(only partially sarcastic - we sell Papa John's at my work and all the ones around here suck royally)
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Schnatter later added: “If Obamacare is in fact not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders best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 ...
He didn’t build that, anyway.
My niece’s husband ran and eventually managed a Papa John’s...he said the cost of the ingredients for a pizza was about 50 cents.
Glad to hear that Papa John’s doesn’t support Obamacare. We get Papa John’s about once a month, good pizza..takeout for about 7 bucks with all the toppings.
>>Schnatter later added: “If Obamacare is in fact not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders best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,”
Your shareholders already don’t get any of my money because your pizza sucks and costs too much.
Cost of ingredients is usually not the big cost. Overhead (store, corporate costs, electricity and other utilities, labor, shipping, etc) are usually the biggest costs to products. I heard the CEO of Starbucks complain about insurance costing the corporation more than coffee cost them.
Your highest cost is labor. Now even more expensive. They will find a way to automate the process, cut down on labor costs and even more people will be out of a job.
I assume McDonald’s, Burger King, Pizza Hut, Wendy’s, Taco Bell and all the others will fall into this category as well.
The unintended consequences of Obozocare are still to come.........
a wsj article today (some where) was saying the food service industry would sooner and more others be an industry that will need to raise prices, let people go, end their company employee health care plans, and/or any combination of those things due to ObamaSnare.
“pizza will cost up to 14 cents more...”
If I were Papa John, I wouldn’t be so quick to put an upper limit on that.
About 20 years ago I was in a meeting with several CEOs where it was predicted that Taco Bell would be the first to automate their restaurants.
Their menu is a little more complicated now, but back then their products were essentially all composed of a small group of pre-prepared items, unlike places like burger joints that actually have to cook their product first.
Been hoping they would do it - probably would result in fewer order screwups and they could be open 24x7 without worrying about robberies. It’s even easier now with the prevalence of plastic money for small purchases.
I think there would be a certain novelty to it, especially if the machinery was exposed behind glass so you could watch your food being prepared.
Lefties at the HuffCompost are going nuts. 14 cents.. that’s nothing to rich people.
Once I reminded them that it’s going to be 14 cents for every single transaction they will make everywhere, since every company will be raising prices, I received the requisite “you are a racist” comment.
In the next sentence I told them that doesn’t include the increased taxes from Obamacare.
He didn’t build that, anyway.
I ordered one 15 minutes ago. The price is $2.19 higher than it was last month. So I don’t know what’s what with this.
I can’t go there anymore.
The knowledge that there are fellow citizens out there who are so profoundly and proudly ignorant depresses me too much.
Realistically, the cost of ALL mandates has to be passed on to the customer, and is reflected in the price of the product offered. The simple truth is, that if the cost of production (and mandates, such as Obamacare) are not fully recovered, and a margin of return on investment is not realized, the corporation goes out of business. Greater capitalization is not always the answer, there has to be a viable business model that makes a prediction of profit possible, before ANY prudent venture capitalist will make an investment.
Maybe the unintended consequences will save us from the intended consequences of their Cloward-Priven strategy to bring down the system.
The only unintended consequence I can see so far is 0-care being the reason they get themselves booted out of office, and in a landslide.
Which will be good enough, unless Roberts or Mitt and the GOPe somehow comes to their rescue again.
Yeah it’s nothing to rich people.
It’s something to people who are buying the pizza because it’s the fastest way to get something akin to nutritious food into the kids after both parents get home late from work because they’re straining to make ends meet because the gov’t keeps taking ever more of their paycheck.
Your highest cost is labor. Now even more expensive. They will find a way to automate the process, cut down on labor costs and even more people will be out of a job.
It’s already starting to happen. Why bother with all the labor expenses when you can sell your product from a vending machine:
http://articles.latimes.com/2012/jun/13/nation/la-na-nn-pizza-vending-machines-20120613
IMHO, it’d be pretty easy to do this for hamburgers too.
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