(Closed) Define Service Charge and Gratuity

posted 9 years ago in Money
Post # 3
Member
3526 posts
Sugar bee
  • Wedding: August 2010

Hi,

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
Member
2681 posts
Sugar bee

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.

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