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Move over Chick-fil-A, fast food is getting political again. Papa John's came under fire this week when CEO John Schnatter floated a plan to cut worker hours to reduce spiking employee health care costs under the Affordable Care Act, otherwise known as Obamacare. Now, Applebee's is being boycotted after a major New York area Applebee's franchise owner Zane Tankel threatened a hiring freeze and possible layoffs as a result of the president's healthcare plan.

Twitter immediately erupted with calls for a boycott.

'So far I've seen Papa John's and Applebees threatening to fire people since their choice didn't win the election. Disgusting on either side,' read one tweet.
'BOYCOTT APPLEBEES NOW,' read another.
'Add @Applebees to the list of unpatriotic businesses who are firing people because Barack Obama won,' tweeted another.

The Twitter uproar is in response to a Fox News interview Thursday with Zane Tankel, chairman and CEO of Apple-Metro, which owns 40 New York-area Applebee's restaurants. "We've calculated it will [cost] some millions of dollars across our system. So what does that say -- that says we won't build more restaurants. We won't hire more people," Tankel said.

Apple-Metro employs from 80 to 300 people at each of its Applebee's. Obamacare requires businesses with more than 50 workers must offer an approved insurance plan or pay a penalty of $2,000 for each full-time worker over 30 workers. 'If you have 40 or 50 employees at a restaurant, and the penalty is $2,000, and you're going to pay $80,000 or $100,000 penalty, there goes the profit in your restaurant.'

Tankel also hinted that lay-off and reducing employee hours were another possibility. 'I want to simply say we are looking at it, we are evaluating,' he said. 'If it's possible to do without cutting people back, I am delighted to do it, but that also rolls back expansion, it rolls back hiring more people, and in a best-case scenario, we only shrink the labor force minimally. Best case.'

Earlier this week Papa John's CEO John Schnatter told shareholders in a conference call this week that Obamacare would cost the company 11 to 14 cents per pizza, a cost that would be passed on to customers.

The response on Twitter was immediate, and largely unfavorable.

'First Chick-fil-A, now Papa John's. What does it say about the US when fast food has become the tool for political catalyst?' tweeted one person.

Kraj 2.0 wrote:This is what you get when you raise a nation of do-what-feels-good hipster nitwits whose only skill in life is to look up internet memes on their iPhones.

Pinky wrote:The "pay or play" part of Obamacare is the result of Obama giving in to Pelosi's coalition of morons instead of actually fighting for reasonable reform. You will not find an economist of any political inclination who believes it's a good idea.

The gutting of the "Cadillac Tax" to appease the unions is another counterexample to the idea that Obama demonstrated any leadership in reforming healthcare. Instead he simply handed over his political capital and told Pelosi to burn it.

Grandpa's Spells wrote:Businesses complaining in the press about having to cut back on shifts/jobs/hours is standard every time a political issue is raised that may cost them money. E.g., ending a subsidy, increasing minimum wage, passing a regulation. They always do this. If they're headed up by a political dude, they do it more, unless their party is in power.

Papa John's is not in dire straits.

Batboy2/75 wrote:

Grandpa's Spells wrote:Businesses complaining in the press about having to cut back on shifts/jobs/hours is standard every time a political issue is raised that may cost them money. E.g., ending a subsidy, increasing minimum wage, passing a regulation. They always do this. If they're headed up by a political dude, they do it more, unless their party is in power.

Papa John's is not in dire straits.

Papa johns is not an extension of the state. If the State wants people covered by health insurance, the state should pay for it directly or STFU.

Papa John exists to make money for the owners; end of story.

This is an example of an economic distortion Troy. The state passes a not very well thought piece of legislation; Obamacare. Obamacare considers anyone that works 30+ hours a full time employees. These full time employees need to be covered by Gvt approved Health insurance or pay a hefty fine. Businesses, run by sane adults want to avoid these extra costs, so they start to employ and pay for more part time employees.

Grandpa's Spells wrote:Businesses complaining in the press about having to cut back on shifts/jobs/hours is standard every time a political issue is raised that may cost them money. E.g., ending a subsidy, increasing minimum wage, passing a regulation. They always do this. If they're headed up by a political dude, they do it more, unless their party is in power.

Papa John's is not in dire straits.

Grandpa's Spells wrote:Not saying ACA is perfect by any stretch. They passed an improvement over the status quo, understanding that a better solution didn't have votes.

Pinky wrote:The "pay or play" part of Obamacare is the result of Obama giving in to Pelosi's coalition of morons instead of actually fighting for reasonable reform. You will not find an economist of any political inclination who believes it's a good idea.

The gutting of the "Cadillac Tax" to appease the unions is another counterexample to the idea that Obama demonstrated any leadership in reforming healthcare. Instead he simply handed over his political capital and told Pelosi to burn it.

Turdacious wrote:

Grandpa's Spells wrote:Businesses complaining in the press about having to cut back on shifts/jobs/hours is standard every time a political issue is raised that may cost them money. E.g., ending a subsidy, increasing minimum wage, passing a regulation. They always do this. If they're headed up by a political dude, they do it more, unless their party is in power.

Papa John's is not in dire straits.

Papa John's will be fine if they can raise prices to cover the increase in employee cost-- in the aggregate it will hurt full time employment, jobs providing insurance, wages, and overall employment. This may affect Papa Johns, because these effects are most pronounced on employers that pay lower wages. Not sure the status of their drivers, but they may become 'independent contractors' instead of employees. Papa Johns will act to maintain their profit margin.

And if the employees have income between 100-133% of the federal poverty rate they are unlikely to have access to health insurance in many states anyway.

Turdacious wrote:

Pinky wrote:The "pay or play" part of Obamacare is the result of Obama giving in to Pelosi's coalition of morons instead of actually fighting for reasonable reform. You will not find an economist of any political inclination who believes it's a good idea.

The gutting of the "Cadillac Tax" to appease the unions is another counterexample to the idea that Obama demonstrated any leadership in reforming healthcare. Instead he simply handed over his political capital and told Pelosi to burn it.

Don't disagree about the Cadillac Tax, but wasn't the 'pay or play' a component of Gruber's proposal?

Shafpocalypse Now wrote:Papa Johns is terrible. Worse pizza tha little Caesars. That's the issue

Grandpa's Spells wrote:The government already requires businesses to supply, for example, safety gear if they work in a job where they could be hurt. They have to carry workers' compensation insurance as well, in case they are injured.

...changes in employers' costs of workers' compensation insurance are largely shifted to employees in the form of lower wages. In addition, higher insurance costs are found to have a negative but statistically insignificant effect on employment.

I might buy this hypothetical if there were widespread examples of it happening in Massachusetts when Romneycare passed. There doesn't appear to have been.

protobuilder wrote:

Shafpocalypse Now wrote:Papa Johns is terrible. Worse pizza tha little Caesars. That's the issue

are you fucking crazy?

Papa Johns is good, and cheap (but now 11-14 cents/pizza more expensive...the horror!)