Tuesday, August 7, 2012

Cry Me A River: Papa John's Pizza to Raise Prices Over Obamacare

Will we see Papa John's Appreciation Day?
Stranger things have happened. Mike Huckabee
will be 500 pounds before you know it.
Let's get this out of the way first: Papa John's Pizza is third place for a reason. Domino's has recently bumped their quality up, and Pizza Hut is just danged tasty--particularly if you live in a "good pizza" desert like I do. But come on. Multi-millionaire John Schnatter is making a big show of the unforseen impact of The Affordable Care Act (Obamacare), by saying he's going to pass the costs on to customers. A whopping 15 to 20 cents per pie. Whatever will we do?

The thing that strikes me most here is the implicit conceit that it's a bad thing for employers to help their employees get affordable health care. And if you force them to, they're either going to drop all care and pay the fine, or they're going to hire less or pass the costs on. I understand that a business exists to make a profit, but somewhere along the way that got amended to include "at all costs." There was a time when employees were offered benefits to get them to go to work for a company. Now, a company is more likely to cut benefits, in order to keep profits high, or make them higher.

I think Papa John is doing all right. I don't think a price hike of this tiny amount is going to damage the economy, or his business. And his employees will be better off. Why is he (and the industry) against Obamacare again? Do you know what I say to 20 cents more per pie, hell 20 cents more per $10 of any food anywhere? Hell of a trade to get the workers affordable care. I'll take it.


Papa John's Pizza To Raise Prices Because Of Obamacare, CEO John Schnatter Says

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. . ."

Read more at: Huffington Post

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