Papa John: Repeal Obama Care or I’ll raise prices
(WTVR) – We’ve heard plenty of concerns voiced about President Obama’s health care reform law, but here’s a new one: It will raise the cost of a pepperoni pizza.
The president and CEO of Papa John’s says unless the law is changed, he’ll be forced to increase the cost of his products. John Schnatter says the cost of providing health insurance for all of his pizza chain’s uninsured, full-time employees will have to be passed on to customers.
That comes out to up to a 20 cent increase on a large pizza.
“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.
Schnatter made the announcement during a call with shareholders this week.
Papa John’s isn’t the first fast-food chain to express concern about the healthcare mandate. According to the Wall Street Journal, Burger King, Dunkin Donuts and Quiznos have all said they’re worried it could hurt their bottom line.
McDonald’s, however, has already announced they’ll absorb the additional insurance costs, rather than pass them on to customers.