20/07/2022
Beverage Package V's Bar Tab
You will often come across bar packages and sometimes you will come across the system of drinks on consumption or minimum bar spend requirements. To give you a better understanding of what these systems are I’ve outlined how they work and the pros and cons of each system. By understanding how they work and asking yourself a few simple questions, you can decide on the right choice for your function.
ASK YOURSELF:
Can you afford to go over your budget for beverages?
Are your friends and family fussy drinkers?
What is more important to you? Having complete control over your bar tab or having a tab with more flexibility?
Are your friends likely to drink heavily or just have a few?
Do you want everything to be organised prior to the event rather than deal with it on the night?
Do you only want to supply limited beverages on the night?
The advantage of a beverage package:
The advantage to buying a beverage package is, knowing that all of your guests will receive unlimited alcohol within a fixed time frame and for a fixed price. This can be a good motivator to get your guests there on time. It is also a good way to stop guests from taking advantage of a free bar tab. Packages usually consist of beer, wine, champagne, juice and soft drinks. The quality of the wines and beer will vary depending on the type of package you choose. It’s always good to look at a variety of drink packages to compare their value. Our packages are offered for 3, 4 and 5 hour.
Beverage packages also allows you to stay within a set budget and have some control over what’s being served to guests.
Disadvantages of a beverage package:
The disadvantages of buying a beverage package are that you must pay a set amount of money per guest when booking the function. Venues usually request a confirmation of numbers two weeks prior to the event. If guests don’t show up on the night, you are still obligated to pay the venue for those guests. This means that you may end up paying for drinks that were never consumed.I would recommend letting guests know that once they have RSVP’d, they have been paid for.
DRINKS TAB
Our venue has a set a minimum bar spend requirement. This amount is the minimum amount that a client must reach on the bar during their function.
Advantages of purchasing drinks on consumption
The most obvious advantage is that you will only pay for what your guests drink, so if there are; no shows at your function you wouldn’t have lost money on them.
With bar tabs, there isn’t any set time limit on the drinks for your guests. Your Function supervisor will monitor the bar amount at different times throughout the night & let you know when it reaches the limit amount. You can always extend the tab if you want to later. To make a tab last longer; restrict your drinks to basic beverages or to just beer and wine. People can always purchase their own drinks if they want spirits.
DISADVANTAGES TO DRINKS ON CONSUMPTION
Most importantly, if you don’t reach the minimum spend, the host is still responsible to pay the minimum bar spend, so if your guests drink $1,000 worth of drinks and your minimum spend is $1,500 then you are obliged to pay the extra $500 to the venue.
Lastly, when you purchase drinks on a bar tab, you may not enjoy the same peace of mind that a beverage package can provide. The knowledge that your tab has been paid for and that your guests are all guaranteed to have drinks throughout the evening allows you to just enjoy the function.
