Lying toolbag papa johns owner will NOT be cutting hours over affordable care act
~John Schnatter, CEO and founder of Papa John‚Äôs
John Schnatter has donated to the Republican party and has even held a fundraiser at his huge home for Mitt Romney (source). It has been more than 10 days and there has already been significant blowback to the Papa John‚Äôs brand. Millions of people are viewing Papa John‚Äôs in a different way and are considering not supporting a company where the CEO has said it‚Äôs ‚Äúcommon sense‚ÄĚ to cut workers hours to below 30. We wrote about that HERE. Now Mr. Schnatter says he never said what he was reported to say. He says his comments were all taken out of context and that Papa John‚Äôs is still going to build more stores, hire more employees and ‚Äúhas no plans to cut team hours as a result of the Affordable Care Act.‚ÄĚ Well ‚Äď that‚Äôs good news.
My take on this is very simple ‚Äď boycotts really work and even threats of boycotts really work. It doesn‚Äôt make any sense for a company to get all of the bad publicity it is receiving over something that will cost them $8 to $12 million extra a year. We saw this play out with Denny‚Äôs over the past week as one of it‚Äôs franchisees decided to go all Galt and say immediately hours for workers were being cut and that he would add an Obama surcharge to customer‚Äôs bills. That franchisee has since had to apologize although he hasn‚Äôt said he would stop cutting worker‚Äôs hours and the CEO of Denny‚Äôs is doing major damage control (source). Back to Papa John‚Äôs ‚Äď all of this was over $12 million a year at max in terms of the costs to employees. For Papa John‚Äôs that is no big deal; in fact ‚Äď they got a hell of a good deal.
You can read John Schnatter‚Äôs op-ed in the Huffington Post HERE; an excerpt:
Clearly there was some misunderstanding somewhere. The remarks that generated the headlines were made during an entrepreneur class I was asked to speak to at a Florida college. I was asked to share my experience as an entrepreneur and to provide the students with real-life small business situations. Unbeknownst to me, until she identified herself, a reporter was there.
You should read his entire piece to see if you think his version of events is the truth or not. It is absolutely true that Papa John‚Äôs is made up of a bunch of franchisees and most of these decisions would fall under the purview of the franchisees. I do not know for the life of me how this CEO didn‚Äôt respond more urgently. If his comments were truly taken out of context or distorted the truth ‚Ä¶ then why didn‚Äôt he require a correction or clear the air the next day? It took him 10 days after the damage kept building and building and building. Every day he waits to clear up this ‚Äúmisunderstanding‚ÄĚ is a loss of trust that what he is saying is the pure, 100% truth. Everyone should decide for themselves.