Catering Service Charge of 20% WTF????

drkatherine1 · March 2012

I just received my catering estimate and I was going over it and at the bottom is a service charge of 20% ($656.04) for my bill. It goes on to explain that this is NOT a gratuity and a gratuity is at our discretion. What the heck gives with this large service charge? They already nicked me for $250.00 for delivery, set up and pick up. I would like to know if anyone else was hit with this charge and what you did about it. Did you negotiate it out of the cost? Please help!!

jagore08 · March 2012

I had a service charge but that was considered the tip. I would question all additional charges that are not directly related to the cost of the food so you know exactly what you're paying for. You might be able to negotiate that down since it's not the tip.

drkatherine1 · March 2012

I am going to go and have a meeting this afternoon with them and since it is the off season I am going to try to lowball them on a lot of things. They are the most reasonable and I am ready to cut them a check but within reason. But In reading this over......this is totally unreasonable.

Laurenbiz · March 2012

I don't know if my response helps, but I've been looking over some menu pricing information this week from 2 catering companies I'm interested in. Both pieces of information do note that there is an additional 20% service charge. Make sure that any info they gave you up front didn't say this. And if not, and if you've been totally blindsided, I definitely say have a serious talk with them! If you really never knew up front, this is bad business practice on them! I'm so sorry!

lyndausvi · March 2012

My venue charge $30 per person per hour for a minium of 8 hours for 12 workers. That did not include tip.

Most venues I know use the service charge as tip. Others use it for admin costs and other overhead costs.

You can try and negotiate it, the worst they can say is no.

NOLAbridealmost · March 2012

That's completely standard.

sparent2010 · March 2012

That honestly seems pretty standard. You can try to negotiate it but don't be surprised if they don't budge.

LauraChristin · March 2012

It is very standard. Catering prices are negotiable, though I'd be surprised if they removed the service charge entirely. You're more likely to negotiate the food cost IMO but it can't hurt to try. I'm in San Diego, too. Ours was 18% and was explained in our contract:

An eighteen percent (18%) service charge will be included in the final billing on all food, beverage and labor. The service charge covers the use of our equipment, kitchen essentials, buffet décor, energy costs, liability insurance fees, and all necessary permits and other administrative expenses. Please note that the service charge is taxable based on California State Regulation 1603(f) and is not a gratuity for the personnel

LauraChristin · March 2012

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_food-cakes_catering-service-charge-of-20-wtf?plckFindPostKey=Cat:Special%20Topic%20Wedding%20BoardsForum:23Discussion:31b3d486-9577-41fb-8f34-4a818166ab29Post:40d2fc7f-b170-4b0c-933a-24a9774caaf3">Re: Catering Service Charge of 20% WTF????</a>:
[QUOTE]I don't know if my response helps, but I've been looking over some menu pricing information this week from 2 catering companies I'm interested in. Both pieces of information do note that there is an additional 20% service charge. <strong>Make sure that any info they gave you up front didn't say this. And if not, and if you've been totally blindsided, I definitely say have a serious talk with them!</strong> If you really never knew up front, this is bad business practice on them! I'm so sorry!
Posted by Laurenbiz[/QUOTE]

<div>OP said she's reviewing her estimate so I wouldn't say they are blindsiding her.</div>

TFred423 · March 2012

I have been looking at a lot of caterer bids lately, and it seems like they are all different in what they call their "service charge"-- and it varies what it includes.

I was able to negotiate the fee for a few, but others said "that is the cost of doing business." I would just make sure it is crystal clear what it covers before you sign any contracts.

Affordable Weddings · March 2012

Most caterers charge a standard 18%-22% "Service Fee". If you are already contracted with your caterer you might be able to negotiage a lower service fee. If you have not locked in your caterer and if you are interested in an excellent caterer that does not nickel & dime you and never charges a service fee, cake cutting & platting fee, champagne corkage and pouring fee . . . contact Kim Cummings Catering 602.493.0000.

031107 · March 2012

If I remember correctly, our service charge was 28%.

Catering Service Charge of 20% WTF????

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