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@brd2be
Expert April 2018

20% Service/Facility Fee?

@brd2be, on January 6, 2017 at 11:28 AM Posted in Planning 0 18

Hey girls! I'm hoping to get some advice on this. I have seen quite a few venues and about half of them have had a service fee for the catering service on top of the tax. It specifically mentions that this is not a gratuity but a service/administration fee. So 20% fee plus another 7% tax plus another 20% for tip, thats almost 50% additional cost. Is this normal? I'm mainly concerned because I don't see every vendor charging it and I am not entirely sure when it applies.

18 Comments

Latest activity by Deb, on January 6, 2017 at 1:40 PM
  • LittleDemon
    Master November 2017
    LittleDemon ·
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    It is totally normal. The service fee goes towards paying for the labor and other overhead costs.

    ETA: Our SC is 22% at our venue

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  • BoudreauToBe
    Master July 2018
    BoudreauToBe ·
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    99% of catering companies in the country do this. It's very standard. It is technically supposed to be for tipping their staff, even though many companies just keep it as part of the total charge.

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  • MNA
    Master April 2018
    MNA ·
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    Yes. Ours is 23%. It is pretty standard.

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  • @brd2be
    Expert April 2018
    @brd2be ·
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    Got it, okay! maybe I am not seeing it everywhere because I have gotten some quotes where the cost for the servers and labor is being included in the per person number.

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  • Miami2NorthernVA
    Master November 2017
    Miami2NorthernVA ·
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    Yes it is normal. This is one of the reasons I ended up doing my reception at a restaurant. The restaurant only has a 6% service fee and automatically included 14% gratuity in the bill.

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  • NewlyMrsLachney
    Master September 2017
    NewlyMrsLachney ·
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    Yes, ours is 22% *screams internally*

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  • Bethyonce
    Master February 2015
    Bethyonce ·
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    Ours was 20% of both catering and the bar.

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  • VC
    Master May 2017
    VC ·
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    I've seen quite a few of them as well.

    When I saw those I had to write them off my list.

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  • Erin Wood
    Master July 2017
    Erin Wood ·
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    Yep!! My venue charges 23% + 8.25% tax on EVERYTHING!! Make sure you ask them what that fee gets added on to. Some venues don't add it to the price of alcohol and food. Mine added it to everything.

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  • Chip
    Master March 2018
    Chip ·
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    Our fee is 18% if we go buffet, 30% if we have a plated meal. Yep, pretty standard

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  • @brd2be
    Expert April 2018
    @brd2be ·
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    @fallbride I totally agree - there was one venue that it actually called out specifically that 20% service is not a gratuity so I was thinking I still had to tip on top of that. It's all a little daunting and confusing!

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  • Anne
    Master June 2017
    Anne ·
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    Our place said they automatically add 20% gratuity to the final bill. I assumed that covers tip and then of course there is tax to pay.

    Are you saying you tip 20% on top of the 20%? I wasn't translating it that way...

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  • @brd2be
    Expert April 2018
    @brd2be ·
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    @Anne yes! I saw on one particular venue that it was 20% 'service fee' and it specifically said that the fee was not a gratuity ... so i figured I had to tip another 20% on top of that?

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  • Anne
    Master June 2017
    Anne ·
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    @ Teresa

    Since my place said automatic 20% "gratuity" that is all I am intending to pay. My place is a restaurant/bar though so that may be the difference.

    Thanks

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  • E&M
    VIP September 2017
    E&M ·
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    My service fee is 20% but I asked and they said it includes tip. It stinks that yours says it isn't... But, do the math. If they have good prices on food and drinks the service fee + tip might still be a reasonable price. Just a thought.

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  • Angela
    VIP April 2017
    Angela ·
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    Pretty standard, ours is 22%

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  • C
    Super August 2017
    C ·
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    You do need to tip but definitely not another 20%! I think @celia had advised to ask the banquet manager how many staff members will be working your wedding (bartenders, servers, etc) and tip $20-$50 to each person.

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  • Deb
    VIP January 2017
    Deb ·
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    Our is 21% for food and beverage, and for the chairs. It's a bit painful, mostly because I forgot about it until a few months ago and had to find the money.

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