Post # 1
Folks, I have a question to pick with you.
What is service charge? My reception is adding a service charge for everything, including the rental property. How is that? I understand if it’s for the food, but rental property?!?! Is that true?
The place is charging me a 20% service charge. Am I required to pay gratuity as well or does the service charge cover everything…meaning they call it service charge, but my pocket is going to call it "automatic gratuity for a party over 6 people".
I’m still surprised that they are charging a service charge for the location. The place is rented for $3000. That means I’m paying $600 for something. Why didn’t they just tell me that the place is $3600 rather than beating around the bush until after I gave my deposit already. If I knew it cost that much more, I may have not considered them.
Is this disputable and/or is there "real" legal advice to back their rule?
Any advice from your experience would greatly be appreciated. Thank you.
Post # 3
I think your best bet is to ask them what the service charge entails. I was initially going to say it’s weird that the service charge applies to the site also. But now that I think about no. For our site there’s a fee added as a service fee because the event coordinator will be there the day of and she’s there after the party to make sure their site is ready for business the next day. But it’s way less than $600. Is your site offering any services for this service fee?
As for the caterer I’m assuming the service fee is the gratuity. Although I hate it when people pretack the price on. I understand why but I think tip should be based upon how well WE think YOUR service is.
Did it say there is a 20% service charge on your contract?
Post # 4
We apply our service charge to all food, beverage & rentals (chairs, tables, etc). The pricing we have the site fee is already worked into the price per person so technically it has service charge applied to it as well. Technically, at least for us, the service charge is NOT a gratuity. It goes toward the wages of people that are working for their paycheck, but we do not tip out the servers and bartenders with this money. They make an hourly wage and do not receive any part of the service charge. I have always believed that you do not need to tip on top of the service charge unless you feel that the staff did an amazing job and you want to reward them for their work. You can if you’d like to and it should go to the servers, but it is not required.
Our contracts do say that a service charge is applied to all food & beverage, along with rentals.