Papa John's Threatens to Cut Workers to Pay for Obamacare

Pizza prices will rise as staff hours fall, says CEO

In response to Obama's re-election. Papa John's CEO John Schnatter has announced he will pass the costs of Obamacare on to his workers by cutting their hours.

The pizza magnate admitted that Obamacare had plus points: "the good news is 100 percent of the population is going to have health insurance." He explained his decision to cut man hours as a necessity: "That's what you do, is you pass on costs. Unfortunately, I don't think people know what they're going to pay for this."

Earlier this summer, Schnatter got into what he calls "a bunch of trouble" for promising to increase pizza costs 10-14 cents as a way to offset costs of the Affordable Care Act.

Obamacare requires employers to provide health care for all employees working more than 30 hours weekly, and Papa John's and other restaurants plan to get round this by reducing their full-time staff. Other chains taking this route include Olive Garden and Red Lobster.

Via WPTV.

Is it inevitable that companies will pass on Obamacare's costs to workers and customers?

[CATTLEPROD]

We need a government program to make sure these fat cats arnt jumping through loopholes to get out of paying thier fair share. Any company that cuts hours of working people to get out of obamacare should have investigations by all available beauracracies that oversee them and put them out of business that way.

[FFX_VA]

Like Obamacare is the law of the land, it is fully within their rights to reduce their workforce to account for economic impacts exactly like this. Perfectly legal & good business; but a horrible thing when you're the one laying ppl off or getting laid off.

[Stop_Whining]

@FFX_VA

Im afraid you know very little of which you speak. They are worried about their income, the CEO's that is, and not the survival of their company.

[FFX_VA]

...did you just ask for MORE government programs? Really!?

[FFX_VA]

@Stop_Whining ...you never did file your Form ID10T did you...

[FFX_VA]

Another case of the ugly truth seeping through Obama's beautiful lies...

[stepped_in_it]

@Stop_Whining Are these the EMPLOYED people or the UNEMPLOYED people? Just wondering which "people" you are talking about?

[Stop_Whining]

@stepped_in_it

The People.

[marine1]

Who do you think the wimpering,tenured school teacher is?

[stepped_in_it]

@Stop_Whining good reply (sic)....the stepped_in_it has spoken!

[Neo_NtheMatrix]

Answer: Causes the stock market to tank, jobs to be slashed left and right, taxes to go up, and businesses to flee the country.

Question: What is obamacare?

[DyingBreed]

@Stop_Whining You?

[blue_yahoo]

@Stop_Whining What popular will of the people? The healthcare mandate was rushed through Congress without even reading it. And if your referring that Obama won by 50.58% of the votes cast I'm gonna say that it's not that popular. Considering that not all the votes for Obama were based solely on that issue. Now, since you don't like whining I'm just hoping I don't hear any from you when things go south like companies dropping their mandated role in ins. and just pay the fine or cut hours and leave people making even less money the role of getting their own mandated ins. Along with a tanking stock market and poorer health care than we have now. I'm not whining cause I truly don't care one way or the other, I'm just tired of the misrepresentations.

[Stop_Whining]

@blue_yahoo

You are tired of misrepresentations?? Really????????

[Stop_Whining]

The people will refuse to entertain their whining, and shop elsewhere, for a superior product.

[stepped_in_it]

Tell that to Walmart shoppers!

[stepped_in_it]

@Stop_Whining Does being naive run in your family? And the small communties will do what, go shop somewhere else.....and that somewhere else will be??

[Neo_NtheMatrix]

Liberals, welcome to the America YOU voted for. If this country ceases to be sovereign in a few years then it is all on you. I will be in Canada safe from the Chinese invasion.

[Neo_NtheMatrix]

@Stop_Whining - I pay taxes. You should be trying to get me to stay. No one is going to be around to pay for obamacare and other tax increases obama is about to ram up America's backside. People with means won't want to be around for that.

[VCP]

Wow! Are you really kin to Chickin Little? Is the sky really falling down? To steal a line from a song "Nothing ever came of that! The world still whirls around"!! Oh and see ya never more ya hoser you!!

[PNWest]

@Neo_NtheMatrix I think that the country is better off if the people who think like you do leave. Then we can raise taxes on the rich that remain and build a stronger middle class. Unfortunately for you I'm not sure that Canada wants you unless you become the equivalent there of what you call an anchor baby here.

[blue_yahoo]

Is not that what companies do is pass the increased costs on? What did people think was going to happen as this was forewarned long before the election was even thought of.

[Sonny]

Well I guess people thought that the sore losers of the republican party would not take out their revenge on just regular rank and file workers, just trying to make a living and feed their families. If this jerk does do that to his employees...The I will be FORCED to tell my friend (who owns a papa johns francise) that I will NO Longer Be Able to Make any further purchases from him due to the actions of this idiot ceo....And, unfortunately, I will also have to tell all of my friends and relatives why I no longer buy from him---and hope that he will relay his loses to this asshole at his corporate office......

If this guy wants to pick on somebody...he should call up Pres. Obama---But NOT take it out on the "little guy"....We do have ways to fight back, people. We don't have to take this crap!

[Cheenoguy]

Increased cost of 15 cents a pizza being passed on? Is there really anyone who would no longer purchase their pizza over 15 cents? If the cost had cheese had went up 15 cents per pizza he wouldn't be whining to the media or cutting hours. He would just raise the cost of pizza by 15 cents (or more).
This is nothing but a whiney spoiled rich guy throwing a tantrum because the government didn't do what he wanted. He's taking it out on the people who made him so rich.

[Sonny]

@Cheenoguy Exactly, Cheenoguy----that's all this is.....!

[martydotcom]

@Cheenoguy I'd shoot the CEO. A 10 cents increase in pizza is unnoticeable. Negatve headlines, people boycotting, because they don't like his bullying his employees far more of a loss than the 10 cent elasticity of demand loss. The CEO is a mean spirited half wit who makes a really tasteless pizza like all chain pies. Boycott the place

[Jasonopolis]

@Cheenoguy I am not sure if any of you guys realize just how small the profit margins already are in American businesses. YES! They have analyzed the price of a pizza right down to the penny level, and they are already operating on a hyper-valued cost evaluation!

[Thunderchicken]

Is it inevitable that companies will pass on Obamacare's costs to workers and customers?

http://www.theblaze.com/stories/how-many-busi...

[Sonny]

Their costs won't go up, and frankly he probably doesn't even currently offer his employees any kind of healthcare at all!...But the Affordable Care Act, has provisions in it to help him buy healthcare ins. And even some tax credits, and, some companies will be exempt from it all together..So this kind of BS is way to premature...and is nothing more than pissed off election losers taking out their revenge on the most vulnerable of all their own damn employees...What a jerk...If he does do that---Then I will never step into another papa johns store for the rest of my life...His choice---But we have choices also!

[Thunderchicken]

@Sonny

Glad to see you back.

I don't know anything about the nuts and bolts of Obama care but I expect there'll be a lot of unforeseen ramifications. The list in the link I posted is quite extensive. I do think that the economy will get worse before it gets better. And no matter who's president I believe the poor will bear the brunt of it. If Obama holds to his past actions, he'll harm this country more than he'll help it.

As for Papa John's, I had pizza from there once. There's just too many better places around here to bother with national chains.

[Sonny]

@Thunderchicken Well see I DO know quite a bit about the nuts & bolts of the Affordable Care Act....That is why I don't understand how people (who have not looked into it) have so much negative things to say about it? I think its just the fact that they don't like Obama more than this new law. You really should take a few minutes to read, at least some of the key provisions of it...Its NOTHING like people here are lamenting it is....And I absolutely agree with you on papa johns pizza...The only reason I go there at all is because my son likes it...But if this ceo does lay off people (and try to blame it on Obama)---I will never patronage that place again for as long as I live---And we are Very good customers at our local papa johns location. And you can bet...that I will be 100% sure to tell the owner why I have stopped coming to his restaurant.

[David944]

@Sonny What provisions are you referring to? Did you hear that and just believe it to be true? Tax credits where do they get the money for tax credits from obamas printing press. How much tax credits. If they are exempt anyway do the people have to buy insurance on their own or pay the tax? How much does a person have to make before they are responsible for all or part of the cost out of their own already meager paycheck? Have you heard the national debt will be over$ 20 trillion by 2016. No I did not calculate that figure myself.

[Thunderchicken]

@Sonny

Aside from the news stories I've seen, what I know has come from people who have businesses that expect to deal with Obama care or are already being impacted by it. A co-worker who gets his healthcare through his wife's company just got informed that he will now be taxed at $1700 per year for his Cadillac plan. Another friend has been told by her accountant that she'll want to delay expansion till everything shakes out. And then see what will work for them. My doctor has said, the he'll probably not deal with health exchange patients.(Which is weird since MO has outlawed health exchanges but the governor is trying to set them up.) He already won't accept Medicare. What concerns me the most is no one in my company is talking about it at all. All I've gotten is that management is trying to sort it out. We have a pretty good cafeteria plan.

[stepped_in_it]

Well........DUH! Maybe my Business 101 class was right! Your number one non-sellable cost in business is LABOR. Material becomes product and product sells. Until the law allows me to sell my employees (just kiddin')....they are the number one costs....But, I can also recoup some costs by raising the price....but only till my customers start to complain!!

[TheLoneRanger]

This is proof that Obama is the President who will see to it that the middle class in America is reduced to third world status.

With Obamacare more people will go on unemployment, food stamps and other social welfare programs. Obama will then insist as spineless House leader John Boehner has already shown signs he will support, on raising taxes on the job creators.

Obama will also insist on another failed federal spending frenzy.

The Fed will continue to print phony money but at an accelerated pace. This irresponsible action will cause greater inflation causing more lay offs, more people on food stamps etc. All this contributes to the planned vicious downward spiral until the system crashes.

Saul Alinsky would be proud.

Two articles from Discover the Networks:

Saul Alinsky http://www.discoverthenetworks.org/individual...

Barack Obama’s Rules for Revolution The Alinsky Model http://www.discoverthenetworks.org/Articles/R... (2).pdf

[TheLoneRanger]

Barack Obama’s Rules for Revolution The Alinsky Model http://www.discoverthenetworks.org/Articles/R... (2).pdf

[TheLoneRanger]

I can't get this link to take. Please copy and paste.

Barack Obama’s Rules for Revolution The Alinsky Model
http://www.discoverthenetworks.org/Articles/R... (2).pdf

[mavsgirl]

The stupid greedy ones will make employees and customers pay for it. It's too bad, I've got enough papa points to get a free pizza. Too bad they're wasted now since I won't order from Mr. Schnatters company anymore. It's time the poor and middle class took a stand against these greedy bastards.

[stepped_in_it]

SOOOO, you think this will be the only company that will come out and say this? And, what about the companies that just do it without telling anyone but the employees? Trust, for each company that "tells", there will be 100+ that don't. Hope your not going to Domino's/Pizza hut....etc. You'll be real disappointed!

[vigilant]

"Is it inevitable that companies will pass on Obamacare's costs to workers and customers?" Who asked this silly question - a three-year-old? Does water run downhill? Duh!

[Seriously]

Does it make zero sense to anyone else that people angry over lay-offs would call for a boycott? Wouldn't that lead to MORE lay-offs? I mean, I know these people haven't taken an econ class in their lives, but isn't that basic logic? Even funnier, Applebees doesn't take food stamps. How the do Obama losers boycott it?

[Thunderchicken]

In case you've never noticed, the customers pay for every cost associated with a business. Otherwise it wouldn't be a business. The question will be are the customers willing to pay the extra cost to fund Obama care for Papa Johns?

[just-thinking]

@Thunderchicken the real question are how the people going to feel when the company they work for reduce their hours of employment?,will Obama celebrate that he created more jobs, but they will work fewer hours?
Lot of companys will hire more people to work, but at reduce hours to which will make them eligble for goverment subsidy programs. And this will cause the debit grow bigger.
The number one question is who is the winner with ObamaCare and the answer is CEO of ins. company.
No one is talking how ObamaCare will truely effect them.

[PNWest]

I wish to thank Papa John. Because of his outbursts I will probably eat a little bit healthier because I won't be getting Papa John's Pizza any more. When I do get pizza I'll get it from a local place who doesn't lay off hard working people just because the candidate the owner liked lost.

[FFX_VA]

What makes you think the local mom & pop stores won't be forced to do the same to survive? How are they immune to this?

[DARSB]

@FFX_VA The requirement only applies to businesses with 50 or more employees (which probably describes most of Papa John franchisees).

See, it pays to read the law.:-)

[FFX_VA]

@DARSB Copy that, read the law, well most of it anyway, but forgot about the 50 while responding. Good catch, good reference.

[Rocker]

@DARSB - That is correct on the number of employees. However RomneyCare's requirement is 11 employees or over. Nobody has come forth with how Romney's plan worked out in Mass. I have asked and have yet to receive an answer. And I asked in a nice way - not in a confrontational genre. I really want to know.

[MRMacrum]

@FFX_VA - Well I'll tell ya how they survive. People stop eating at these grandstanding loser chains and support them. Their business goes up and maybe the next empty commercial spot in town is a Papa Johns, an Olive Garden, a Red Lobster, or a Dominoes Pizza. Wouldn't break my heart if all the chains raised their prices. The small guy would be more competitive then.

[VVP]

The question, is it inevitable? Pretty much. Yeah, corporations will try to exploit every loophole possible.

Should they be allowed to? no. Which is part of the reason why Obamas first term was not successful.

You simply cannot implement "solutions" without first fixing the problem. Corporations working around finding loopholes like this, is exactly part of the problem. Thats why Obamacare in its current form is not practical and cannot work as intended.

But, Honestly I think every American should be boycotting PapaJohns anyway. This sort of ideology, be it at this pizzaria, or walmart, etc, the people should reject, not the government. We the people have the power to effect change too... with our wallets, yet we forget that all too often.

I mean just look at how much Dan Cathy appreciated the benefits from this summer. Imagine it in reverse.

[AtheistStand]

Dont buy from this place. Easy. Lots of other places (maybe even a local bizz) are not greed driven. I hope his "investers" like cold pizza.

[FFX_VA]

Where is the line between a fair profit and what is considered greed?

[MRMacrum]

I stopped eating at Papa John's years ago. Their pizza is just not that tasty. I will have no problem staying away. As a matter of fact, not a fan of Red Lobster and definitely don't like the Olive Garden. If I am going to eat out I generally will eat at a local eatery that is not a franchise. All the money stays local and circulates locally.

[DARSB]

Seeing as how Obamacare doesn't go fully live until 2014, Papa John is not responding to existing economic pressures. What he is doing, though, is arranging to export the costs of coverage to the taxpayers at large.

And then there's the morality of reducing staff hours in order to keep your own wealth secure...

[David944]

Most business’s plan farther ahead than 2 years .

[David944]

Morals are relative with no fixed reference point.

[jessejaymes]

@David944 That's simply incorrect. Most corporations today plan no further ahead that quarterly profits.

[David944]

@jessejaymes Show me where you got that.

[jessejaymes]

@David944 Wall Street Journal

[Jack-Black]

I just hope the ones that get canned were El Dumbo voters. Elections have consequences!

[SpookyThreeTwo]

papa john's pizza sucks anyway. oh lord, no ... not health insurance for all my workers! because if one of them gets sick or injured off the job, it's easier for me to let the state pay for it. oh wait .... if they're not poor enough they won't qualify. whatever. not my problem anyway. there are plenty of other people willing to work for minimum wage, so i can just replace them for taking too many days off work.

no one is asking employers to foot the whole bill. maybe that ceo needs to take a pay cut, and everyone else on the board.

[InjusticeSucks]

The right answer is he is going to cut workers since his Pizza Is Crap and their loosing their azz.

[ir0nw0lfe]

Ofcourse. Companies will pass on the cost of the Affordable Care Act to customers. So will banks, insurance companies, hospitals, utilities, etc. Welcome to your brave new world of free stuff. It's not really free. Someone else will pay for it.

[PuroChorizo361]

It's funny how these ignorant greedy fools forget who really has the power.... Hint Hint it's not business owners. That's why I say their businesses don't deserve to survive!
; ) You don't like making money in the U.S. Get out! Someone will always be there to replace you. It's a shame you have to learn the hard way.

[AnObserver]

Did anyone expect anything different? Did everyone really expect "someone else" would be paying for this monstrosity. Go look in the mirror..yes you are the "someone else" who will be footing the bill.

[PuroChorizo361]

10 to 14 cents.......Bahahahahahaha!

[stepped_in_it]

Wow, didn't read whole article until your comment. Heck, Papa, raise them 'ole pizzas 25 cents and keep the employees....I won't even bend over if I see a quarter (unless it's pre-1965.....lol)

[PuroChorizo361]

@stepped_in_it Silly isn't it?

[stepped_in_it]

@PuroChorizo361 Yep, 10-14 cents so a human can have health care...again, raise them 25 cents and keep the employees (with health care)

[PuroChorizo361]

@stepped_in_it It's a shame that that's how greedy business owners have become.:\ They need to watch "Undercover Boss" and take notes.