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Papa John’s Pizza To Raise Prices Because Of Obamacare

We can only hope that a Republican gets into office to repeal this garbage. After President Obama’s health care law takes full effect, the slogan for national pizza chain Papa John’s may need an update. Instead of, “Better ingredients. Better Pizza,” may we suggest, “Better health care. Pricier pizza.” Papa John’s CEO John Schnatter says that Obamacare will result in a $0.11 to $0.14 price increase per pizza, or $0.15 to $0.20 cents per order, Pizza Marketplace, a trade publication, reports. 

ObamacareUnder Obamacare, the company, which is the third-largest pizza takeout and delivery chain in the United States, will have to offer health care coverage to more of its 16,500 total employees or pay a penalty to the government.

The National Restaurant Association pointed out following the health care law’s Supreme Court approval that it may adversely affect restaurants’ ability to maintain already slim profit margins because it requires companies of more than 50 employees to provide affordable health insurance.

One Papa John’s franchise owner in Texas, Judy Nichols, says the law could interfere with her ability to open more restaurants.

“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,” she told Legal Newsline. Nichols added that the law may cost her between $20,000 to $30,000 extra in taxes. “Obamacare is making me think about cutting jobs instead,” she said.

But with strong sales last quarter and more than 1,500 new retail locations planned in the near future, Schnatter doesn’t seem all that bothered — perhaps because he intends to pass those health care costs on to customers.

“We’re not supportive of Obamacare, like most businesses in our industry,” Schnatter was quoted as saying in Politico. “But our business model and unit economics are about as ideal as you can get for a food company to absorb Obamacare.”

McDonald’s also expects Obamacare to cost each of its 14,000 franchises between $10,000 and $30,000 annually, according to Businessweek. But, like Schnatter, the company remains optimistic it is well placed to handle the extra costs.

Representatives from other restaurant chains may be less hopeful, however, including Burger King, Quiznos and Dunkin’ Donuts, all which have expressed concern the law may hurt business, according to the Wall Street Journal.

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  1. feliciacarter1 said:

    I think that health care reform is a great idea. I have type 1 diabetes and for me to get insurance, it was a nightmare until I found “Penny Health” search for them online and you can get affordable health insurance instantly.

  2. cluke said:

    Prices will continue to sore in the US and everywhere until Capitalism receives a much needed overhaul. Obamas new Jan 1st International banking law will only help the US in the long run and basically slow down and eventually Stop US non tax paying business owners abroad from seeking safe haven in Latin American nations. Itstime to work with our current president and to abandon any hopes in stalling his agenda. His small incorporaton of socialism is nothing new in the US government. It is plausible to think that to tollerate his current administration is the better method and to not do so will generally affect, effect our international economy. His Chicago bull headed business tactics have been proven overly useful and this was one of his original appeals in the last election. The US populace that voter strongly believe in success and live to strive to keep up with the Joneses and not be stymeyed by nesayers and conservative agendas that preach dark age doctrines.

  3. Brandt Hardin said:

    Republicans would have us believe Obamacare is bad for America. Is there any doubt that a Romney administration would favor the rich and increase the income gap in our country while leaving millions of our citizens uninsured and unprotected? Mitt is a pariah in Mormon Clothing and will stop at nothing to expand an empire of greed for the rich in this country. Can his sacred Mormon underwear gain him enough donations to buy this election? See for yourself as Mitt dons his tighty-whities sent from the Good Lord Himself at

  4. admin said:

    There is a need for healthcare reform no one can deny that. But Obamacare is not it. It has too many loopholes and things that need to be corrected for it to actually function. For example, ACA makes it illegal for insurance providers to deny coverage to anyone for any reason. This allows healthy people to drop insurance until they actually need it without incurring any risk. It’s like allowing homeowners to buy fire insurance after their houses burn down.

    Before you make the assumption because you are Democrat that this is going to work an feed into the die hard mentality that the government can spend your money better than you can. Read this article in Forbes.

  5. Angry Bill said:

    Health care reform is a good idea. Just this idea is a bad idea. What is needed is more competition and less government interference. Allow companies to offer coverage in multiple states and then let the consumers decide. Forcing an insurance company to pay more will force prices up. Many companies are willing to add this cost to its product so we all pay more for goods and services in the long run. People need to realize when the government gives you something for free, it has taken it from someone who worked hard to earn it in the first place. It is in everyone’s interest to have more people with health insurance. This spreads out the burden of the costs and can work to maintain or even lower premiums. Recently a mandate was emplaced requiring insurance for men and women to be the same rate. Since women usually use more medical attention they were paying more. However, this did not lower the costs for women. The companies simply raised the rates on men instead. The fact that the big insurance companies and pharmaceutical companies were in favor of this while businesses (the ones who will pay) were opposed tells you all you need to know about the bill. Free health care is not a right. If you want good medical insurance then get a job that provides it. If your job does not provide the coverage you need, find a new one.

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