Five reasons why Papa John's should raise the dough for employee health care


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2. Because slowing international growth and/or hiking pie prices are feasible solutions

According to a recent article in Zack's Equity Research, "In the next six years, the company expects to open approximately 1,500 restaurants, including 300 in North America and 1,200 in the international market." Papa John's isn't expanding for survival -- companies don't generally focus on expansion unless they have some nickels and dimes to spare, in their corporate couch cushions. So perhaps putting the international stores on hold for now, or scaling back on overseas expansion would free up the cash to pay for affordable health care. In another recent article, this one in Forbes, broke down the math on how much Papa John's would have to raise prices to make up the difference in employee health care. "For the sake of argument, let's say that Papa John's sells exactly half medium/half large specialty pizzas," the article says. "Averaging the ranges for both sizes, then averaging that product yields a .86% price increase -- well outside the range of what Schnatter says Obamacare will cost him. So how much would prices go up, under these 50/50 conditions, if they were to fairly reflect the increased cost of doing business onset by Obamacare? Roughly 3.4 to 4.6 cents a pie." So much for the A-pizza-lypse talk that Schnatter is spewing.

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1. Because sour-grapey Romney supporters need to move on

Does this vehement clamoring for corporate justice have anything to do with the fact that Romney supporters just got lobbed in the jimmies? Well, shockitty-shock-shock, John Schnatter was a Mitt Romney supporter, even throwing a private fund-raiser for the candidate at his mansion. According to the Los Angeles Times, Romney was given a tour of the grounds and he declared, "Who would've imagined pizza could build this. This is really something. Don't you love this country? What a home this is, what grounds these are, the pool, the golf course...This is a real tribute to America, to entrepreneurship." But, ike many other rich Republicans, Schnatter got President Obama instead of President Romney, and those wasted campaign contributions could very well give some bitterman vibes. But fucking over your own employees to make a statement about Obamacare seems a little much. Time to move on, John.



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16 comments
mturner1004
mturner1004

I love Papa John's pizza, business cost are factored in for every business that is created. The RISK of money in and out of the day to day operations of running that business. A business has to make a profit, or there is no sense in the owners taking the risk of losing the money to GIVE people jobs. The pizza business is competitive and you have to stay in the competitive range of pricing, or you lose customers and go out of business. If there were no RISKS in owning a business, everyone would have one. More people prefer to NOT take the risks of their money, time, etc,  So they DON'T have a business and prefer to work FOR someone in a job they like and go home. They do not  have to worry about anything concerning the business (long hours, money they don't have, that was borrowed to start the business and has to be paid back, headache of employees not showing up for work, etc, etc) . Customer loyalty programs, giving me a free pizza, keeps me coming back to Papa Johns- this helps the middle class (me) to be albe to buy the Pizza, and the choice of buying from them again, when I can afford to eat out the next time. 

MamaPink
MamaPink

Wow, so sad, more bashing of the republicans. When are the rude comments going to stop? Guess it is time to stop reading the Cafe Society columns -particularly from this author.

tedomatic
tedomatic

This is why the people who create regulation and taxes work in either media or the public sector: because they don't understand that a 5 million dollar hit to a business is huge. They don't realize that the main purpose of a business is to create profit.

Jennisadipsh1t
Jennisadipsh1t

Once again Jenn proves how clueless she is about business.  Well done queen of the dipsh*ts.

ScubaSteve
ScubaSteve topcommenter

Schnatter needs the $$$ to pay Peyton Manning to be his spokesface.

turtleposer
turtleposer

 @mturner1004 I actually dated an entrepreneur.  His specialty is start-ups which he runs for about 5-10 years then sells.  He was an extreme liberal.  I asked how he felt about taxes and employee benefits. While he was obviously concerned about costs, he'd still take the risk and create a new business.  He's created several and is quite wealthy, though not as wealthy, but has lost everything a couple times, but not because of his employees, but because his idea wasn't a good one.  This man blamed himself, not others for his success or failure.

 

Schnatter is not a true risk-taker, but someone who wants to conserve his money.  Maybe at one time he was, but really, a man who has a castle and a moat is no longer someone who's going to be out on the streets if he took a risk.

ScubaSteve
ScubaSteve topcommenter

 @mturner1004

 

What the hell are you babbling about?  Your babble has absolutely nothing to do with cutting employees hours to avoid paying health care benefits. 

jenna-furrr
jenna-furrr topcommenter

 @mturner1004 And it's possible that you will end up getting a hot, delicious pie that was hacked on by some poor, sick employee who can't afford a doctor visit. I say go the extra mile with ordering--or getting your free pizza--and ask for extra phlegmy sneeze juice on top.

hazelrah
hazelrah

i don't really understand what you're trying to say. nobody is advocating for papa john's or the franchisees to not make money. nobody is saying that there isn't risk involved in owning a business. nobody is saying that customer loyalty programs are a bad idea. what IS being said is that IF maybe they cut back on the free pizzas they give out just a teeny bit, they could probably afford to give their employees health care. as for me, i'd say it's not a big deal if their pizza goes up by 14 cents. i'd gladly pay 14 cents a pizza if it means people who work long hours for not great pay get health care. 

mturner1004
mturner1004

 @tedomatic a quote from Gandhi: “Truth is by nature self-evident. As soon as you remove the cobwebs of ignorance that surround it, it shines clear.”

People don't take the risk of being in business, not to make a profit, they close down, as Hostess just has, they don't need the hassle. That's why most of the people who are ranting, will never own a business, they don't know how, don't have the money, or don't want the hassle, and regulations that go with it.

jenna-furrr
jenna-furrr topcommenter

 @Jennisadipsh1t Can I be princess of the dipshits? I've always wanted to be a princess of something. And I bet the tiara for this title will be pretty neat looking.

hazelrah
hazelrah

 @Jennisadipsh1t care to elaborate, or did you just pettily create an account insulting the writer to say basically nothing? you're kind of a waste of space.

turtleposer
turtleposer

 @mturner1004  @tedomatic  The people you describe are not risk-takers, but people who give up way too easy.  Remember, Hostess is not a start-up, but run by CEOs who basically get a business handed to them.

 

Besides, Hostess is competing with better tasting products.  Perhaps rather than blaming the employees, the CEOs should've come up with better products rather than riding the coattails of someone else's success.

tedomatic
tedomatic

 @turtleposer  @mturner1004 That is a great point. Hostess has been using the same business model for the last 40 years. They were due to go under. And like you pointed out in another post, entrepreneurship is not owned by conservatives. It is about taking a risk, believing that your idea can be monetized, and jumping in.

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