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Papa John's Founder To Raise Price Of Pizza Due To Obamacare
CBSDC ^ | 8/8/12 | CBSDC

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Schnatter later added: “If Obamacare is in fact not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders best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 ...


TOPICS: Business/Economy
KEYWORDS: business; obamacare; pizza
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Let the madness begin ...
1 posted on 08/08/2012 1:20:07 PM PDT by Lmo56
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To: Lmo56

He didn’t build that, anyway.


2 posted on 08/08/2012 1:21:28 PM PDT by Lurker (Violence is rarely the answer. But when it is it is the only answer.)
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To: Lmo56

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.


3 posted on 08/08/2012 1:23:49 PM PDT by Gaffer
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To: Lmo56

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.


4 posted on 08/08/2012 1:30:32 PM PDT by Sarah Barracuda
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To: Lmo56

>>Schnatter later added: “If Obamacare is in fact not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders best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.


5 posted on 08/08/2012 1:30:42 PM PDT by Bryanw92 (Sic semper tyrannis)
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To: Gaffer

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.


6 posted on 08/08/2012 1:31:04 PM PDT by DallasDeb (usafa06mom)
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To: Gaffer

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.........


7 posted on 08/08/2012 1:31:53 PM PDT by Red Badger (Think logically. Act normally.................)
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To: Lmo56

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.


8 posted on 08/08/2012 1:32:55 PM PDT by Wuli
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To: Lmo56
Can he at least raise the flavor first?

(only partially sarcastic - we sell Papa John's at my work and all the ones around here suck royally)
9 posted on 08/08/2012 1:39:50 PM PDT by arderkrag (ABOs are Romneybot trolls. LOOKING FOR ROLEPLAYERS. Check Profile.)
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To: Lmo56

“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.


10 posted on 08/08/2012 1:46:07 PM PDT by Boogieman
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To: Red Badger

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.


11 posted on 08/08/2012 1:49:50 PM PDT by chrisser (Starve the Monkeys!)
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To: chrisser

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.


12 posted on 08/08/2012 1:53:58 PM PDT by EQAndyBuzz (ABO 2012)
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To: Lmo56

He didn’t build that, anyway.


13 posted on 08/08/2012 1:55:08 PM PDT by Lurker (Violence is rarely the answer. But when it is it is the only answer.)
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To: Boogieman

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.


14 posted on 08/08/2012 1:57:45 PM PDT by JoeDetweiler
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To: EQAndyBuzz

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.


15 posted on 08/08/2012 2:01:04 PM PDT by chrisser (Starve the Monkeys!)
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To: DallasDeb

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.


16 posted on 08/08/2012 2:03:40 PM PDT by alloysteel (Voter suppression is needed now more than ever. Only, whom shall be suppressed?)
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To: Lmo56
He should do what so many other products have done. Lower the size, increase the price and call it, "new & improved".
17 posted on 08/08/2012 2:06:14 PM PDT by Graybeard58 (Free people, when presented only with evil choices, create other choices.(EternalVigilance))
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To: Red Badger
The unintended consequences of Obozocare are still to come.........

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.

18 posted on 08/08/2012 2:08:03 PM PDT by GBA
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To: EQAndyBuzz

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.


19 posted on 08/08/2012 2:10:42 PM PDT by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com)
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To: Red Badger

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.


20 posted on 08/08/2012 2:14:56 PM PDT by RatSlayer
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