John Schnatter, the CEO of Papa John’s pizza, isn’t a popular person right now. The long time supporter of the Republican party recently said because of President Obama’s re-election and his health care reform law being fully implemented, only full-time employees working 30 hours or more must be covered under the new law and expects franchise owners will be forced to cut employees’ hours because they can’t afford the costs of health insurance plans.
Schnatter feels that all Americans having health insurance under ObamaCare is a good, but estimates the change will cost Papa John’s $5 million to $8 million annually. “I got in a bunch of trouble for this,” he told the students at Edison State College’s Collier County campus. “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.”You’d think this was small change for a company that gives away millions of pizza each week, because of their football challenge. Many people have wondered why would he not just increase the price of his pizza to cover the costs. Estimates show that an increase of 15 cents, per pizza, would be substantial enough for franchise owners to provide healthcare to their employees. About a third of Papa John’s employees are covered by the company’s health insurance plan, although Schnatter said he has always wanted 100 percent of them on the plan.
In response to this news, many people have decided to let their voices be heard on Papa John’s Facebook page:
In taking a glance at Papa John’s financial statements, its looks as though they could afford Obamacare, and not pass the extra $.14 on to the consumer:
Taking a glance at Papa John’s financial statements, its looks as though they could afford Obamacare, and not pass the extra $.14 on to the consumer:
Net income, net of non-controlling interests
The profit margin for pizza that tastes like ketchup on a piece of cardboard is pretty huge. Too bad the employees of a company have to suffer with cut wages and healthcare.