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Thuy
Savvy January 2017

Service Charge is Not Gratuity. Now What?

Thuy, on January 20, 2016 at 3:25 PM Posted in Etiquette and Advice 0 28

We're looking over the contract for our venue and it states that the 21% service fee is not gratuity. With that being said, we're wondering what we budget for gratuity. Would this be the standard 15-18% of our food costs? This would be in addition to tax as well.

I've checked on the internet and getting different info. I did send an email to the venue to ask what the standard is but would love to get insight from others.

Thanks!

28 Comments

Latest activity by Es, on October 19, 2017 at 12:20 PM
  • Celia Milton
    Celia Milton ·
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    I'd do 20-50.00 for each server. They probably have a set or recommended fee for the Maitre D' and the bartenders? That's always a tough one. If they are allowed to accept tips at the bar? A token is plenty in that case. I have never been at a wedding where most of the guests didn't throw a couple of bucks on the bar after every drink.

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  • Elyse
    Master September 2015
    Elyse ·
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    I had the same thing and talked to my venue manager to see what the expectation was and how many people would be working my event. We ended up tipping the staff a dollar amount that we were comfortable with rather than a percentage since they are paid well able the standard wait staff salary and my service charge was going to that salary.

    The bartenders had another separate fee per bartender, so again, we did dollar amount rather than percentage.

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  • Mrs. Winosaurusrex
    Master June 2016
    Mrs. Winosaurusrex ·
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    Ouch! 21% service fee? Our's is only 17%. We haven't figured out gratuities. We were thinking maybe half what the service charge is....

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  • Thuy
    Savvy January 2017
    Thuy ·
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    @stacydiane.ox I KNOW!! I am slowly freaking out thinking the expectation for gratuity is standard tipping rates. It sounds like it's not so my blood pressure is slowly going down... hahaha

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  • Dana
    VIP October 2016
    Dana ·
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    Dammit I thought they were the same thing Smiley sad I think we will have 4-6 people serving for our buffet. I suppose I should figure out a set tip amount for them. . . We are paying our bartenders an hourly rate and we are making a tip jar for them to split so at least that's covered.

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  • MauiWowie
    VIP April 2016
    MauiWowie ·
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    If the 21% service fee is not a gratuity, then what is it? There's a good chance you're running into a simply semantics issue. Many districts have received challenges regarding how tips can be shared and distributed, so sometimes the word "service fee" replaces it so that tips can be shared and paid through payroll. For example, a server's "gratuities" on a regular night cannot be shared with the kitchen or management team, but the "service fee" of an event can be.

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  • Mrs. Winosaurusrex
    Master June 2016
    Mrs. Winosaurusrex ·
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    Luckily since most of my vendors own their own businesses, tipping isn't standard. But we'll tip our DJ because frankly he gave us an amazing deal we wouldn't have gotten anywhere else, hair and make up people and then the catering staff. Our bartenders come included with catering so we're including them in the lump sum we'll give the caterers, and if they get tips from guests more power to them.

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  • OG Kathryn
    Champion May 2016
    OG Kathryn ·
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    I agree with Elyse- Catering servers are not paid a waiters hourly pay, its much high to account for the fact they aren't tipped. At least that's what my venue told me. It could be different in other states though.

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  • MauiWowie
    VIP April 2016
    MauiWowie ·
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    Not tipping an owner is an outdated concept. If an individual provides a tip-worthy service, I think he or she deserves a tip regardless of title.

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  • Hannah
    Super September 2015
    Hannah ·
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    I used to work for a wedding venue several years ago and the service fee covered the event staff's pay which was $15/hr (pretty good for that area at that time) and tips were distributed between all staff including bar tenders so we would get an extra $30 - $50 at the end of the night depending on the size/cost of the wedding. We did other events and often the hosts of those didn't tip as well or at all (yup!) but it wasn't the end of the world since we were making $15/hr. Weddings were fun and less stressful than waiting tables at the adjoining restaurant.

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  • Thuy
    Savvy January 2017
    Thuy ·
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    The contract specifically states "The Service Charge is not a gratuity; it is retained and is applied toward nonitemized labor costs for the event, including but not limited to, hourly staff wages (set-up staff, service staff, bartenders, kitchen staff), management, and administrative." I'm all for tipping as I previously worked in hospitality for many years and know it's hard word. But to tack on another 15% is outrageous.

    @Elyse - I think I would definitely feel more comfortable tipping a dollar amount for each staff member.

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  • Mrs. Winosaurusrex
    Master June 2016
    Mrs. Winosaurusrex ·
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    @Zoe i'll be tipping my photographer when we get our photos back, but i'm not including it for the wedding. And my florist also doesn't take tips. But they also own their own business, and I don't think it's an outdated concept personally., nor do most of the recent articles I'm ready. but to each their own I guess,

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  • Private_User804
    Master November 2016
    Private_User804 ·
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    ASK people that have organized weddings in your area before. At my sister's East Coast wedding, everyone got a hefty tip. In my area, 5 different people have assured me only the reception servers and hair/makeup people are tipped - apparently it's not the norm to tip a DOC, photographer etc here.

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  • Celia Milton
    Celia Milton ·
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    A service fee is usually what venues call the amount of money they pay the servers.

    Tip your owner/vendors IF they are great. That advice is antiquated no matter what you personally think. If they go over the top for you, they deserve that.

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  • Old married lady
    Master September 2016
    Old married lady ·
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    I would ask your venue just in case. My service charge is also 21% but that is gratuity. I made sure to ask before I signed because I am already paying so much

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  • Kimi
    Master August 2016
    Kimi ·
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    Our service charge is 20%, plus 13.5% tax (which is added AFTER the service charge)! Unfortunately, that's how it's done in my area. Yep, an additional 1/3 on everything at the venue (ceremony & reception). I swear, 8 months out & eloping is looking better and better!!!

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  • MzRosaLu
    Master July 2016
    MzRosaLu ·
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    Following...I was wondering the same thing.

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  • Thuy
    Savvy January 2017
    Thuy ·
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    Thank you for everyone's responses and insight! It definitely helped calm my nerves. It sounds like it can be different by venue. Bottom line is be sure to read your contract carefully and it doesn't hurt to ask the venue directly. If you're shopping for a venue, definitely keep this in mind. For your reference, we're getting married in Northern CA at a winery.

    @MzRosaLu - Reach out to your venue and ask them directly what is the standard that other couples have followed. I posed the question to them and they provided me with clarification on the gratuity.

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  • Courtney
    VIP June 2016
    Courtney ·
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    Our caterer (who is also our venue) adds an 18% gratuity and we're doing a buffet

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  • annakay511
    Master July 2015
    annakay511 ·
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    If you end up tipping a percent, definitely tip on the amount and not on top of the service charge and tax!

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