Real World Consequences Of Obamacare: Papa John’s To Charge More Per Pizza

If Obamacare goes into effect in 2014, expect to pay more for every pizza you get from Papa John’s.

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. (Hat tip: @dkberman via Twitter.)

Under 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.

…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.

That may not sound like a lot of money, but it’s not just Papa John’s, folks. It’s EVERYBODY. You’ll be paying a few dollars more per day, every day, and you may lose your health care in the bargain. You can be sure that some businesses will decide to just pay the fine instead of offering insurance and the cost of coverage is going to skyrocket because of all the new restrictions that Obamacare imposes.

That “free” health care some people think they’re going to get? It’s going turn out to be more expensive than they ever imagined.

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3 Responses to Real World Consequences Of Obamacare: Papa John’s To Charge More Per Pizza

  1. 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 http://dregstudiosart.blogspot.com/2012/05/mitt-romneys-magic-mormon-underwear.html

  2. veronica says:

    This is a good thing…do we really need more fat asses in this country?

    I tell you another thing Mr. Papa J, im not a CEO and I guarantee i pay more taxes than you. Who are these people kidding? They act like health insurance isnt coming out of my own salary every pay period.

  3. Rakasa says:

    @veronica

    before you assume you are paying the entire medical insurance bill yourself, call your HR department and ask how much your COBRA bill would be. the difference between that and what you are paying now is the amount your employer is paying out of their own pocket for you to have medical insurance.

    in my case, the COBRA amount has been more than double at every job i’ve had for the past 20 years.

    in addition to that, i have had access to the tax returns of multiple CEOs before (i helped prepare the tax returns); i can attest to every CEO i’ve had this access to has paid more in personal taxes alone than i made in the same year.

    before you start making accusations, check your facts; in this case, i’d be willing to bet real money that you are wrong on both counts.

    — Rakasa

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