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Jane Richey / August 8, 2012

Obamacare Will Raise the Cost of Pizza

Pizza chain Papa John’s told shareholders that President Obama’s health care law will cost consumers more on their pizza.On a conference call last week, CEO and founder John Schnatter said the health care law’s changes — set to go into effect in 2014 — will result in higher costs for the company — which they vowed to pass onto 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,” Schnatter said.

“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,” he said.

“If Obamacare is in fact not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders best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 vowed.

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Filed Under: Fiscal Responsibility, Free Markets Tagged With: John Schnatter, Obamacare, Papa Johns

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