Papa John’s CEO: ObamaCare Means Higher Pizza Prices
John Schnatter, CEO and founder of pizza chain Papa John’s, took a critical look at President Obama‘s Affordable Care Act recently, warning that the legislation will result in price increases for pizza.
The law changes that go into effect in 2014, he said, will increase the company’s costs — and those increases will be passed on to consumers. “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,” said Schnatter, who is a Mitt Romney supporter (and fundraiser).
He added, “We’re not supportive of Obamacare, like most businesses in our industry. But our business model and unit economics are about as ideal as you can get for a food company to absorb Obamacare.”
Those added costs, he promised, will make their way to consumers:
If Obamacare is in fact not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders best interests.
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