Pizza lovers can expect to pay a little more at Papa John’s in the future, thanks to President Barack Obama’s health care law, according to the chain’s founder, John Schnatter.
“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 told investors last week, according to a report by Politico.com. He was referring to health care law changes that go into effect in 2014.
Schnatter, a supporter and fundraiser for presumptive GOP presidential nominee Mitt Romney, said the higher health care costs for the country’s third-largest pizza takeout and delivery chain will be passed on 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“If Obamacare is in fact not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders’ best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,” Schnatter reportedly said.
The restaurant industry also is concerned about the impact of the health care law on already slim profit margins following a U.S. Supreme Court ruling that upheld key parts of the law. The National Restaurant Association called the ruling troubling for restaurant operators and business owners across the country because the law requires companies of more than 50 employees to provide affordable health insurance or face steep penalties.
According to Businessweek, McDonald’s expects the health care law to cost each of its 14,000 franchises between $10,000 and $30,000 annually, and Burger King, Quiznos and Dunkin’ Donuts also expect the law to hurt business, according to a Wall Street Journal report.
As of June, there were 3,973 Papa John’s restaurants operating in 50 states and in 33 countries, according to a report on the company’s second-quarter results.
Politico noted that another pizza chain’s top executive warned a sitting president years ago that his proposed health care law would also hurt business. WSB radio commentator and recent GOP presidential candidate Herman Cain issued the warning to Bill Clinton during a televised town hall meeting in April 1994 when Cain was CEO of Godfather’s Pizza. “Your plan is simply a cost that will cause us to eliminate jobs,” Cain told Clinton.