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.