Happy Tuesday everyone. Recently I have had several brides ask me about the service charge that their wedding location was charging them; specifically they wanted to know, how much to expect it to be, why are they were being charged that fee and whether or not it is taxable. These are all very good questions, especially when it comes to planning your budget.
Most hotels and restaurants charge service charges beyond the price for your food and beverage. The fees are used as a gratuity to the service staff. I have seen service charges that range anywhere from 18 percent to 24 percent. This service charge can add significantly to what you are spending overall. If your food and beverage charge is $75.00 per person, the service charge may be anywhere from $13.50 to $16.00 per person. If you are having 100 people at your reception this can add up to $1600.00 to your overall budget.
Furthermore, in most of the cities I have worked, that fee is taxable. Depending on what the sales tax rate is at your wedding location, that can add another $100.00 to $200.00 to your overall budget.
Do not forget to allow for this when you create your budget. Also, make sure that the service fee is mentioned in your contract. I have seen some contracts that state that the service charge is subject to change. It doesn’t happen often, but it may increase by a half of a percent or more.
Many catering companies that I work with have a flat service fee rather than paying a percentage. Once again, make sure that it is accounted for in your contract.
If you have questions on this or any other wedding related topic, please post for me here or send me an email to susan.southerland(at)pwg.com. Also become a fan on Facebook by clicking here and follow me on Twitter by clicking here.
Your partner in perfect planning,
Susan
