Overview

CaterZen gives you several ways to add fees to catering orders. Because more than one fee type uses the words “service fee,” it helps to understand how they work together before you start setting things up.


This article explains each fee type, when to use it, and how they interact when more than one is active on the same order. 

The Four Fee Types

1. Location Service Fee

A Location Service Fee is a default fee that applies to all orders at a specific restaurant location.

You set it once per location, and CaterZen applies it automatically. It can be either a flat dollar amount or a percentage of the order subtotal.


Use this when you want a consistent fee on every order at a location without needing to adjust each order manually.


Example:

A location charges a 5% service fee on all catering orders.

2. Custom Order Type Service Fee

A Custom Order Type Service Fee is tied to a specific Custom Order Type, such as Full Service Catering, Drop Off Catering, Pick Up, or Room Service.


When an order is placed using that Custom Order Type, this fee applies instead of the Location Service Fee. It can also be either a flat dollar amount or a percentage of the order subtotal.

Use this when different types of orders need different fees.


Example:

Your standard orders may not need a service fee, but your Full Service Catering orders may need an 18% service fee because they include staffing, setup, and breakdown.

3. Per-Item Service Fee

A Per-Item Service Fee is added manually to an Open Menu Item during Order Entry.

This fee can be either a flat dollar amount or a percentage. It multiplies by the quantity entered and appears in the order totals as “Per-Item Service Fees.”


Use this for one-off custom charges that do not fit your regular menu or fee structure.

Example with a flat dollar amount:


If you add a $1.00 per-item service fee to an Open Menu Item with a quantity of 50, CaterZen adds $50.00 in Per-Item Service Fees to the order.


Example with a percentage:

If the Open Menu Item is $10.00, the quantity is 5, and the Per-Item Service Fee is 10%, CaterZen calculates $1.00 per item and multiplies it by the quantity. The total Per-Item Service Fee would be $5.00.

4. Catering Packaging Fee

The Catering Packaging Fee is an account-wide percentage fee triggered by payment method.

Unlike the other fees, it calculates on the order subtotal plus delivery fees plus all service fees. It does not calculate on tax or gratuity. It is the last fee calculated before tax.


Important: This fee is only available to Customers processing payments through CaterPay, and it must be enabled by the CaterZen team before it appears in your account.


Use this when you need to recover packaging, prep, or operational costs on orders paid through specific payment methods.

How the Fees Stack

When multiple fees are active on the same order, CaterZen calculates them in this order:

  1. Order subtotal (sum of all menu items)
  2. Delivery Fee
  3. Location Service Fee or Custom Order Type Service Fee (% or flat fee on subtotal only)
  4. Per-Item Service Fees (fee on item price × quantity)
  5. Catering Packaging Fee — calculates on everything above
  6. Sales Tax — calculates on anything taxable
  7. Gratuity
  8. Order Total

The Location Service Fee and Custom Order Type Service Fee do not stack.


If the selected Custom Order Type has its own service fee, that fee applies instead of the Restaurant Location Service Fee. If the Custom Order Type does not have its own service fee, CaterZen falls back to the Restaurant Location Service Fee.


The Catering Packaging Fee does stack on top of the other fees. It is the only fee in CaterZen that calculates on other fees.

Which Fee Do You Need?

  • Add a default fee to all orders at a location — use the Location Service Fee
  • Charge different fees for different order types — use the Custom Order Type Service Fee
  • Add a one-off charge to a specific item on an order — use the Per-Item Service Fee
  • Recover costs based on how an order is being paid (CaterPay Customers only) — use the Catering Packaging Fee

Tax on Service Fees

Whether service fees are taxable is controlled in your Sales Tax Categories.


This setting applies globally to service fees across your account. To review or adjust this setting, go to: Admin > Global Settings > Sales Tax

Related articles

Support

For additional help, refer to the CaterZen Support Center or contact our CaterZen Support Team.


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