December 8, 2012

Domino's Effect

Papa John's isn't the only pizza chain speaking out about Obamacare. Domino's Pizza has told the press that Obamacare's calorie-listing requirement is creating unique problems for their business. In his email newsletter, blogger Jim Geraghty relayed this message from Steve Burke with the American Pizza Community (APC): "Any day now, the Food and Drug Administration (FDA) is expected to rule on Section 4205 of The Patient Protection and Affordable Care Act (i.e., ObamaCare), a one-size-fits-all menu labeling regulation, that requires restaurants, including franchised chains with 20 or more locations, to post calorie and nutritional information for all of their products on in-store menu boards costing locally owned businesses up to $4,000 per year. For a company like Domino's, a company that already posts an online calorie calculator, that means in store menu boards for all of its 34 million pizza combinations. Additionally, ninety percent of their customers, who get their food delivered, will never step foot inside the store to see the signs. For some supermarkets it could mean providing calorie information for every combination of cakes and pies (assuming the store has a bakery) as well as every combination that can be put together at a salad bar."

"Whether the bill will hurt sales for items like Domino's 580-calorie MeatZZa Feast Brooklyn Crust Extra Large Slice -- which is one of the most unhealthy slices of pizza in the country, according to The Daily Beast -- is unclear," says an article in the Ann Arbor Press. Actually, the evidence so far is pretty clear that calorie listings on restaurant menus have little or no effect on what customers order.
 
Domino's executives say they want to sit down with the administration to figure out a workable solution—but, as House Speaker John Boehner can tell you, negotiating with this administration can be tough.