Papa John's Obamacare Costs Are Far Less Than Price Of Free Pizza Giveaway
News flash to Papa John’s CEO John Schnatter: Obamacare isn’t the only thing costing your business money.
The pizza chain head has made his views on the Affordable Care Act clear in recent months, claiming the new health care law will cost his business about $5 to $8 million per year. To compensate Schnatter's said he will likely raise pizza prices and cut back some workers’ hours so he doesn’t have to insure them.
Caleb Melby of Forbes has graciously done the math on Obamacare’s cost to Papa John’s and according to his analysis, to cover the cost of Obamacare, the pizza chain would have to raise prices by 3.4 to 4.6 cents per pie -- way less than the 11 to 14 cents Schnatter claims he needs.
And there are other changes the chain could make to save some money, Melby notes, like not giving away 2 million pizzas for free at a cost of between $24 and $32 million to the company, for example.
(Read Melby's full analysis here)
We're guessing Obamacare won't impact life at Schnatter's lavish home, a 40,000 square-foot mansion in a tony suburb of Louisville, Kentucky, that features several swimming pools, a private golf course and a 22-car garage among other amenities, according to CelebrityNetworth.com.