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Jennifer
Devoted October 2022

Catering Service Charge Breakdown

Jennifer, on October 3, 2022 at 11:01 PM Posted in Planning 0 8
In your experience, are the caterers willing to reveal the breakdown of the “catering service charge” for transparency? I know that it goes towards the hourly wage of the staff and set up/breakdown of the venue. I know for a fact they aren’t renting their dinnerware, tables, and chairs and it’s inventoried in a separate building. There’s a separate $200/bartender fee, but the service charge is on the food AND drinks. Does that mean that part of the service charge goes to the bartenders or does it literally only go towards set up and waitstaff hourly wage? We are trying to figure out how much to tip (if any), but we also don’t want to screw the waitstaff over. I’ve estimated food and drinks based on my guest list and their food choices as well as a good estimate for alcohol. Assuming $35/hour per server at 7-8 servers, we are looking at around $500 left over on the service charge. Is that a reasonable amount for setup, breakdown, and cleaning?

8 Comments

Latest activity by Sylvana, on October 4, 2022 at 7:24 AM
  • Michelle
    Rockstar December 2022
    Michelle ·
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    A service charge is an administrative fee that goes to the core of running the business: electric bills, advertising, etc. It has nothing to do with waitstaff labor and wages because they are paid hourly by the catering company separate from what they are charging you.
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  • Jm Sunshine
    Jm Sunshine ·
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    The service charge gets embedded in waitstaff and bartender wages. While your rentals are inventoried elsewhere, someone has to wash those dishes and glassware. The general rule of thumb is 20% gratuity for bartender and $25-$35 per waitstaff.
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  • Jennifer
    Devoted October 2022
    Jennifer ·
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    The hotel/catering manager said it goes towards the hourly wage. Are they lying?
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  • Jennifer
    Devoted October 2022
    Jennifer ·
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    Thank you! That’s helpful! I wasn’t sure how much to tip them, if we were. To be clear, for the bartender, it’s 20% of the beverage bill, not food + beverage, right?
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  • Jm Sunshine
    Jm Sunshine ·
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    Correct, it should be 20% of beverage bill for the bartender.
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  • Michael
    Rockstar October 2023
    Michael ·
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    If they said "it goes towards the hourly wage," you have to be careful for them being evasive. Yes, it can go towards the hourly wage but then also towards profit and other categories. Contrast with them saying "it only goes to pay the hourly wages." But in the end, the price is whatever they charge you. It would be nice to eventually learn the real costs.

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  • Cece
    Rockstar October 2023
    Cece ·
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    I think the service charge can vary a lot per venue. My venue utilizes it as a “catch all” for all miscellaneous expenses that go into the event. So waitstaff wages, set up/tear down, administrative costs, etc.
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  • Sylvana
    Devoted August 2021
    Sylvana ·
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    Correct - some venues use this as a "catch all" while for others, this service charge only covers admin fees. I would ask them directly. I did - I was given the generic "that covers the cost of this and that" and that's when I found out it also included the tip for the day of coordinator as well our servers and bartenders. Unfortunately this is a business and some won't tell you unless you ask. Kind of like automatically adding a tip on parties of 8 or more in a restaurant. Some servers tell you the tip is already there. Some won't unless you straight up ask.
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