Papa Johns reduces worker hours in response to Obamacare.

[jnpy!$4g3cwk]

Originally Posted by MadeTheSwitch

That's because it's not the franchise locations making the comments. It is corporate complaining about what corporate will have to do. And then a bunch of people here have chimed in acting like the corporation is on the ropes and that pizza is some sort of low margin business where 15 measly additional cents will cause them to go under. That does not jive with that image of that mansion now does it???



One franchise of Denny's, not the whole chain. You should get your story and facts straight first. And I just love that people have no problem paying for bombs and wars, but healthcare for everyone, OH MY GOD!! THE WORLD'S ENDING! If 15 cents more for a pizza is more important to you then someone having decent access to healthcare, then I would say you have misplaced priorities.

Pizza, Denny's, or wings, some of these "small business owners" sure enjoy pushing their workers around:

While some business owners threaten to cut workers' hours to avoid paying for their health care, a West Palm Beach, Fla., restaurant owner is going even further. John Metz said he will add a 5 percent surcharge to customers' bills to offset what he said are the increased costs of Obamacare, along with reducing his employees' hours.

"If I leave the prices the same, but say on the menu that there is a 5 percent surcharge for Obamacare, customers have two choices. They can either pay it and tip 15 or 20 percent, or if they really feel so inclined, they can reduce the amount of tip they give to the server, who is the primary beneficiary of Obamacare," Metz told The Huffington Post.

http://www.huffingtonpost.com/2012/1...ef=mostpopular

"Although it may sound terrible that I'm doing this, it's the only alternative. I've got to pass the cost on to the consumer."

Metz is the franchisor of Hurricane Grill & Wings, which has 48 locations, five of which are corporate owned, and president and owner of RREMC Restaurants, which runs approximately 40 Denny's and several Dairy Queen locations. He planned to use the 5 percent surcharge tactic in all his restaurants starting in January 2014, when Obamacare is fully implemented.

[tshrimp]

Originally Posted by Renzatic

Pizza has a huge, huge, HUGE margin on materials alone. Just counting the ingredients (not the cost to deliver the materials, the employees to make it, ect), it costs about $2.50 to make a large supreme pizza that sells for at least $10.00. That's a 400% return.

I just heard on the radio that the average profit margin for a restaurant is 8% (didn't mention Papa Johns though), and that is why you see many owners of restaurants with several of them, so they can afford to live themselves.

It is also funny to me for people to assume that businesses have all this extra money laying around. Apple might but that isn't the norm. Most are struggling to keep their doors open these days with little to no money to spare. Raises these days are even less common, and not a given because companies are struggling.

On a side note:
CNN just had a deal on Wednesday that the average tax payer will be paying $3400 per year in the coming years (it was a ticker at the bottom). I don't have that kind of money for the Gov't to take

[robanga]

Originally Posted by tshrimp

I just heard on the radio that the average profit margin for a restaurant is 8% (didn't mention Papa Johns though), and that is why you see many owners of restaurants with several of them, so they can afford to live themselves.

It is also funny to me for people to assume that businesses have all this extra money laying around. Apple might but that isn't the norm. Most are struggling to keep their doors open these days with little to no money to spare. Raises these days are even less common, and not a given because companies are struggling.

On a side note:
CNN just had a deal on Wednesday that the average tax payer will be paying $3400 per year in the coming years (it was a ticker at the bottom). I don't have that kind of money for the Gov't to take

That average assuming its net, takes into account lots of non-performing businesses and likely measures taxable income.

Many small operators have benefits that do not show up at the net profit line. Talk to the owner of a bagel or pizza place, you will often find a "company" car in use etc. Its to the benefit of small businesses to make that profit line as small as possible.

On the $3400 is that additional? I did not see the story.

[zioxide]

Originally Posted by jnpy!$4g3cwk

Pizza, Denny's, or wings, some of these "small business owners" sure enjoy pushing their workers around:



http://www.huffingtonpost.com/2012/1...ef=mostpopular

This is just ****ing pathetic. Is he going to itemize every single cost of doing business on the customer's receipt?

1 Large Pizza: 13.99
Shop Lighting: 0.50
Gas for oven: 0.75
Sewage disposal: 0.40
Trash pickup: 0.30
Manager salary: 0.45
Obamacare: 0.35

Subtotal: ???

This is such a ******** political stunt. I don't give a damn if you don't like Obamacare. The people have spoken and the majority do. ****ing deal with it and in four years you can vote for a candidate who doesn't like it.

But pulling a ridiculous stunt like this is just.. well ridiculous. No other way to describe it.


Also, the fact that he suggests cutting the "tip" to the server (who makes less than $3/hr and will get a paycheck for under $25 for a 40 hour work week) is absolutely ****ing despicable.

[rdowns]

Originally Posted by tshrimp

I just heard on the radio that the average profit margin for a restaurant is 8% (didn't mention Papa Johns though), and that is why you see many owners of restaurants with several of them, so they can afford to live themselves.

A meaningless number unless we know what their sales were.

In 2010, average McDonalds had sales of $2.3 million and averaged 10% net profits.

On a side note:
CNN just had a deal on Wednesday that the average tax payer will be paying $3400 per year in the coming years (it was a ticker at the bottom). I don't have that kind of money for the Gov't to take

That's the amount of "tax inceases" we'd see if the Bush and Obama tax decreases all expire together.

[citizenzen]

Originally Posted by tshrimp

On a side note:
CNN just had a deal on Wednesday that the average tax payer will be paying $3400 per year in the coming years (it was a ticker at the bottom). I don't have that kind of money for the Gov't to take

I wouldn't recommend using the ticker as your news source.

Have you followed up on that headline to find a more complete analysis of the matter?

[Renzatic]

Originally Posted by tshrimp

It is also funny to me for people to assume that businesses have all this extra money laying around. Apple might but that isn't the norm. Most are struggling to keep their doors open these days with little to no money to spare. Raises these days are even less common, and not a given because companies are struggling.

Not me. I know restaurants are the most likely investment to go belly up on you. Pizza does net you the most gross on food cost vs. price sold, though.

[Peace]

Originally Posted by tshrimp

I just heard on the radio that the average profit margin for a restaurant is 8% (didn't mention Papa Johns though), and that is why you see many owners of restaurants with several of them, so they can afford to live themselves.

It is also funny to me for people to assume that businesses have all this extra money laying around. Apple might but that isn't the norm. Most are struggling to keep their doors open these days with little to no money to spare. Raises these days are even less common, and not a given because companies are struggling.

On a side note:
CNN just had a deal on Wednesday that the average tax payer will be paying $3400 per year in the coming years (it was a ticker at the bottom). I don't have that kind of money for the Gov't to take

As someone that ran restaurants for 20 years I can tell you this :

Expected food cost = 35%
Expected Labor = 40%
Overhead = 15%

Profit margin = 10 %

This is for a 3-4 star specialty restaurant where the food and service is above the national average.

I managed a Denny's for 2 years also.

Food cost = 25%
Labor cost = 15%

Overhead = 25 % ( this included the yearly franchise fee )

Profit margin = 35 %


Take that with a grain of salt from an ex restaurant manager/Exec. Chef.

In Pizza houses the biggest food cost was cheese.

In a typical 3-4 star restaurant the highest profit margin was from liquor.


These costs may change depending on management, number of seats,price per plate and expected table turnover.

[Huntn]

Here's another one...