Q & A – Service Charge vs. Gratuity?

QUESTION:

Our caterer has added a 20 % service charge, and 7% tax has been added to that. The waiters are being provided by the venue, and are being paid in a separate fee. The caterer says this is not their tip…that he has his own personnel that is paid by the service charge. He had a suggested tip of $1500.00 on the contract. The wedding is this Sunday. He would like the 1500 tip in advance, as a separate check. I said we would tip afterwards, and he said he gets the tip and distributes it before the event. This seems like blackmail to me, and my husband is adamantly saying he will not do it. I don’t want the day ruined. Advice, please?

-Linda

ANSWER:

Greetings Linda~

In this case, your caterer is correct.

The service charge offsets the caterer’s labor and administration costs such as dishwashing, packing for your event, travel time to and from your event, etc. The service charge is not a gratuity and does not cover the gratuities for the wait staff.

Now, as far as having to pay the wait staff’s gratuities in advance, that is ultimately up to you. Some caterers will ask that you tip them upfront (as they do the hardest physical labor on your wedding day, and should be compensated accordingly), but there is no reason you can’t tip them at the close of the evening (though you must make sure that if you go this route, you have cash or check ready to give to them literally at the close of the evening).

I cannot tell you how many questions I receive on a regular basis regarding event vendor service charges versus gratuities. It’s all very confusing! So, never feel bad about seeking a second opinion when it comes to these fees.

Good luck on your wedding, and happy planning!

Best Wishes,

Eve-Maridy