3 Things You Should Know About Small Business: Nov. 14
NEW YORK ( TheStreet) -- What's happening in small business today?
1. Papa John's wants to raise pizza prices to compensate for Obamacare. Does his math add up? Forbes columnist Caleb Melby says no.
'Papa' John Schnatter is taking Obamacare to task. The CEO of Papa John's International (PZZA) expects health-care reform to force his company to increase pizza prices by 10-14 cents per pie, costing $5 million-$8 million overall to the pizza franchise.
Schnatter also believes that some employers will cut worker hours in order to force more staff to qualify as part-time (meaning that employers will not have to provide health insurance for them).
Papa John has not become popular over his doomsday predictions. One thread on Reddit telling people to boycott the pizza franchise has garnered more than 21,00 votes and 4,500 comments. There have been a host of Facebook groups that cropped up recently with the same idea, Melby writes.
But is Schnatter right? Melby's analysis suggests the costs Papa John's will incur due to Obamacare are "not equal to the pie increases he mentions."
"The question that can't be answered right now is: How will Schnatter's open communication and politicization of price increases ultimately impact his company? Variables to consider: boycotts, counter-boycotts and shareholder perceptions of all the above," Melby notes.
2. Intuit expands 'Love Our Local Business' initiative to help entrepreneurs this holiday season. To help small businesses survive and thrive in a tough economy, Intuit (INTU) will grant a wish a day, valuing up to $5,000 each, to 15 businesses through Love Our Local Business program this holiday season.
Small businesses in the U.S. and Canada can submit their wishes online and then rally their fans to vote for their submissions. Intuit will fulfill one wish a day from Dec. 3-21.
"Succeeding in trying economic times is a month-to-month struggle for our small-business customers, but they're a passionate and resilient group," said Ken Wach, vice president of marketing for Intuit's Small Business Group. "Small businesses not only drive national economic growth, they're integral to defining local communities and shaping national culture. We value small businesses and support them to pursue their passions."
Love Our Local Business is part of Intuit's larger, ongoing commitment to support the financial success of consumers and small businesses. In fiscal 2012, Intuit's product, in-kind and cash donations to charitable organizations and small-business development programs totaled nearly $54 million, the company says.
The new Love Our Local Business effort grows out of Intuit's Love a Local Business program, which awarded $1.2 million in grants and prizes to more than 100 U.S. small businesses since July 2009.
3. Hardware store owner apologizes for urging employees to vote for Romney. Huffington Post picked up a story from a local Patch publication about an Ace Hardware store owner in Davis, Calif., who has apologized for offending customers or employees to vote for Mitt Romney. Owner Jennifer Anderson apparently sent a letter to her workers trying to sway their votes.