Papa Johns prefers to give away 2 million pizzas than insure his employees!

[JustAlex]

http://www.huffingtonpost.com/2012/1...n_2123207.html

^Papa Johns' CEO John Schnatter is complaining about Obamacare and how much it's going to cost him to insure his employees.

He says it could cost him $5 - $8 million to insure his employees......According to Forbes the pizza chain would have to raise prices by 3.4 to 4.6 cents per pie.....something which most consumers would most likely not mind!

However, Papa Johns is currently running a promotion where they are giving away 2 million pizzas for free which would cost the franchise betweeen $24 and $32 million.

So, here we have a BIG BUSINESS complaining about the "horrible" Obamacare and how he will have to "waste" $5 - $8 million so that his employees are insured, but he has no problems doing a promotion which is costing him $24 - $32 million.

[jlzinck]

Please if you are going to quote something make sure it's not mindless drivel.

2 million pizza's, mostly given by franchises who are small business owners will have no more than 10-12 million in total cost. It's advertising.

[JustAlex]

They say it could cost Papa Johns up to $32 million for the 2 million pizza giveaway because they are adding the cost of the advertisement and endorsement of Peyton Manning.

Also, if you yourself say that it would cost them $10 - 12 million, then that's more than enough to cover the cost of insuring employees at Papa Johns.

[mrveggieman]

I'm done eating at Papa Johns. I'm going to support the small mom and pop pizza shops.

[AUTaxMan]

Do any of these brainy analyses attempt to estimate the profit to be realized by PJ's both in terms of pizza sales and market share retained/gained as a result of this advertising campaign? If you know anything about running a business, you can't simply act like money spent on advertising is a pointless expense that won't generate any profit and/or that it's just extra cash sitting in the bank account that should otherwise be spent on health insurance, which generates only losses.

[mrveggieman]

Do any of these brainy analyses attempt to estimate the profit to be realized by PJ's both in terms of pizza sales and market share retained/gained as a result of this advertising campaign? If you know anything about running a business, you can't simply act like money spent on advertising is a pointless expense that won't generate any profit and/or that it's just extra cash sitting in the bank account that should otherwise be spent on health insurance, which generates only losses.

Yes I am aware of advertising costs when running a business but that aside this guy is acting like he is going to go broke by providing his employees health insurance. If he wants to cry broke now imagine how much more revenue he will lose when people stop eating there because he refuses to do right by his workers.

[AUTaxMan]

Yes I am aware of advertising costs when running a business but that aside this guy is acting like he is going to go broke by providing his employees health insurance. If he wants to cry broke now imagine how much more revenue he will lose when people stop eating there because he refuses to do right by his workers.

I would estimate close to zero. In fact, I'd guess that more people will patronize his business because of his stance than those who will boycott it. See Chick-Fil-A. Also, there is no need to "do right" by his workers. There is no more moral imperative to provide health insurance than there is to house and feed all of them.

[mrveggieman]

I would estimate close to zero. In fact, I'd guess that more people will patronize his business because of his stance than those who will boycott it. See Chick-Fil-A. Also, there is no need to "do right" by his workers. There is no more moral imperative to provide health insurance than there is to house and feed all of them.

You could be right but like you and others say let the market decide. I for one even though I enjoy getting vegan pizzas from them cannont not and will not support their business and I will encourage others not to. There are more people who think like me on this issue.

[pghin08]

I would estimate close to zero. In fact, I'd guess that more people will patronize his business because of his stance than those who will boycott it. See Chick-Fil-A. Also, there is no need to "do right" by his workers. There is no more moral imperative to provide health insurance than there is to house and feed all of them.

The first rule that any business owner should have is to do right by his employees. If you have happy employees who want to come to work each day and want to do right by their boss, you'll probably have a successful business. You brought up Chick-Fil-A and how patronized they were after their gay marriage comments. People can disagree with Chick-Fil-A's religious beliefs, but that's a company that does things the right way. They offer decent benefits, and even re-imburse college tuition for some employees. Not to mention (I'm pretty sure they all do this), they let the employees eat for free. I've never met someone that worked at Chick-Fil-A and didn't say nice things about the company itself.

I would've thought someone like John Schnatter would understand stuff like this. He built Papa Johns from NOTHING. I think he sold his car to buy his first pizza place. You would think someone like that would understand the plight of the common man.

Edit: I'm not boycotting Papa John's, but I never eat there anyways. I don't care for 99% of chain pizza, particularly when I have cheaper and far tastier local options.

[shrewsbury]

who ever wrote the article knows little about business, as taxman pointed out, promotions and advertising bring business, providing health insurance does not. Peyton also owns a franchise now, so PJ got some money back out of that endorsement.