Service Charge on Venue??

If you're renting an event space, there's always a service charge. Most of the time, it helps cover cost of labor, set up and tear down of the space, and to cover any items that may be broken or need replacing.

I rent out meeting spaces and there's always a service charge and we do not provide catering.

Yes, mine has a 20% service charge as well.

Yes, my venue includes a 20% service charge as well as 5.5% tax. This covers set up, wait staff, bartenders, clean up, and tips for the staff. I think its for inclusive venues that provide staff and other services.

The thing that's holding me up is that we are already paying a serive fee through our food and liquor vendor for the staff. Idk there's one for just the space that rented.

Yes very normal

We have one. Venue is providing food and alcohol. Can't remember if it's 20 or 22%

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I also have the same question.

Venue rental and catering is provided by the same resort. We are already charged 22%+9% surcharge over food and beverage, but still get charged 31% over the venue rental fee. Is that common practice?

View Quoted Comment This has me a little flummoxed too. On 2 of the contracts we have venues that have set up fees and 20% service fee on the set up fee for there own in house catering. I think my biggest question is why not just roll that into the one cost set up or service fee?

When i do budgets for anything, renovations, films what ever i take the quotes add 10% for lnd and 20% contingency. It throws me off if i don't get accurate initial quotes. This enables me to not sweat 1000 here or there for on the day crap moments. However, if numbers get broken appart so you can say our set up fee is 1000 but then ad 20%, location rental is 8000 but add 20% it makes responsible spending tough. If you really want 1200 or 9600 fine then say so. I shouldn't have to catch it in a contract. I don't understand the reason to break that number appart into another line item if not to misslead. If its cost of doing buisness it should just be 9600 location rental not 8000 and on pg 4 20% service fee. I've delt with a number of location rental this is the 1st time i have a cleaning fee and service fee for the cleaning fee. The only difference is its not a comercial or show its a wedding.

In any case more rant than it probably needed to be but the jist of the question is an honest one i don't understand why you wouldn't just roll that 20% into the location rental. Whats the reason for breaking that number up into 2 numbers?

Look up the banquet hall permit government
and it will list the do’s and the don’t’s to get a license.

Service charge is basically adding it into the contract on how much they make mandatory that you have to tip. ours is 18%. Since our venue has already added the tip into the bill, we will not be tipping them for anything else