What is a Hire Charge?
A fee for use of the function area. It is a way of covering the venue's costs for staff, cleaning, power, and sometimes, security. You don't get anything to eat or drink for this money.
Sometimes a minimum spend is payable as well as a hire charge. If there is no minimum spend then a hire charge will give you greater certainty of cost as there will be no risk in failing to meet a minimum spend target.
An often overlooked advantage of a hire charge is that if a venue allows ticketed events, you could charge entry to make back the hire charge and effectively run your party for free.
What is a Minimum Spend?
The amount the venue needs you and your party to spend on drinks and/or food, to hire the space.
What the minimum spend can be used for varies. Sometimes it must be used for drinks only, other times for food only, and sometimes it can be used for both.
A minimum food spend may be part of a food/drinks minimum spend. This is an amount that must be spent on food; the rest of the minimum spend can then be used for either food or drink.
It is your obligation to meet the minimum spend. If you fail to meet the minimum spend target, you will be expected to make up the difference somehow. It could include losing your deposit, being charged the difference to your credit card, or being charged a flat fee. Be sure to carefully check the booking form you sign with the venue to determine the consequences of not meeting the minimum spend.
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