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 4 Service Fee Types

1. Restaurant Location Service Fee

A default fee that applies to all orders at a specific restaurant location. You set it once per location and it runs automatically. It can be a flat dollar amount or a percentage of the order subtotal.

Tip: Use this when you want a consistent fee on every order at a location without having to think about it.


2. Custom Order Type Service Fee

A fee tied to a specific Custom Order Type, like "Full Service Catering" or "Drop Off Catering." When an order uses that order type, this fee applies instead of the Location Service Fee. It can be a flat dollar amount or a percentage of the order subtotal.

Tip: Use this when different types of orders need different fees.


3. Per-Item Service Fee

A flat dollar amount or percentage added manually to an Open Menu Item during Order Entry. It calculates on the item price first, then multiplies by quantity. For example, a $1.00 per-item fee at quantity 50 adds $50.00. A 10% fee on a $10.00 item at quantity 5 adds $5.00. It shows in order totals as "Per-Item Service Fees."

Tip: Use this for one-off custom charges that don't fit your regular menu or fee structure.


4. Catering Packaging Fee (CaterPay Customers Only)

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 — but not on tax or gratuity. It is the last fee calculated before tax.

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

How the Fees Stack

When multiple fees are active on the same order, here is the order CaterZen calculates them:

  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

Important: The Custom Order Type Service Fee overrides the Location Service Fee — they do not stack. If the selected order type has its own service fee, that fee applies. If it does not, CaterZen falls back to the Location Service Fee.


Important: The Catering Packaging Fee is the only fee in CaterZen that calculates on other fees. It stacks on top of everything except tax and gratuity.

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 globally in your Sales Tax Categories setting in the Admon Section. This applies to all Service Fees across your account. 

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Support

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


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