Pizza business and government fight over food stamp use

PORTLAND, Ore. – A federal judge will decide whether Oregon Trail cardholders can buy take-and-bake pizzas.

In 2010, the government started letting local Little Caesars' franchises accept food stamps for take-and-bake pizzas. Then it abruptly changed its mind.

Lawyers for Little Caesars say they've invested thousands in this service and if they can't take the Oregon Trail card, they say they may have to cut jobs.

Jeff Burgess, a franchise owner of a Little Caesars in Southeast Portland says he's frustrated. He and several other Little Caesars owners spent a lot of money outfitting their stores to comply with the food stamp program. They even had to form separate businesses and separate cash registers to operate within the same building to qualify.

But the federal agency that runs the food stamp program now says because Little Caesars' cooked pizzas account for more than half its business, they're considered restaurants and don't qualify for the food stamp program.

During a court hearing Thursday, a federal judge temporarily barred the government from stopping Little Caesars' food stamp pizza sales.

"I don't want to put words in his (the judge's) mouth, but I don't think he agreed that what they were doing was right," said franchise owner Jeff Burgess.

Food stamps pay for things like bread, meat, dairy and even junk food like soda pop and potato chips. The things that don't qualify include cigarettes, beer and pet food.

Hot foods, like pizza, also don't qualify. Only cold foods do.

The U.S. Department of Agriculture office in Portland first approved Little Caesars' owners for food stamp sales. Then it reversed itself. The office referred KATU News to a San Francisco office. Representatives there declined to comment while the lawsuit continues.

"This is very expensive to do," said Burgess. "It and the government has unlimited money, and we feel like we have to do it, because we feel like we're right."

Little Caesars' customer, Chad Davidson, was laid off from his construction job about a year ago. He often buys unbaked pizzas at the store on his Oregon Trail food stamp card and $200 monthly allotment.

"It really helps me out," he said. "Five dollars for a pizza can go a long ways versus a grocery store."

Franchise owners aren't sure when they will get their day in court. For now, they're allowed to continue with their investment, selling food-stamp pizzas.

According to the state Department of Human Services, about 80,000 people in Oregon receive food stamp assistance, better known as SNAP. That's about one out of every five people.

Households can receive a maximum benefit of $668 a month. The average benefit is about $240 dollars a month.