Papa John’s Pizza CEO to Cut Hours of Employees; Puts Blame on Obamacare

Papa Johns CEO Cuts Worker Hours

While supporters for Barack Obama celebrated his win for a second term in the White House, big business reacted negatively to the news. The first was the market dropping more than 200 points following the news of Obama’s victory. Next, massive feedback on social media voiced concerns for companies on Twitter as people speculated that companies will be planning massive layoffs now that Obamacare has become a reality. Finally, with the controversy surrounding Obama’s mandate to make sure employees are provided health insurance to those who work thirty or more hours, Papa John’s, one of America’s largest pizza chain, has formally declared that it will shorten workers hours as a result of expenses related to healthcare.

John Schnatter, the CEO of Papa John’s Pizza, said that workers hours would have to be shorten as a result of the costs of healthcare. Schnatter said, “That’s probably what’s going to happen. It’s common sense. That’s what I call lose-lose.” Other large companies seem to be speaking out in agreement to Schnatter by saying “it’s simply business.”

Papa John’s CEO made his comments on Wednesday evening while inside a small auditorium at Edison State College’s Collier County campus. Back in August, Schnatter ended up making national headlines following his revelation to shareholders that the Affordable Care Act, which is commonly known as Obamacare, would end up with increases of 10-to-14-cents to customers buying a pizza. He told students that, “I got in a bunch of trouble for this. That’s what you do, is you pass on costs. Unfortunately, I don’t think people know what they’re going to pay for this.”

Schnatter supported and did fundraising for Mitt Romney but said he was not “pro or against” the reform law. He did, however, refer to how he would like the government’s involvement in healthcare to be by how the U.S. Postal Service is operated and said, “The worst entity in the world for running the thing is the government.” At the moment, roughly a third of the employees that work at Papa John’s are covered by the company’s health insurance plan even though he has said he would like 100 percent of them to be enrolled. Unfortunately, the rising cost of health insurance has prevented this from happening. “The good news is 100 percent of the population is going to have health insurance. We’re all going to pay for it,” Schnatter said, estimating the new law would cost the business $5 million to $8 million annually. Under the Affordable Care Act, those who work 30 hours or more a week would be mandated to receive health insurance at companies that have more than 50 workers. According to Schnatter, it was more than likely that there would be franchise owners who reduce hours of their employees to avoid having to cover them. He said, “That’s probably what’s going to happen. It’s common sense. That’s what I call lose-lose.”

Papa John’s CEO mixes pizza & politics

The CEO of Papa John’s claims Obamacare could raise prices 11-14 cents a pie. CNN’s Lisa Sylvester reports.

ObamaCare costing Papa John’s more ‘dough’

11 Comments on "Papa John’s Pizza CEO to Cut Hours of Employees; Puts Blame on Obamacare"

  1. Even before The President was re elected this company was doing bogus offers on the internet
    They would advertise one thing then when you tried to get the offer it would never materialize.
    This is not the only company that works this fiasco.
    I am in the process of having nopthing to do with those that are pulling this scam.
    Watch out folks
    Business id business when you are offered one thing and it does not materilize it is not you its a scam
    By papa John

  2. no more papa johns for us!! lil cesars, here we come!! 44 million bucks and he is crying over insurance for the most under paid, over worked men and women? talk about greedy!!!

  3. christa wallin | November 12, 2012 at 5:53 pm | Reply

    Do these CEO’s even think what they are saying?
    No morals or ethics and a screw the employees tactic!

  4. Well. On the upside, Papa John’s Pizza kind of sucks (I would rate it on equal culinary footing with Domino’s, but with them there’s the whole donating-heavily-to-the-pro lifers,probably also donating heavily to other hateful stuff that goes along with that generally),so I don’t guess I’ll be missing the (NOT) deliciousness of their product. Though I will say that they run those two-for-one specials and things all the time, and I’ve certainly gone there when there are hungry kids and everyone is exhausted and you just want to get dinner over with without a whole lot of whining and spending a pile of money. That said, John Schnatter is an insanely greedy, stupid man (but not surprising;many of those who have made a fortune exploiting others are just like him). In Canada, TWENTY YEARS AGO they were already charging over five bucks a pack for cigarettes, but people didn’t bitch about it because that money guaranteed that every single citizen gets to go to the hospital if they break their leg or get cancer. We are a country of whiny babies. OH NO! 15 cents more per pizza! How will I possibly come up with that? Come on people, suck it up. And if not and Papa John’s goes out of business, and whatshisface has to sell his 22 cars and his castle, I’m sorry, I don’t give a shit. Hopefully his place in the market will be taken by someone who realizes that being fair to his workers is actually, in the long run, the SMART way to go, business wise, for more reasons than I have space to list.

  5. Baby having a tantrum. Papa John’s can give away 2 million pizzas but they’ll take it out on their own employees just to make a political dig. That’s pretty irresponsible management–using your company as a tool in personal battles.

    Let’s see…52 million people insured or cheap Papa John’s pizza? Tough decision, tough decision. I might have to go with cheap ass greasy pizza.

  6. I’d boycott, but I stopped buying Papa John’s because the crust tastes like cardboard. “Better ingredients. Better pizza?” I’m not even sure his ingredients are biodegradable.

  7. Realize first, that the CEO of Papa John’s is a super-rich jack-wagon who lives in castle the size of Luxemburg. Sure, a boycotting Papa John’s is an option, but we must know that a boycott of Papa John’s will not negatively effect it’s CEO personally as much as it will effect his employees. I think If you really like Papa John’s pizza more than that of other pizza places, you can make a statement by paying the extra 14 cents per pie but also sending multiple critical letters to Papa John’s CEO. Maybe you could throw in an extra quarter in with one of the letters suggesting he use it to buy some morals and ethics. For me, I like Domino’s because, unlike Papa John’s, they have good a gluten-free pie that accommodates my wheat allergy. So, F U Wuss John. You’re not my Papa. You’re just a whiny B.

    • Yeah,

      Then there is Pizza Hut, Dominos, Denny’s, Olive Garden, Little Caesars, etc etc.and any other chains that will have to do the same thing. You people on the left never understand economics. Just react with emotion when someone tells you of the truth. Did Obama. No. I and my company have seen a 40% increase in premiums for this scheme of the president to capture 1/6 of the economy. The damn thing is not even in effect yet. .It will go up another 40% before it comes into effect. That will be an increase of 80% in three years. Remember we started where I work with premiums of $400.00 per family. So thank you for your emotional.” I will not buy from them.” and have fun saying to all the businesses you work with when all of their prices go up. Use you head not just your emotion laden heart. Its unbecoming an educated person.

  8. Well there’s one business that won’t be seeing me as a client.

  9. There’s one Papa John’s here in Boulder that just may go out of business because of his remarks.

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