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Papa John’s CEO Schnatter is Full of Bologna

Another melodramatic multi-gazillionaire has been at it again.

Papa John’s International Chief Executive Officer John Schnatter — a supporter of former GOP presidential nominee Mitt Romney and opponent of the Affordable Care Act — said he estimated compliance with the healthcare reform law would cost his company about $5 to 8 million annually.

The company made $1.2 billion in revenue last yer, with total operating expenses of $1.131 billion and a gross profit of $87 million.

In using Schnatter’s estimate that healthcare reform would cost his company $5 to 8 million more annually, Forbes magazine said providing healthcare translated into a 0.4 percent to 0.7 percent increase in the price of a pizza. Steve Colbert, and Schnatter himself, claim (OMG, are you ready for this? Please sit down if you’re standing)… they claim about a 14 cent increase in price will pay for the additional cost of ObamaCare! Well, slap some garlic and hot peppers on that and raise your pizza a whole quarter if you want. I have nary a clue as to what the price is now anyway. And the price does vary depending upon location. I don’t think they’ll lose on whit of business with a 25 cent increase for a pie. In fact, I may even come in and just pay for a pizza but not order one since I don’t care for their pizza. If that helps a student, or a young parent, or a divorcee get some health care coverage, I have no problem with that. Actually, I should order the pizza and give it to some of our homeless folk here.

According to Forbes, their estimate is roughly 3.4 to 4.6 cents per pie. I still say raise the price a quarter. Donate that additional revenue then after the tax write-off, you’ll actually see more profits compared to pre-Affordable Health Care. Additionally, the two million pizza giveaway costs more than the Affordable Healthcare Act (link in the related articles below).

CNN’s Tom Foreman has his own opinion from fact-checking, and it is not in Papa John’s favor. This fact check was from August 2012, so Schnatter has been carrying on for some time now.


Fact-Checking Papa John’s CEO

What has happened to business owners and CEOs with ethics? They’ve always been hard to find, but even more so now. Isn’t it a proven fact that happy employees are more productive employees with a lower turnover rate? Sure this is pizza, but this concept still applies. What is an integral part of being happy? Being healthy. I might add that knowing your big boss cares about your well-being is a nice mental boost, too.

You know, for supposedly being so successful, which typically takes strong person to make it that high up on the income ladder, there sure are a lot of cry-babies now that Obama won.

Get over it, raise the price of your pizza, and provide your employees with some healthcare. Not because you are required to do so, but because it’s the right thing to do.

I think Schnatter should be more concerned about this new item in the news from Huffington Post, “Papa John’s Allegedly Sent 500,000 Illegal Text Messages To Customers.” Their stock fell because of this on Tuesday, and Papa John’s faces potential damages of more than $250 million. The plaintiffs may each potentially receive $500 or more in damages for each text message.

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Sources and related articles:

UPI: Forbes: Papa John’s ACA cost, 5 cents
Mediaite: Papa John’s Pizza CEO John Schnatter Owes President Obama Two Words: Thank You
Forbes: Breaking Down Centi-Millionaire ‘Papa’ John Schnatter’s Obamacare Math
Papa John’s gives away 2 million pizzas
MSN Now: Papa John’s pizza giveaways cost more than Obamacare, report says


      • NOOOOOOOOOOOOOOOOOOO…..step away from the pizza franchise stuff Michelle….I could make you a fresh home made pizza to make you forget Pizza Hut

        • Okay. Actually, I didn’t say I liked Pizza Butt. I tolerate it. I rarely cook and Albuquerque has some great Mexican food restaurants, but pretty much pizza franchises. I can only think of one privately own place, which is at least owned by an Italian family.

  1. Thank you for your most pointed information. Just another example of a multi billion dollar corporation punishing their employees because President Obama won reelection. Profit trumps employees everytime with these greedy CEO’s. Thanks for holding their feet to the fire by exposing their legal corruption.

    • no, not because he won, but for what he does.
      His care is a disaster that will coast millions to others, decrease in health care and etc. Have you talk to your doctor about it? I bet s/he is not happy about it. On the other hand did you really expect to hear the truth about Obama’s doing HERE? Really? You are not that naive, are you? If you want to learn the truth, I dare you to seek it elsewhere.

  2. When I first heard about this I thought: How absurd!! This is a man who lives on so much acerage, he has his own golf course. No, not a home on a golf course, his own. I tried to find a way to contact the company and tell them I’d pay the 14 cents if it meant employees got coverage, but if he elected not to raise his pizza price by a few cents, then I and everyone I could convince could certainly buy our pizza elsewhere. I did find the address of the headquarters and wrote a note via snail mail.

    Papa John’s International
    P.O. Box 99900
    Louisville, KY. 40269-9990

    • SWEET! Thank you for the address! The kicker is giving away so many pizzas. Raising the price of a pizza 14 cents is no big deal. He’s just cutting his nose off to spite his face.

  3. True. It’s no surprise he was a Romney supporter. In a side note, Mittens was a guest at his house and said, and I quote.

    “Republicans would say everyone should live like this and democrats would probably say NO ONE (emphasis, his) should live like this.”

    What they don’t get is, not everyone wants their own golf course. If I had that much land, I’d put it to more productive use. ( windmills, homes for the homeless, organic farms, etc.)
    Besides as Rodney Dangerfield said, cemeteries and golf courses are biggest wastes of prime real estate.

  4. With a gross profit of $87 million, it seems to me he could cough up $5-8 million for the benefit of his employees. I realize there’s a difference between gross and net profit, so if there’s really no leeway, go ahead and raise the price. Anyone who can afford to buy pizza in the first place isn’t going to blink at a quarter increase.

    Whatever happened to employers who feel their employees are an investment, an important and valued part of the organization? Has the profit motive totally superseded being a decent, caring human being?

  5. Just an addendum to my previous post. There’s a petition at SignOn.Org to protest reducing worker’s hours so John Schnatter doesn’t have provide health care benefits.

    • LOL… Yeah, I know what you mean. Apparently people do otherwise they wouldn’t have profited all that money. Actually for a frozen pizza brand, California Pizza Kitchen has a fairly decent frozen pizza-pie.

  6. how dare you tell a business owner what he should or should not do? How dare you count what he has. HE WORKED FOR IT!!!! IT’S HIS. And he will do whatever he wants with it.
    Gee, how quick you adapted Obama’s socialist mentality.

    • Nope. Has nothing to do with Obama. You see, my parents were very successful business owners. Very successful. And they made sure their employees had insurance and was paid very fair wages. My parents – we all lived comfortably, but definitely not high on the hog because my parents employees worked as hard as my parents did, if not more, and my father and mother wanted to make sure every employee was happy in their lives – at least as far as an employer can do. You see, my parents understood that without their employees, they were nothing. When mom and dad finally retired, there were several employees who had worked for my father their entire lives, and retired along with him – and the COULD retire. And my parents did not spend money on wasteful items that only reek of decadence, like a moat around our house. And we could all lay our head down at night knowing that we treat our fellow man the way we hope to be treated. Oh, and they were Democrats and believed in “we” and not “I.” Thankfully they are no longer around to see how hateful this world has become. They taught me about values and integrity. I have more integrity in my little pinky than most people have their whole lives, and that goes for Schnatter. The amount of profit does not make a good person. It’s what they do with the profit that defines good or bad.

      See, it’s people like you who are causing this country to be divided. “He worked for it, it’s his.” “mine mine mine mine mine” “you can’t have it, it’s mine” “I want I want I want” Sweetheart, you are not the center of this universe, nor am I, nor is greedy Schnatter. I do pity you.

      • If I want a moat and I can afford it with the money that I earned than why is it anyone’s business but mine? You say that what people do with their profit defines if they are good or bad. Can you not also see that telling other people what to do with what is theirs is also bad? Would you like it if I told you what you should do with what is yours? Of course not.

        • He’s crying about money out of his pocket. If he raised the price of his pizza by 14 cents, that will cover the cost of the health care. And, please…. restaurants and ALL businesses have had to bump up their prices all the time for various reasons. This one is no different. He is being stubborn and throwing a GOP tantrum. And yes it is his money and he can do what he wants with it, so long as his employees are taken care of. He’d rather cut back on their hours than raise the price of a pie less than a quarter! He’s cutting his nose off to spite his face. He doesn’t give a SHIT about his employees and would rather sacrifice them so he can try to make a point about health care, but it’s more like whining. Soldier up asshole. According to Forbes analysis in that video, it actually only comes out to less than a NICKEL per pie. If he refuses to raise the price a nickel and cuts back on employee’s hours, then he needs to be nominated for the biggest asshole CEO in the world. He has no morals, no respect. To me he is nothing more than rat turds, and I most definitely will never eat another Papa John’s again. Not that it really matters… it’s been years since I’ve had one anyway.

          Also, he’s obviously not doing so bad if he’s giving away 2 million pies. If he had morals, he could give away one million and cover the affordable care. If you have ever been sick without having insurance coverage, than you’d understand how important this health care is. And no, companies will not cut back in hiring because of this. Those are just republicans whining. Talk about a bunch of whiners. Small companies are not required to get health care. I just changed jobs and my previous one was for a small mom and pop with a total of 5 employees, not including the owner and her husband. They STILL got health care coverage for anyone who wanted it and that required them to pay HALF the monthly premium, which wasn’t cheap. The owner wanted to make sure her employees were taken care of, even though she is just barely covering her costs right now. She knows that there is much less turnover and productivity is higher when people are healthy.

    • Oh, btw… If Romney is an example of capitalism, and Obama is socialism (which he isn’t, but for the sake of argument, I’ll play along), I will take socialism any day! You are showing yourself to be such a sheeple by calling Obama a socialist. The haters started doing that and the followers have brought up the rear. Most people do not even know what socialism truly is! Just like communism – which in it’s purest form is actually a very peaceful way to live. So, please. Call him a socialist, call me a socialist… words and titles just don’t change facts. GO SOCIALISM!! Woo-hoo!!!

  7. Alas…Pappa John is a Louisville guy. It’s amazing how hawking pizzas can make you believe you actually have something to say. Money, however, will grant you the spotlight. The whole discussion about pizza versus Obamacare has been nothing but a black eye to Schnatter and I’m not sure that fact has even registered with him yet.

    • Who knows. Someone commented here on this page, “… how dare you… it’s his money…” and a bunch of other stuff. She doesn’t get it either. It never ceases to amaze me how just plain old “stoopid” people can be. I’m beginning to believe in the conspiracy theory of “dumbing down America” — but only on the Republican side.

  8. Not to get in a debate here, but the fallacy of this argument is that the Pappa Johns CEO is determining the cost of insurance as a percentage of his margin ($87 million), while the author of this article is referring to the healthcare expense in relation to Pappa Johns’ overall revenue which is &1.2 billion. I agree that all full time employees should have the right to full healthcare coverage, but I thought a point of clarification was in order.

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