Everything You Need To Know About The Internet’s Feud With Papa John’s Pizza
Internet communities like Reddit have called for a boycott of the pizza chain over anti-Obamacare comments made by CEO John Schnatter.
1. This is John Schnatter, CEO of Papa John’s Pizza. He has a net worth of $600 million.
(source for Schnatter’s net worth)
3. In an August conference call, this is what Schnatter said of Obamacare’s effect on company costs:
Our best estimate is that the Obamacare [law] will cost about 11 to 14 cents per pizza – or 15 or 20 cents per order from a corporate basis. To put that in perspective, our average delivery charge is $1.75 to $2.50 – or about 10-fold our estimated cost of the Obamacare [law] to Papa John’s. We’re not supportive of Obamacare, like most businesses in our industry. But our business model and unit economics [are] about as ideal as you can get for a food company to absorb Obamacare…. We have a high ticket average with extremely high frequency of order counts – millions of pizzas per year. To give you an example, Peter, let’s say fuel goes up, which it does from time to time, and we have to raise delivery charges. We don’t like raising delivery charges. But the price of fuel is out of our control, as is Obamacare. So if Obamacare is, in fact, not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto the consumer in order to protect our shareholders’ best interest.
4. And as a “Forbes” article from earlier this week points out:
So how much would prices go up… if they were to fairly reflect the increased cost of doing business onset by Obamacare? Roughly 3.4 to 4.6 cents a pie.
5. This comes right after a promotion Papa John’s did where they gave away 2 million pizzas for free.
6. Schnatter is now considering cutting workers’ hours to pay for the increased costs of health care.
7. According to Alternet, Papa John’s currently insures only one in three of its 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. The rising costs of health insurance, he said, have been a deterrent.
8. Over the last two weeks, Reddit has been responding with proposed boycotts and of course…
15. Also, a user named Pepperoni Joe has been vandalizing the Papa John’s Facebook wall (NSFW language).
18. In an attempt to battle the backlash, a group called Rebooting America attempted a pro–Papa John’s social media campaign.
20. The hashtag #IStandWithPapaJohns was embraced by conservative Twitter users to combat Papa John’s backlash.
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itmustbeken 6 months agoGet ready America.
You are going to pay and pay dearly for your healthcare. And the government that ‘fixed’ it will blame everyone but themselves. -
- victorialillianl Everything You Need To Know About The...
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Brian H. 6 months agoIf insuring everyone for healthcare was as easy as increasing the price of pizza by $.15, if it was that easy don’t you think it would have been done? Of course it’s not that easy. Only simpletons and blithering idiots would think that. Healthcare is 20% of our national GDP. So do you really think $.15 a pizza covers that? Grow up kids. The money has to come from somewhere and Obama and the dems won’t care when small to medium business are wrecked because of it. It was a very poorly made bill and it should have never been passed. Insurance exchanges where individuals can get coverage and leave the employer out of it. Health insurance should have the same portability as your cell phone number.
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- brittanyleighb Everything You Need To Know About The... and thinks it’s WTF & Fail
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SaraBlossom 6 months agoWhat the hell did people think would happen? The rich will stay rich. If people think this is the only company to increase prices to account for increases in taxes and obamacare then they are deluded. When you tax a rich person they just do not go out to eat and do not tip the waitress who needs the money. They will stay rich.
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GeorgeKaplan 6 months agoExactly. You can’t just expect to put taxes and regulations on companies and expect them to swallow the costs. It’s going to get passed on to the consumer whether you want it to or not.
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sparrowsinfrost 6 months agoCurse you successful business man, you should take all 600 million of your dollars and give two dollars to every person in America. You have to much mr john. Its not fair that you have so much while dont have as much. Its unfair to raise your prices after your cost increases. Papa johns is really good and yummy
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angha 6 months agoWOW reboot_USA pisses me off. They’re using the brainwashed right wingers in their own personal agenda and that just sickens me so much. How about on Friday INSTEAD of buying Papa John’s you instead go to your locally owned pizza restaurant? Encourage some new job growth so we can move away from these chains taking over America.
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Glitterbabe 6 months agoYeah, I make my own pizzas for half the price, twice the health & don’t have to worry about delivery costs.
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paulmcandew 6 months agoWhat about the extra money Papa is making when I order extra garlic dipping sauce for $0.60 a pop and the driver never shows up with it? Surely that could be applied towards his employees health care?
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- leannar added PONPONPON to the mix about 6 months ago
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SouthernSouthpaw 6 months agoLove Pepperoni Joe’s comment “if it happens again, I’m whipping the delivery boy with the hose”. Stay classy Pepperoni Joe!
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majorh 6 months agothat camaro he is sitting on. he spent 200,00 buying it back. he had it when he was a teen. a man that will do that, and give away 2,000,000 free pizzas is whining about covering his employees? maybe he and his other executives trim their salaries just a bit? wouldn’t that be the “christian” thing to do?
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Cave Explorer 6 months agoI would gladly pay more for a pizza if it means the employees that slave all day making food for us are taken care of but we know it’s not going to work out that way. They will increase the price and still find a way to fuck everyone over.
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