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Expert October 2016

Is a "service charge" the same as gratuity?

Vanessa, on August 17, 2016 at 5:50 PM Posted in Etiquette and Advice 0 5

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Sorry in advance if this has been asked, I tried the search option and didn't find an answer.

My FMIL is having my bridal shower at a tea house and it's $30 pp. They sent her the invoice for the down payment and it shows the $30pp + 9% tax + 22% "service charge" and in the email the tea house coordinator mentioned that the service fee doesn't include tip. Is that typical?

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5 Comments

Latest activity by Celia Milton, on August 17, 2016 at 6:07 PM

VIP September 2016
Kayla · on August 17, 2016 at 5:53 PM
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Yes, it is pretty standard.

Some places include gratuity, some don't.

Our service fee includes gratuity(it doesn't state how much they get of the whole % though)
No, service fees aren't code for gratuity.
Service fees usually cover:
Setting up, clearing dishes, hauling dishes, extra waitstaff.
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VIP June 2017
HailyMarie · on August 17, 2016 at 5:56 PM
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You may want to clarify with the company. Our caterer adds a 20% service fee which states it is NOT gratuity. I would ask to be sure unless it's stated somewhere.

Edit:I can't read apparently. Haha yes it's standard in some places. Sorry for not reading well the first time.
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Super February 2017
FishingBride · on August 17, 2016 at 5:57 PM
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It's my understanding that if a group exceeds a certain amount of people (some places a group is 10 people) then a service fee is charged it is not a tip.
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Expert October 2016
Vanessa · on August 17, 2016 at 6:00 PM
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Thanks ladies
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Celia Milton · on August 17, 2016 at 6:07 PM
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A service charge is usually salary, not a tip. She should call and find out.
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