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Buzzfeed: Everything You Need to Know About the Internet's Feud with Papa John's Pizza


MattFancy

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http://www.buzzfeed.com/ryanhatesthis/everything-you-need-to-know-about-the-internets-f

Our best estimate is that the Obamacare [law] will cost about 11 to 14 cents per pizza – or 15 or 20 cents per order from a corporate basis. To put that in perspective, our average delivery charge is $1.75 to $2.50 – or about 10-fold our estimated cost of the Obamacare [law] to Papa John's. 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…. We have a high ticket average with extremely high frequency of order counts – millions of pizzas per year. To give you an example, Peter, let's say fuel goes up, which it does from time to time, and we have to raise delivery charges. We don't like raising delivery charges. But the price of fuel is out of our control, as is Obamacare. So if Obamacare is, in fact, not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto the consumer in order to protect our shareholders' best interest.

So how much would prices go up... if they were to fairly reflect the increased cost of doing business onset by Obamacare? Roughly 3.4 to 4.6 cents a pie.

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So basically Papa John's is just trying raise prices and come up with a lame excuse. And I mean really, would they lose customers because the price of pizza went from $10 to $10.10?

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Eh. The most damaging response people could possibly have is totally ignoring them and buying their pizza elsewhere. I don't really get the big pizza chains- papa john's, pizza hut, dominos, etc. in the case of pizza I'd much rather support a local hole in the wall pizza shop than one of them. Papa John's isn't even that tasty...none of them are. They're not horrible clearly but I don't know what the attraction is. I already thought their pizzas were overpriced. Ignore them and we'll see what they do about that.

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Probably not...especially when your pizza is one step up from cardboard.

What I really want to know is...does their pizza dough come to their franchises pre-made and frozen?

I don't think so. Pizza Hut's does though.

For the record I think Papa John's probably has the best pizza of all the chain restaurants.

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COmpanies pass costs along to the consumer?

No WAY!

My goodness, i always just thought the prices of things were set by the Price Fairy.

Good thing the free market allows for competition.

Hello, Dominos.

if I'm in the mood for crappy pizza, I've got plenty of options.

(And affordable health care for my obesity problems from all the pizza.)

~Bang

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COmpanies pass costs along to the consumer?

No WAY!

My goodness, i always just thought the prices of things were set by the Price Fairy.

Good thing the free market allows for competition.

Hello, Dominos.

if I'm in the mood for crappy pizza, I've got plenty of options.

(And affordable health care for my obesity problems from all the pizza.)

~Bang

I don't think people are complaining about the price, its just the way he's going about it. Saying how the price will have to go up 10-15 cents a pizza? BFD. If people can't afford 10-15 cents, then they have bigger issues than Papa John's pizza. It's the fact that instead of providing health care to his employees, he's just going to make them work less. No more Papa John's for me.

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Tell you what you greedy ****ing ****, I'll gladly pay the extra 15 cent for a pizza so that the people that break their backs for you can get the care they deserve.

You see, guys like him are what's wrong with the USA. He had no problem with healthcare as long as the cost of it was socialized and the tax payers were left to foot the bill for his insatiable hunger for profit.

His pizza is disgusting and so is his lack of morals and ethics.

Burn in hell you pizza slinging *******.

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I don't think people are complaining about the price, its just the way he's going about it. Saying how the price will have to go up 10-15 cents a pizza? BFD. If people can't afford 10-15 cents, then they have bigger issues than Papa John's pizza. It's the fact that instead of providing health care to his employees, he's just going to make them work less. No more Papa John's for me.

I get that,, my point was he's whining about it like

A/ a dime is really going to matter to someone willing to pay for delivery because they don't feel like putting on pants, and

B/ as if he's giving us a shocking revelation that he's going to pass the cost along.. just like everyone else is...

and we're really not so stupid out here to not realize it.

~Bang

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I get that,, my point was he's whining about it like

A/ a dime is really going to matter to someone willing to pay for delivery because they don't feel like putting on pants, and

B/ as if he's giving us a shocking revelation that he's going to pass the cost along.. just like everyone else is...

and we're really not so stupid out here to not realize it.

~Bang

Oh I thought you meant like the customers were whining about it.

But yeah he deserves to get slammed for this.

---------- Post added November-14th-2012 at 04:35 PM ----------

It's a bit myopic to think that this wouldn't happen. How many other companies are going to follow suit in the coming year? And it's the "Internet's" fued with them? Not sure what that even means.

What do you mean? That companies are going to cut workers and cut their hours because they don't want to pay a little extra to give them health care?

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Lol gets better for them: http://www.theverge.com/2012/11/14/3646000/papa-johns-pizza-sms-spam-lawsuit

A federal judge this week certified a $250 million class-action lawsuit against Papa John's pizza that alleges the company spammed some customers with over 500,000 text messages. The mass texting was conducted by several of the chain's franchises as a means of advertising pizza specials and distributing discount offers, but plaintiffs claim Papa John's never obtained their permission to make contact via SMS — a requirement under federal law. Further, the barrage of texts often came in the middle of the night, according to the complaint, with some customers hit with dozens of consecutive messages. SMS spam has unfortunately become a growing annoyance in recent years, leading major US carriers to team up in hopes of cutting back on unwelcome messages.

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As far as I know, the delivery drivers get an hourly rate plus tips. They don't get any of the delivery charge. They also talk about the price of gas going up, but the gas is paid for by the delivery people. The delivery charge is just a way to tack on more money for the cost of a pizza.

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Tell you what you greedy ****ing ****, I'll gladly pay the extra 15 cent for a pizza so that the people that break their backs for you can get the care they deserve.

You see, guys like him are what's wrong with the USA. He had no problem with healthcare as long as the cost of it was socialized and the tax payers were left to foot the bill for his insatiable hunger for profit.

His pizza is disgusting and so is his lack of morals and ethics.

Burn in hell you pizza slinging *******.

Wow! This is awesome!
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Uh, folks,

This tactic (implementing a price increase and claiming that the increase is because of the government) isn't exactly new, nor exclusive to Papa Johns.

I first noticed it when I was working for McDonald's, in Fairfax, in the 70's.

  • Labor was 18% of their gross, at our restaurant.
  • Minimum wage goes up 10%.
  • (Labor cost doesn't go up 10%. People who used to be making 25 cents above minimum, now make 15 above minimum. But those people are a small segment. 10% increase in labor costs is a good ballpark.)
  • So, costs have increased by 1.8%. (A 10% increase, of 18% of gross.)
  • Owner raises prices by 12%.
  • (Employees get a 10% pay raise. Owner's profits probably quadruple.)
  • Owner tells complaining customers that the price increase is because of minimum wage.

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can we PLEASE join the first world and just get socialized medicine now? employers like Papa John here are emphatically rejecting the notion that they give a **** about their employees and are indeed offended and angry that we would even make such an odious demand that they chip in a few dimes for coverage. i wonder how many life-saving prescriptions that underground car garage could have bought.

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