Tip vs. Administrative Fee? Tip + Admin Fee?

karakaroo · April 2012

My fiance and I are looking at a place that charges a 21% administrative fee. OK, fine, whatever. I assumed that this was the tip, but I read the fine print (today, pre-contract signing) and they make sure to say that it is not.

Are we socially required to pay the tip on top of this? If so, we will be adding something like 50% (21% admin+20%tip+8% tax) to the actual cost of the event.

Is this normal?

karakaroo · April 2012

Quote from contract

"The administrative fee referenced herein is for administrative overhead, documentation, preparation, and other management of the event; such Administrative Fee is not, nor is it intended to be, a service charge, tip or gratuity, for wait staff, service employees or service bartenders."

naturenut7 · April 2012

if it isn't uncomfortable, ask if the servers get paid a base hourly wage or are payed by the price of the plate. i was a banquet server for 4 years in undergrad and we started out getting paid by the plate (i.e. if it was a $30 per person dinner, we got paid more than a $15 per person dinner) and for those events we'd get tips on top of our pay. then our pay got switched to just a flat hourly rate regardless of the price per person. we heard about people giving us tips, but the sales staff always kept them or denied getting tips at all. (we got paid alright anyway, but tips in college definitely helped!) just something to keep in mind.

aragx6 · April 2012

If you go with this venue you'll have to tip as well. It's pretty clear that the staff doesn't see that. Shouldn't their overhead costs be included in their pricing? I hate places with hidden fees like this.

karakaroo · April 2012

I was a catering server when I was younger. Now that I realize that the 20% never makes it to the wait staff ($60 on a wedding was a good night), would it be out of line for me to just hand them $100 cash each instead of writing the check out to the venue?

I like the venue, but I don't really want to give them another $4000, knowing that the servers may not see it.

This is sort of the compromise that I have in my head, but I'm not sure if it's OK.

mcskatcat · May 2012

A lot of people will tip on the subtotal when they go out to dinner, so I can see a similar situation here that you could tip on the pre-fee cost rather than on the aggregate total. I would also say, however, to get a detailed line-item list of what that admin fee covers, because you want to know! If it doesn't include the tip, what DOES it include? And if this venue/caterer isn't at a competitive rate to other vendors (including the fee) then I would seriously think about going elsewhere.

lyndausvi · May 2012

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_reception-ideas_tip-vs-administrative-fee-tip-admin-fee?plckFindPostKey=Cat:Wedding%20BoardsForum:5Discussion:0b1c44b4-3513-4fa8-b636-9b5b72346e56Post:b4cb291e-eab2-4372-8d12-20fbbf00c64b">Re: Tip vs. Administrative Fee? Tip + Admin Fee?</a>:
[QUOTE]I was a catering server when I was younger. Now that I realize that the 20% never makes it to the wait staff ($60 on a wedding was a good night), would it be out of line for me to just hand them $100 cash each instead of writing the check out to the venue? I like the venue, but I don't really want to give them another $4000, knowing that the servers may not see it. This is sort of the compromise that I have in my head, but I'm not sure if it's OK.
Posted by karakaroo[/QUOTE]

<div>Yes, I think this is fine. </div><div>
</div><div>We had to pay $30 per person, per hour for min of 8 hours. We did not tip 20% because we knew they were not getting the standard $2.30 per hour rate.</div>

Tabbie11 · May 2012

That is totally normal. I am a catering manager at a hotel and we have this too, you'll find it at all big venues. Its to cover costs of running the event and in the event of food cost fluctuation.

karakaroo · May 2012

Thanks for all of your imput. I asked when I saw the event planner the other day, she said that there is no tipping allowed, staff payment is covered under the "administrative fee" that I posted about. Good thing I asked!

Tip vs. Administrative Fee? Tip + Admin Fee?

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