Posted by Carl Jones on July 11, 1998 at 01:45:13 :
In Reply to: Re: The Issue of Gratuities posted by Gabriel Cohen on July 10, 1998 at 11:22:57 :
: Dear Carl,
: Now that you explain in greater detail how you deal with the gratuity issue, I see that I have indeed painted you with an unfair brush, and for that I apologize. If you clearly indicate on the bill that the "service charge" is not equivalent to a billed gratuity, then there is certainly nothing immoral or unethical about it. As you noted, I was writing (perhaps a bit hastily) out of a general frustration, having worked with too many caterers who seemed to feel that waiters' gratuities were simply another part of their own profits. (This led to a lot of waiters' cynical comments about the caterer's "new house that tips built" or "new car that tips bought." As I said, I've known cases where a "service charge" was added to the bill without any explanation with the clear assumption that the client would see it as a gratuity, and then the caterer would pocket the money. I deal with this issue in my own bills and contracts by adding a "planning fee" and clearly stating what this item is for (consulting with the client, ordering rentals, etc., etc.). Other caterers might call it an "administrative charge" to clarify that it goes to office overhead, rent, etc. At the end of the bill, I write that "gratuities are voluntary and at the discretion of the client." Some caterers include a specific charge for a gratuity--while that's okay, I think the client needs to be sure that they're pleased with the service before they make a decision to tip. In any case, for whoever may be reading this, I do want to emphasize again that if the client understands that they have offered a gratuity to the staff, that money needs to get to the staff. To do otherwise with it is stealing, as surely as taking money directly out of a waiter's pocket or their home
: Again, to Carl, thank you for clarifying your policies, and again I apologize for attacking you unfairly. As you noticed, I am particularly sensitive about this issue, because I have seen waiters' gratuities abused so often in this business.
Dear Gabriel and all!
This is what it is all about, people venting themselves, offending others, others defending themselves
and getting a clarification and an apology. I appreciate your retraction and apology, I sincerely
accept your apology and forgive any attacks....
I AGREE WITH GABRIEL, we caterers do tend to use the term "service charge: 15%" because it is more
acceptable than calling it "additional profit: 15%" or even "planning fee" the reason it is more acceptable
is because the client accepts "service charges" just as they would in a restaurant that builds it in
for parties of 5 or more..... but in the restaurant, it is not a service charge, it is
a 'gratuity or tip' and it DOES go to the servers....
I admit that I am guilty of using that term because it is acceptable and I play on the
fact that the client does confuse the two terms....
But I had trouble with clients saying, "why am i tipping so much and why on rentals and
props and linens etc...." then i was faced with saying, "well, it is not a tip, it is profit for my
company..." so, i decided to clarify the term "service charge" in my agreement....
I tell them it ".....reflects the profit to Premier Catering...."
Now, that leads them to think that we are making a 15% profit on their event which i dont
think anyone would have a problem with that.... (of course, i am making a profit on each
item before the 15% is added)
Example of how I bill:
(this was cut and pasted directly from my catering agreement)
*****************************************************************************************
CUSTOMIZED PRICING: We show you exactly what you are paying for!
Menu - priced per guest (includes food and preparation staff)
Catering Staff - this is usually a fixed cost that seldom with changes in guest numbers.
The catering staff are people who deliver, set up, maintain, take down and clean up your event.
The price varies with the amount of staff required to cater your event.
Dinnerware - priced per piece. Includes china or disposable dinnerware.
Rentals - priced per item. Tents, grills, props, decorations, table cloths and linens.
Optional Services - priced per option.
State and Local Sales Tax - 8.75 % of the total bill. (unless tax exempt)
Service Charge - this is added to all catering, except wholesale pick ups or drop off
where no catering services are needed.
This is typically 15% and reflects the profit to Premier Catering.
Gratuities for the Service Staff are at your discretion.
*************************************************************************************
I believe that all professional caterers should examine what Gabriel has shown us and
you must take action to correct this problem.....
I will contact Mike Roman of the CaterSource Journal and have him address this issue in
an upcoming Journal.... that will make a huge impact on your concerns, Gabriel, as he is
the nations top catering consultant with the largest circulation of any catering magazine....
if anyone is interested in CaterSource, you can see them at www.catersource.com