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Restaurants brace for Obamacare by cutting hours, layoffs and hiring freezes

John Schnatter Papa John’s CEO

John Schnatter Papa John’s CEO: Obamacare likely to raise costs, employee’s hours being cut

A day after Barack Obama earned a second term in the White House, Papa John’s founder and CEO John Schnatter said the president’s signature health-care reform law would increase his business costs and possibly result

Posted: 11/08/2012
By: JESSICA LIPSCOMB, naplesnews.com
A day after Barack Obama earned a second term in the White House, Papa John’s founder and CEO John Schnatter said the president’s signature health-care reform law would increase his business costs and possibly result in employees’ hours being cut.
Schnatter, a part-time Naples resident, made the comments Wednesday night inside a small auditorium at Edison State College’s Collier County campus. In August, he made national headlines after telling shareholders the Affordable Care Act — commonly known as Obamacare — would result in a 10- to 14-cent increase for customers buying a pizza.
“I got in a bunch of trouble for this,” he told the students. “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.”

Read more: https://www.wptv.com/dpp/news/state/john-schnatter-papa-johns-ceo-obamacare-likely-to-raise-costs-employees-hours-being-cut#ixzz2BsW5bXHY

Applebee’s targeted after franchisee mulls hiring freeze in response to Obamacare
Posted at 9:32 pm on November 9, 2012 by Twitchy Staff
Craig W@Stoneious
So far I’ve seen Papa John’s and Applebees threatening to fire people since their choice didn’t win the election. Disgusting on either side.

Among the commandments of life under the Obama administration: thou shalt not speak ill of Obamacare. Papa John’s CEO John Schnatter was hammered with Twitter abuse after informing shareholders and franchisees in August that implementing Obamacare would necessarily increase costs of running the business. Applebee’s is under the gun today after Zane Tankel, a franchisee whose company runs 40 New York-area restaurants, told Fox Business Network that a hiring freeze might be in the works.

https://twitchy.com/2012/11/09/applebees-targeted-after-franchisee-mulls-hiring-freeze-in-response-to-obamacare/

6 thoughts on “Restaurants brace for Obamacare by cutting hours, layoffs and hiring freezes

  1. Just an excuse for some companies to screw people. I believe most people in this country already know a business will always pass along cost.

    1. Clueless as to how things work ing the real world…

      raise costs; impose regulations – businesses need to compensate by cutting costs.

      It is immature to think that any business can pass along increased costs and the consumer will just pay the increased price for the goods or services.

  2. Jjj, I’m going to take a really wild guess here. You’ve never owned a business, right?

  3. Presently own a good small business that does over ten million per year haow about you two idiots?

    1. Well I’m sure your clients will be happy to know that you will readily jack up your prices and pass on all of your additional Obamacare overhead costs to them, rather than looking for ways to offset these burdensome regulatory costs by reducing some of your other costs – including reducing staff if that is what it takes to keep your unit prices level.

      No one wants to reduce staff, but when faced with the choice of keeping your clients (by keeping the costs of your goods or services at a reasonable level even if it means reducing staff) OR raising your prices by passing on 100% of your Obamacare costs to them and subsequently losing at least some clients which ironically would force you to reduce staff anyway in the long run, the smart businessman will offset the regulatory costs in any way possible.

      Besides, when raising prices to your clients don’t you want to keep the increase as profit, rather than raising prices just to pay another government fee?

      Not knowing exactly what your “ten million dollar” figure represents – net or gross, sales, income, revenue, etc… and not knowing what market segment you are in, I will go out on a limb and assume that you are talking about some gross revenue number and realizing that 10M in revenue is not particularly large in most markets, I still do not know why you would want to raise your prices – with all of the negative connotations associated with a price hike (especially during an economic downturn) and get none of the benefits (profits)?

      Not good business.
      No one likes to fire anyone, but sometimes you are forced into this situation and it needs to be done to save the entire business. It is even more disturbing if you are forced into this situation by an onerous government regulation.

      You need to decide if you are running a business (no matter how small it is) or if you are running a charity.

  4. thats bull shit. it’s because he is not selling pizza,a like he did in the past. and the pizza sucks.

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