Papa John's Pizza To Raise Prices Because Of Obamacare - VeggieBoards
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#1 Old 08-07-2012, 06:14 PM
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http://www.huffingtonpost.com/2012/08/07/papa-johns-obamacare-pizza_n_1752126.html?ncid=edlinkusaolp00000009
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After President Obama's health care law takes full effect, the slogan for national pizza chain Papa John's may need an update. Instead of, “Better ingredients. Better Pizza,” may we suggest, “Better health care. Pricier pizza."

Papa John's CEO John Schnatter says that Obamacare will result in 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. (Hat tip: @dkberman via Twitter.)

Under Obamacare, the company, which is the third-largest pizza takeout and delivery chain in the United States, will have to offer health care coverage to more of its 16,500 total employees or pay a penalty to the government.

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."

Do you think this is necessary?

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#2 Old 08-07-2012, 07:16 PM
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What, raising the pizza price?
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#3 Old 08-07-2012, 11:43 PM
 
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What, throwing a hissy fit in public because you are forced to provide affordable healthcare to your low paid workers?

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#4 Old 08-08-2012, 12:23 AM
 
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result in a $0.11 to $0.14 price increase per pizza, or $0.15 to $0.20 cents per order

Oh my, that's definitely something to be upset about!

I believe everything.
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#5 Old 08-08-2012, 12:37 AM
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What, throwing a hissy fit in public because you are forced to provide affordable healthcare to your low paid workers?

That is what I was getting at, yes wink3.gif

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#6 Old 08-08-2012, 01:08 AM
 
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Do I think what is necessary? A price change resulting from an externality, employer-dependent health insurance, pizza wars ..?

Keep on freepin' on

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#7 Old 08-08-2012, 01:28 AM
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when I went into down yesterday I noticed that the pizza prices seemed tio end in .99, so I'm not sure how they would add a few pence, or cents to that, assuming they do that in the US as well.

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#8 Old 08-08-2012, 02:31 AM
 
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Didn't the fragile owners of big business have similar fainting fits when slavery was outlawed and child labour laws came into effect?

You'd think treating their workers like human beings was akin to cutting a vein for these people.


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#9 Old 08-08-2012, 02:55 AM
 
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Papa John's CEO John Schnatter says that Obamacare will result in a $0.11 to $0.14 price increase per pizza, or $0.15 to $0.20 cents per order,

Yeah, that's really going to break the bank.

 

Quote:
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.

 

I guess that national chain really isn't doing very well if 20-30K is that big of a deal to them.  How many jobs (plural) can she cut to save 20-30K?  Is she going to work her nonfired workers harder to make up for the slack?  Pathetic.

 

You'd think that having employees with better access to healthcare might mean fewer illnesses resulting in fewer absences and more profit.

 

I'd boycott that establishment even if they had the best vegan pizza on the planet.


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#10 Old 08-08-2012, 03:18 AM
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Nichols is one franchise owner that it will cost the $20,000-30,000 extra per year. She owns one store.
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#11 Old 08-08-2012, 05:27 AM
 
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Nichols is one franchise owner that it will cost the $20,000-30,000 extra per year. She owns one store.


I'm honestly curious - does one franchise of a takeout pizza place really have over 50 employees?

 

ETA And wouldn't the taxes be paid by the head office, not the franchise owner?

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#12 Old 08-08-2012, 07:24 AM
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Our Papa John's charges an extra $.25 when you want to pay with a check. Seems they want to jack up their prices for everything.

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#13 Old 08-08-2012, 08:34 AM
 
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20 cents per pizza?  Yah, it is hissy fit.

 

Same kind of thing happened with Washington D.C.'s bag tax.   A lot of drama, the tax came, life went on, nobody is hurting, pollution has been reduced.
 


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#14 Old 08-08-2012, 08:41 AM
 
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I think it clearly illustrates that having businesses cover healthcare insurance IS affordable. LOL


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#15 Old 08-08-2012, 08:45 AM
 
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It also proves that just because a business may scream that doesn't mean that there is something to scream about.

 

Sounds like a great way to energize customers.  "Would pay 20 cents more per pizza to make sure our workers have health care?"
 


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#16 Old 08-08-2012, 08:56 AM
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Quote: Originally Posted by LedBoots  Nichols is one franchise owner that it will cost the $20,000-30,000 extra per year. She owns one store. I'm honestly curious - does one franchise of a takeout pizza place really have over 50 employees?   ETA And wouldn't the taxes be paid by the head office, not the franchise owner?
Rereading it, it only says "franchise owner", not how many stores she owns, so it could be any number. In a franchise, the owner pays the taxes, since they do actually own the store. They pay Dominoes to franchise. Many pizza places have employees that work 10-15 hours a week, delivering pizzas during peak hours. That type job is not usually covered by health insurance in the US, and those are the jobs that will disappear, not the nearly full-timers that should be the responsibility of the employer. The school kids and the old people mostly, I guess, and the second-jobbers. Restaurants with wait staff may lay off workers, too, since they are often uncovered part timers, too.

Eta: http://www.papajohns.com/careers/benefits_01.shtm On Papa Johns website, it looks like employees mostly have access to health insurance, even the part timers.
Shift Leader, Manager Designate and Restaurant Team Member Benefits

Part-time team members (shift leaders, drivers & team members) are eligible to participate in the following programs:

Health, Future and Life Benefits

Medical and EAP Insurance Dental Insurance Vision Insurance Short-Term Disability Hospital Indemnity Insurance 401(k) Plan Paid Vacation Term Life and Accidental Death and Dismemberment Insurance Employee Perks

Direct Deposit Weekly Paychecks Flexible Hours Pizza Discounts Training and Recognition Programs Drivers are also eligible for: Tips and daily cash payout for mileage reimbursemen
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#17 Old 08-08-2012, 10:20 AM
 
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Maybe the CEO of Papa John's should take a pay cut to cover the extra costs. Ha, ha.

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#18 Old 08-08-2012, 01:34 PM
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You'd think that having employees with better access to healthcare might mean fewer illnesses resulting in fewer absences and more profit.

Your making the assumption that its a safe and sanitary place to work.

With no health coverage diseases and minor injuries to employees are essentially invisible, in that there would be no official record and many minor things would be dealt with by the employees on their own time. Many would even keep silent out of fear of loosing their job.

Enter healthcare and all of a sudden you can track the rates of hepatitis, staph infection, E. coli, Salmonella, minor burns, COPD, etc. in the employees.

Why do you think people like the coal industry resisted employee health care? It wasnt because of $0.11 per ton of coal.

 

Wouldnt it be nice to know how many food handlers have hepatitis B?

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#19 Old 08-08-2012, 02:58 PM
 
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Your making the assumption that its a safe and sanitary place to work.

With no health coverage diseases and minor injuries to employees are essentially invisible, in that there would be no official record and many minor things would be dealt with by the employees on their own time. Many would even keep silent out of fear of loosing their job.

Enter healthcare and all of a sudden you can track the rates of hepatitis, staph infection, E. coli, Salmonella, minor burns, COPD, etc. in the employees.

Why do you think people like the coal industry resisted employee health care? It wasnt because of $0.11 per ton of coal.

 

Wouldnt it be nice to know how many food handlers have hepatitis B?

has your doctor ever dimed you out to your employer? seems unlikely and unethical. I'm no expert but I can't think of any reason Typhoid Mary couldn't be your cook today.


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#20 Old 08-08-2012, 03:42 PM
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has your doctor ever dimed you out to your employer?

That would be illegal.

What would not be illegal is the government investigating insurance company records or (with consent) employee medical records to see if a particular company or profession is associated with a specific disease.

Hell, maybe multi-billion dollar corporations have made that illegal, I'm not a lawyer.

But giving people access to health care does at least give them access to legitimate, documented, and clinically consistent evidence of what may be happening to employees.

Its one thing to say "I have trouble breathing and I think bob said the same and some nurse at the free clinic said maybe COPD but I didnt keep a record and I have no medical history to prove when it started" versus "I have trouble breathing and I went to the hospital and had standardized and documented tests done and so have other employees and we were all healthy when we began work here and we were given the same tests by the same staff to establish that"

 

As for Typhoid Mary, you seem to forget she was forced into legally mandated isolation to stop her from spreading the disease, and that was lifetimes ago before they had even fully proven that she or anyone Could spread typhoid fever.

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#21 Old 08-08-2012, 05:27 PM
 
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At first I was worried... but then.. oh... 20 cents -eyeroll- Yeah that's going to make it so expensive.

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#22 Old 08-08-2012, 05:27 PM
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Originally Posted by Irizary View Post
You'd think that having employees with better access to healthcare might mean fewer illnesses resulting in fewer absences and more profit.

Your making the assumption that its a safe and sanitary place to work.

With no health coverage diseases and minor injuries to employees are essentially invisible, in that there would be no official record and many minor things would be dealt with by the employees on their own time. Many would even keep silent out of fear of loosing their job.

Enter healthcare and all of a sudden you can track the rates of hepatitis, staph infection, E. coli, Salmonella, minor burns, COPD, etc. in the employees.

Why do you think people like the coal industry resisted employee health care? It wasnt because of $0.11 per ton of coal.

 

Wouldnt it be nice to know how many food handlers have hepatitis B?

You want the government that far into your private life that they can access your medical records? They can already see what prescriptions you're taking due to the new lovely database.
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#23 Old 08-08-2012, 05:41 PM
 
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...and now the rest of the story?

Got me to google political donations and find this:

http://www.thedailybeast.com/articles/2011/09/25/herman-cain-other-pizza-moguls-give-far-more-money-to-gop-than-to-dems.html

 

Big business saying they can't afford to employ more workers is nothing more than playing hardball.

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#24 Old 08-08-2012, 06:31 PM
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You want the government that far into your private life that they can access your medical records?

Access my medical records on an anonymous (and perhaps voluntary) basis to see if my industries adherence to health regulations is so slack that its causing chronic and potentially life threatening diseases in its employees?

Well, yes!

Isnt that what government regulation of workplace safety is for? huh.gif

 

The health of the employees is the ultimate endpoint of the safety of a workplace. I've seen labs handling arsenic, cyanide, and radioactive compounds where OSHA gives a 2 week warning to the boss before their 'surprise' inspection. Cant hide a hotspot of cancer tho... not unless you prevent people from getting adequate and consistent medical services.

 

Privacy laws would be there, ya know.

And even if the government never got to see any of the data, the people would have their own medical records which they could use in law suits or demands for improved safety.

 

Whats so bad about getting health care? In many places its considered a basic human right.

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#25 Old 08-08-2012, 08:44 PM
 
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Nichols is one franchise owner that it will cost the $20,000-30,000 extra per year. She owns one store.

Nichols is one franchise owner that says something about which she's offered absolutely zero verifiable evidence.

Keep on freepin' on

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#26 Old 08-09-2012, 12:30 AM
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Nichols is one franchise owner that says something about which she's offered absolutely zero verifiable evidence.

 

+1

 

 

Especially important is the number of people employed. The regulations are slightly different for small (<50 FT employees), medium (50-100), and large businesses (100+). I'd guess most Papa John's franchisees have small or medium payrolls. I'm extrapolating from my HS & college years spent as a pizza cook for several pizza places. The largest was a Pizza Hut franchise with 4-5 stores. We were probably under 50 FT employees.

 

For the purposes of the ACA an employee is a FULL-TIME employee. Part timer hours are summed monthly and divided by 120 and this total added to the number of full time employees (30+ hrs/m) to determine the size of the business, but part time employees are otherwise not included in ACA requirements.


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#27 Old 08-09-2012, 12:30 AM
 
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At first I was worried... but then.. oh... 20 cents -eyeroll- Yeah that's going to make it so expensive.

 

I know.  Heck, if 20¢ per pizza is the cost of giving employees decent health insurance, it sounds like a great deal for society.

 

Lets raise the cost of pizza by 20¢ across the board and get those fast food workers health-care!

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#28 Old 08-09-2012, 06:23 AM
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Quote:
Originally Posted by Pirate Huntress View Post

At first I was worried... but then.. oh... 20 cents -eyeroll- Yeah that's going to make it so expensive.

 

I know.  Heck, if 20¢ per pizza is the cost of giving employees decent health insurance, it sounds like a great deal for society.

 

Lets raise the cost of pizza by 20¢ across the board and get those fast food workers health-care!

It isn't that simple, as I'm sure you're aware. Businesses are struggling in this economy, and a few cents x millions of pizzas could easily cause closures of franchises. The profit margin just isn't that high. This article explains how small business owners are feeling:

http://m.cnbc.com//id/48000806/Small_Business_on_Obamacare_No_Reason_to_Hire_or_Invest
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#29 Old 08-09-2012, 11:03 AM
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I am unable to modify that post^^ so here is part of the CNBC article.
"Jim Amos, CEO and chairman of Tasti D-Lite, a frozen yogurt franchise that operates in 14 states as well as globally, is certain of one thing: The ruling will hinder growth in the franchise space. “It’s going to force franchisees to shift workers to part-time to avoid the 50-employee threshold,” he said. “It will keep new owners and new openings on the sideline.”

“This decision will be negative for future employment,” said Marc Schupan, CEO, Schupan & Sons, who provides health insurance for his employees. "We will look at hiring more closely and could increase temps as opposed to full-time personnel.”

That concern, that businesses will not increase the number of employees if it means they will have to take on more health-care costs, is top of mind for many business owners.

"The government is rewarding and encouraging businesses to remain 50 people or less to avoid the total payment of high health insurance premiums," said David Greenspon, CEO of Competitive Edge in Des Moines, Iowa. Greenspon, which employs 150 people, expects this decision could increase his health-care costs by $500,000. He predicts that it will be less expensive for some business owners to pay the penalties for non-compliance than pay additional fees to insure all employees."
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#30 Old 08-09-2012, 04:16 PM
 
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It isn't that simple, as I'm sure you're aware. Businesses are struggling in this economy, and a few cents x millions of pizzas could easily cause closures of franchises. The profit margin just isn't that high.


No.  People who eat out are not going to not go out because of a 15-20 cent increase in price in their entire order.  And Obamacare should actually help small businesses, despite their hysterics

http://www.slate.com/articles/business/small_business/2012/07/nfib_is_wrong_on_obamacare_the_aca_should_actually_help_small_business.html


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