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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

Mastering Event Pricing: A Guide to Communicating Service Fees and Tipping with Guests

Mastering Event Pricing: A Guide to Communicating Service Fees and Tipping with Guests

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