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Papa John’s Plans To Cut Hours Blaming Obamacare

Papa John’s CEO John Schnatter is planning on slashing worker’s hours, laying off people, and doing a bunch of other stuff all because of President Barack Obama’s reelection, or so he claims. According to Schnatter, healthcare reform will cause the price of a Papa John’s pizza to go up between 11 and 14 cents because of Obamacare.

Many businesses including Walmart cut hours for their workers to below thirty hours a week in order to avoid having to pay for insurance and other benefits long ago. In fact, it was a method of reducing costs pioneered by Sam Walton. Papa John’s is not the only one threatening to make this move. Darden Restaurants, the owners of Red Lobster and Olive Garden, are already experimenting with cutting costs by reducing hours.



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8 Responses to Papa John’s Plans To Cut Hours Blaming Obamacare

  1. Stardog

    November 17, 2012 at 3:14 pm

    Its big business like Walmart killing off the working class. Not allowing the people to matain or reach the middle class. The U.S. is becoming a service industry country…..

  2. RTD

    November 14, 2012 at 1:27 pm

    #”Jesus Christ” -

    Fair point – more employees only create more revenue when enough customers exist to keep workload at a sane level and customers served in time.

    It takes ALL kinds to run a successful business. Not just the franchise owner and the customers, but those workers in the middle that do the work that make the product that keeps customers coming back.

    That’s the context that should fill in the gaps on this issue. And those workers that make the successful product are the ones more likely to spend and reinvest in the economy as a whole. Reduce wages and staff and there is an inevitable knock-on effect…

  3. RTD

    November 14, 2012 at 1:24 pm

    Obamacare = Romneycare on a nationwide level. The details are easy to find via simple research…

    And as customers dwindle, the companies go under anyway.

    Seems to be a catch-22 either way and for a wider range of reasons…

  4. Mary Ann

    November 13, 2012 at 9:35 pm

    What is missing is when you take care of your employees, you take care of your customers. Hiring Full-time employees is better for business because they are more vested. Part-time employees will continue to look for a full-time job, thus you’ll have a revolving door. The costs for training new employees goes up, the cost of hiring goes up. Really 15 cents a pizza, I think people are worth the added cost.

  5. Mike Colucci

    November 13, 2012 at 6:32 am

    Dear papa John…

    1. longer hours would bring in more revenue, thus offsetting any tax burden you say you may have,not shorter hours….as fixed costs do not change
    2. I have a good idea for you…STOP making what you call “Pizza” it taste like SHIT and it is NOT Pizza

    • Bridgette P. LaVictoire

      November 13, 2012 at 11:04 am

      Regarding #2…I make my own pizzas at home. They taste fantastic. Even my rather fussy father thinks so. Homemade foods may take longer, but with a little know how and a lot of watching cooking shows they can be far better than the crap that the restaurants are selling.

    • Jesus Christ

      November 13, 2012 at 12:02 pm

      How would an employee working more hours create more revenue? I think you are misunderstanding what they mean by cutting hours. The store will be open the same amount of time. Now instead of one employee working 40 hours, two will work 20.

    • adamas

      November 13, 2012 at 10:15 pm

      Which means they have to TRAIN an extra body, and potentially lose both when they find a better job, which means they have to hire and train ANOTHER two, which will eventually leave, and so on and so forth. Meanwhile the customers get served by people who either don’t know what they’re doing, don’t care because they’re more worried about where to find a job that can actually pay the bills, or both. Then they lose customers, which means lower profits.