Cash bar, open bar, corkage fees. When it comes to
liquor pricing options for events, the only thing more complicated
might be having to craft a caviar menu on a Cheerios budget. The
type of liquor license, the size of the venue and in which of the
50 states the venue is located all can affect what the charges will
be at the bar.
" Cash bar. A tab is kept for every drink
ordered, and the planner pays tax and service on the total. This is
the best option for small events, where guests are not big
drinkers.
" Corkage fee. This typically is required when
the event sponsor provides the dinner wine, rather than if it is
purchased directly from the venue. Some venues charge a flat rate
for every bottle opened and served, which includes the cost of
washing, drying and handling the glassware, as well as the acts of
opening and serving. Typically, the fee does not include tax or
service charges. Others use their own in-house equation, and prices
can vary.
For a recent corporate event at Cipriani 42nd Street in New York
City, for example, the champagne provided by a sponsor was $20
pricier than Cipriani’s in-house stock. Using a formula based on
the differential between the cost of outside vs. in-house wine, the
venue charged a corkage fee of $10 per bottle, along with tax and
service charges. “Corkage is complicated,” admits Katie Kannapell,
Cipriani’s banquet manager. “People often think corkage is cheaper,
but you have to ask what is included and then compare it to what
the venue serves. Very often you are not saving anything.”
" Open bar. The venue charges a flat rate per
person, based on the number of guests, quality of liquor being
served and hours the bar remains open. Be sure to ask if the rate
includes tax and tip. Is it more economical than paying per drink?
“You have to know your guests,” says Lori Pecor, director of
catering for the Woodlands Club in Falmouth, Maine. “Older people
tend to drink more martinis and hard liquor. Younger people drink
more beer and wine.”