While many businesses have complaints about Obamacare, pizza chains say the law might deliver their customers a price increase.
Last year, the CEO and founder of Papa John’s promised a price hike if the president’s signature health reform initiative was allowed to take effect. Pizza prices would be 14 cents higher to cover the cost of providing employees health insurance, “Papa” John Schnatter said.
Now Domino’s has joined the law’s critics. Executive Vice President Lynn Liddle said the calorie-posting requirement will cost the Domino’s mom-and-pop franchisees as much as $5,000.
“We’re a big-name brand, but these are all very small-business people,” Liddle said. “Half of our 1,000 franchisees in the United States only own one pizza store.”
The Food and Drug Administration released its draft regulations for complying with the Affordable Care Act requirement to post calories conspicuously in food establishments. The FDA’s draft regulations require the calorie counts to appear wherever there is a worded menu for customers. Domino’s takes issue with the requirement to post them on in-store menu boards, arguing that their online Cal-O-Meter should be sufficient.
“It spits out the calorie counts for your specific choice of pizza,” Liddle said. “You can’t just slap those calories on a menu board. Each pizza is so different, there’d have to be a range.”
Because most customers order pizza online or over the phone, Liddle said, the expense of the in-store menu board doesn’t make sense. The company found that on average, its New York City stores spent $5,000 to comply with the calorie-posting requirement passed by the local government. They have not, however, discussed whether meeting the requirement would mean a price increase.
Papa John’s and Domino’s aren’t the only chains to level complaints at the administration. One-time Republican presidential candidate Hermain Cain, also the former CEO of Godfather’s Pizza, told Time last year that if Obama was reelected, deep-dish would disappear.
“With Obama in a second term,” Cain said, “there will be no pizza. For anyone.”
Luckily for pizza-lovers, the worst-case scenario isn’t a world without their hand-tossed staple, but rather, a more expensive pie.
What We're Following See More »
"The National Highway Traffic Safety Administration identified on Friday the makes and models of 12 million cars and motorcycles that have been recalled because of defective air bag inflators made by Japanese supplier Takata. The action includes 4.3 million Chryslers; 4.5 million Hondas; 1.6 million Toyotas; 731,000 Mazdas; 402,000 Nissans; 383,000 Subarus; 38,000 Mitsubishis; and 2,800 Ferraris. ... Analysts have said it could take years for all of the air bags to be replaced. Some have questioned whether Takata can survive the latest blow."
Homeland Security Secretary Jeh Johnson says 41 Secret Service agents have been disciplined in the fallout of an investigation over the agency's leak of personnel files. The leaker, who has resigned, released records showing that Oversight and Government Reform Chair Jason Chaffetz—who was leading an investigation of Secret Service security lapses—had applied for a job at the agency years before. The punishments include reprimands and suspension without pay. "Like many others I was appalled by the episode reflected in the Inspector General’s report, which brought real discredit to the Secret Service," said Johnson.
Mitt Romney spoke in an interview with the Wall Street Journal about his decision to challenge Donald Trump. “Friends warned me, ‘Don’t speak out, stay out of the fray,’ because criticizing Mr. Trump will only help him by giving him someone else to attack. They were right. I became his next target, and the incoming attacks have been constant and brutal.” Still, "I wanted my grandkids to see that I simply couldn’t ignore what Mr. Trump was saying and doing, which revealed a character and temperament unfit for the leader of the free world.”
"A bill to help Puerto Rico handle its $70 billion debt crisis is facing an uncertain future in the Senate. No Senate Democrats have endorsed a bill backed by House Speaker Paul Ryan and Minority Leader Nancy Pelosi, while some are actively fighting it. ... On the Republican side, senators say they’re hopeful to pass a bill but don’t know if they can support the current legislation — which is expected to win House approval given its backing from leaders in that chamber."
"Congress abandoned the Capitol Thursday for an almost two-week break without addressing how to combat Zika, even as public health officials issue dire warnings about the spread of the mosquito-driven virus with summer approaching. ... Instead of racing to fund efforts to thwart a potential health crisis, lawmakers are treating the Zika debate like regular legislation, approving Thursday the establishment of a House-Senate committee to hammer out differences in their competing bills."