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Lauren
Expert July 2017

Service Charge vs Gratuity

Lauren, on July 6, 2017 at 5:53 PM Posted in Planning 0 11

My wedding is a few weeks away and we are getting all our tips in order. My venue charges a 22% service charge that is not a gratuity. There will be 5 people working my event. I have no idea how to tip them. Our food and alcohol total (pre-tax & service charge) was $9000. Our service charge was $2000. Am I expected to pay another $2000 in gratuity or would $750-1000 be enough?

Thanks for all your help!!! I have all of my other vendors under control, I just didn't know how this works.

11 Comments

Latest activity by MrsMet, on July 6, 2017 at 10:31 PM
  • Amanda
    Savvy September 2019
    Amanda ·
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    Ask for a breakdown of your service charge.

    As a server I receive a portion of the service charge. The amount is dependent on factors too lengthy to list.

    The tip on thr other hand, I receive 90-100% depending on tip-off of SA'S and bartenders.

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  • Amanda
    Savvy September 2019
    Amanda ·
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    Tip out*

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  • Chelsea
    VIP September 2017
    Chelsea ·
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    $1000 is $200 per person which seems enough to me... however, I'm not sure what is "proper."

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  • Lauren
    Expert July 2017
    Lauren ·
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    The venue said a portion of the service charge will be given to the service & bar employees.

    @Chelsea L- me either lol Most of my friends got married 8 years ago so they can't remember what they did, understandably so lol

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  • Lakers
    Devoted August 2017
    Lakers ·
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    Following

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  • Vicki
    Master November 2017
    Vicki ·
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    I would ask what percentage the service and bar employees get of the 22%. If you think about it, $2000 for 5 people is $400 each which is a LOT. But if half of the service charge went to employees, at $200 a person, I would think that's plenty.

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  • Ks_catonlap
    Super October 2017
    Ks_catonlap ·
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    I would honestly ask just ask them how it's being broken up. I know I have a 3k service charge with mine and it's literally the 25+/hourly pay for the servers and bartenders, then they're adding just a 12% gratuity. Which, working service industry myself, is plenty fair.

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  • karen
    Master October 2017
    karen ·
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    Sorry, but mindboggling to me that you did not ask BEFORE you signed contract. If you ask now, they will tell you it is not a tip.

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  • ambrok
    Master October 2017
    ambrok ·
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    Our contract has a 20% service charge. I just assumed it was gratuity & FH thought it didn't cover a tip at all. I ended emailing our event mgr & this was his response 'The 20% gratuity is money used for the banquet servers. I do believe it varies from place to place'.

    ETA, since they specifically stated 'gratuity'....I'm taking that to mean a tip.

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  • Lauren
    Expert July 2017
    Lauren ·
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    @karen k - I was fully away of the 22% service charge not being gratuity when I signed. I was simply asking advice so I tip them properly. I am not one that signs things without reading the fine print. I clearly stated in my discussion that I knew it was not counted towards gratuity and was seeking advice on how I should go about tipping them. But thanks anyways.

    Thank you everyone. Your suggestions have been more than helpful!

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  • MrsMet
    Super July 2017
    MrsMet ·
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    Our service charge does not include gratuity-it's basically just the staff's hourly pay. Our catering manager told me people usually tip about $25-$50 per waiter.

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