Is service charge a tip?

They could give you a break down of what the service charge is for. sometimes some of it might go to the servers, etc.

View Quoted Comment Okay I’ll ask for that! I automatically assumed that it would go to the coordinator, servers, bartender, etc.

It's another name for a tip/gratituity that is considered mandatory for a certain number of people. The same idea as when you go out to eat and are charged a mandatory tip because you have 10 or more people in your group.

Some people tip on top of that and others don't. But generally a tip is only given if they go above and beyond the call of duty, not for bad service or simply doing their job.

View Quoted Comment Thank you for clarifying!

My catering contract specifically said the service charge was not a tip

I would ask! Sometimes it is and sometimes it is not gratuity.

My venue has the same thing and they said it’s not the tip the tip is separate.

View Quoted Comment Oh wow. Mine doesn’t say that but I think I’ll ask what it goes to

View Quoted Comment I think I’m going to, thank you!

View Quoted Comment That’s crazy, because what does it actually go to? I’m going to ask my coordinator.

View Quoted Comment That’s a really great question who knows and it’s a high percentage to mine is like 20%

I’ve always thought the service charge was the tip. I’m wondering know where that money actually goes. I’ve seen it be anywhere from 18-22%.

Like one of the PPs, my catering contract also specified that service charge was not a tip

We also have a 20% service charge. However, after asking my venue coordinator, I was told it is NOT a tip/gratuity. She side stepped the question about what exactly that fee goes to. It sounds like a sneaky way for venues to get more money (while advertising “lower prices”).

NO ITS NOT. I worked weddings before covid struck. It's for overhead costs (aka minimum wage for servers, paying chefs, and sometimes for things like laundering linens). We did not get tipped if the couple didn't tip. And let me tell you, it's not as nerve-wracking, but it's as stressful and as long a day for us working the wedding. And a ton goes on "backstage" that we handle in a way that you never have to worry about anything.

My venue said the service charge did include tip. I’ll probably leave something anyway.

A service charge is to pay for the service received; servers, delivery, overheads etc. Once all of the elements are totalled the vendor determines the overall labour cost needed by use of a percentage. This is seperate from the goods that you are purchasing.
A tip or gratuity is at your discretion. One is for the actual service, the other is because you appreciated the service.

View Quoted Comment Yes mine is 20%. So if it’s not considered a tip I wonder what exactly it would go towards

View Quoted Comment Yes it’s not a small percentage. Like I mentioned I believe my estimated service charge is $1200, so if it isn’t considered a tip what exactly is it used for?

View Quoted Comment Do you know what the money actually goes towards?