Seawytch
Information isnt Advocacy
All these RW sore loser franchise owners are full of shit.
Breaking Down Centi-Millionaire 'Papa' John Schnatter's Obamacare Math - Forbes
This is one way to fight the obesity epidemic...be such a douchenozzle, nobody wants to buy your crappy food.
Breaking Down Centi-Millionaire 'Papa' John Schnatter's Obamacare Math - Forbes
Last year, Papa Johns International captured $1.218 billion in revenue. Total operating expenses were $1.131 billion. So if Schnatters math is accurate (Obamacare will cost his company $5-8 million more annually), then new regulation translates into a .4% to .7% (yes, fractions of a percent) expense increase. Its difficult to set that ratio against the proposed pie increase, given size and topping differentials, but many of their large specialty pizzas run for $16. Remarkably, a 10-14 cent increase on a $16 pizza falls in a comparable range: .6% to.9%. But the cost transference becomes less equitable if youre looking at medium pizzas, which run closer to $12, meaning a .8% to 1.15% price increase.
For the sake of argument, lets say that Papa Johns sells exactly half medium/half large specialty pizzas. Averaging the ranges for both sizes, then averaging that product yields a .86% price increase well outside the range of what Schnatter says Obamacare will cost him.
So how much would prices go up, under these 50/50 conditions, if they were to fairly reflect the increased cost of doing business onset by Obamacare? Roughly 3.4 to 4.6 cents a pie.
In September, the company announced that it would be giving away 2 million free pizzas. That was, of course, a promotion designed to increase brand awareness and to invite consumers to try the brand with the ultimate goal of selling more pizzas. Those giveaways cant really be cataloged alongside sales that would have been made otherwise. But just in case youre curious, that would be the equivalent of $24 million to $32 million in pizza revenue.
For the sake of argument, lets say that Papa Johns sells exactly half medium/half large specialty pizzas. Averaging the ranges for both sizes, then averaging that product yields a .86% price increase well outside the range of what Schnatter says Obamacare will cost him.
So how much would prices go up, under these 50/50 conditions, if they were to fairly reflect the increased cost of doing business onset by Obamacare? Roughly 3.4 to 4.6 cents a pie.
In September, the company announced that it would be giving away 2 million free pizzas. That was, of course, a promotion designed to increase brand awareness and to invite consumers to try the brand with the ultimate goal of selling more pizzas. Those giveaways cant really be cataloged alongside sales that would have been made otherwise. But just in case youre curious, that would be the equivalent of $24 million to $32 million in pizza revenue.
This is one way to fight the obesity epidemic...be such a douchenozzle, nobody wants to buy your crappy food.