VENUES ARE AS UNIQUE AS YOUR EVENT
PART I - VENUE RENTAL AND F&B MINIMUMS
What is it that you’re looking for as you shop for the right venue for your next event? Our guess is that there’s a list of needs (& wants), a certain gut feeling, a price point, or, most likely, some combination of all these to varying degrees of importance. You need the right space for your guests, as no one knows the attendees better than you. You need the right space for whatever it is that you’re hosting, as you don’t want an intimate elopement taking place in a cavernous, indoor ballroom. And you need the right space for your budget because you don’t want to be venue-poor once you start planning.
Every venue is as unique as the event you’re looking to bring to it, and in this first installment of Venues are as Unique as Your Event we’re going to give a quick overview of venue rentals
and F&B Minimums.
Venue Rental
Definition: the leasing of a specified location
This is usually a flat amount based on the value the owner or manager of the venue has put into place based on any number of factors, though almost always includes square footage. What this includes varies upon the venue but does not include any food or beverage. Not all venues require a venue rental but it’s definitely the majority.
F&B Minimum
Definition: the contracted or agreed-upon amount of revenue that the customer must spend on food and beverages to utilize the venue
This can either be calculated on a per person basis (unlikely) or on the size of venue and how many guests could utilize the space at one time (most likely). It is extremely important to remember that this is a minimum and that in a vast majority of all events this number is exceeded in spend, and that excess can be $100 or thousands. If the F&B Minimum is a threshold for you then you will need to work with your planner more than most on the front end so you can understand what you’ll be able to offer for the minimum. The venue rental does not count toward the F&B Minimum.
Example | An Intimate Wedding with 20 Guests
For our visual learners, here’s some hypothetical math. The venue itself, for this exercise, is irrelevant so go with whatever picture comes to mind.
Venue Rental
$2,500 (venue rental) + $2,500 (F&B Minimum) + $412.50 (based on Texas’ 8.25% tax) + $1,200 (based on estimated 24% service charge/gratuity) = $6,612.50
F&B Minimum Only (No Venue Rental)
$2,500 (F&B Minimum) + $206.25 (based on Texas’ 8.25% tax) + $600 (based on estimated 24% service charge/gratuity) = $3,306.25 (Actual spend required to book the space, though tax & service charge will be added to the final menu selection.)
Final menu selection at $150 per person x 20 people = $3,000
$3,000 (total after final menu selection) + $247.50 (8.25% tax) + $720 (24% service charge/gratuity) = $3,967.50 (actual spend for the event)
FUN FACT: At the time of this writing, the Ruby Hotel & Bar (Round Rock, TX) and Wimberley Inn + Bar (Wimberley, TX) have multiple venues that do not require a venue rental. Inquire today and let us host your next event!