Papa Johns to raise prices to pay for Obamacare.

[techs]

http://www.huffingtonpost.com/2012/08/07/papa-johns-obamacare-pizza_n_1752126.html

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.

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.



If I knew that it was so cheap to provide employees with health care I would glady pay the 17.5 cents per order. Seriously, only 17.5 cents and everyone gets health care?

 

[werepossum]

Papa John's has a third choice besides provide health insurance or pay a penalty to the government - make big donations to Team Blue and get a waiver.

 

[SheHateMe]

Doesnt sound so bad to me.

 

[techs]

Doesnt sound so bad to me.

It got me thinking. There are over 3 million workers in the fast food industry most of whom don't have health insurance. It certainly looks quite easy to get all 3 million covered for mere pennies an order.

 

[mshan]

Reality is probably just like so many companies blaming any sort of earnings miss on Europe.

If Papa John's is comfortable raising it's prices and think it will stick, then he unintentionally is saying economy is better than he wants to admit (consumers not balking at price increase and forcing company to eat increased costs).

If he had said Obamacare was cutting into profits by increasing costs that he couldn't pass on to customers, maybe his claim might be more believeable.

Also interested in seeking if Papa Johns profits increase in future quarters despite Obamacare and "having" to raise prices on it's customers.

Could just be a smokescreen (?) for price increase they have wanted to implement for some time.

 

[MomentsofSanity]

16,500 people additionally covered for medical care for an extra $0.20 per order? Good deal.

 

[NikolaeVarius]

I'm okay with paying 20 cents more if it means that the employees are getting treated better.

 

[micrometers]

I've always thought that the economy works sector vs sector.

Meaning that when Walmart has "everyday low prices" the people who benefit the most are the professionals in protected industries who shop there.

 

[kia75]

Would anyone not buy a pizza because it was 14 cents more expensive? A 14 cent increase is nothing.

 

[Icepick]

20 cents per order for more access to healthcare is a good deal. On the other hand, Papa Johns is already making substantial profits. Why not provide the health care and eat the cost? 15-20 cents per order is not going to break the bank. If it means the CEO gets a smaller bonus this year then I don't see any problems with it.

 

[Jhhnn]

OMFG! The Horror! The Horror!

And all of Papa John's uppity sluts, whores & Jezebels will be getting "free" contraception, too!

 

[bfdd]

what some of you who are saying "oh if I knew it was only this many cents I have no issue" you're forgetting that it isn't just one pizza they sell. they probably sell more than a few million pizzas a year. that isn't a small amount of change at all.

so i'm with icepick, assholes at the top should eat it out of their profits and because of that i will not be eating papa johns any more. not that i really did anyways as i usually go to smaller pizza places around me for higher quality at similar prices.

 

[cybrsage]

I wonder why the OP did not post this part of his link?

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.

McDonald’s also expects Obamacare to cost each of its 14,000 franchises between $10,000 and $30,000 annually, according to Businessweek

The CEOs of the corporation are confident the main office can easily absorb these costs...but the small business owner of the local franchise is going to get pounded hard by it.

So which of you is willing to pay that $10k for the business owner? Willing to still pony up? All who are willing to pay that for the small business owner, say AYE.


*crickets*

 

[HamburgerBoy]

If it means the CEO gets a smaller bonus this year then I don't see any problems with it.

Is the CEO of Papa John's a particularly rich and immodest bastard? :hmm:

 

[mshan]

I think honest CEOs, one looking at their own businesses and not politics, would tell you that they just want certainty, one way or the other.

That way, if they see a sustained durable incremental increase in demand if they invest more, they can expand despite taxes and Obamacare because in the end they make more money.

You hear so often that uncertainty about healthcare is holding back employers from hiring, but what is Romney's solution?: repeal the whole thing and start all over.

If profit margin goes down slightly, but revenue jumps so actual total profits jumps, what are they going to do? expand and hire.

Disney also sees pricing power, despite the "horrible" economy:

"Iger said that economic weakness in Europe is impacting business, with modest declines in visits to its parks, the business segment most susceptible to economic volatility. But Asia has been delivering strong results and in the US, the strength of Disney’s brands seems to be outweighing economic weakness. Iger saying they see consumers “willing to step up and pay for products they believe in.” The key is that the company has to continue to invest—in attractions like the new Cars Land.

Disney has been increasing pricing at the parks and Iger said there’s still “room to increase pricing” further. He “views the environment with some degree of caution” but said he’s confident that the company will continue to have “price elasticity.” And despite higher prices, consumers are booking more rooms both at the theme parks and on the cruise ships, where occupancy is 94 percent."

http://www.cnbc.com/id/48557316

 

[wirednuts]

people pay $4 for breadsticks and $3 for a 2 liter of pop. then they pay the delivery charge. if you say there is a 20 cent obamatax i doubt any drunk college kid is even going to hear you.

 

[Jhhnn]

I wonder why the OP did not post this part of his link?

spectacularly disinformational- no surprises in that. The woman quoted needs merely to create another legal entity to open another franchise, keep her employee count low.

The CEOs of the corporation are confident the main office can easily absorb these costs...but the small business owner of the local franchise is going to get pounded hard by it.

So which of you is willing to pay that $10k for the business owner? Willing to still pony up? All who are willing to pay that for the small business owner, say AYE.


*crickets*

You haven't demonstrated that anybody but the customer will pay more, or that the local franchise owner will suffer at all from raising the price of a pizza by $0.14.

 

[cybrsage]

Way to ignore the actual store owner. Try again, this time actually address what the store owner says, if you can build up your honesty enough to do it.

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.

 

[micrometers]

people pay $4 for breadsticks and $3 for a 2 liter of pop. then they pay the delivery charge. if you say there is a 20 cent obamatax i doubt any drunk college kid is even going to hear you.

Let's say you order from there 10 times a year. That ends up being an extra $2.

But then let's say that you go to another place 10 times a year. An extra $2.

And on and on.

It might be more than you think. I'd personally prefer that there be a way to reduce costs through the magic of the free market. Hospitals to me look hugely inefficient

 

[Jhhnn]

Way to ignore the actual store owner. Try again, this time actually address what the store owner says, if you can build up your honesty enough to do it.

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.

Just because she has here head up her ass doesn't mean that parroting her is a good idea. Per her own parent company, she needs only to raise the price of a pizza by $0.14 to break even on Obamacare. It's not the kind of increase that'll drive away customers, is it?

If I own a franchise, it's likely under some sort of corporate/LLC banner, of which I can create as many as I want. So If I want another franchise, I create another business entity to "own" it. Both entities can maintain their headcount below the minimum to receive Obamacare breaks & benefits.

This isn't brain surgery, except wrt the raving wingnut brain, which requires major rewiring through microsurgery...

 

[cybrsage]

The "seperate businesses in name only" idea will need to be passed by our resident Obamacare expert. I will ask it of him.

But the other reasoning I see from you is "I am not a business owner, but I certainly know more about owning a business than an actual business owner". Forgive me if I roll my eyes at that.

 

[micrometers]

Just because she has here head up her ass doesn't mean that parroting her is a good idea. Per her own parent company, she needs only to raise the price of a pizza by $0.14 to break even on Obamacare. It's not the kind of increase that'll drive away customers, is it?

If I own a franchise, it's likely under some sort of corporate/LLC banner, of which I can create as many as I want. So If I want another franchise, I create another business entity to "own" it. Both entities can maintain their headcount below the minimum to receive Obamacare breaks & benefits.

This isn't brain surgery, except wrt the raving wingnut brain, which requires major rewiring through microsurgery...

I do agree that you shouldn't always treat anecdotes from "hero entrepreneurs" as absolute wisdom. Their perspectives are very limited.

Still, $20-30k is a substantial amount per year. Considering that the business owner doesn't get anything "additional" for that money. That's why overall I did like McCain's plan which simply was to end the tax distortion that encourage insurance to be offered through employers and instead give americans a tax credit with which to buy their own insurance.

 

[bfdd]

A friend of mine who works for a family business that's a little on the smaller end is worrying about this as well, though I haven't heard from them that they're going to raise their prices or anything, though it sounds like it's really going to hurt their ability to grow as while they're profitable, it hurts expansion into newer markets and their ability to offer newer products.

 

[Jhhnn]

The "seperate businesses in name only" idea will need to be passed by our resident Obamacare expert. I will ask it of him.

But the other reasoning I see from you is "I am not a business owner, but I certainly know more about owning a business than an actual business owner". Forgive me if I roll my eyes at that.

People who have an axe to grind, Obama haters in particular, will say anything that sounds good to express that, and may even believe their own bullshit. I don't claim to know more than business owners- I claim that they're not necessarily being honest when handed the microphone, and that they may not recognize all of the possibilities open to them before they consult with their attorney.

They'll rave right out their ass, standard behavior for Righties.

 

[Charles Kozierok]

I'm trying to find my violin, but it's hard to locate among all these reports of record corporate profits.