Corkage, Service Charge & Banquet Math - How Pricing Actually Works

Corkage, service charge, and taxes can shift totals more than any décor decision. Understanding the order of calculations—and which items are excluded from “per head” quotes—turns a good hotel or garden offer into a great one. Use this guide to normalize quotes and prevent fee creep.

The per-head price is not the total

Most banquet menus are quoted exclusive of service charge and VAT. A simple normalization example:

• Menu price: ₱1,800 per head
• Guests: 150
• Subtotal: ₱270,000
• Service charge (10%): ₱27,000 → Subtotal B: ₱297,000
• VAT (12% on Subtotal B): ₱35,640
• Grand total: ₱332,640 → Effective per head: ₱2,217.60

Some venues quote “net” rates; others add fees at the end. Ask what the posted menu already includes before you compare. For an apples-to-apples tasting lineup, start shortlisting kitchen partners used to transparent math and outdoor or ballroom service: line up experienced banquet teams.

Corkage models to decode

Corkage is how venues manage outside items they don’t supply. Common structures:

• Per item: cakes, champagne bottles
• Per head: outside dessert tables, grazing boards
• Per kilo: lechon and regional specialties
• Per case: wine or beer by the case

Clarify whether plating, glassware, ice, and bar staff are part of corkage or separate line items. If you’d rather bring signature cocktails without the full hotel bar upgrade, compare corkage against package pricing and third-party beverage service: work with craft drink bars that integrate cleanly with venues.

Hidden multipliers inside packages

• Service charge on add-ons: extra buffet lines, carving stations, or midnight snacks usually pick up the same percent.
• Power and engineering: additional outlets, trussing, or house tech labor for LED walls and special lights.
• Overtime: venue, banquet, and AV often tick separately beyond the included hours.
• Supplier meals: hot meals required for all on-site crew.
• Room blocks and prep rooms: multiple suites for HMUA, wardrobe, and storage can add up.
• Parking, valet, security: large guest counts may require paid marshals.

City hotels bundle some of these, but caps and cutoffs vary. For a focused deep dive into urban ballrooms, compare inclusions versus add-ons in this explainer: decode how city hotel bundles really price out.

Minimum guarantee, attrition, and the “100 vs 120” trap

Banquet contracts often carry a minimum guaranteed headcount. If you guarantee 120 and only 100 attend, you usually still pay for 120 unless attrition terms say otherwise. When comparing venues, normalize your quotes to the same guest count and model a ±10 swing so you see exposure. If you’re mixing lawn ceremonies with ballroom receptions, start with venues that can handle both flows well: shortlist reception spaces aligned to your headcount and curfew.

Bar math that actually compares

• House package: predictable cost per head, includes glassware and staffing.
• Bring your own: add corkage, glassware rental, ice, bar tools, and staff.
• Hybrid: take the hotel’s base, then add one or two signature bottles; check if corkage is friendlier than an upgrade.

Build a simple grid: package cost vs corkage vs rentals vs staff. The winner is the column with the fewest unknowns and the cleanest service flow.

Kitchen and service ratios

Plated service needs higher waiter-to-guest ratios; buffets need more lines as guest count scales. Long distances from kitchen to lawn or beach increase runner time and chafing fuel. If your reception is outdoors or split across levels, prioritize teams who keep food hot and pacing smooth: compare caterers with strong service logistics.

How to normalize every proposal

1. Convert all menu quotes to net + service charge + VAT so totals are comparable.
2. List corkage per item/per head/per kilo/per case on a separate sheet.
3. Separate production (lights, sound, LED, power) from décor to avoid double-counting.
4. Add overtime scenarios: +1 hour and +2 hours for venue, banquet, and AV.
5. Include supplier meals, parking/valet, and prep rooms as their own lines.

If your celebration involves distance, factor tolls, fuel, crew rooms, and day passes; it’s simpler than it looks with a quick template: estimate travel costs and supplier routing without guesswork.

Negotiation pointers that don’t backfire

• Trade upgrades you don’t need (chair style, excess centerpieces) for value you do need (extra buffet line, coffee service, or an additional hour in the prep room).
• Lock the ingress/egress schedule with engineering to prevent surprise labor.
• Request net-net pricing for any custom menu so there’s no confusion later.
• Ask for bar package flexibility instead of blanket corkage waivers; venues protect operations first.

For a reality check on how these levers play out in major hotels, study a ballroom-specific comparison and common pitfalls: get practical about inclusions vs hidden fees in the city.

Pulling it together into a working budget

Once every quote is normalized, align the spend with your priorities and guest experience. If the spreadsheet is getting heavy, hand orchestration to a logistics-strong planner who speaks “banquet” fluently and keeps timelines tight: partner with coordination leads who live inside run-downs.

For the bigger picture—what percent each category should hold and how region affects line items—ground your decisions in a national framework with real-world ranges: anchor your numbers to a countrywide budget guide with regional drivers.