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Papa John’s CEO May Reduce Workers’ Hours Over Obamacare

John Schnatter says franchise owners may reduce workers’ hours to avoid paying for healthcare.

After vowing to raise pizza prices earlier this year due to the affects of Obamacare, Papa John’s founder and CEO John Schnatter will reportedly reduce the working hours of the pizza chain’s stores as costs of healthcare reform are passed on.

The Naples News reports Schnatter:

…was not “pro or against” the reform law but likened the government's involvement in health care to its operation of the U.S. Postal Service, saying “the worst entity in the world for running the thing is the government.”

Schnatter said it was likely that some franchise owners would reduce employees’ hours in order to avoid having to cover them.

“That’s probably what’s going to happen,” he said. “It’s common sense. That’s what I call lose-lose.”

About a third of Papa John’s employees are covered by the company's health insurance plan, although Schnatter said he has always wanted 100 percent of them on the plan. The rising costs of health insurance, he said, have been a deterrent.

“The good news is 100 percent of the population is going to have health insurance. We’re all going to pay for it,” he said, estimating the new law would cost the business $5 million to $8 million annually. 

The Affordable Care Act requires employees working 30 hours or more per week – considered full-time – to be provided with insurance at companies with 50  or more employees.

In August, Schnatter, who was a fundraiser and supporter of Mitt Romney also made headlines when he said that Obamacare would raise prices of his pizza 10-14 cents per pie, which would be passed along to consumers.

mick November 15, 2012 at 03:02 PM
This is very sad... America got what they asked for..4 more years of high unemployment, more people going on food stamps, big government, and higher national debt! We are going down the same road as Greece. God help us!
Lynn Borowski November 15, 2012 at 03:21 PM
According to Obamacare, starting Jan. 1, 2014 all companies employing 50 full-time employees, must provide the Government-designed Health Plan or pay a fine. The plan adds $1.79 per hour to the cost of a full-time employee OR 98 cents per hour per employee if the company chooses to pay the fine. (Stats from article by Betsy McCaughey in NY Post.) So, people, get used to paying more for Pizza and a a whole lot more. Many companies will choose to drop coverage, reduce their workforce or reduce hours. But, never fear, these employees will then be mandated to buy insurance thru the exchanges set up by the State. You do not have to fear about which one to chose, because all of them are the same since what is covered was written by Big Brother in Washington, DC. Oh, and for those who do retain their health-care plans through their employers, if it is a BETTER PLAN than the one designed in Washington, you will be paying a fine because THAT'S NOT FAIR!!!
Lynn Borowski November 15, 2012 at 04:56 PM
Adding to my above comment, just heard that Denny's Restaurants will be adding a 5% Obamacare charge to their menu prices. It will appear on the check as such. . Airlines have a fuel surcharge tax for a long time, and now we have an Obamacare surcharge. Welcome to, in the President's own words "The New Normal". Also, under Obamacare, the hours required to be considered full-time have also been reduced to 28.
Patronage Troll November 15, 2012 at 07:35 PM
So this is how Obama is going to create more jobs. At this rate everyone will have two 20 hour per week ones.
SLJ November 15, 2012 at 07:49 PM
BY 2014, when all the taxes kick in, the line you wll hear everywhere will be this: "Don't blame me, I voted for the other guy"...

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