papa johns raising prices about a quarter per pizza, due to obamacare. thoughts?

Except that maybe their competitor doesn't pay health insurance, so they can sell their widgets 25 cents cheaper. As a result people buy those widgets instead of the company that provides healthcare widgets.

Say the average (median) wage earner makes 20K per year. The CEO makes $2.75 million.
http://investing.businessweek.com...INTL%20INC.

Premiums per worker are 3000 annually 6000 if they provide healthcare to the family. If you beggar the CEO you can pay for health insurance of 450 to 900 people. Papa Johns employs 16500 people.

Let's take the whole company. They make a billion in revenues, but the company only nets 55 million dollars. 55 million/16500=3333. If they refuse pay share holders, they can provide healthcare for their employees without raising prices.

Say you are going grocery shopping. One place has a sign up that says "we provide our employees with quality healthcare". The other doesn't (and doesn't provide healthcare). Healthcare market sells the exact same milk for $3 a gallon and the other sells it for $2.5 a gallon. Healthcare market sells your favorite microbrew for $8 a six pack, the other for $7.75. I know where you might claim you would shop, but the real question is, where do you think most people will go to buy their milk? Sure places like whole food do well in their niche. Unfortunately, the majority of people are extremely price sensitive to groceries. The same can be said of delivery pizza.

What junk food is cheaper than making your own?

Good to know that the steep cost of $0.14 per pizza was to high of a hurdle to provide those uninsured employees in the first place.

Schnatter later added: “If Obamacare is in fact not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders best interests,”

In 2005, Papa John's implemented delivery charges in the majority of its company-owned stores to increase profits. Papa John's current delivery charge (late 2010) is $2.50. The delivery fee is not part of the drivers tip. This is stated on pizza boxes and delivery receipts.
http://en.wikipedia.org/wiki/Pizza_delivery

Now, it the "delivery charge" is not a tip paid to the driver, but intend to increase profit - then they should just rise the pizza price and not mislead consumers calling it a "delivery charge"...



Good to see Papa John collecting delivery fees and pocketing it all themselves....

Anyone else find it odd, that Obamacare will increase the cost of a pie by 14 cents, but the title claim Papa John's is raising the price by a 25 cents because of Obamacare... I wonder where that 11 cents get factored in...

Ryu-bom's concern was with taxing it, not replacing it with an alternative. Your question is well suited for a separate discussion.

What junk food is cheaper than making your own?

my thoughts:

papa johns already offers full benefits to it's employees. even part-timers. they could actually end up saving money under obamacare if they shop around for new providers.

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1) If you think it's just conservatives that are against Obamacare, you must live in a leftist fantasy world

2) If you don't think they have offered alternatives, see above.

3) You really don't want to go there when it comes to sob stories from individual Americans, especially around election time, do you?

4) What conservatives have a stated position that the alternative to Obamacare is for everyone to die.

5) Taxing junk food would disproportionately affect the poor and middle class. Is that the Leftist platform to raise their taxes disproportionately? Better check that memo again.

6) If you think Papa John's is crap. like I do, then there are plenty of alternatives.

http://www.jobbite.com/reviews/papa-johns-pizza/

i think some of their employees will disagree with that.......

http://www.jobbite.com/reviews/papa-johns-pizza/

i think some of their employees will disagree with that.......