Paying for Restaurant Insurance

Learn more about San Francisco restaurants that charge diners surcharges to pay for employees' healthcare on the insurance blog. Get updates on universal healthcare now.

San Francisco, California restaurants are charging customers for something new: a surcharge that helps the restaurants pay for employees’ healthcare. According to the Contra Costa Times, one California restaurant menu reads "A 3.5 percent service charge will be added to all checks for the San Francisco affordable healthcare legislation."

San Francisco Universal Healthcare Provisions Hit Small Businesses Hard

The surcharges started being added to the menu after a new law went into effect in January that requires all businesses with more than 20 employees to spend a minimum amount on health insurance. It’s the first time that such a large city has started a universal healthcare plan, and it has made some business owners irate. Restaurants especially have small margins for profit, so the extra expense has proved costly since it started in January.

San Francisco Restaurants Try to Pay for Universal Healthcare

Other restaurants charge similar surcharges to patrons or charge diners a flat fee in addition to their meals. Some citizens worry that the increased prices will put a dent in tourism. The Contra Costa article claims other restaurants with fewer employees are refusing to expand, to avoid paying for healthcare. The rest of California- and the U.S.- continue to watch San Francisco’s progress providing universal healthcare to all citizens. Meanwhile, the city restaurants’ trade group has filed suit to stop the program.

Learn more about insurance for restaurants.