Question for all you caterers out there....

C

cheezz

Well-known member
My girlfriend just had a party and hired a catering service for the first time. She was charged a per-person fee and delivery fee, all nicely explained. When she got the final invoice, there was a 15% charge at the end. She asked them what it was for, thinking maybe it was an automatic "tip" and they said "oh, that's the industry standard, everyone charges that, it's a service fee". HUH??? Up until that point she had been 100% happy with them and with the food. Now she feels burned. SERVICE FEE? Isn't catering supposed to be a 'service'? That's like charging a 'dental' fee to go to a dentist!

Obviously, I'm incensed on her part smileys/smile.gif

 
I've had catering done before and always get a bottom line price with everything listed

Did you friend not have a total price? If she did, then she needs to refuse to pay the service fee. Too many fees are being imposed on everything in our lives and it is time to put a stop to it.
If she did not get a total price, in writing, then she may be stuck. She just may have to put up a good defense.
I'm not a caterer, but just offering my 2 cents, for what it's worth.smileys/smile.gif

 
Out of curiosity, I googled California cater "service fee" . It varies in percentage. One was as hi

as 20%. However, I didn't see an explanation for it, except one site said specifically it was not a tip. It should have been disclosed up front. Does her caterer have a web site and if so is it on there? Sounds like just another way to add to the price, like the airline charging a fee for a carry-on bag.

 
My 2 cents...

Normal catered expenses include:

- Food cost (in the form of a per/person charge, a la $20/head)
- Delivery and set up charge
- Rentals
- Service (This can be a per person charge--we'll need 3 people to staff the event or, it sounds like, in this case, it may be in the form of a tip.)

Since Service was not calculated in the original contract, that's a major sticking point. It's a standard charge that was left out either by mistake or to make their company look more attractive/competitive. Either way, intentional or not, it's a gross oversight.

Unless their contract states a fee that would be calculated as a tip for total services rendered...or something to that effect...I'd take issue with this new line item.

 
Unfortunately, it was a verbal agreement and she thought they had laid all the costs out.

She didn't know until they gave her the final invoice about the 15%. There was a $50 delivery and setup fee for which she tipped the girl $25. Then the charge per person for the food. No one stayed to serve food, they just laid it out for her and explained what everything was and how to handle it.

Unfortunately, she isn't one to complain and won't go back to them to dispute it... she just probably won't use them again. Too bad, because the food was really good. Why they don't just charge a bit more "per person" and leave this "service fee" off is beyond me.

 
But Traca, there was no one there staffing the event and they said it wasn't a tip...

The food was delivered and left.

 
Too bad, she won't dispute it. The bottom line, and believe me when I tell you

I learned the hard way. Never, never, do verbal agreements. Everything should be written out in contract form, complete with their business license number and insurance bonding number. Plus references one can check. If they won't do this, go to someone who will.

 
Tell her Joe said she should dispute it. It's not unreasonable to break down the fees like that,

although I just charge enough in the first place, but it should have been made clear. I'm surprised the caterer would want to work with just a verbal agreement. This is the type of oversights written agreements prevent.

If she was happy with everything else, then the caterer should know why she doesn't want to use them again.

 
I'm a freelance editor/writer/researcher and I ALWAYS have a contract.

Even for very small jobs. It helps to manage everyone's expectations so that there are no nasty surprises.

 
So true... For the record, I would refuse to pay the fee added to the end, and...

what Karen said about enough with the obnoxious fees being added to everything in our lives!!!


I signed up for a language course at the UofC. By the time they added their courtesy fees, online registration fee, student fees, recreational fees, fees just because we can add fees and there's nothing you can do about it fees, etc. The cost of my little 3 hr. language class has nearly doubled.

I stopped buying ebay because of all the brilliant ones who decided they could could impose "Shipping and handling FEES" after transactions were completed like they were Macy's for fees's sake.

 
Sounds like a blatant bait and switch money grab.

Give an attractive price to get her on the hook, then after the transaction add "fees" well, because EVERYONE does!

Refuse to pay it!

It wasn't in the "verbal" agreement.

Richard, who is feeling somewhat cantankerous today.

 
It gets more complicated than that...

After asking her more detail, it turns out she had booked another caterer who THEN sent an email (email!!) and told her they couldn't cater her party after all (probably got a big wedding gig). By then it was 2 days to the party and she was panicking. When she booked the second guy, he sent her the contract and yes, the 15% was at the bottom. That's when she asked what it was for and got the "oh everyone does it" answer. At that point she would have gone nuts trying to find another caterer and just agreed to it.

So... she could have backed out at that point but really couldn't at that late date. Besides, she didn't know if that really was the industry "standard" or what. The most annoying thing is getting "oh everyone does it" instead of a good exlanation. Since no staff stayed at the house to serve, what in the world other 'service fee' could there have been?!

Oh yeah, like Richard said "a fee just because we can charge it" fee.

 
Legally, a verbal agreement is still a contract. I'd say pay the original amount &

if they want to take her to court (which they won't) over the other portion, let them. Legally, the caterer is in the wrong.

 
Well that compltetely changes things...

Your friend has learned a valuable lesson.

Her complaint is with the original caterer who backed out on her, except, she has no legal recourse to hold them accountable since she didn't sign a contract with them.

The second company did send her a contract and clearly spelled out their charges. She accepted their services "as is" so she has no room to complain about charges now, only the service, which she found satisfactory.

She is right to pay and accept her medicine.

 
Yes, that's what we thought, too. She had the chance to back out (even tho it was last minute)

The only complaint was an unsatisfactory explanation of a large service fee.

 
This was a drop contract? No service?

There should have been a price per person; delivery and set-up charge; any applicable taxes...and that should be IT. I'm with Joe...tell her to fight. I wouldn't charge that and I wouldn't pay it!

 
I know, I know... I'd fight it, too, but she DID know beforehand and isn't the fighting type smileys/frown.gif

 
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