The guarantee and the final count
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Set a guaranteed minimum at booking
The number of guests billed for whatever the actual attendance. It is what makes the deposit and the food order safe.
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Set a date for the final count
Commonly a few days before the event. After that date the count can go up but not down, because the food has been bought.
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Bill the greater of guarantee and actual
Stated that way on the contract and repeated on the invoice, so a low turnout is not a surprise negotiation on the day.
Service charge is not a tip
A service charge is your revenue, covering staffing and operations; a gratuity is money intended for the staff. They are treated differently for tax and, in several states, for wage law — so they go on separate lines with different names and never as one blended percentage.
Itemise what is not food
- Staffing: servers, bar staff, chefs, with hours and rates
- Rentals: linen, china, glassware, passed through or marked up, consistently
- Delivery, setup and breakdown, with any travel outside your normal radius
- Cake cutting, corkage or similar per-item fees agreed in advance
Alcohol and tax are their own question
Prepared food, alcohol and rentals are often taxed differently in the same state, and a service charge may itself be taxable. Show tax against the lines it applies to rather than as one figure at the bottom.
Invoice the balance before the event
Deposit at booking, balance due on the final count date, and a short reconciliation afterwards for overtime, bar consumption or damages. The reconciliation should be the smallest invoice of the three.
Common questions
- What is a guaranteed minimum?
- The head count you will be paid for even if fewer people attend. It is agreed at booking and is what lets you order food and staff with confidence.
- Is a service charge taxable?
- In many states, yes, and in some it depends on whether it is distributed to staff. It is a state question, and one worth confirming rather than assuming.
- Should gratuity be automatic?
- It can be, if it is disclosed at booking and shown separately from the service charge. An automatic gratuity that first appears on the final invoice is the line customers challenge most.