Have you ever had a guest confused about the difference between a service fee and a gratuity? Those unfamiliar with the hospitality industry may not understand how gratuities and service fees work at your venue, including where the money is going and why it is going there. To maintain transparency about event pricing, avoid any friction, and ensure your staff is taken care of, it could be smart to courteously educate your guests on the difference during the booking process. Let's start by defining the two terms. A service fee or charge is an additional fee imposed by a restaurant or event venue to cover the cost of providing certain services. A service fee could offset expenses like the setup or breakdown of the space, venue maintenance, or additional labor costs. The service fee is usually expressed as a percentage of the total bill but is not typically distributed to staff as a tip, although this can vary by venue. A gratuity or tip is a voluntary or automatic payment given specifically to the staff as a reward for their service during the event. It is typically used to recognize servers, bartenders, event coordinators, and other staff who contribute to the guest experience. Gratuity, unlike a service charge, is meant to go directly to the individuals who provided the service. In the case of large events, gratuity is often automatically added at around 15-20% to ensure that staff are properly compensated. As the restaurant industry moves toward equitable wages for all employees, many restaurateurs are adopting service charges as a way to support their staff while maintaining profitability. Instead of raising event menu prices, some restaurant owners are combating inflation and rising operational costs by adding service fees. Others are using these charges to be able to provide their staff higher wages and employee benefits. What are some best practices for communicating service fees vs gratuity when expressing event pricing? 1. Be upfront with event pricing from the start and outline the gratuity and service fees in any initial quotes and proposals so guests can make informed decisions about their budget. 2. Clearly outline the service fees in the breakdown of all costs when writing out contracts so that the information is provided in writing. 3. Give a brief and courteous explanation about the difference between the charges if the guest does not seem to be sure. 4. Train staff on how to explain and point out the two different charges on the final bill when the event host is closing out. We have more insights where these came from. Visit the link below to learn more about mastering and communicating event service fees and tipping at your venue. https://lnkd.in/g6TM4NHB #eventindustry #eventmanager #eventmanagement #event
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Please....Review Food and Beverage Menu's + Pricing in detail before signing your venue contract. This includes the service fee's, taxes etc. Hotels are paying a lot more to execute F&B for events than they were, even just 6-8 months ago. I think venues could do more to provide out-the-door service proposals before pushing for contracts to be executed. But I also know we live in this world of a new Venue Proposal Aggregator being launched every other week. People want a proposal now and are impatient to provide detailed information about their event. It's of my opinion the RFP process is broken for #meetingsandevents on a much larger scale than even I ever expected. Broken for the venues and broken for the clients. The Site Selection companies are making out fine, I guess. But, the problem is the Venue and Client have to deal with the fallout of contract being signed before really diligent questions are answered. All the while the Site Selection agent is sipping margaritas on a FAM in Cabo. We do it in-house before a client signs anything. Go through every menu and price out every meal. Of course, menu's offered often change, but it's an important step to make sure we're analyzing the holistic costs of an event before signing anything.
2024 Guide for Negotiating Hotel Contracts Like a Boss
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Reservation systems like Tock and OpenTable are crucial for restaurants, but they also are tough on finances. Tock holds payment until the day of the actual reservation, which is a big deal when a restaurant is selling tickets to high-end wine dinners and other experiences. If you want your money fast (and want to hold onto more of it), take a look at how Tripleseat can be integrated into your current system. https://lnkd.in/dXC6x78H
Collect Event Payments Online: Top Practices to Get Paid Faster
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How does Pacesetter Hospitality manage ticketed events for its fine dining restaurant and lively restaurant and bar concept? Using Tripleseat Tickets. Whether the restaurant is hosting a VIP wine dinner or the bar is offering a mixology class, Tripleseat Tickets combines planning, promotion, and attendee management in one simple platform to help boost revenue and simplify every step of the process. Ticketed events, like private events, can provide a substantial additional income stream for any hospitality business. They are also a creative way for guests to experience your restaurant, bar, brewery, winery, or other concept in a different format. Some commonly held ticketed events that our Tripleseat customers host include cooking classes, wine tastings, seasonal chef's table dinners, and brewery tours. With the help of Tripleseat Tickets, Tripleseat customers can access all details, promotions, payments, reports, and more for their ticketed events in one centralized location. Learn more about Tripleseat Tickets in the post below and get started by heading to the Tripleseat Marketplace within your Tripleseat account. https://lnkd.in/gNZstRVj #eventexperiences #eventindustry #eventmanager #eventmanagement #eventprof #eventsales #ticketedevents
How Tripleseat Tickets Transformed Events for Pacesetter Hospitality
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Is it just me, or are FREEBIES out? 🙃 On any given day, hotel marketers are working to encourage newsletter and loyalty program sign-ups, fill more restaurant chairs, get visitors through the doors and so much more. When I speak to people in the industry it seems that a free drink, dessert, coffee etc. was once a helpful tool to achieve goals and encourage visitors. But something has occurred to me recently: freebies might be out! People aren’t dropping by to claim a free glass of wine, they’re not necessarily excited about a coffee or in some cases even a hotel voucher. Perhaps ‘offer fatigue’ has finally set in – with people bombarded by promotions all hours of the day. Maybe people are seeking more personalised experiences in 2024 and a piece of cake just won’t cut it. Or maybe we’re all more aware of how we spend our time, and we’re seeking experiences over small perks. By no means should any marketing strategy be based on giving out endless freebies… … but the questions stands: are freebies really out?
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Industry sources expect the hospitality industry to see more bookings and groups this Christmas. ⏳ It’s the calm before the storm, and hospitality is gearing up for Christmas 2024. Restaurants, Bars Hotels and all kinds of party venues are expected to see increased bookings and enquiries. Of course, with more demand comes more revenue opportunities and greater operational challenges in managing demand. Are your venue and team ready? 🤔 📈 Positive trends: Despite some concerns with the cost-of-living crisis and the recent budget proposals that will come into force in 2025, people seem to have a positive attitude towards the festive season. Bars and restaurants continued to be a must-visit, with 73% visiting last year, according to Restaurant Online (see the link in our comments). By July this year, Christmas bookings had risen by 54% compared to the same period last year. A large volume are on Christmas Day itself, with group reservations up significantly. 🗓️ Save the peak trading dates: Remember we’ve mentioned the three significant trade dates on Saturday 7th December, Saturday 14th December, and Friday 20th December. The first two are likely to be the busiest for group bookings, as large reservations have soared 38% year on year. The last one, known as ‘Mad Friday', is traditionally the busy last Friday before Christmas. So, keep an eye on them in your reservation system! Key opportunities to handle a more extravagant Christmas... ✋ Staffing: Do you have enough employees for the holiday rush? Many venues are still struggling with staff shortages. Is there an opportunity to expand your team? It could help maintain your quality of service for customers. 📋 Inventory management: As you'll know, make sure you’re stocked up on the predicted best-selling food and beverages. ⭐ Efficiency: A great reservation system can make all the difference in high-volume times and give you extra people-power to look after operations and keep service running smoothly. ✅ Equipment – check 1, 2, 3: With the increase in bookings comes the increase in dirty plates, dishes, and glasses. Make sure that your warewasher is firing on all cylinders now. Don’t leave it to be serviced or replaced as you are in full throttle with the Christmas parties. Preparation is essential to capitalise on the festive spirit while ensuring customer satisfaction, and now is the time to get ready for a solid and enjoyable Christmas 2024. To read the full “Get ready for the Festive Season" article, click https://lnkd.in/eSg6QrBd. And for more hospitality articles like this, make sure you follow us. At Classeq, we are passionate about the growth and success of the hospitality sector. That’s why we are committed to providing you with content that explores every part of the hospitality journey from the distribution of catering equipment to the final experience on the customer’s plate.
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No-Shows In Hospitality Back Up To Record-High New figures from Zonal’s latest GO Technology report, in partnership with CGA by NIQ, reveals that the number of consumers not showing up for their reservations in pubs, bars and restaurants is back to a record high, with 14% of guests not honouring reservations or informing venues in advance that they need to cancel. The survey of more than 5,000 British adults, highlights that whilst more than two thirds (68%) of consumers who make bookings say they turn up for all of them, 18% cancel in advance and one in seven (14%) admit to failing to turn up without telling their venue. Since the launch of the industry-wide #ShowUpForHospitality campaign in 2021, GO Technology data had measured no-shows as decreasing. However, this latest insight shows they have now returned to the same level as three years ago, highlighting the significant and persistent problem they present. When looking at the reasoning for no-shows, the findings revealed a direct link between the current financial landscape and the rise in no-shows, with 57% saying that they are severely or moderately affected by the cost-of-living crisis, and over a quarter (29%) of those who didn’t follow through on a booking, citing that they decided it would be too expensive, as their number one reason for not showing up. To prevent no-shows and help keep revenue flowing, understanding what would encourage people to show up or cancel a booking in advance and then implementing the necessary tools to achieve this, is key. When asked what would make guests less likely to miss a booking, the following came out on top: - Simple cancellation process (30%) - Rewards and incentives (28%) - Reservation reminders (25%) - Deposits (21%) - Loyalty/Loyalty schemes (17%) Commenting on the findings, Tim Chapman, Chief Commercial Officer at Zonal said: “No-shows are a £17.59bn problem for the hospitality sector and the issue does not seem to be going away – in fact, this research suggests it has been exacerbated recently by the cost-of-living crisis. “The report also reveals that those most likely to no-show are high-spenders and frequent visitors, which makes them very valuable customers to the sector. It is imperative that we get to grips with the problem, putting in measures to help customers keep in touch and working together to educate consumers about the damage not showing up can do to their much-loved local pubs, restaurants and bars.” Karl Chessell, Director - Hospitality Operators and Food, EMEA, CGA by NIQ added: “Our research shows no-shows remain a hugely frustrating issue for restaurants, pubs and bars. Bookings are a double-edged sword for hospitality, helping venues to plan better and fill tables but bringing the risk of substantial missed sales, at a time when margins and growth are under pressure. “Fixing the problem is easier said than done but there are steps that all venues can take to mitigate losses, and technology has a major ro…
No-Shows In Hospitality Back Up To Record-High
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Bartinder, a new app now available on the Apple App Store and Google Play, is designed to support the diverse staffing needs of the hospitality industry, including bars, restaurants, and private event planners. Bartinder allows business owners and event organizers to quickly connect with skilled bartenders, providing a practical staffing solution for occasions ranging from busy bar nights to high-end events. For event planners and private hosts, Bartinder provides access to bartenders with varied expertise, from craft cocktails to high-volume service, ensuring that any event is staffed by professionals suited to its specific demands. Bartender profiles feature experience, skills, and client reviews, allowing hiring managers and hosts to make informed decisions with confidence. Bartinder’s pricing model is flexible, offering budget-friendly options for employers, while also allowing bartenders to list rates that reflect their skills and availability, making it an attractive option for both parties. hashtag #Eventplanning #Hospitality #Entreprenuership
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Bartinder, a new app now available on the Apple App Store and Google Play, is designed to support the diverse staffing needs of the hospitality industry, including bars, restaurants, and private event planners. Bartinder allows business owners and event organizers to quickly connect with skilled bartenders, providing a practical staffing solution for occasions ranging from busy bar nights to high-end events. For event planners and private hosts, Bartinder provides access to bartenders with varied expertise, from craft cocktails to high-volume service, ensuring that any event is staffed by professionals suited to its specific demands. Bartender profiles feature experience, skills, and client reviews, allowing hiring managers and hosts to make informed decisions with confidence. Bartinder’s pricing model is flexible, offering budget-friendly options for employers, while also allowing bartenders to list rates that reflect their skills and availability, making it an attractive option for both parties. #Eventplanning #Hospitality #Entreprenuership
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Are you starting fires in the hearts and minds of those around you? I saw this somewhere and it really resonated with me, in hospitality we get the opportunity to do this all day, every day, infact in life, full stop, we get the opportunity but are we taking it? I popped into a local restaurant today to enquire about booking a table and to let them know I would be using a voucher gifted to me last year, I know I know, how has it taken so long to use it? A perfectly reasonable question considering how often I eat out but we are where we are. So I’m chatting with the foh team and I know this person to be one of the owners, not because I know her personally but because I pay attention to details like that, anyway, I shared the details with her, she went and checked on the system and then looked up to me with an air of impending disappointment. “I’m really sorry but your voucher has expired, it was issued 14 months ago, and they are valid for a year.” Now for clarity, this was a handwritten voucher, not some fancy digital thing that would have been a challenge to circumvent but this owner has made a choice. I smile, and ask “is there nothing you can do? I’m looking to book for 2 next Saturday night for the tasting menu” this is not a cheap option and the value of the voucher would have covered around a qtr of the bill, tops, “no sir, I’m really sorry but that’s the policy”. Hmmm This founder has made the decision to risk forgoing a booking worth around £200 instead of just taking the decent choice and honoring their handwritten voucher. As I stand in front of her, wondering if trade is that good, that she would have me walk away without booking and feeling disappointed instead of just honouring the voucher? The answer was yes, it kind of blew me away if I’m honest. She asked what time I would like to book for? It won’t surprise you to read, I did not. I wasn’t looking for something magnificent, I wasn’t looking for a show of unreasonable hospitality, I was just hoping that common sense would prevail, it did not. We get the chance every day to light fires for the people around us, the people we interact with, in their hearts and minds but this owner decided that would not be her course of action today. No, she would bring a fire extinguisher 🧯, just incase someone tried to ignite some joy in the name of guest experience. Am I being unreasonable in my hopes of her doing the right thing or do you feel she made the good choice? #westartfires #unreasonablehospitality
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