I’m seeing venue service fees jump from 22% to 28% on 2025 contracts in NYC, and it’s blowing up budgets. I’ve been getting better totals by capping the fee to food and beverage only and shifting dessert/late-night to outside vendors; anyone else securing this language or getting pushback?
“to food and beverage only and shifting dessert/late-night to outside vendors; anyone” — same here; I also push a not‑to‑exceed cap on the service fee (22% max) and carve out AV/decor so they can’t stack it… Are they pushing back harder on the cap or the outside‑vendor clause?
Quick win I’ve had in NYC is adding a “no service fee on third‑party rentals/permits” clause and having those vendors bill us directly, so the fee doesn’t play whack‑a‑mole on every line. If they push back, I’ll trade a slightly higher room‑rental for a lower or frozen service‑fee line. @OP, has anyone gotten the fee tied to guaranteed headcount instead of total spend?
On my last 2025 NYC deal, I swapped the percentage add‑on for a flat per‑guest admin line that covers staffing and house ops. Has anyone gotten hotel‑attached venues to accept that structure? It gave them predictability and kept the “28% in 2025” math from ballooning when we layered in décor and late‑night elements.