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Customer Discussions > Politics forum

The real cost of the Patient Protection and Affordable Care Act on a Papa John's pizza.


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Showing 1-24 of 24 posts in this discussion
Initial post: Nov 12, 2012 7:14:47 PM PST
Last edited by the author on Nov 12, 2012 7:17:42 PM PST
Papa Johns says that giving health insurance that meets PPACA standards to all of its employees would cost an additional 11 to 20 cents per pizza.

Let's look at where the cost of employee health coverage sits in the cost of the average pizza.

An Extra Large Specialty Pizza is $18.99 and feeds about 4-5 Americans, or maybe just 1 of those Tea Party women you see on the electric scooter at Walmart every time you go there.

Papa Johns charges a $2 delivery fee that the driver never sees, so it's really a $20.99 pizza.

Indiana's Republican legislature and Governor impose a 7% sales tax, so add $1.47

Huntington, Indiana's 100% Republican city government imposes a 1.5% take out or delivery "fee". (Republicans sometimes call taxes a fee now.) Add 31 cents.

If you're not a total jerk, you'll tip the driver 15% of the pre-tax total. (Whether the $2 delivery fee that the company steals from the driver is part of the pre-tax total is debatable. Let us assume that it isn't for the tip. The state and city taxed us with the $2 fee included.) There's $2.85

So your $18.99 pizza is really $25.62.

Health insurance for their employees takes us from $25.62 to $25.73 or maybe even $25.82.

Oh god, please, no, stop!

The "Obamacare fee" is 0.044% of the cost of your pizza if we assume 11 cents, or perhaps as much as 0.08% if we assume 20 cents per pizza.

Let's take the middle of the estimate and assume that Obamacare is 0.06% of your pizza, or roughly 15 cents.

That's less than half of Huntington, Indiana's carry out tax, and about 13.5 times smaller than Indiana's sales tax.

You'd have to be pretty stupid to complain about an extra 15 cents on a $25.62 pizza.

If you feel you're being over-taxes and that the money is being wasted, please contact the Indiana Department of Revenue and their Republican bosses. (And then Jenny Craig, if you're one of those Hippo Ladies from Walmart.)

Posted on Nov 12, 2012 7:23:35 PM PST
Papa Johns only made $56 million in profit last year. Slim margins on over a billion in revenue. Oblamercare is going to sink them.

$2000 - $6000 per employee per year. 16,000 employees.

You pulled your numbers out of your ass. I actually researched it. But that is how liberals do this. Ready, fire, aim.

In reply to an earlier post on Nov 12, 2012 7:24:47 PM PST
Put the 15 cents on the pizza. Just not my pizza, because I will not be ordering anything from them.

In reply to an earlier post on Nov 12, 2012 7:25:30 PM PST
Last edited by the author on Nov 12, 2012 7:25:51 PM PST
The estimate of the additional per-pizza cost actually came from John Schnatter. It's not like the CEO of the company would know...

In reply to an earlier post on Nov 12, 2012 7:26:24 PM PST
http://www.dailykos.com/story/2012/11/12/1160765/-My-Urgent-Letter-to-John-Schnatter-RE-Papa-John-s-Public-Health-Crisis

Gentlemen,
While I used to purchase pizza at Papa John's, I will no longer be purchasing any food items from your stores. I have also let all of my friends and family know of this decision and its importance. By not providing those individuals who make your pizza with affordable health care you are complicit in the creation of a public health hazard. Across the country, sick employees with neither insurance nor paid sick days come to your stores and make pizza on a daily basis.

John, I understand your concerns about providing health care for employees -- were I a business owner I would not want to be involved in health care either. You're a pizza guy, not a doctor. Therefore, instead of whining about $0.14/pizza, why don't you invest your energy, personality and brand in demanding single payer, 'Medicare for All' social health insurance for all Americans?

True leaders provide solutions, not just complaints. If you really care about both the cost of your pizzas and the care of your employees (and I'm not so sure your record indicates that you do care about your employees all that much), you will immediately call for health care to be provided by the government, and not capricious employers like yourself. Such a policy would absolve you of your responsibility to provide insurance for employees and would also level the playing field between your own business and other restaurants in terms of employment costs.

In short, at the very least, you have a moral and ethnical obligation as a restauranteur to immediately put an end to the public health crisis that you are currently perpetuating by not providing adequate medical care or paid sick days to your employees.

Looking forward to your reply, and your solutions.

A Former Customer,
J

In reply to an earlier post on Nov 12, 2012 7:26:59 PM PST
Last edited by the author on Nov 12, 2012 7:27:30 PM PST
Kilgore says:
i thought the ceo gets most of his money from the franchise fees and forcing the franchise buying their product to make the items.

In reply to an earlier post on Nov 12, 2012 7:30:29 PM PST
Last edited by the author on Nov 12, 2012 7:30:58 PM PST
That's probably true. You'd still expect that the CEO should know what he's talking about or be replaced by one that does. Not all Papa Johns franchises would even be covered by the PPACA. If you have less than 30 employees, you're definitely exempt iirc. Some franchisees only own 1-2 stores.

Those employees would qualify for the Medicaid under the expanded income tests, since Papa Johns pays them so badly.

Posted on Nov 12, 2012 7:33:08 PM PST
"Papa Johns only made $56 million in profit last year..."

Maybe their profit margin would increase if their product wasn't so crappy. :-p

In reply to an earlier post on Nov 12, 2012 7:33:59 PM PST
<Not all Papa Johns franchises would even be covered by the PPACA. If you have less than 30 employees, you're definitely exempt iirc. Some franchisees only own 1-2 stores.>

Which is why I don't understand why the CEO is increasing the pizza costs across the board. Shouldn't that be the franchisee's decision? Must be greed I guess.

Posted on Nov 12, 2012 7:35:37 PM PST
Well, the town I live in only has about 17,000 people, but at least 11 pizza companies (national and local) to choose from. There's better options than Papa Johns.

I usually go to Bruno's (local).

In reply to an earlier post on Nov 12, 2012 7:37:16 PM PST
I figure he's just another angry Romney supporter that is mad that his taxes won't be zero and is venting all his rage on "Obamacare" because it's a convenient target and a few die hard right wingers are still listening.

In reply to an earlier post on Nov 12, 2012 7:41:44 PM PST
Last edited by the author on Nov 12, 2012 7:43:44 PM PST
nameinuse says:
I know the CEO of PapaJohns is rabidly right wing.

My husband used to hate it when I ordered from there because of that...but I dont care. Their online ordering setup is a lot easier to navigate than the others were.

And when you get enough points you got free pizza and with teen boys we had a lot of points at one time. Theyd just order their own whenever because the credit card information and favorite orders were saved.

In reply to an earlier post on Nov 12, 2012 7:41:45 PM PST
That's what I think too. And he's definitely a Romney supporter who contributed to his campaign. He would not have gone public with this if he weren't sore about it.

Posted on Nov 12, 2012 7:43:59 PM PST
Last edited by the author on Nov 12, 2012 7:44:46 PM PST
The funny thing is that Schnatter went to Ball State University here in Indiana (I used to live in Muncie, actually), and he got federal aid for students and low interest student loans.

He must be one of those Republicans that wants social programs shut down *after* they finish getting their piece of the pie or are sure they'll never use it themselves.

In reply to an earlier post on Nov 12, 2012 7:50:32 PM PST
They all benefit off social programmes whilst they whine about them at the same time. ;o)

Posted on Nov 12, 2012 8:03:43 PM PST
E says:
Schnatter's business will REALLY fail when all of his employees start dropping dead from illnesses that could have been prevented by having health insurance.

And hey, why are people so against Obamacare when its almost the same plan Romney used in Massachusettes? And it worked.

In reply to an earlier post on Nov 12, 2012 8:07:44 PM PST
I know, makes you wonder how many MA businesses complained doesn't it? Or went out of biz because of it. It's still the law, so obviously most of them survived. ;o)

In reply to an earlier post on Nov 12, 2012 8:09:50 PM PST
That's not how they think. They think "So what if an employee dies? We can get a new one."

Posted on Nov 12, 2012 8:22:41 PM PST
E says:
Obviously the complainers have never had, or known someone who had, a preexisting illness and needed healthcare.

Nor have they ever been unemployed and had to get a job at a fast food joint, where they give you a free meal during your shift.

Come to think of it, fast food places should be FIRST to offer their employees health insurance to combat all the unhealthy habits you could potentially pick up during the course of your employment there.

Posted on Nov 13, 2012 1:02:41 AM PST
Bob Bykowski says:
venussansfurs,

Congratulations on your letter to the greedy CEO bastard John Schnatter at Papa John's. Very well written and expressed superbly.

If I'm under a time crunch and I have to use a pizza chain for carryout or delivery, I'll stick with Dominos. Otherwise, the mom-and-pop pizza shops in my area will always have my business.

Posted on Nov 13, 2012 1:22:15 AM PST
Menkaure says:
Given that the average length of employment in fast food restaurants is 2.5 months, and the training and paperwork this kind of turnover costs, I'd think Schnatter would be more concerned about keeping employees than losing them.

In reply to an earlier post on Nov 13, 2012 2:24:31 AM PST
he's not covering all of his employees with the $.15 cents. They still have 8500 employees that will work 30 hours or less week. it would be $1.40 a pizza to cover all of them.

In reply to an earlier post on Nov 13, 2012 2:25:52 AM PST
papa johns net profit is about 10-11%.

In reply to an earlier post on Nov 13, 2012 2:33:50 AM PST
entropybydesign says:
Papa Johns only made $56 million in profit last year. Slim margins on over a billion in revenue. Oblamercare is going to sink them.

$2000 - $6000 per employee per year. 16,000 employees.

You pulled your numbers out of your ass. I actually researched it. But that is how liberals do this. Ready, fire, aim.

======================

for some reason they have no clue. Also not considered is all the vendors who work with papa johns and how obamacare might affect their pricing.
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Discussion in:  Politics forum
Participants:  10
Total posts:  24
Initial post:  Nov 12, 2012
Latest post:  Nov 13, 2012

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