Service Charge vs Gratuity

A service charge is a mandatory percentage a venue or caterer adds to your bill (often 18 to 24 percent) to cover operating costs. Despite the name, it does not always go to the service staff as a tip.

Gratuity is a discretionary tip that goes to the people who worked your event, such as your servers and waitstaff. Always read your contract: if a service charge is listed, ask directly whether it includes staff gratuity or whether tipping is separate.