Papa John's: We Don't Support Obamacare

Papa John's price increase is coming as the result of Obamacare. The pizza chain reveals just how much more one of their pies is going to cost you -- or they could just start cutting jobs instead!

Papa Johns price increaseNews of Papa John's price increase isn't sitting well with hungry customers on the hunt for an affordable pizza pie -- though coincidentally affordable health care is exactly what President Obama is aiming for!

John Schnatter, seen here at the 2012 ACM Awards, has bad news for the nation's pizza lovers. The CEO of Papa John’s Pizza says he is going to have to raise prices an average of $.20 per order in order to compensate for the increased cost to his businesses resulting from the Affordable Care Act, known widely as Obamacare.

You see, Papa John's has three choices: They can begin offering their 165,000 employees health care benefits, pay the government penalty for not doing so or cut jobs. Franchises employing less than 50 people will not be subject to the Obamacare mandate, however, making one loophole for those not wanting to incur the health care costs or fine.

Judy Nichols, a Papa John’s Franchisee explained how the Affordable Care Act affects her ability to open more stores, telling Legal Newsline:

“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. Obamacare is making me think about cutting jobs instead."

Stating the company's position on Obamacare, John Schnatter told Politico:

"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."

McDonald’s estimates costs of $10,000 to $30,000 will be incurred at each franchise, while Burger King, Quiznos and Dunkin Donuts have all expressed concerns that the mandate will hurt business.

Ed Helms and fellow foodies flock away from Chick-fil-A >>

While business owners may be upset by Obamacare, the tweeting public seems not to mind the idea of a Papa John's price increase. "So my pizza order will go up by $0.20, but 16,000 people get health care?" wrote one Twitter user Wednesday. "Yeah, I'm fine with that trade-off."

In the wake Chick-fil-A's gay marriage scandal and ensuing boycott, it might be wise for Papa Johns to speak carefully when it comes to how they treat their employees and politics. "Hey, @papajohns, it only costs you 15¢ per order to give employees health care, and you haven't already been doing it?! Shame on you," chided another tweeter.

What do you think of the Papa John's price increase due to Obamacare?

Image via WENN

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Comments on "Papa John's price increase: More food turns political"

Kay November 12, 2012 | 10:59 PM

Papa Johns sucks anyway.

SJ September 24, 2012 | 12:39 PM

He's not willing to pay the extra 14 cents (and I doubt his figures -- he just doesn't want to provide health care for those previously uncovered). And I have the right to no longer buy pizzas from his stores. More knee-jerk responses from rich, cheap *&%(^@ who don't give a hoot about anyone else.

John August 14, 2012 | 7:24 AM

This guy is exactly what is wrong with America and why things will continue to get worse, not better. He has thousands of full time employees with no insurance benefits and with the pay of those employees, no possibility for them to buy their own. The rich get richer and those that employ people, pay them less. The sooner the American public realizes that people like him, and the WalMart Waltons only care about themselves and preserving their opulent lifestyles, the sooner we can all decide that we are not going to support them by shopping in their stores... We do know that the 6 Walton heirs control more wealth than the bottom 40% of Americans COMBINED, don't we?

Helena August 10, 2012 | 12:46 PM

I agree with you Jolyn..this is a guy who spent over $200K for a stupid muscle car that he had a teen and wanted back. these guys don't want to give up their ostentatious lifestyles and they don't appreciate the fact that their success rests on the shoulders of their employees. I think people should start buying their pizza from the little mom and pop places and teach these bullies a lesson. his pizza sucks anyway!

Ben August 09, 2012 | 9:11 PM

Because Papa John may be the big guy, but there are tons of franchisees who cannot afford this and will be forced to cut jobs because of it. Obamacare doesn't create jobs, but destroys them. It doesn't provide any extra doctors to take on this new caseload either. It's bad legislation and America is overwhelmingly ignorant of just how bad it is. The individual mandate is horrible and wrong and unconstitutional (unless it's a tax, according to the supreme court; but it's not a tax, according to Obama, so it's unconstitutional). But it's not the only part that it horrible. We have been trained to be so dependant upon the government that it's scary to think what will happen when our debtors come calling and expect to be paid for all that they've loaned to us.

Common Cents August 09, 2012 | 2:13 PM

Seriously, who cares if each order is 20 cents more?

jolyn August 08, 2012 | 5:23 PM

why dont the high paid biggies take pay cuts. then they wont have to lay off or increase prices. i'm sure the company has enough over paid management/big wigs to foot the bill.

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