What are Service Charges? What are we paying for?
|blue skye studios|
The Service Charges is the evil little charge that most couples despise. It hikes up your food and/or venue cost and is taxable. So what is this cost? Each venue or caterer charges for different reasons. If you are at a hotel, for example, you will notice the charge is 18% - 24%. These charges may include labor (kitchen staff, setup staff, event manager, etc. These charges also incorporates the use of their equipment such as chaffing dishes, utensils, china, etc. If you are using a caterer, you will see they breakdown labor cost but sometimes you do not see the breakdown of their staff that cooks the food, load and unload their trucks. For outside caterers, this charge covers fuel, transportation, and maintenance, along with equipment use such as chafing dishes, china, etc. At no time is this charge a gratuity. When planning you wedding, please be sure to incorporate these charges in your final budget.