by Angela Nazworth | August 8, 2012 5:24 pm
Popular pizza chain Papa John’s (NASDAQ:PZZA) plans to raise its prices, and its founder and CEO is blaming Obamacare for the increase.
John Schnatter, who openly supports Mitt Romney, said during a recent shareholders call that when Obamacare goes into effect in 2014, the chain will be hit with higher costs, Politico reports. The CEO estimates that Obamacare will cost 11 to 14 cents per pizza.
“We’re not supportive of Obamacare, like most businesses in our industry. But our business model and unit economics are about as ideal as you can get for a food company to absorb Obamacare,” Schnatter said.
Schnatter also made a promise to shareholders.
“If Obamacare is in fact not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders best interests.”
The opinions contained in this column are solely those of the writer.
Want to share your own views on money, politics and the 2012 elections? Drop us a line at firstname.lastname@example.org and we might reprint your views in our InvestorPolitics blog! Please include your name, city and state of residence. All letters submitted to this address will be considered for publication.
Source URL: http://investorplace.com/investorpolitics/papa-johns-blames-obamacare-for-pizza-price-increase/
Short URL: http://investorplace.com/?p=211987
Copyright ©2016 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.