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.
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.
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.
I won’t even start with the “this isn’t a tax” meme. You can pay it directly, or indirectly, but, you will pay it. Suddenly, though, this doesn’t seem to be taxing the right group of people! And, even worse, these types of mandates have a cascading and multiplying effect.
Sure, originally, Papa Johns is only going to charge 15-20 cents more per order. But, then, what happens when the grocer/produce people have to do the same? What happens when the trucker industry has to do the same? And the rest of the transport industry? So now, the 20 cents is suddenly more like a couple of dollars. Did you notice the franchise owner debating on whether to expand or not? So, we’re raising the costs and decreasing jobs. But, the decrease in jobs directly effects sales.
And, these people don’t go that deep in the steps for final product! Think how many industries are involved in auto production or home building? Each step starting from the company which provides the raw material to the company which provides the finished product must add to costs or ensure they don’t expand over 50 employees. Well, there is another option to avoid all of this. MOVE OFFSHORE!
One Big A$$ Mistake America!! One Big A$$ Mistake. I’m getting me another beer.