Because it can be confusing, many people think that the 'service charge' is gratuity. Your per person charge is for food/drink/supplies. Your service charge pays the measly salaries of all of the staff.
Although a really small handful of places include gratuity on the contract, the service charge, even if it's 18% or more, is not gratuity. The staff should still be tipped as normal.
They really should call it something else, or just work it into the full price.
I hope this helps and is helpful to those looking at places. If you find a 'service charge' you can check with the hall to be sure, but you should generally assume that you should still be tipping that day. Ignore the service charge as just part of your contract, having nothing to do individually with the staff.
HappyEverAfter
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Re: A quick note on service charges...
Stepher LOL
I was a waitress, so I know what its like to go by tips, but I still think that what these halls ask for is insane. I told my friend who lives in PA what the suggested tip for the MD was and she could not believe it. And I dont think the waitstaff in PA works any less hard than those on LI Maybe its because I am coming to the end of wedding planning, but I am really taken aback at how many people expect tips on top of the outrageous fees I am already paying them. Especially when they 'suggest' tips without performance- does that mean that if the MD should get $150 just for showing up? If thats the case, anyone know of any halls hiring? I can make $300 in two nights work
julybride444
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Re: A quick note on service charges...
Often the Maitre D' is supposed to split that among other staff (kitchen staff, etc. included)
julybride444
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Re: A quick note on service charges...
Alina, I'm sorry you feel strongly about this, but I was just trying to clear up the misconception, that a service charge is automatically gratuity when it usually isn't gratuity at all. And, that is a misconception...
You and I can differ greatly on our stance on tipping. And, yes, I feel strongly about this too. But, this isn't about my feeling or yours, it's just a fact that if people want to know what is included in their contract they need to ask their hall.
I guess I don't eat at enough Russian restaurants. But, maybe they do it the same way the caterers do it. Would it be any different if they just charged you more for your food, that's what most restaurants do. That's the other alternative.
dmorris8
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Re: A quick note on service charges...
thatched cottage in centerport On top of the per plate charge, there is tax, 18% gratuity and a $550 service charge, plus we are 'expected' to tip the maitre'd and bridal attendant.
alina
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Re: A quick note on service charges...
Yes, it would be different if it was included in the dish price. I might choose not to eat there. If you increase the pp price of each hall by 10%, in may as well deter people from using that specific business.
julybride444
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Re: A quick note on service charges...
Agreed-you don't have to eat there if you think it's too expensive.
The halls usually include the service charge in the pp charge they quote from the start. It's just on the contract it gets confusing for people - I was trying to help clear that confusion up. I think they have to single out the service portion on the contract due to union or taxation laws. That's where it gets so confusing.
lesleyw
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Re: A quick note on service charges...
julybride444, I'm confused are you saying that the $pp price quoted by your hall was 18% higher than the $pp price on your contract? So the contract had a $pp price that was 18% less than you were quoted and then there was a line that said service and that was 18% of the total?
My hall gave me a $pp price and then an additional 18% which they called gratuity. I'm confused..
alina
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Re: A quick note on service charges...
Is there a trend that certain jurisdictions have these laws or is it specifically 'labor Union' laws?
julybride444
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Re: A quick note on service charges...
Lesley, call your hall and find out.
If it was called gratuity, chances are it is just that - gratuity (tips). But, you might want to ask if all gratuity is included or if the bridal attendant and such should be tipped separately.
Some people look at their contract and see that service charge was part of the $pp quote they received. Then, they think that service charge is tips when it's not.
Gratuity and Service charge are almost always different. Service charge is almost always part of the $pp, and is sometimes itemized on the contract for contractual purposes. Gratuity is tips.
julybride444
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Re: A quick note on service charges...
Alina, I'm not sure, and I only think that's why they itemize like that. I'm not positive. For whatever reason, it has caused a few girls on here to comment on their service charges and on the confusion it's caused.
alina
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I wonder if there are some lawyers here that know this? I think there is a law somewhere that allows certain types of businesses to charge service charge, but not everyone does it...
julybride444
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Re: A quick note on service charges...
Alina, It doesn't really matter to be honest.
Even when you buy a shirt you're paying for the staff running the store and the electricity, rent, advertising. It's just not itemized, and it wouldn't make a diff. if it was b/c the shirt would cost the same.
Either way you are charged the service charge - you pay for labor in your $pp cost.
It's just whether or not it's itemized on your contract that can be confusing. Even if the Harrison House hadn't itemized my bill, I still would have been paying the same amount per person. If I pay $150pp, it doesn't matter whether it's itemized to show which portion is service and which is food etc. or not, it's still $150 per person.
