Billionaire behind Rainforest Cafe, Bubba Gump's: 'We can't afford' to give SF workers healthcare

Tilman Fertitta NBC's "Billion Dollar Buyer." Tilman Fertitta NBC's "Billion Dollar Buyer." Image 1 of / 18 Caption Close Billionaire behind Rainforest Cafe, Bubba Gump's: 'We can't afford' to give SF workers healthcare 1 / 18 Back to Gallery

Billionaire Tilman Fertitta, sole owner of Landry's Inc., a corporation responsible for a number of recognizable chain restaurants including Claim Jumper, Bubba Gump Shrimp Co., Rainforest Cafe, and McCormick & Schmick's Seafood & Steaks, believes that San Francisco shouldn't mandate its restaurants pay for city workers' healthcare.

In "Billion Dollar Buyer," a CNBC show starring the restauranteur, Fertitta says his businesses have to charge more for the same menu items because San Francisco requires some types of businesses to contribute to their workers' healthcare coverage.

"All these states now are doing their own mandates," Fertita says. "Why should the city of San Francisco be able to do absolutely whatever they want to do?"

Within the city of San Francisco, restaurants with 20 people or more on the staff (excluding the owners and managers) must contribute to its employees' healthcare as part of the Healthy SF program. To make up for the extra expense, some add a separate line item charge to patrons' bills, and others roll it into a dish's total cost, but all restaurants under local legislation have a choice as to how they work with the added cost of business.

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The restaurant must then do one of three things for all employees who work more than eight hours a week: purchase health insurance for employees, contribute to a public city-run program that will provide healthcare for employees, or add money to a health reimbursement account.

Fertitta employs 60,000 people by CNBC's estimates, although it's not clear how many of them work in San Francisco.

"Do you realize, all the restaurants in San Francisco, we all have added charge?" says Fertitta. "We have a 3 percent or 4 percent or 5 percent add-on to the menu because they make us give all our employees full healthcare. We can't afford to do it."

He adds that cities like San Francisco should be forced to follow a federally-defined law as far as what kinds of benefits restaurants should be required to provide to their employees. Until then, customers at his San Francisco restaurants will just have to fork out a little more for their "Bucket of Boat Trash."

This story has been updated.