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.
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.
(no subject) - Anonymous
skellington1 10th-Nov-2012 09:37 pm (UTC)
Absolutely. The obvious economic end is that you lose less time in the hiring-and-training process and have more experienced, efficient workers, but from the customer end low turnover is good for loyalty.

Heck, I shop at Safeway -- a chain I'm not terribly fond of -- because it's close to my house and I don't own a car. And I frequent that safeway even when I've borrowed a car because the staff is AWESOME and they have changed in five years -- it feels like a neighborhood store.

I pretty much don't go to chain restaurants, so I can't compare apples to apples, but I'd think it would matter even more.
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