Recruiter's Glossary

Examples: Temperature Log • Prep Timeline • Guaranteed Numbers

Service Charge

Term from Catering Services industry explained for recruiters

A Service Charge is a fee added to restaurant, catering, or event bills, usually calculated as a percentage of the total bill (typically 15-20%). This charge is meant to cover the cost of service staff and is often shared among servers, bartenders, and other support staff. In catering contexts, it's particularly important as it helps cover not just service during the event, but also setup, cleanup, and coordination. This is different from a regular tip as it's usually predetermined and mandatory, especially for large events or group bookings.

Examples in Resumes

Managed Service Charge distribution among staff of 25+ employees

Implemented new Service Charge policies that increased staff retention by 30%

Coordinated Service Charge and gratuity systems for large-scale events

Typical job title: "Catering Managers"

Also try searching for:

Food and Beverage Manager Banquet Manager Restaurant Manager Event Manager Catering Coordinator Service Manager Operations Manager

Where to Find Catering Managers

Professional Associations

Job Boards

Professional Networks

Example Interview Questions

Senior Level Questions

Q: How would you handle a dispute about service charge distribution among staff?

Expected Answer: Should demonstrate knowledge of fair distribution systems, conflict resolution, and legal requirements regarding service charge allocation. Should mention documentation, clear communication, and policy development.

Q: How do you determine appropriate service charge rates for different types of events?

Expected Answer: Should explain factors like event size, complexity, staff requirements, setup/breakdown time, and market standards. Should also discuss how to communicate these charges to clients.

Mid Level Questions

Q: Explain your process for training staff about service charge policies.

Expected Answer: Should describe clear communication methods, documentation, regular training sessions, and how to explain service charges to customers when asked.

Q: How do you track and distribute service charges among staff?

Expected Answer: Should discuss systems for fair distribution, record-keeping, transparency in allocation, and timing of payments to staff.

Junior Level Questions

Q: What is the difference between a service charge and a gratuity?

Expected Answer: Should explain that service charges are mandatory fees set by the establishment, while gratuities are voluntary amounts given by customers directly to servers.

Q: How do you explain service charges to customers?

Expected Answer: Should demonstrate ability to clearly communicate what service charges cover and how they benefit the overall service quality of the event or dining experience.