Papa John’s CEO John Schnatter
*Fans of Papa John’s pizza can expect higher prices after President Obama’s health care law takes full effect, reports The Huffington Post.
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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.
I’m willing to pay a extra dime for you to give your staff healthcare.
The pizza is not all that great anyhows. They are more concern with business than their employees health which is bothersome to me.
I don’t like Papa John’s pizza. I would be willing to pay a little extra if it will give more people healthcare.
Not to beat a dead hours, but are you frigging serious. Don’t tell me that Papa John can not afford to provide healthcare for their employees. Please!! The Pizza is not all that. The first and last time I order from Papa John’s my pizza was under cooked and did not taste as good as I thought it. Haven’t order from them since. Keep your few pennies. I would rather order from a business who takes care of their employees instead of themselves.
I happen to like Papa John’s pizza but won’t be showing patronage to them AFTER THIS article! Fool don’t wanna pay for his employees to have health insurance but has a house with probably a BIG AZZ pool and a Golf course! WTH??