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Papa John's CEO: 'In a Bunch of Trouble' for Obamacare Job Cuts

In the latest development, John Schnatter's not budging on his decision to cut employees' hours and raise pizza prices—while passing blame to Obamacare—despite a growing boycott of Papa John's.

Papa John's profits are up 25 percent—that's why CEO John Schnatter's threat to cut workers' hours and raise the price of pizza by up to 14 cents to offset the company's cost of Obamacare resulted in a widespread boycott of the pizza chain.


"I got in a bunch of trouble for this," Schnatter said. "That's what you do, is you pass on costs. Unfortunately, I don't think people know what they're going to pay for this." The Affordable Care Act dictates that companies with 50-plus full-time employees must provide healthcare coverage to those workers. That means some companies will need to cut back on employee hours to avoid added healthcare costs, according to Schnatter.

Earnings Increased But You Can't Afford to Offer Healthcare?

Schnatter's announcement came right after President Obama's reelection (Schnatter hosted a fundraiser for Mitt Romney), which signals that the Affordable Care Act should remain intact.

In the summer, Schnatter said he would have to raise the cost of pizza by 11 to 14 cents per pie because of healthcare reform, yet the company recently reported a 25 percent jump in earnings and is proudly touting that it will give away 2 million free pizzas during the NFL season.

Never mind that CNN refuted that figure, pointing out that many of Papa John's employees already are part-timers who are not guaranteed company-sponsored healthcare coverage. The company's own 2011 annual report states that "most restaurant team members [of which there are 14,400] work part-time and are paid on an hourly basis," suggesting that only the approximately 2,100 full-time employees—who presumably already have coverage—would be impacted. Moreover, many of the chain's restaurants are owned by franchisees who may not have 50 full-time employees and thus are not responsible for providing coverage.

But even if Schnatter's estimated cost increases were accurate, this is a company whose adjusted earnings per share for the third quarter of 2012 surpassed the numbers from a year ago by 25 percent. Moreover, Papa John's third-quarter total revenue jumped 6.5 percent year over year to $325.5 million and domestic company-owned restaurant revenue improved 11.3 percent to $143.4 million. Per its annual report, the company's 2011 revenue was $1.22 billion.

Consistency in Messaging & Accountable Leadership

Schnatter's comments recall this memo from David Siegel of Westgate Resorts, the CEO who is building the largest private residence in the U.S. In October, Siegel suggested that his employees vote for Mitt Romney because "if any new taxes are levied on me, or my company, as our current President plans, I will have no choice but to reduce the size of this company. Rather than grow this company I will be forced to cut back. This means fewer jobs, less benefits and certainly less opportunity for everyone."

Siegel seems to have changed his tune post-election. He told Bloomberg Businessweek that not only had he not laid off any employees, but he "gave everybody in the company a raise this week—the average was 5 percent. I wanted to help them handle the additional burdens the government will put on them."

The big difference between Schnatter and Siegel and CEOs who have inclusive workplaces is that the latter's messages don't vary and they stay true to values.

Schnatter likes to portray himself as a generous fellow who uses the profits he makes selling pizza to help others. After he made his recent comments in Naples, Fla., he told the audience that he was headed to a telethon to raise money for Hurricane Sandy victims, and his company pledged to donate $1 from every pizza sold last Wednesday to the American Red Cross.

But by using his political views to raise prices and slash employee benefits, he hurts his company's image. In fact, online tweets are now calling for a boycott of Papa John's.

To understand the importance of clarity of values—and communicating that consistently—see Ask the White Guy: Decision Making, Clarity of Values & What to Do When It Goes Horribly Wrong.

The Conversation

Update: Officer's Story of S​hooting Botham Jean Contradicts Witnesses

Witnesses say they heard the officer say, "Let me in. Let me in."

TWITTER

Botham "Bo" Jean was killed around 10 p.m. on Thursday night by Amber Guyger, a four-year veteran of the Dallas police department, who just ended her shift and returned to her apartment complex.

The 911 call said she cried after shooting Jean in the chest, and apologized saying she thought it was her apartment. Her arrest warrant says that Guyger reports drawing her gun when she saw a figure in the dark apartment, giving verbal commands—which were ignored—and then firing two shots.

But witnesses, according to the family lawyers, say that they heard sounds and talking that contradict that report.

"They heard knocking down the hallway followed by a woman's voice that they believe to be officer Guyger saying, 'Let me in. Let me in,'" attorney Lee Merritt said.

After the gunshots, a man's voice was heard.

"What we believe to be the last words of Botham Jean which was 'Oh my god, why did you do that?'" Merritt said.

There were two witnesses, Caitlyn Simpson and Yasmine Hernandez, that heard a lot of noise on the fourth floor that night, including 'police talk', like: "Open up!"

There was also a video taken by witnesses of Jean being rolled out on a stretcher, with EMS performing chest compressions on him.

Dallas County District Attorney Faith Johnson is collecting all of the evidence before presenting to a grand jury, which could decide to up the charges to murder.

"We're going to unravel what we need to unravel, unturn what we need to unturn, and present a full case to the grand jury of Dallas County," Johnson said.

Protests were held Monday night outside the police department as questions still remain:

What were the results of the blood test for Guyger, and why did police respond from 30 miles away, rather than Dallas police headquarters that was two blocks away?

The family's lawyers are also still asking why Guyger was allowed to leave the scene without handcuffs and not be arrested for three days. "You or I would be arrested if we went to the wrong apartment and blow a hole in a person's chest, killing them," said Benjamin Crump.

The officer was arrested Sunday, and released on $300,000 bail as of Monday. She is on paid administrative leave.

Botham Jean's funeral is on Thursday.

Related Story: Dallas Police Department's Attempt to Demonize Murder Victim, Botham Jean, is Disgusting

Related Story: Update: Botham Jean Celebrated Amid the Urging of Officer Guyger to Come Clean

Related story: White Police Officer Charged With Manslaughter for Shooting Black Man in His Own Apartment

"Let me in": Witnesses dispute cop account of Botham Jean shooting, attorney says

Obama to Trump: We're Supposed to Stand up to Discrimination and to Nazi Sympathizers

To voters: You can make sure that white nationalists don't feel empowered to march in Charlottesville in the middle of the day.

CLICK ON DETRIOT

Former President Barack Obama kicked off his campaigning for November's midterms, on Friday afternoon, and took jabs at President Trump and the spineless backbones of his Republican constituents.

Obama spared no expense rebuking the administration's actions that have emboldened racists.

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Angela Rye Questions What it Would be Like Working in Trump's White House

"Should I go work for the KKK and try to help them not be so racist? Probably not," Rye stated.

The absence of diversity in the President Trump's administration has been a subject of ongoing debate.

In an interview on Thursday with "The Breakfast Club," a radio show based in New York City, Angela Rye, an attorney, political commentator and a leader of the Congressional Black Caucus Institute, implied that the predominantly white, White House is intentional.

"This is the least diverse White House in decades," Rye said. "They are definitely trying to bring it back to the real white house."

According to an analysis from The New York Times, Trump's cabinet contains more white men than that of the last six presidents. Trump's 24-member advisory body has four women and four minorities.

The radio show hosts asked Rye if Black people should aspire to work in the White House to try and bring about change.

Rye responded: "Should I go work for the KKK and try to help them not be so racist? Probably not."

Trump's racism has been well documented, from calling immigrants "animals," "criminals," and "rapists," to his "sh**hole countries" comment about African countries, to saying Maxine Waters has a "low IQ," and calling Black athletes "sons of bitches."

Related Story: If You Support Trump, You Hate Who I Am

White House Press Secretary Sarah Huckabee Sanders has said she "can't guarantee" that Trump has never used a racial epithet, yet also said the White House values diversity, and is trying to increase it.

After being pressed by reporters to give numbers of Black staffers in the West Wing, Sanders said, "I'm not going to do a count — the same way I'm not going to do a sit-down and count up the [number of Black] staffers that are in your news organizations."

In April, the White House drew backlash for its lack of diversity after releasing a photo of spring interns who appeared to be all white.

Obama's White House had seven women and 10 minorities in his first 22-member Cabinet, including Valerie Jarrett, a senior advisor who sat in the West Wing, in many meetings including the situation room.

That's 32% female and 45% minorities for Obama, and 17% female and minorities for Trump.

Of Trump's White House: "There's not a single Black person shaping policy, sitting in the White House," said Rye. "Steven Miller, a bigot, is shaping immigration policy."

After Using the N-word on Conference Call, Papa John's Founder Resigns from Board

The company's shares fell after news circulated of John Schnatter using the racial slur.

It was revealed Wednesday that John Schnatter, founder of Papa John's Pizza, used the N-word during a conference call in May. After Schnatter issued an apology, he stepped down as chairman of the board.

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Papa John's Founder Uses the N-word on Conference Call About Crisis Communications

John Schnatter reloads his foot-shooting gun and opens fire. Attempts to dismiss his disastrous NFL statement by saying Col. Sanders was worse.

John Schnatter, founder of Papa John's, blamed the mostly Black NFL players taking a knee during the National Anthem for a decline in his pizza empire sales. And now, it turns out he used the N-word on a conference call regarding the backlash for his statements.

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Federal Judge Rejects Trump's Plea to Detain Children Longer

Children's counsel said Trump made up the family separation requirement.

RETUERS

U.S. District Court Judge Dolly Gee of California said in her decision Monday not to amend Flores v. Reno and that "absolutely nothing" prevents President Trump from reconsidering their current blanket policy of family detention. And, Tuesday is the deadline for the administration to reunite children under five with families — but only half will have that opportunity.

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"The View" co-host Sunny Hostin said Monday on the show that she and her friends had rented a cottage at a historically Black beach, which they've done for many years, but on July 4th, the group was verbally assaulted by teens yelling racial slurs.

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​Study Confirms What we all Know: Trump Is a Racist

Americans across the aisle and across the nation are united in that truth.

A lot has been said around about what President Trump is or isn't, and Blacks, immigrants and women especially have had strong opinions about his agenda toward anyone who isn't a rich, white male. But a Quinnipiac University study released numbers to back it up.

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