this post was submitted on 03 Apr 2024
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Some may remember several years ago when the jackass head of Papa Johns cried to Fox News, "if I have to give my employees decent health care the price of pizza will go up 10 cents!!" - as if that comment was supporting his argument.
Economics of scale.
The end consumer doesn't give two shits about that small an increase.
But the CEO sees that as $0.10 across a billion dollars gross revenue...
That could be 100 million in profit.
Even tho the money is hypothetical still, he ain't letting go of it.
The option wasn't giving up 10 cents per pizza though, it was raising the price.
Exactly...
If they raised the price ten cents to pay for healthcare and/or a living raise, they don't view it as costing them nothing.
They see it as losing the money they aren't even currently getting.
I feel like I'm just repeating myself, but it's hard to make it any simpler.
Don't worry I understood what you meant (and am slightly confused by the other comments — maybe they think they'd sell less pizza and therefore make less over all?)
I got that in my pocket. Let's roll the dice John, I can afford it.
Well, he's not with the company anymore.
He's more of a step dad John now.