(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Schnatter later added: “If Obamacare is in fact not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders best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Schnatter later added: “If Obamacare is in fact not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders best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.
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.
I took a real liking to Papa Johns pizza in the late 90s and got hooked on the garlic sauce.
Pizza like many fast foods has been scaled way back due to health and budget. When I have to run the server rooms on some weekends, Papa Johns is the first choice. Besides I am by myself so no haggling over toppings.
A small chain that in my area is called PieTanza and it is very good for a more sit down restaurant experience. The calzones are wonderful as well as the fries. Here is a view.
I hope Papa John is prepared to be audited every year for the rest of the century if Barry gets re-elected.I'm pretty sure his name has already been flagged.
It would be absolutely shocking and depressing to find out that someone wasn’t.
I think I’ve got enough Papa Points that I amassed last year to get a couple free pizzas. Now I can use them to get a higher priced pizza than I could have gotten last year. So, does that make Papa Points a valid hedge against inflation?
I want to feel like I am beating the system for once, somehow :)
And thank you as well for your son’s service. I know you are as proud of him as I am of my son.
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