Working on some menu adjustments for 2013, including contracts. Realizing that many people might not be familiar with catering terms and common practices, maybe it's time to define and discuss over the next few months.
A good place to start?
Service fee/charge.
You'll see this fee/charge pop up in most professional catering contracts. They range from 18-22 percent. A quick scan of the website of one prominent catering hall in Warren County confirms an 18 percent service fee. As stated, it's common practice for most professional--and I stress the word "professional"--caterers.
So what is it?
Let's start with what it isn't.
A service fee does not go toward onsite or food prep labor. Prep labor should be calculated into the food price given to clients. Onsite labor--waitstaff, buffet line replenishment, BBQ pit staff, etc.--should be itemized as a separate labor charge on your estimate.
A true service fee should not be used for gratuity by your caterer. Gratuity should be separate, and at the client's discretion, divvied up to onsite staff. It shouldn't be expected, but is always appreciated by a hard-working, professional staff.
At Hog Wild, we charge a service fee for events that require us to travel onsite and provide cooking and/or waitstaff. This fee goes toward administration costs, office expenses, insurance, travel, hauling equipment, consultations, site visits, event planning and tastings. We do not charge a service fee for dropoffs or pickups. However, a delivery charge may apply for dropoffs outside of the City limits.
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