My company is in the process of planning our holiday party and the venue we've selected has a mandatory caterer. We're fine with that, but in addition to the food and bar, the estimate has line items for both the server/bartender labor and a service charge. That seems strange to me. I don't mind paying the 18% service charge, but charging me for the labor on top of it seems like double dipping. Especially when I'm already paying for the food and drinks, which are on the higher end to begin with.

Does anyone have experience with this? Also, is it common for the service charge to be 18% of everything, including labor, setup, and linen?

Details:

50 person party

Labor cost = $800 (2 servers, 1 bartender and 1 carver for the prime rib. 4 people x 8 hours x $25 per hour = $800)

Service charge = $796 (18% of total bill)