Understanding Service Fees and Gratuity at Your Wedding
When couples start budgeting for their wedding, there is one line item that almost always causes confusion: the difference between service fees and gratuity. They sound similar, but they are not the same thing, and understanding the distinction can save you from surprise costs on your final bill.
Money talks… so let’s break it down clearly.
What Is a Service Fee?
A service fee is a mandatory charge added by your venue or caterer to cover the operational costs of service. Think of it as an administrative or labor charge, not a tip.
These fees can range anywhere from 18% to 25% (or more) of your total food and beverage bill. While the name suggests it goes directly to your service team, it typically does not. Instead, it is used to cover expenses such as:
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- Setup and breakdown labor
- Equipment usage and maintenance
- Insurance and administrative costs
- Back-of-house staff not eligible for tips
In other words, the service fee ensures the event runs smoothly behind the scenes, but it does not necessarily reward the individuals serving your meal or bartending your reception.
What Is Gratuity?
A gratuity is a voluntary (or sometimes suggested) tip meant to thank the team members who personally serve you and your guests. These include servers, bartenders, attendants, and support staff who bring your wedding to life.
Some venues automatically include gratuity on your invoice, while others leave it up to you. Typical gratuity ranges include:
- Catering Staff: 15% to 20% of the food and beverage subtotal
- Bartenders: 10% to 15% of the bar total or $2 to $5 per guest
- Valet or Coat Check: $1 to $3 per guest or car
- Hair and Makeup Artists: 15% to 25% of the service total
- Planner or Coordinator: Optional, typically $300 to $500 or more depending on scope
When in doubt, ask your venue or vendor if gratuity is included and if it is distributed directly to the staff.
Why It Matters in Your Wedding Budget
Here is the catch: both fees are often listed together on contracts and can add up to a significant portion of your total costs. For example, a $20,000 catering bill with a 23% service fee means an additional $4,600 before gratuity.
Understanding these charges ahead of time helps you:
- Budget accurately and avoid sticker shock
- Tip appropriately and fairly
- Compare venue proposals on equal terms
- Know where your money is actually going
Pro Tips!
When reviewing vendor proposals, ask these two questions early:
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- Is your service fee a tip for staff or an administrative charge?
- Is gratuity included, or should we plan to add it separately?
Having this clarity up front ensures you are honoring your team without paying twice for the same service.
The Bottom Line
In short:
- Service Fee = Mandatory charge (covers operations)
- Gratuity = Optional thank you (goes to staff)
Both are important, but they serve different purposes!
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