No More Fluff

Part 2/2

Last week's blog (Enough with the jargon! Part 1/2) was our most read to date! Thanks to all who read & shared 🚀

Today, let’s break down what it means to book a bar or restaurant for a group. 

Last week, we discussed how challenging it can be to find and book the right venue for your group. Bars and restaurants are not set up to make “large party reservations,” as they disrupt the regular flow of business and impact revenue they’d earn from normal operations. To protect themselves, they developed two types of packages large groups: 

• Minimum Spend: The party host agrees that the group will collectively spend a minimum amount on food and/or beverages over a specified amount of time.
• Drink and/or Food Package: Guests are offered a selection of food and/or beverages for a specified time, usually for a set fee per guest. This fee is often agreed upon and paid by the host in advance.

What’s still not clear to anyone trying to book a venue is who pays (if at all), what they pay, and when it’s due?

New this week: after months of conversations with bars and restaurants in NYC, Party Place distilled it down to five options. 

Below is a quick overview of each along with a real-life example to show how it works.

Minimum Spend with a Credit Card Hold 

This reservation type ensures that you meet the minimum spend requirement while allowing your guests to pay individually for their purchases.

How It Works:

Let’s say you make a reservation that requires a minimum spend with a credit card hold. You choose a $1,000 minimum spend over a 2-hour period.

For example, if you invite 40 guests, each would need to spend an average of $25 to meet the $1,000 minimum. During the checkout process on Party Place, you’ll be asked to provide a credit card, but it won’t be charged immediately.

On the day of the event, your guests will pay for their drinks and food as they normally would at the bar. Collectively, your group needs to spend at least $1,000 within the 2-hour window.

Spending Scenarios:

• Scenario 1: If your guests only spend $800 during the 2-hour window, your credit card will be charged the remaining $200 to meet the minimum.
• Scenario 2: If your guests spend $1,000 or more, your credit card won’t be charged anything extra.

Party Place venue offering this: The Cactus Shop

Minimum Spend with a Refundable deposit

This reservation type ensures that the minimum spend requirement is met while allowing your guests to pay individually, and it provides a straightforward process for deposit refunds based on total spending.

How It Works:

Suppose you make a reservation that requires a minimum spend with a refundable deposit. You choose a $1,000 minimum spend over a 2-hour period.

For example, if you invite 40 guests, each would need to spend an average of $25 to reach the $1,000 minimum. During the checkout process on Party Place, you’ll be asked to provide a credit card.

Once the venue confirms your booking, you’ll prepay 25% of the minimum spend as a deposit, which amounts to $250. Three days before the event, the remaining 75% will be placed on hold on your credit card.

On the day of the event, your guests will pay for their food and drinks as they normally would at the bar. Collectively, your group needs to spend at least $1,000 within the 2-hour window.

Spending Scenarios:

• Scenario 1: If your guests only spend $800 during the 2-hour window, your deposit will cover the remaining $200, and the leftover $50 will be refunded to you.
• Scenario 2: If your guests spend $1,000 or more, your entire deposit will be fully refunded.

Party Place venue offering this: Baba Cool

Minimum Spend that is Prepaid By the Host

This reservation type ensures that the minimum spend requirement is prepaid and applied toward your event, making it easier to manage expenses and ensuring a smooth experience for your guests.

How It Works:

Imagine you make a reservation that requires the minimum spend to be prepaid by the host. You choose a $1,000 minimum spend over a 2-hour period.

During checkout, you’ll prepay the $1,000 minimum (plus any applicable tax and gratuity). On the day of the event, all spending by your guests will be deducted from this prepayment until the $1,000 minimum is reached.

Any spending beyond the $1,000 minimum will need to be settled separately by either you or your guests as it occurs.

Spending Scenarios:

• Scenario 1: If your guests only spend $800 during the 2-hour window, the remaining $200 from your prepayment will not be refunded.
• Scenario 2: If your guests spend $1,000 or more, your prepayment will cover the minimum, and any amount beyond $1,000 must be paid separately.

Party Place venue offering this: Rocco's Sports and Recreation

Drink and/or Food Package Prepaid By the Host

This reservation type ensures that party guests have access to a specified selection of drinks and/or food and that the cost of the selected package is covered in advance.

How It Works:

Let’s say you make a reservation that requires selecting a drink and/or food package. You choose a package priced at $50 per guest (including tax and gratuity) for 10 guests, totaling $500.

During checkout on Party Place, you’ll be asked to provide a credit card. Once the venue confirms your booking, you’ll prepay 25% of the total cost as a deposit, which amounts to $125. Three days before the event, your credit card will be charged the remaining $375 balance.

On the day of the event, your guests will enjoy the specified selection of food and/or beverages for the agreed-upon time. Depending on the venue’s policies, your guests may also be able to order and pay for additional items beyond the package directly at the venue.

Spending Scenarios:

• Scenario 1: If more guests arrive than the number you originally paid for, your credit card will be charged for the additional guests.
• Scenario 2: If fewer guests arrive than the number you paid for, no refund will be issued for the difference.

Party Place venue offering this: Blue Haven South

Classic Flat Fee Reservation Prepaid By the Host

This reservation type ensures that party guests have access to a specified space without any financial stipulations or minimum spend requirements.

How It Works:

Suppose you make a reservation that offers a Classic Flat Fee Reservation. You choose a package that costs $250 per hour for a private room in the venue, booking it for 2 hours, totaling $500.

During checkout on Party Place, you’ll be asked to provide a credit card. Once the venue confirms your booking, you’ll prepay 25% of the total amount as a deposit, which comes to $125. Three days before the event, your credit card will be charged the remaining balance of $375.

On the day of the event, your guests will have exclusive access to the private space for the duration of your event. Depending on the venue’s policies, your guests can also purchase food and/or beverages a la carte.

Party Place venue offering this: Bandits Dive and Diner

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Now That You Know…

Head over to Party Place, where you can search for venues based on your specific date or simply browse through your options.

Finding the perfect venue for your next event has never been easier!