ONTD Political

Papa John's CEO John Schnatter Says Company Will Reduce Workers' Hours In Response To Obamacare

10:14 pm - 11/09/2012

Papa Johns Obamacare

In the wake of President Obama's reelection, one CEO is doubling down on his criticisms of Obamacare.

Papa John’s CEO John Schnatter said he plans on passing the costs of health care reform to his business onto his workers. Schnatter said he will likely reduce workers’ hours, as a result of President Obama's reelection, the Naples News reports. Schnatter made headlines over the summer when he told shareholders that the cost of a Papa John’s pizza will increase by between 11 and 14 cents due to Obamacare.

"I got in a bunch of trouble for this," he said, referring to the comments he made in August, according to Naples News. "That's what you do, is you pass on costs. Unfortunately, I don't think people know what they're going to pay for this."

Schnatter went on to say he's neither in support of, nor against the Affordable Care Act, even admitting that "the good news is 100 percent of the population is going to have health insurance.” But he’s not the only one in the chain restaurant industry to admit that workers hours may be reduced, since Obamacare mandates that only employees that work more than 30 hours per week are covered under their employers health insurance plan. For example, Darden restaurants, the parent company of Olive Garden and Red Lobster, has already experimented with reducing workers hours in anticipation of the legislation.

Others have responded to the added costs of Obamacare more harshly, includingApplebee's which has said it won’t hire new workers because of the law. Just this week, a Georgia business owner also claimed he cut employees due to Obamacareand in fact had specifically laid off those who he thought had voted for President Obama.


Welp, yet another reason to patronize my local pizza place (that and their pizza isn't total shit...Go Amante is Seattle!) Also, yeah--I realy believe that this douchcanoe is totally neutral on Obamacare. Riiiiight.
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ook 10th-Nov-2012 03:48 pm (UTC)
Note that John had the cash to give away 2 million free pizzas in their current Papa John's promotion, but he doesn't have enough money to shell out for some health care for loyal employees? What a dick.

Guess that's it for ordering stuff from Papa John's. No dick pizza for me!
layweed 10th-Nov-2012 05:56 pm (UTC)
I honestly don't understand how he can give away millions of pizzas as promotional tools but complain that they can't afford to pay healthcare for employees. Seriously.

In fact, I don't understand how they can give away millions of pizzas to begin with. CSB: A carpet/flooring retail store here in Central Texas had this deal where everyone who bought from them between certain dates would get a full refund (i.e. get their purchase free) if Josh Hamilton hit like 4 home runs during a specific Rangers game. Apparently they could do so because they could do some sort of insurance write-off thing. Is that how this pizza giveaway works? Or are they just like "HEY FREE PIZZAS DON'T WORRY ABOUT ALL THE MONEY WE'RE LOSING 'COS WE STILL MAKE A PROFIT SUCKS TO BE YOU EMPLOYEES!"
arisma 10th-Nov-2012 03:58 pm (UTC)

Location: Stonegate Road, Louisville, KY
Square Feet: 40,000

This 40,000 square foot mega-mansion is owned by John Schnatter. Schnatter is the founder, chairman, and CEO of the Papa John's pizza chain. The castle-like mansion was designed by Don Evans, and Orlando architect. It also has a multilevel subterranean garage with 22 parking spaces, an office for valet parking, a built-in car wash and a giant motorized turntable to help move limousines. It is divided into 14 parking spaces for the family on one level and eight spaces for guests on another, with an elevator between the two floors. John had a net worth of $402.6 million back in 2006, a figure that has definitely risen over recent years.
bowling_otaku 10th-Nov-2012 04:00 pm (UTC)
Ugh. So he's going to reduce his employees' hours while he lives in a fucking mansion. This guy. :|
astridmyrna 10th-Nov-2012 04:01 pm (UTC)
There needs to be part-timers rights or something, because I'm sick of employers cheaping out on health insurance by cutting hours so that they a) don't have to pay for it and b) their employees won't be able to afford it unless they can maybe wrangle another part time job.
layweed 10th-Nov-2012 04:10 pm (UTC)
Idk, I think they'll still try to wriggle out of part-timers rights or whatever legislation gets passed by pulling more bullshit. What I'd really like to see is them held liable for this shit in court. Sue their fucking pants off so hard that anyone else from a small business to a major corporation doesn't even fucking dare think about doing something like this again.
grey853 10th-Nov-2012 04:01 pm (UTC)
This guy works out our state and gives away millions of pizza for publicity, but can't take care of his employees, which he pays pitifully anyway.

He's a fucking millionaire, but the hell with the people who helped him become one.

Asshole won't get another dime from me, that's for sure.

nesmith 10th-Nov-2012 06:07 pm (UTC)
Same here. I guess it's a good thing that a) there are lots of really good locally-owned pizza joints around where I live, and b) I'm not crazy about PJ's any more.
bowling_otaku 10th-Nov-2012 04:01 pm (UTC)
My reasons for preferring to patronize Paisano's Pizza (along with a few other local chains, but Paisano's is my favorite) increase with every day, apparently.
etherealtsuki 10th-Nov-2012 08:23 pm (UTC)
This is why I am glad that I live in NYC. Although occasionally I do get Domino's but the city usually have a pizzeria within a 5 block radius.
bestdaywelived 10th-Nov-2012 04:01 pm (UTC)
I started boycotting him when he made those ridiculous comments in the first place (like, OH NO, NOT .15/PER PIZZA MORE), but this cements that I won't be wasting my money on that slop they call "pizza".
shadowwolf1321 10th-Nov-2012 04:06 pm (UTC)
I boycotted him as well, that and I didn't like the taste of his pizza. I won't be stepping foot in there ever again.
layweed 10th-Nov-2012 04:02 pm (UTC)
What happened to the cost increase so you could cover workers' healthcare costs, John? Why don't you just absorb the costs, John? Why are you such a fucking rich douchebag, John?
maynardsong 10th-Nov-2012 04:43 pm (UTC)
IKR? Why can't HE downsize the cost of that fucking mansion of his? Never mind that most people who aren't him ARE willing to pay an extra fucking DOLLAR per pizza to cover fucking healthcare costs.
shortsweetcynic 10th-Nov-2012 04:06 pm (UTC)
whatever, assbag, didn't like your pizzas anyway.

that 30 hours a week figure is giving me the belly-rumblins about the company meeting my husband's employers have called next week. he's currently full-time; as soon as he said something i said "they're going to cut your hours, your pay, or both, and blame it on obamacare. mark my words."

and they'll do it so that they don't have to give up that third vehicle or brand new boat.

(i really, really hate those assholes, btw. they are a tiny and shining example of why trickle-down doesn't work.)
shortsweetcynic 10th-Nov-2012 04:07 pm (UTC)
edit: wait, never mind. that's for business with 50+ employees and I think the shop tops out around 20.

ultraelectric 10th-Nov-2012 04:08 pm (UTC)
I really want to throw my Intro to Business textbook at him, with the health insurance part all highlighted.
ragnor144 10th-Nov-2012 04:16 pm (UTC)
Does your textbook point out a positive link between insurance and worker productivity?
seirina 10th-Nov-2012 04:10 pm (UTC)
Shit just got real. I never ate at Chik-Fil-A in my life , but it looks like Papa John's is officially off the list now.

Also, your icon! Love. Did you know there's a new CC/Niles comm? mybabybymyside

Err, I have no idea what trick my browser was playing... just seeing your icon is not what I thought it was. LOL, sorry...

Edited at 2012-11-10 05:40 pm (UTC)
littlelauren86 10th-Nov-2012 04:11 pm (UTC)
damn, what assholes. I actually liked their pizza. Nevermind.
scriptedending 10th-Nov-2012 04:22 pm (UTC)
I know, right! Fortunately, I have no problem boycotting businesses with policies I don't agree with - no Wal-Mart for the past six years, no Chik-Fil-A, and now no Papa John's.
ragnor144 10th-Nov-2012 04:15 pm (UTC)
Yet another (or is it the same?) reason to go single payer.
shoujokakumei 10th-Nov-2012 04:19 pm (UTC)
This whole response from CEOs and business owners has shown me something I already knew: They're all fucking assholes!

You're fucking rich, you fucking douchebags! Is it so goddamn bad if you make a little less money so the people who work for you can fucking have healthcare? Quit being such selfish fucking pricks!
romp 11th-Nov-2012 08:46 am (UTC)
That's the problem with the whole culture IMO. You have to know when you have ENOUGH.
shhh_its_s3cr3t 10th-Nov-2012 04:20 pm (UTC)
People are acting like this is real news. IT ISN"T NEW FOLKS! Almost every industry that can has hired people "part-time" so they can work then 29 hours and get out of providing real benefits. So let's go on and feed into the hatred.... dumb people are going to stay uneducated as long as it supports their fear. :(
scriptedending 10th-Nov-2012 04:25 pm (UTC)
It's not new, but when a CEO comes out trying to justify his selfish motives, it puts a spotlight on the practice and target on his back. And every time I read one of these articles, I read about other prominent employees that do the same thing, and I avoid frequenting them.
nicosian 10th-Nov-2012 04:26 pm (UTC)
what an asshole.

So let me get this right:
1. pay workers so little they can't afford insurance on their own dollar.
2. Refuse/resist to cover it fairly as part of the salary as it was historically intended if I'm correct.
3. Refuse reform that would allow single payer or low cost insurance plans.

exactly HOW then, do they anticipate people get JOBS! that cover insurance, like all the bootstrappers squeal on about?

And dude, with your castle and moat and petulant whining: boo.hoo. Your riches are a result of your employees. Do them good and give them insurance and quit sniveling. It might mean one or two less posh cars a year or no fresh aligators in your moat, but it might mean more healthy, productive, loyal staff.
arisma 10th-Nov-2012 04:32 pm (UTC)
Dude has a MOAT. I think this sums up the situation nicely.
ellonwye 10th-Nov-2012 04:27 pm (UTC)
Wahh I didn't get my way and so I shall stamp my feet and punish unrelated people!
weswilson 10th-Nov-2012 04:28 pm (UTC)
I wish I ate their stupid pizzas just so I could stop.

Sadly, even if people do boycott, it will only hurt his employees... not really him... but hopefully it will teach future jackasses not to shoot their business in the ass by being a tool.
veracity 10th-Nov-2012 04:29 pm (UTC)
And this is why I love my Riverside Pizza. It's 5 bucks for a basic pizza before 5, usually prepared, and with breadsticks it's like 8 bucks total. Hello, Riverside. Be my new BFF.

Note: I can't eat chain pizza food. It makes me sick. Plus, let's see. Pizza Hut refuses to admit I live where I do (a huge apartment complex), Domino's takes literally 1.5 hours, and Papa John's tastes like burnt tomato sauce on undercooked cheese.

Don't anyone tell me anything bad about Mellow Mushroom, either. Soooo good.
obscurative 10th-Nov-2012 07:16 pm (UTC)
ugh mellow mushroom is delicious.
darknessdivine 10th-Nov-2012 04:33 pm (UTC)
Jeeze, it's not like his company doesn't rely on part-time employees already, so who is he kidding? What a cock.

Also, more reason to make my own pizza.

eta: hrf, I need to comment when I'm more awake. I missed a few words.

Edited at 2012-11-10 05:40 pm (UTC)
randomtasks 10th-Nov-2012 04:38 pm (UTC)
He's probably been wanting to do this for awhile and Obama's re-election just gave him the excuse to do it.

Chain pizza is gross tho.
etherealtsuki 10th-Nov-2012 08:28 pm (UTC)
Domino's is decent after that rehaul.

But every pizza outside of Domino's and Pizza Hut is usually rancid. And a good ol' moms-and-pops pizzeria ALWAYS beats out any fast food chain.

Hell, I am eating a meatball parm from my local pizzeria and it's so much fucking better than Subway's. The ground beef ball keeps breaking apart because it's made out of real ground beef. LOL.
ultraelectric 10th-Nov-2012 04:41 pm (UTC)
By the way. I'm just gonna put my special comments in. I'm currently a culinary student and these are my special comments on this.

1) health insurance is a deductible tax expenditure.
2) If restaurants/food places are so concerned with cost, they would do several things to change this. The Food Industry has a high turnover rate, this has to do with several reasons, poor working conditions, POOR MANAGERS WHO DON'T TRAIN STAFF PROPERLY, poor purchasing skills and wasted product. And yeah, times are tough so you should probably train your staff to have good personalities and not shitty ones -- I've been to several with very bad personalities manners, in this economy I say no to that, you want people to eat and enjoy your restaurant than train your staff to be good people.

The Restaurant Industry has bigger shit to fry than Obamacare.

end rant & special comments. ;)
rkt 10th-Nov-2012 05:37 pm (UTC)
I've been to several with very bad personalities manners, in this economy I say no to that, you want people to eat and enjoy your restaurant than train your staff to be good people.

omg yes.
nyc places are horrible about this. one of the few (otherwise irrelevent) aspects of this economy being what it is was wait staff were no longer just pretty faces but actually had decent personalities to boot. though, it's started to revert again, so. i blame obama for pushing (slowly) the economy back up hill.
sihaya09 10th-Nov-2012 04:42 pm (UTC)
Okay, so that's gross.
hrhqod1 10th-Nov-2012 04:43 pm (UTC)
So what I get from this is a few more restaurants to boycott due to their asinine politics and lousy employer practices. My wallet and waste line will thank me.
myrrhmade 10th-Nov-2012 05:06 pm (UTC)

Fuck this guy and his shitty pizza too. I buy my pizza from a little mom and pop parlor. It's a bit more $ and about a 15 minute more drive, but so what.
darth_eldritch 11th-Nov-2012 01:40 am (UTC)
Yep. There's a great mom and pop near here where we get pizza and chicken wings. Who needd douchebags like this.
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