Anthing that makes the nationals raise prices is good.
Is that guy just stupid?..These comments will piss off a lot of his customers who will benefit from the ACA…And for what? To support the profits for shareholders?..Just seems like a bad move to me…
So the guy that took on the two dominant pizza chains and rolled out the largest pizza franchise in modern history is stupid?
Businesses ALWAYS pass on the costs that get dumped in their lap.
There is no free lunch…
Every pizzeria owner is a sole “shareholder” in their own business.
Pretty soon, every employee in every pizza shop nationwide will be required to buy insurance… of course they’ll be demanding raises to pay for it… owners will be upping prices or losing what little profit they have…
If anything John is simply the canary in the coal mine… letting everyone know… danger is fast approaching… and it’s coming your way.
KK
I could be wrong as I obviously cannot speak to roysters thoughts, but I feel that the comment was more directed to him being stupid in this current issue, not in terms of being stupid in general. He may have done really great things, but that does not mean that some of his actions cannot be of lesser intelligence.
That being said, I tend to agree with that. While shareholders or owners of a company are important, and the ones we want to make money for, that does not mean that we should make the customer who gives us their business feel worthless. With the statement being made not along the lines of the cost having to unfortunately be pushed on to the customer, but rather that they will ultimately find a way to send that cost to the customer so that the shareholders are safe, sends a message of non caring about the customer.
So while the average customer knows and understands that the costs that a business incurs are generally passed on to them, we do not want to publicly state that we will find one way or another to ensure that they are the ones that absorb the cost, and not us.
Just my thoughts on the matter.
Sounds like Political Crap to me. I wonder if the price of PJ crappy pizza went up when the exact same law went into effect in MASSACHUSETTS passed by MITT Romney. Sounds like a real smart move to anger a portion of your customer base just to make political statement!
John was on a shareholder’s call… he did not hold a press conference, he was not standing in front of news cameras.
He is required to forecast, as best he can… what the coming quarter’s sales and potential challenges might be.
Whether their pizza is crap - or not… it’s going to cost more to make… and he is legally bound to notify shareholders.
You’ll be seeing more and more of this in the coming months. We’ll all be paying more for everything.
He could have chosen his words better…And if he is really concerned about costs, perhaps he should campaign for a single payer system…
Not trying to start a political debate. However, currently I require my managers to have health insurance. The reason being is that my managers are integral to my business. I need them so my business can grow. That being said, I realize a 25 year old kid is not going to buy insurance. Its simply to low on his priority list. If this same kid has to go the hospital for anything he will rack up several thousands in bills very quickly. Now is where this effects my business. He is going to have to get it somewhere. A kid making 30k isnt going to come up with 5k easily. Now we have a situation where he is tempted to steal. That being said, I just alleviate the problem and pay for it all. Mind you, because im not big enough to offer a plan. Its not tax deductible and counted as income which I actually pay tax on. The system is broke and needs some sort of reform.
Another thing to consider is when this kid just doesn’t pay the bill. We all pay for it with increased cost. Im sure however because its insurance companies and the government working together it will just be one big FUBAR
John played it right as far as I’m concerned. He won’t anger his customers by raising prices, he just deflected any sort of malcontent he might receive onto Obama, which I’m sure isn’t difficult to do at this point.
Of course 99% of his customers won’t know why he raised prices, because I doubt they’re perusing financial websites and reading notes from shareholder’s meeting.
You guys started an interesting discussion - politics in your business. The mantra I’ve always heard and try to live by is keep politics out of your business. It got me wondering, though, lets say you disregard 50% of your customers (one party or the other) to act strongly in favor of the other 50% - what is the net result? I think an argument could be made that you could get a loyal and fervent following that would offset the people you offend. In a way, chick-fil-a and in-n-out have done this with religion (though they don’t offend those who are not of their faith). I’m not willing to try it with my business, but it’s an interesting thought.
pC
Politics is irrelevent to me as an business operator and as a customer. I want to know about my pizzas and prices. Well, I know that is a broad generalization that has problems when you get to close to it.
What John has done is started a conversation that NEEDS TO HAPPEN in so many ways. National conversations need to happen about rising costs, educating the marketplace about various realities. One reality is that there is a new cost of business recently mandated in the ACA. Many customers/citizens will see it as new free benefits, and this conversation will let everyone know that someone is paying for it. It also reinforces to the public that new business costs always have been and will continue to pass down to the end consumer. This sort of conversation is good for all of us.
Sure, he is going to take the political flack for it, but people will begin having have front of mind that when costs go up for cheese, chicken, flour, insurance laws, then it will impact the costs business owners pay, and may increase the prices they pay . . . . even for pizza. Combined with the recent increase in local small business awareness, this is a good thing to have happening in the marketplace. We should all find diplomatic ways of carrying the torch to the next stop by letting our own customers know that there might be a cost increase coming . . . . no one likes surprises.
John’s first responsibility is to his shareholders . . . next is his francchisees . . . then the customers. Franchised corporations operate on a wholly different concept that anything like a single or multi-location privately held type place. They also have the profound financial muscle to overwhelm the public memory with a new set of propaganda to overcome any backlash that may arise. WE NEED HIM TO SAY THESE THINGS.
Knee-jerk reactions to complex issues do nothing to educate the consumers!..they are in fact a agenda promoting political ploy!
Prices are going up but not because of Health care reform (as watered down as it is), but for the following reasons!
A. There is a drought affecting the cost of production for everything food related
B. Poor ideas and low price wars have and continue to drain profitability of conglomerated food outlets.
C. The current eocnomy continues to siphon dollars from the middle to the top with NO reinvestment for economic stimulous. Trickle down does not work, has not worked, and will never work! The wealthy are and will always find a way to stay profitable, that is why they are wealthy! Tax relief for those over $250,000 is self defeating and ideologicly flawed. The less money, that is in circulation, is less money to grow the economy and thereby less opportinty to be profitable!
PJ’s owner is simply pandering to a political ideology and is just wrong IN MY NOT SO HUMBLE OPINION!
Rant over! Flame away!
Forget politics and forget wheather you like Obamacare or not. The fact to me is that it is going to raise my cost of doing business and I will pass it down to my customers. I think that is all John is saying. I realize he has already endorsed a candidate and it can be seen as political but the facts can’t be changed. It will cost businesses more money. Somebody has to pay for it.
Hmmmm PJ is saying that this is going to increase his costs by something less than 1% of sales? This is a non-issue. Raising it is just partisan noise from a declared supporter of the opposition. Something I discount.
Chick Fillet on the other hand has managaged to alienate a generation. Just plain dumb. I have no quarel with the CEO expressing his views on the subject however… I just find it stupid. Many people are offended by the right wing social agenda and aligning yourself with it as a business person makes no sense to me even if you agree with it. (Not to mention the sheer hubris of claiming to know “what God says” about marriage!)
i read an interesting article yesterday regarding schnatter’s house. its interesting to read everyone’s reply to this thread; i believe you guys have a more educated opinion on the situation, than american politics does.
Chick Fillet on the other hand has managaged to alienate a generation. Just plain dumb. I have no quarel with the CEO expressing his views on the subject however… I just find it stupid. Many people are offended by the right wing social agenda and aligning yourself with it as a business person makes no sense to me even if you agree with it. (Not to mention the sheer hubris of claiming to know “what God says” about marriage!)
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I usually agree with you, but I wish I could offend my customers and be just plain dumb like Chick Fillet and have record sales because of it. Chick Fillet has never hidden its beliefs, closed on Sundays, religious books as prizes in kids meals, bible stories presented at local stores etc… If as a customer of Chick Fillet, which I am not just do not like the food, you did not know where they stood on religion and marriage you had to be brain dead.
My guess is that many people did not know where they stand but now do. More likely that customers who agree with them already knew and the change will be a net loss of business. One day of record sales does not make a success.
Only time will tell.
PJ is absolutely right in passing on the costs, just like the way they reduced prices in Q4 2011 when profits were up 14%. (not) :lol: