Obamacare to raise cost of pizza $0.14/per pie

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Papa John's Founder Warns That ObamaCare Will Lead To Imperceptably Small Increase In Pizza Prices Published 15 hours ago




Matthew Yglesias for Slate


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As a New Yorker born and raised, I can't officially approve of national chain pizzas. But if you must order one, Papa John's is clearly the best. And the chain's CEO, John Schnatter, is not only raising money for Mitt Romney he's warning that ObamaCare will cause your pizza eating experience to suffer:

On a conference call last week, CEO and founder John Schnatter (a Mitt Romney supporter and fundraiser) said the health care law's changes — set to go into effect in 2014 — will result in higher costs for the company — which they vowed to pass onto consumers.

"Our best estimate is that the Obamacare will cost 11 to 14 cents per pizza, or 15 to 20 cents per order from a corporate basis," Schnatter said.


Stipulating for a moment that this is true, doesn't it seem like a rather small price to pay? Papa John's website is currently offering to deliver me a large pepperoni pizza for $14.08 and Schnatter is warning me that the problem with ObamaCare is . . . a one-time price increase of less than one percent! That seems eminently reasonable. What's more, it's well within the range of the kind of price swings Papa John's is going to have to expect just based on the vagaries of the weather (which impact the price of ingredients) and the ups and downs of the oil market. There's just no there there. I can believe that the ObamaCare provision requiring prominent calorie labeling on menus would hurt Papa John's by encouraging people to order smaller pizzas or fewer toppings, but the idea that they're getting hammered by a one-time 14 cent per pie increase in labor costs is silly. Now Schnatter personally stands to lose money as a result of the progressive tax increases that will help pay for the law. He's probably mad about that, but he shouldn't attribute his personal problems to his business.

[IIOY]

Matthew Yglesias is annoying as shit, and the fact that he thinks Papa John's is real pizza only perpetuates my irritation with him.

[secretlyevil]

Wow - a whole $.14; geez.

[copzgirl1171]

Tony's pizza for the win. $2.50 a pie and we dress it up all fancy and shit.

[ttt]

If you can't afford an extra 14 cents per pizza, you probably can't afford to be eating delivery pizza in the first place.

[cookiemdough]

As a New Yorker born and raised, I can't officially approve of national chain pizzas. But if you must order one, Papa John's is clearly the best.

All credibility was lost right there.

[sweettooth]

If this is such a big deal, did the CEO sacrifice his own health insurance to save money for the company? Why does he deserve it but not his employees?

These CEOs are making my list of places to avoid longer each time they come out. I did go to Starbucks yesterday to support them and won't be ordering from Papa John's (although I didn't use them much anyway). I did used to drive through CFA, but not now. Other people have chicken also.

[marie427]

Papa John's should be paying people to eat their pizza.

[Deleted]

The best delivery is Jets Pizza and it is the only reason I regret giving up dairy.

[EloiseWeenie]

We got papa john's pizza the other day, because there is a coupon code for 50% off. I haven't eaten it in years, and I found it disappointing. Their crust is really odd, it's sweet and has an unsavory texture.

[charminglife]

"Papa John's" and "best" should never be in the same sentence.

[heightsyankee]

Well, I guess I am the odd man out. If I am ordering from a national chain, I do think PJ is the best. Who is better? Cici's? Domino's?

But, yeah, I knew Papa was a conservative in his personal life. Now he steered in to public politics by making this BS claim and now I will probably force my kids to eat Domino's on nights they are with the sitter. Or frozen. Probably frozen.

Considering what the public pays for the uninsured to get treated at ERs and public hospitals anyway, 14cents is a bargain.

[heyjude]

This seems to be an unintentional ringing endorsement of Obamacare.

But pizza hut is the best.

[emmybean]

Poppa johns is shit. Horrible, dry crusted shit. If I'm going to eat shitty pizza it's going to be little Cesar's cuz at least it's cheap shit.

[teflep]

Aug 8, 2012 8:31:29 GMT -5 heyjude said:

But pizza hut is the best.

+o( You are no longer allowed to comment on pizza!!

[cookiemdough]

Aug 8, 2012 8:31:29 GMT -5 heyjude said:

But pizza hut is the best.

Please tell me there was sarcasm in this statement lol.

[heightsyankee]

Aug 8, 2012 8:32:14 GMT -5 emmybean said:

Poppa johns is shit. Horrible, dry crusted shit. If I'm going to eat shitty pizza it's going to be little Cesar's cuz at least it's cheap shit.

I thought Little Ceasar's went out of business?

[heyjude]

Loooooourve Pizza Hut.

[heyjude]

I also like little ceasars.

[secretlyevil]

National chain? PJs is the better one. Notice I didn't use "best." Local - Marios or Westshore.

[MrsDL]

Aug 8, 2012 8:10:21 GMT -5 sweettooth said:

If this is such a big deal, did the CEO sacrifice his own health insurance to save money for the company? Why does he deserve it but not his employees?

How would this even help? This isn't just about $.14 per pie. This is about the fact that premiums are estimated to increase 7% next year alone. Healthccare costs keep going up and the ACA didn't address it - it actually will bend the cost curve up faster. So Papa John will make his employees pay 3.5% more, and he'll pay 3.5% more (making some assumptions). In addition, the costs of his ingredients are going up. Do you think just HIS healthplan puts a dent in this - makes up for that 7% spike plus his other cost increases?

Now, I agree $.14 per pie is no big deal. But this isn't isolated to Papa and his pies. It will occur across the board. Prices of everything go up a little each year. Employees get raises, etc. It has to be paid for. Therefore, the prices of goods and services will increase - for everything we buy. You may be able to afford $.14 per pie, but can you afford price spikes like that for everything you need or want to buy, plus at least 3.5% more for your insurrance, combined with the fact that salaries are not keeping pace currently? Are employers supposes to eat all of these costs. If they did that for any modest length of time, not only would they not grow (and pay salary increases and increase jobs), but they would end of like some of the auto companies, having to pay more than they take-in. How can business survive like that? They can't. And you'll have less money to buy things as well. So you see, it's not a lousy $.14 per pie thing, or a Papa is a big greedy fat cat thing. It's a common sense thing that extends way beyond a few extra cents for some pizza.

But go ahead - Boycott Pappa John's if it makes you feel like that will solve any of what we are all going to experience financially in the coming years.

[ChillyMcFreeze]

The garlic sauce makes PJ's tolerable. That stuff is nectar of the gods.

[EloiseWeenie]

Aug 8, 2012 8:32:14 GMT -5 emmybean said:

Poppa johns is shit. Horrible, dry crusted shit. If I'm going to eat shitty pizza it's going to be little Cesar's cuz at least it's cheap shit.

I agree, plus it's awesome to walk right in, grab a hot $5 pizza, and go home.

I really wish there was a Ledo's here. Everytime my parents visit, I make them bring me a giant pizza from Ledo's.

[mominatrix]

The only national chain that makes non-shitty pizza is Papa Murphy's.

Now, sometimes shitty pizza is what you want...

...via mobile.

[Daria Morgandorffer]

I could practically drink Papa Johns garlic butter, but all else blows.

[mominatrix]

Aug 8, 2012 10:08:01 GMT -5 Daria Morgandorffer said:

I could practically drink Papa Johns garlic butter, but all else blows.

See, I don't get that.
My H used to order from PJ's all the time, and was all about the extra garlic "butter". I think it's pretty gross and disgusting - - artificial garlic flavored margerine (sp?).

[ttt]

Aug 8, 2012 9:03:00 GMT -5 MrsDL said:

Aug 8, 2012 8:10:21 GMT -5 sweettooth said:

If this is such a big deal, did the CEO sacrifice his own health insurance to save money for the company? Why does he deserve it but not his employees?

How would this even help? This isn't just about $.14 per pie. This is about the fact that premiums are estimated to increase 7% next year alone. Healthccare costs keep going up and the ACA didn't address it - it actually will bend the cost curve up faster. So Papa John will make his employees pay 3.5% more, and he'll pay 3.5% more (making some assumptions). In addition, the costs of his ingredients are going up. Do you think just HIS healthplan puts a dent in this - makes up for that 7% spike plus his other cost increases?

Now, I agree $.14 per pie is no big deal. But this isn't isolated to Papa and his pies. It will occur across the board. Prices of everything go up a little each year. Employees get raises, etc. It has to be paid for. Therefore, the prices of goods and services will increase - for everything we buy. You may be able to afford $.14 per pie, but can you afford price spikes like that for everything you need or want to buy, plus at least 3.5% more for your insurrance, combined with the fact that salaries are not keeping pace currently? Are employers supposes to eat all of these costs. If they did that for any modest length of time, not only would they not grow (and pay salary increases and increase jobs), but they would end of like some of the auto companies, having to pay more than they take-in. How can business survive like that? They can't. And you'll have less money to buy things as well. So you see, it's not a lousy $.14 per pie thing, or a Papa is a big greedy fat cat thing. It's a common sense thing that extends way beyond a few extra cents for some pizza.

But go ahead - Boycott Pappa John's if it makes you feel like that will solve any of what we are all going to experience financially in the coming years.

Premiums and healthcare costs were increasing dramatically before Obamacare and before Obama himself was even running for office. So while I agree that ACA did little to address costs, it's pretty ridiculous to attribute all increases in healthcare costs to it. And here he is saying himself that it is specifically 14 cents more because of Obamacare which seems pretty reasonable to me in exchange for knowing I can't be denied health insurance because I was irresponsible enough to have been born with a heart defect.

[ChillyMcFreeze]

Aug 8, 2012 10:11:20 GMT -5 mominatrix said:

Aug 8, 2012 10:08:01 GMT -5 Daria Morgandorffer said:

I could practically drink Papa Johns garlic butter, but all else blows.

See, I don't get that.
My H used to order from PJ's all the time, and was all about the extra garlic "butter". I think it's pretty gross and disgusting - - artificial garlic flavored margerine (sp?).

Quiet, hippie. Fake food is delicious.

[meshaliuknits]

Aug 8, 2012 8:40:20 GMT -5 heightsyankee said:

Aug 8, 2012 8:32:14 GMT -5 emmybean said:

Poppa johns is shit. Horrible, dry crusted shit. If I'm going to eat shitty pizza it's going to be little Cesar's cuz at least it's cheap shit.

I thought Little Ceasar's went out of business?

Nope. There's one by every high school in this area.

[sonrisa]

Internalizing a teeny amount healthcare costs into the cost of unhealthy food? Heaven forbid.