT to buy his cardboard chokers.. I’ll stay with pizza hut up and until they try to find an excuse to raise the rent. This air head really thinks he’s the center of the universe.. If Obamacare does create chaos (and that’s not been proven) then wouldn’t it affect more than just one mogul.. Who do he think he is, Donald Frump..?

  • http://gillysrooms.blogspot.com GILLYSROOMS IN AUSTRALIA

    What a load of nonscense. How few pizzas does this guy sell? Pizza’s cost next to nohing to make and his staff costs are very low and the cost might be a fraction of a cent if even .0001 cent but 14 cents indicate he is already losing money. Who would believe his nonscence and why is it he does not care for the health of his staff?

    Who wants to buy a pizza from a company whose staff who are forced to work whilst carrying infectious deseases maybe infecting Pizzas in the production and delivery process? Think again Papa John…

  • eddie47d

    Even big companies and large corporations hire part time employees to avoid paying benefits and have for several years now. The new motto in the business world is “we’ll hire you at a low wage but then you are on your own”. No health,no pension,less vacation.etc) Maybe things might get tight for Schnatter but they have always been shaky for the rest of the USA. Having to please the shareholders is code for making the Wall Street fat cats richer while price increases on all products have been the norm. Some shareholders think they are making a killing on the stock market but in reality these companies have to screw someone else (consumers) in order for you to make that money. Big Pharma did a horrific job of gouging and the consumer paid dearly as a prime example of shareholders making big money at the expense of the rest of the nation. No doubt Papa John’s will find a way to keep shelving his employees in order to make it work to his benefit.

    • phideaux

      ” Having to please the shareholders is code for making the Wall Street fat cats richer while price increases on all products have been the norm.”

      Well eddie make your retirement plan sell all stocks, bonds, and anything else that pays a dividend.

      You are too either too stupid (which I doubt) or you are so anti business that you will not admit most stocks are not owned by the “fat cats” as you call them but rather by 401k plans and small investors.

      • my 2¢ worth

        But the fact is, it’s an investment.. Taking a chance to make it or break it.. When it becomes a matter of no chance for failure, that’s when it becomes perverted.. The owners don’t know from one day to the next if their going to be in business so they rely on other peoples money to keep them dishing it out and when they drop a point or two, they make up for it by fleecing other people in order to make the investors fat and happy so as to invest even more. Every time I invested in a project it was always understood that I may lose my shirt (which happened more than once).. Obviously this isn’t the norm in today’s world. I think all investors believe they may lose their money, but as long as the dividends keeps pouring in their not going to protest.. Would you? I wouldn’t but then again we’re not told how these profits come about and what some unscrupulous character would do to the average consumer to keep it coming for (A) their sake and (B) their investors [in that order]..

  • jopa

    Papa Johns supposedly uses better ingredients however they don’t know how to put them together.We tried there pizza several times and most in our family doesn’t like it.I would rather give the small mom and pop places the business anyway.

  • Doc Sarvis

    They don’t mind spending A LOT on advertising for sub-standard pizza (frozen is better).

    • jopa

      Doc;Believe it or not I have always told my kids my favorite pizza is the frozen Tombstone pizza.I don’t know if it’s available in your area, but I have found them throughout Michigan, Wisconsin and Pennsylvania.I think they are made in Wisconsin.

      • Robert Smith

        Pizza is like sex…. We all like what we like, but it’s ALL good.

        Rob

      • CHRISTOPHER ALLEN HORTON

        “jopa,” MEMPHIS STORES SELL FROZEN “Tombstone” PIZZAS. FROZEN PIZZAS HAVE TO BE “EMBELLISHED” WITH YOUR OWN INGREDIENTS; WHAT A HASSLE!

  • Norm

    I wouldn’t mind paying extra for pizza if more people are insured. Remember the more people insured, the less the insured have to pay for them.

    • Jim S

      Norm says: I wouldn’t mind paying extra for pizza if more people are insured. Remember the more people insured, the less the insured have to pay for them. Did you read what you wrote? Either way you are still paying for their healthcare. Get a clue!

      • Norm

        Jim
        That’s why the MANDATE is required. Freeloaders need to kick into the pot.

  • pj

    Exactly! Because you know that healthcare is “Free” now! Pass the koolaid, please. /Sarcasm: off

  • Thinking About

    If Papa’s Johns wants to complain about having to increase their prices by 11 to 14 cents per pizza, they should consider the increase in health insurance premiums the current insured has to pay in order to cover their employees who seek health care and are unable to pay. They should add the cost of what government programs to how much more tax payers has to pay in order to cover their employees who does not have health care. In other words, this turns to corporate welfare, let some body else pay for the cost of their employees health care, allow them to pay minium wages to their employees which is not enough for their employees to purchase insurance on their own. This is not the only corporation with the feeling of paying their employees so little the employees end up in the medicaid programs of which tax payers has to pay.

  • Doc Sarvis

    Price of a Papa John’s pizza:
    $2.50 delivery fee which goes to the store not the driver
    $1,000 – 25,000/person fundraising dinners for Romney
    $52 million in profit

    Yes Papa J., you should pass that 14 cent fee on to your customers- really?!?!

  • http://www.cindynel.co.za peter

    What is a ‘camaralized crust’? Never had one of those before, or a Papa Johns for that matter.

    • Robert Smith

      That golden-brown crust is due to the Maillard reaction. It’s the same thing one is looking for in a well seared steak. The suggars are caramalized showing up as the crust. Thus adding depth to the flavor of the bread part of the pizza. It is a light to dark brown depending on several factors that the chef has to take into consideration.

      When done properly there is a delicate crunch to the crust adding to the mouth feel of the product from initial perception on the palate, to first bite, through mastication to swallowing and aftertaste.

      When it is over chooked it turns black and things turn to carbon like charcoal. Simply put: no fun.

      Rob

  • Chris

    Eeewww………Papa John’s pizza………..the “WORST” I ever ate!

  • SJJolly

    In short, Papa John customers will have to pay at the register for Papa employees’ health care, instead of via tax money used to pay for their care “free” at local Emergency Rooms.

  • Norm

    When you pay your employees slave wages, everyone else picks up the slack. Slaves pay no taxes, have no health insurance, are often on goverment programs for free food and food stamps etc., etc.. There’s no free lunch despite the voodoo BS that gets spread around.

  • http://personallibertydigest gottaplenty

    This is just a picture of the Dems constant ravings. Dont pay slaves, Listen , the guy or gal has a job,,right?, If they want better ,get a better job.. Dems even try to infringe on any buisness ,no matter how big or small .. get it?

    • Thinking About

      This is corporate infingement upon tax payers and those who currently have health insurance, why do corporations get to pass this cost on to others?

      • phideaux

        Quite simple (just like you). It gets passed on to the customer because like the cost of ingredients, electricity, gas, etc it is a part of the cost of doing business.

      • Robert Smith

        And if we had universal health care like other countries it wouldn’t be any cost to business.

        Rob

      • Thinking About

        phildeaux, simple, you missed, why does the tax payers have to take care of health insurance needs of Papa John’s employees, it was not the cost of electricty, etc, it is corporate welfare where tax payers and those with current insurance has the cost of health care of non insured passed on to tax payers and insured. Now what about simple do you not understand, simply put, this should be assumed by the corporations not me.

  • Thinking About

    I personally know of one small business (less than 150 employees) who through a co-op offered their employees health, dental, disability and life insurance this past year. Guess what, so many employees signed up for this coverage the price dropped almost half for the employee contribution. This is what can be done through united effort.

    • http://twitter.com/ericbischoff Eric Bischoff (@ericbischoff)

      Coop as in a cooperative insurance. Oooh that one ought to get DaveH foaming at the mouth. He’ll claim that is communism or socialism or marxism.

      • Opal the Gem

        Your reply, as usual, is so ignorent it doesn’t need to be refuted.

  • Chester

    Thinking About, think what that would do to individual health insurance if there were co-ops for them to use. Think that is one reason the Republicans are so dead set against setting up insurance exchanges and co-ops. Prices go down, profits go down, and money to shareholders goes down even while share prices are going up.

  • http://twitter.com/ericbischoff Eric Bischoff (@ericbischoff)

    That’s a little backwards isn’t it.

    Pizza is what’s driving healthcare costs, especially american pizza.

    Hey Medicare for all would remove the burden of businesses to have to pay for healhcare. Oh what a concept!

  • CHRISTOPHER ALLEN HORTON

    “Papa John’s” DOES HAVE THE BEST PIZZA. THE PRICE OF PIZZA HAS BEEN INCREASING, ANYWAY, OVER THE LAST TWO YEARS. THE PRICE INCREASE IS NO “BIG DEAL.”

    • Kinetic1

      CAH,
      I pity anyone who lives in a community so pizza poor that Papa Johns is the best you have.

      • CHRISTOPHER ALLEN HORTON

        “Kinetic1,”

        THE TOPIC RELATES TO “PIZZA CHAINS” – NOT, GOURMET PIZZA. “Papa John’s” IS MEMPHIS’ BEST “PIZZA-CHAIN” PIZZA. MEMPHIS HAS SOME FINE RESTAURANTS WHICH SERVE A BETTER, “GOURMET-STYLE” PIZZA.

  • Can-Can

    What the hell did Obama and Congress think would happen when they passed this horrid bill that no one could be bothered with reading? All that “free” health care is going to cost someone, and it will be those of us who still have a job, and pay taxes-unlike the other 45-50 million out there. Being an absolute idiot must be a requirement for holding any form of office.

  • Fearfull Ralph

    My guess is that if he is going to raise the price of pizza it shall be much more than $0.14 but more on the order of $0.50 to a $1.00. For that matter, his saying that it will raise the price by $0.14 means that the actual cost to the chain divided by the number of pizzas is less than a nickel. Whenever the cost to do something it is only good business to pass on double or triple the actual cost to the customer.

  • JimH

    The best pizza in my humble opinion is the homemade my wife makes. We have a pizza stone and the crust is great. Put however much of whatever toppings you want. YUM!!!!!

  • cawmun cents

    Yep…..the idea that no matter what you want to do with your own business,or your own body,is wrong,because a progressive liberal thinks its wrong…..
    Hmmmm….where have I heard this before?
    Perhaps coming from the mouths of control freaks?
    No….not them!
    They wouldnt want to control what I eat, or what I do with my business,would they?
    The fact that they even form an opinion on it sounds dangerous to ol’ CC.
    It means that they dont believe that controlling 1/6 th of the economy is enough for them.
    It means that they have the arrogance to believe their right to intrusion extends beyond my physiology,and goes to my thinking as well.
    How can anyone in their right minds think that this is right?
    I have news for you progressive liberals….what you think is right,may not necessarily be right.Not even if through deft wording,you try to convince me,will you succeed.
    I am not an ignoramus of titannic proportion like the mindless Ivy League worshipping idiots you produce en masse,in your institutions of higher(like drug higher,not smarts higher)learning.
    Most folks with the good sense that God gave them wont be either.
    You will end up having to kill us,because you cannot control our minds though you intend to try.So then your mission is to drag me from my home and execute me in front of God and eveyone else,because I will not be subjugated by your need to control me in ways you have no business dong so.
    Especially here in the United States of America.
    You are feckless cowards that dont have the tesitcular fortitude to take me by force,so you seek to perpetuate your insidious plans by creating laws by which you believe that you are acting for the betterment of mankind.
    Why does this sound wrong to me?
    Oh yeah….I remember now…..because your revisionist historical accounts didnt pentrate through my defenses by promising me to be part of your abject utopian society.
    So now I guess the fact that I equate your need to control,with those of past folks who murdered millions under the guise of doing what was best for all,is just some inflated conspiracy theory in my own mind,right?
    But you forget that those societies where that occured,didnt fall prey to death and dimemberment immediately,but eventually after some time had elapsed,it did happen when the control freaks were running out of other things to do.
    So come ahead then you bastards!
    Come and get me.
    You can find me here waiting for the van to take me away.
    You who read this,may think I am crazy,but there were people saying these things during the Hitler years,and the Stalin years,and the Mao years,and………
    Maybe I am crazy,but I am no fool.
    I can see where control issues lead,even if most of you cannot,or more likely just will not.
    You see what you WANT to see,not necessarily what is there.
    But the warnings came and went in the past,just like they will now.
    Largely unheard.
    Cheers!
    -CC.

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