Posted on 08/08/2012 1:20:00 PM PDT by Lmo56
WASHINGTON (CBSDC) — Papa John’s warns it will have to raise the price of its pizzas due to President Obama’s health care law.
John Schnatter, CEO and founder of Papa John’s, said pizza will cost up to 14 cents more when the Affordable Care Act goes into effect in 2014.
“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,” Schnatter said in a conference call during last week’s shareholder’s meeting, according to Politico.
Schnatter later added: “If Obamacare is in fact not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders best interests,”
(Excerpt) Read more at washington.cbslocal.com ...
Absolutely. I was trying to point out to the poster, that the pizza cost itself is cheap, but everthing else required to run the business makes the product expensive.
I hope Papa John is prepared to be audited every year for the rest of the century if Barry gets re-elected.
Back in the 1970s, I worked at Pizza Hut, and I always thought that the biggest cost in making pizza was the labor...
Back then, we made the dough every day (both "thin" and "pan" crusts, totally different recipes). Though we had spice mixes for the sauces (3 different sauces: 1 for thin, another for thick, and 1 for the pasta we served). We also had quite a bit of prep work every morning: As I recall, the opening cook had to be there to get started at about 7:00am, for an 11:30am opening. I believe that everything now comes into the stores pre-done: The sauce, the dough, and toppings, etc.
Pizza hut was a lot better back then, as I recall.
Mark
It should be prominently listed on the receipt as a surcharge.
Chicken, pizza.
Can I sue the Dems for making me fat?
Wow, Obama willk say- “A whole 14 cents”
But i think he means that the original cost of ingredients which are probably under a buck will rise 14cent - he should have stuck to percentages
Because when you add in electricity, water, rent, gas, etc etc the cost of the entire pizza will probably go up a good 14% AT LEAST
Agree, the leftards will mock the $.14. But I suspect that this $.14 is based on his cost assumptions for Obamacare. It may not include his suppliers also eventually raising their rates to fund Obamacare....
Then there’s something beyond the $.14 that’s not mentioned but likely to occur - how many American will simply lose coverage (to whatever extent they subsidize it)? Worse, how many Americans will lose their jobs as a result of Obamacare?
Plus salaries and benefits for employees.
As a kid of the 70s, I agree that Pizza Hut was a lot better.
Back in the 90s when I was in a bad way on many fronts personally (a lot self inflicted) I made good friend who was a waitress at one that was close to the tech college I went to.
After graduating and getting a job in my present city, it was a number of years before I had reason to stop in that area.
I started going to a specialist just above that city of the Pizza Hut kind of regularly. One late morning I swung in there just for some pizza.
My friend was still there and I was remembered. She probably made too much in tips to leave. She was a super people person.
My wife starting coming along and we would stop in at every trip. It was a highlight of the day for us both.
After about a year there was a short pause in visits. A few weeks we stopped in and found out that she had died in her sleep of a freak brain problem. That was all I could find out. She was at most early 40s. My main regret was that none of us ever thought to exchange contact information. It would be a given that things would click.
I think Mr. Schnatter has mis-calculated. He is basing his $.14 increase on static conditions, i.e. operating costs as they exist today. What he has NOT factored in are the cost increases passed on to him by every vendor he deals with upstream in his supply chain. After Obamacare ratchets up the prices of everything he buys (rent, utilities, groceries, kitchen equipment, shipping, fuel, advertising, etc., etc.) he then will have a new starting point with which to begin his calculation. I think that $.14 figure will increase by a factor of ten to twelve. But what do I know about the pizza biz? I only know how to eat it.
I’ve heard rumors of it being toyed with for years. With technology being what it is, it is no surprise there. I think I will welcome it as long as it works.
I used “labor” to cover those. BTW, thank your son for his service. My son is in the USAF.
Well, you wouldn’t have to worry about being sued because your employee spit on the customer’s sandwich and other such nonsense.
As long as the seals for the lubricants, lp air, other fluids held, I am all for it. Having a push button or interactive gui menu to choose it exactly especially at a drive through would make me go to fast food joints more. All of this great communications technology and the drive through seems to have gotten progressivley worse in terms of clean audio.
I usually don’t hit them that much mostly because of some of the weird types I see working in some. That isn’t a knock on the good people who are there. I know there are many of them.
Not surprised founder is a conservative. Papa Johns is a quality product.
In fact let me pre-order a Large Works (thicker crust of course) for Friday night now.
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