Political Eye
By

Brian Montopoli /

CBS News/ November 21, 2012, 12:08 PM

Papa John's CEO: My Obamacare claims were twisted

NFL stars Peyton Manning (right), Jerome Bettis (left) and Papa John's Founder, Chairman and CEO John Schnatter during a commercial shoot at Lucas Oil Stadium in Indianapolis.

NFL stars Peyton Manning (right), Jerome Bettis (left) and Papa John's Founder, Chairman and CEO John Schnatter during a commercial shoot at Lucas Oil Stadium in Indianapolis. / AP Images for Papa John's

Papa John's founder and CEO John Schnatter wrote Tuesday that the media had it all wrong in its reporting on his comments on how the national health care law known widely as "Obamacare" will negatively impact his business.

"Many in the media reported that I said Papa John's is going to close stores and cut jobs because of Obamacare," he wrote in the Huffington Post. "I never said that. The fact is we are going to open over hundreds of stores this year and next and increase employment by over 5,000 jobs worldwide. And, we have no plans to cut team hours as a result of the Affordable Care Act."

Schnatter, who supported and fundraised for Mitt Romney in the presidential election, went on to say that while his company is still researching the impact of the law, "we will honor this law, as we do all laws, and continue to offer 100% of Papa John's corporate employees and workers in company-owned stores health insurance as we have since the company was founded in 1984."

Schnatter wrote that his remarks to a class at a Florida college were taken out of context. According to his telling, he was asked if franchise owners would cut back hours to make them part time in order to keep from having to provide health insurance. "Well, in Hawaii there is a form of the same kind of health insurance and that's what you do, you find loopholes to get around it," he responded. "That's what they're going to do." He also called it "common sense" that some business owners would cut hours to avoid paying for health insurance.

Schnatter stressed Tuesday that he was taking about the actions he expects Papa John's franchisees to take, not the plans of his company. "Since our franchisees own the restaurants they operate, who they hire, how many hours they give each employee and what they pay each employee is up to them, not me or Papa John's," he wrote. He also noted that he told the class that he was "cool with" more Americans getting health care and that under the health care law "I get to provide health insurance and I'm not at a competitive disadvantage ... our competitors are going to have to do the same thing."

Not addressed in the post are Schnatter's reported comments on a conference call that "Our best estimate is that the Obamacare will cost 11 to 14 cents per pizza, or 15 to 20 cents per order from a corporate basis."

"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," he reportedly added.

Schnatter's comments prompted reports that some supporters of the health care law were vowing to no longer order food from Papa John's. A handful of business owners have said they have had to lay off workers because Mr. Obama was reelected. 

© 2012 CBS Interactive Inc. All Rights Reserved.
70 Comments Add a Comment
linkicon reporticon emailicon
A_Free_Thinker says:
Guess we won't be seeing John Schnatter on CBS's TV show 'Undercover Boss', since the CEOs who do go on the show care about their employees. They want to know how to make their companies better, even if it means spending some money. CEOs like Schnatter only see their employees as an expense, and one that needs to be minimized. They don't see them as human beings, just a figure on the balance sheet. Schnatter is a heartless greedy pig.

I'll get my pizza from Costco, either at the take-out window or a frozen one to take home and bake. I know several Costco store managers and they've told me that they pay their employees nearly $20/hr, and all employees get full medical after a few months of employment. Costco sees their employees as an asset, not a liability.
reply
linkicon reporticon emailicon
A_Free_Thinker says:
If you do a search for John Schnatter, you'll see that he lives in a mansion that would put the White House to shame. He offered a $250,000 reward for anyone who could locate his 1971 Camaro, and paid another $250,000 to buy it back, but not before having several copies made. Of course he used the original in commercials for Papa John, probably so he could write it off on his taxes. This guy is a greedy pig, only caring about himself. His pizzas were blasted for being bad, so he made 'improvements' to the quality. However, even after he made changes to his pizzas, they still taste like cardboard. I had a free sample they were passing out at a car show, and I didn't want a second piece.
reply
linkicon reporticon emailicon
rsamps1 says:
We're done with Papa Johns, done with Walmart & done with Home Depot. We won't patronize any business that supports inept Republican candidates like Mitt Romney and Mitch McConnell.
reply
linkicon reporticon emailicon
Wicasawakan says:
Jerk John Schnatter says "Oh, we will obey the law" No crap! It's a freakin law. It's the whole "I will be out $$ if this law takes place" but you are willing to give away 2 million free pizza's at about $10 a pop? Do the math..Oh, Republicans don't do math these days. If the solo store owner can't stay above water due to poor management, then they can't runa business.
reply
linkicon reporticon emailicon
Samoa1999 says:
Obama, the Unions, Welfare Freeloaders are America's enemy.

All these people do is use class warfare, divide people along any division they can, color, income, age, sexual orientation. They divide America. Obama voted for Infanticide, gonna trust this guy?
reply
linkicon reporticon emailicon
mike222usa says:
Papa Johns is America's enemy.

You have enough money to hire a public relations company to try to twist and turn everything that you said, so it appears you did not say anything at all to offend anyone. That is what rich people do, they think they can always throw money at anything so they do not have to accept any responsibility in life. They think that there are two separate rules in society, one set for everyone else and one set for them so they can get away with anything they do or say.

There are other pizza establishments in this country and we do not need your company or your so called minimum wage jobs you create. If your company went away, your employees could get jobs at other pizza establishments, because the same amount of people will still buy pizza, just at other pizza establishments.
reply
Samoa1999 replies:
linkicon reporticon emailicon
Man, what a bunch of hate and slander here. Phooey on you. You didn't build that.
linkicon reporticon emailicon
Samoa1999 says:
How many jobs have all these cry babies about Papa John's given to other people... probably none at all.
reply
linkicon reporticon emailicon
Samoa1999 says:
Look at all the cry babies who don't pay one penny of income tax crying about the big rich people who provide jobs for others, work is a dirty word to the social leaches crying about this.
reply
linkicon reporticon emailicon
Samoa1999 says:
Most of the idiot's criticizing Papa John's probably don't pay 1/100th of the personal income taxes he does and just want freebies from the government.
reply
sexysaxes007 replies:
linkicon reporticon emailicon
You sound like a big whiner yourself. Wahhhhh, wahhhh, I pay taxes and nobody else does....wahhhhhhhhhhhh
linkicon reporticon emailicon
Chrisbr1111 says:
In other words, he is doing just fine with that money all trickling up into his own pocket.
reply
See all 70 Comments