Papa John claims health care reform is too expensive

No wonder he got along so well with Romney.

I don’t care about the organization’s political beliefs. I care about the product, and I personally love Papa John’s pizza.

I think he’d argue that the hypothetical employees would try to utilize much more precise language, given the abundant and prolific number of words we have to choose from. I mean, the English language is PRECISE, my friend, so therefore:

No. They would not think he’s an asshole.

They would think that he is a puckered anal sphincter.

Papa John to world: I’ve been framed!!! Many in the media reported that I said Papa John’s is going to close stores and cut jobs because of Obamacare. I never said that. The fact is we are going to open over hundreds of stores this year and next and increase employment by over 5,000 jobs worldwide. And, we have no plans to cut team hours as a result of the Affordable Care Act.

Clearly there was some misunderstanding somewhere. The remarks that generated the headlines were made during an entrepreneur class I was asked to speak to at a Florida college. I was asked to share my experience as an entrepreneur and to provide the students with real-life small business situations. Unbeknownst to me, until she identified herself, a reporter was there. Emphasis added. I don’t know what “Unbeknownst to me, until she identified herself…” means either. He claims that he also said the following:
“The good news is 100% of the population (full-time workers) is going to get health insurance. I’m cool with that.”
“We’re all going to pay for it. There’s nothing for free.”
“And this way I get to provide health insurance and I’m not at a competitive disadvantage … our competitors are going to have to do the same thing.”

Nah, he’s too busy defining healthcare as charity and Catholicism as whatever his politics find it convenient to believe.

Agreed. Right here, this is where I laugh and remember I’m not speaking to an honest/rational opposition.

A tax to pay for healthcare insurance, purchased at the group rate to make it more affordable, so that ER’s everywhere can stop going so deep into the red whenever people can’t afford to pay… this is not charity. This is governance.

It’s a toll booth. Everyone has to pay to get to drive on the road. Until now, folks who can’t pay have simply been driving on the road, and not paying the toll. That’s the uninsured poor who go to the doctor and can’t pay, and our society says in some situations the doctor has to treat him anyway.

This is the person driving on the road without paying the toll.

The toll for the uninsured- now they’re insured. And the cost is passed along to the consumer, as it always will be, because businesses can raise prices if they like, so any way you tax a business, you will always simply be taxing their customers.

Comparing this to charity is disingenuous.

Instead of talking about reality, I’m finding more and more the opposition presents the debate on their own terms, using their own definitions, changing the debate to reflect a fictional alternative. Wasting time debating that is pointless.

The real debate begins after we stop using the false terminology and force them to debate using definitions that at are at least remotely reminiscent of real life.

Generally speaking, I prefer to eat Pizza that isn’t from a 100+ store chain/franchise: it’s a personal preference. Then again, in certain parts of the country, that might not be a sound guideline.

According to Consumer Reports, Papa John and Round Table have comparable pizza. The pizza is a little worse at Little Caesars, but value and speed are better there, so they achieve the same overall score as Papa John’s - which is pretty average.

Papa Murphy’s Take N’ Bake is superior to Papa John’s along every dimension, according to Consumer Reports.

Personally, if the franchise treats its workers like shit, I’m not inclined to give them my business. But the CEO says he was misquoted and backpeddled upthread, so I’ll cut him some slack.

Askthepizzaguy: Thanks for your comments. I had no idea that drivers were paid less than the minimum in effect (holy guacamole), though frankly I didn’t give the matter much thought. I order pizza delivery on pretty rare occasions, but I’ll keep your info in mind.

He also made several comments about how horrible Obamacare would be during a quarterly earnings report conference call.

I don’t think i’ll ever be desperate enough for pizza (of all things) to ever buy papa johns again.

…and one competitor, Jack in the Box, doesn’t think the Patient Protection and Affordable Care Act will be a big deal. He thinks it could be offset by a 1% price increase. Here are the details: Robert M. Derrington - Northcoast Research

Jerry, could you help us understand for a minute? We’re hearing a lot of concern and buzz about the whole beginning to look at the measurement period for the Affordable Care Act, otherwise known as ObamaCare. Can you give us a little bit of color on how do you manage the financial cost associated with that, both for the company as well as your advice to your franchisees, how they manage that?

Jerry P. Rebel - Chief Financial Officer, Principal Accounting Officer and Executive Vice President

Yes. Let me just make a few comments about that. One is, as I’m sure you know, there’s still a lot of unknowns regarding the health care law changes that go into effect in the beginning of 2014. We know that there – that the rules and regulations are still being drafted by the regulators.

But based upon what we know or what we believe we know, let me describe for you what I think the impact could be for us. So we’re looking at the impact on margin to be in the neighborhood of 50 to 100 basis points, assuming no mitigation activities. And if you just take the midpoint of that, that’s about $10,000 per restaurant based upon the 2012 population. Now I know that, that’s lower than what we have been hearing many talk about. So let me describe for you why we think we have a pretty good beat on this. And before I get there, while the $10,000 per store is not insignificant, that’s less than a 1% price increase to fully mitigate that. So I guess, we need to keep that into perspective.

So anyway, why not higher? Why not where we’re hearing a lot of the other folks talk about? First is at Jack in the Box and Qdoba, our managers and assistants are already offered health care by the company. Most of our part-time employees for both brands already average less than the 30 hour per week threshold. So we don’t believe that there’s going to be a big impact on having part-time employees actually be classified as full-time equivalents. And then also, we currently offer – even below management levels, we offer some level of health care plan, mini-med plan for the Jack in the Box full-time crew employees and we also offer a health care plan to the Jack in the Box team leaders. And what I can tell you is that while we offer currently and while we will certainly offer under the health care law, the employees are not required to accept it. And when you look at our current acceptance rate on what we offer today, it’s less than 20% acceptance rate for those groups of folks. And we’re not anticipating that we would have a meaningful appreciation in terms of the acceptance rate going forward.

And then just to further substantiate that, when you kind of look at what the population of our restaurant-level employees, and I would suggest even that in the industry, certainly below the management level, you tend to get a high level of turnover. I think if you look at the industry broadly, you’re looking at about a 100% turnover in that group of employee population. And we think because of that and you look at the acceptance rates that we currently have and the high levels of turnover, that we think that, that’s going to lessen the impact to our brands and why we have estimated the numbers that we have. Whether these part-time workers will do without medical insurance altogether or whether they will benefit from the medicaid expansion is unclear to me. Interesting nonetheless.

Excellent post, Measure for Measure.

Every weekend a few of my friends and I get together on Saturdays and order out - we easily spend 60-80 bucks on food.

From a LOCAL shop, we don’t like the chain shops.

And the driver gets at least $10 bucks in tip.

They know us by name and number now, so we skip the address part, exchange pleasantries and go right into the order. The drivers always get there quick too.

After reading PizzaGuy’s fine piece of writing, I might just throw in more for gas for the driver.

Oh, it’s the Pit…the Hell with the rich prick assholes who fuck with the little guy just trying to survive

Sounds like he was saying (without being too explicit about it) that most of the non-managerial staffers were teenagers who aren’t likely to be working the same job in a couple years. If so, the 20% acceptance is probably due to being covered under their parents’ plans.

Not sure how that applies to Papa John’s, but it can’t be too different.