Private events and buyouts: minimum spend, room fee, deposit and a contract you can copy

Picture a busy Saturday: a party of 20 holds your back room for three hours and orders one round of drinks. Without a minimum spend agreed in writing, that room earned less than the tables it replaced.

Price a private event or buyout from what the space would have taken that night: the covers you give up, times their usual spend, for the hours the event holds the room, plus any extra staff. Charge it as a minimum spend, a room fee or a per-head package, take a deposit at booking, set a final numbers date, and put all of it in a short written contract. Last checked: 5 November 2026.

Minimum spend, room fee or per-head package: which should you use?

All three can earn the same money. They differ in who carries the risk of a quiet event and how easy they are to explain to the organiser.

A simple rule: if the group will eat a full meal, use a per-head package or a minimum spend. If they will mostly stand and drink lightly, charge a room fee, because a minimum spend on a light-spending crowd ends in an awkward shortfall conversation at midnight.

What US restaurants actually charge for. Our analysis of the US Census Bureau's 2022 Economic Census, Industry by Products, 5 November 2026, covering all 254,201 full-service restaurants:

Two rules follow. Events are a top-up, not a second business: where they appear, they bring in about 5% of revenue, so a buyout must never earn less than the night it replaces. And a room fee is the exception: for every 10 restaurants reporting on-site event food, about 3 report party room hire. Bars charge for the space more often (6.7% of drinking places report room hire for social events), and caterers and banquet halls more again (13.2%). In a restaurant, default to a minimum spend and keep room fees for drinks-led events. Method: US-level rows for industry 722511 and product codes 7000060003, 7006475000 and 7006425000; average = product revenue divided by reporting restaurants. Restaurants that record event food as ordinary meal sales are not counted, so treat these as a floor. We found no UK equivalent.

How do you calculate a minimum spend?

Start from what the space earns on an ordinary night in the same slot. That is the takings you give up, and it is the floor for any private event.

Minimum spend = covers the space holds x usual turns in the event's hours x usual average spend, plus extra staff and costs, rounded up

Worked example: a private dining room. A 24-seat private room on a Saturday night normally turns 1.5 times between 6pm and 11pm, at an average spend of £48 ($62) per guest before VAT or sales tax.

• Takings given up: 24 x 1.5 x £48 = £1,728 (24 x 1.5 x $62 = $2,232).
• A dedicated server and a bartender for six hours: about £220 ($300) including employer costs.
• Total: £1,948 ($2,532). Round up: a minimum spend of £2,000 ($2,600) on food and drink, before service charge or gratuity.

Worked example: a full buyout. A 70-cover restaurant usually turns 1.8 times on a Friday night at £45 ($58) a head.

• Takings given up: 70 x 1.8 x £45 = £5,670 (70 x 1.8 x $58 = $7,308).
• Extra costs: a manager for the night, flowers and the time to plan, say £400 ($500).
• Total: £6,070 ($7,808). Quote a minimum spend of £6,250 ($8,000), and more for a Saturday in December.

If the group is smaller than the space, the minimum spend still applies. Forty guests buying out a 70-cover room are paying for the room, not just their dinners. Say that when you quote, so it does not feel like a penalty later.

Room fee version. A room fee should cover the margin you lose, not the takings. If the room usually takes £5,670 and the event's food and drink will bring in £3,000, you give up £2,670 of takings, but you also save the food and drink cost on them, about £800 at 30%. A room fee of about £1,900 keeps you whole; the US figures work the same way. Most owners find the minimum spend easier to explain.

When does a buyout beat a normal night?

A buyout beats a normal night when the guaranteed minimum spend is more than that night's usual takings plus the event's extra costs. Usual takings move with the month, so the same quote can win in January and lose in December.

Our analysis of ONS monthly turnover for food and beverage serving in Great Britain (series JQ37, in the Index of Services dataset) and US Census Bureau Monthly Retail Trade sales of full-service restaurants, 5 November 2026:

The decision rule:

• Under 95: sell hard. Your standard minimum spend beats the night by the widest margin. GB: January and February. US: January.
• 95 to 104: quote your standard floor.
• 105 or more: raise the floor by the index first, then add any demand premium. GB: June, July and December. US: December.

Worked example. Take the 70-cover buyout above and say £5,670 ($7,308) is an average Friday across the year.

• January: £5,670 x 0.82 = £4,649, plus £400 costs = £5,049. The £6,250 quote beats the night by about £1,200, so you could come down to £5,250 to win a hesitant booking. US: $7,308 x 0.90 + $500 = $7,077 against $8,000.
• December: £5,670 x 1.08 = £6,124, plus £400 = £6,524. The same £6,250 quote loses about £270 against a normal December Friday, before any Christmas demand. US: $7,308 x 1.05 + $500 = $8,173, so $8,000 falls about $170 short.

Method: each month's sales divided by its days, compared with the average day of the same year, averaged over 2023 to 2025, not seasonally adjusted. US full-service is NAICS 7225 minus limited-service eating places; GB covers all food and drink serving, pubs and cafes included, at current prices. These average every day of the week; your Fridays and Saturdays swing more, so use your own till data for the slot when you have it.

What deposit should you take, and when are final numbers due?

Take a deposit at booking, ask for final numbers about a week before, and collect the balance on the night or by invoice for businesses.

How much of a deposit you may keep if the guest cancels depends on the law and on how likely you are to resell the date. In the UK, terms with consumers must be fair under section 62 of the Consumer Rights Act 2015, so a cancellation charge should reflect the loss you actually expect. A booking made by a company is a business contract, but fair, clear terms still protect you. Our deposit policy guide covers the rules and wording, and our Christmas bookings guide covers party deposits in the busiest month. Check with an adviser for your situation.

Service charge and gratuity on events

Most private events carry a service charge or automatic gratuity. Put the percentage in the contract and say whether it counts towards the minimum spend.

• UK: a compulsory service charge must be shown with the price, and service charges paid by guests must reach staff in full under the Tips Act. See our guide to service charge law.
• US: under IRS Revenue Ruling 2012-18, an automatic gratuity set by the restaurant is a service charge, not a tip, so it is treated as wages when paid to staff. See our guide to service charges and tips. Several states also set rules for how a mandatory charge is shown on the menu, quote and bill; our guide to junk-fee laws has the state table.

How do you invoice a company for an event?

Treat a company like a short-term account. Before the date, get:

• the legal company name, billing address and, in the UK, its VAT number if it wants a VAT invoice
• a purchase order number if the company uses them
• the name of the person who can approve extras on the night
• agreed payment terms, commonly 14 or 30 days from the invoice

Set a cap on the bar tab in the contract and agree who can raise it. A company that books three events a year is worth setting up as a house account with an agreed credit limit, rather than chasing three separate invoices.

The minimum spend calculator to copy

MINIMUM SPEND CALCULATOR                Event: [ ]  Date: [ ]  Space: [ ]

A. Seats or covers the space holds              [ ]
B. Usual turns in the event's hours             [ ]
C. Usual average spend per guest (ex VAT/tax)   [ ]
D. Takings given up = A x B x C                 [ ]
   If B and C are yearly averages, x month
   index / 100 (Jan: 82 GB, 90 US; Dec: 108, 105)
E. Extra staff (hours x hourly cost)            [ ]
F. Other costs (decor, music, planning time)    [ ]
G. Floor = D + E + F                            [ ]
H. Demand premium (Saturdays, Christmas): [ ]%  [ ]
I. MINIMUM SPEND = G + H, rounded up            [ ]
J. Lowest you will accept (index under 95 only;
   never below G)                               [ ]

Deposit at booking ([25-50]% of I)              [ ]
Service charge / auto-gratuity [ ]%, counts towards minimum? Y / N
Bar tab cap without approval                    [ ]

The event contract to copy

PRIVATE EVENT AGREEMENT

Venue: [restaurant name, address]          Organiser: [name, company]
Contact on the night: [name, mobile]       Event date: [ ]
Space: [private room / whole restaurant]   Access: [time] to [time]
Guests: expected [ ], minimum guaranteed [ ]

1. PRICE. [Minimum spend of [£/$ ] on food and drink / Room fee of [ ] plus
   food and drink as ordered / Package of [ ] per guest for [menu]].
   Prices [include / exclude] VAT or sales tax.
2. SERVICE. A [ ]% [discretionary service charge / automatic gratuity] is
   added to the food and drink total. It [does / does not] count towards the
   minimum spend.
3. SHORTFALL. If food and drink spend is below the minimum, the difference is
   charged as room hire.
4. DEPOSIT. A deposit of [ ] is due at booking to confirm the date. It is
   deducted from the final bill.
5. FINAL NUMBERS AND MENU. Menu choices and all dietary requirements and
   allergies by [date, 14 days before]. Final numbers by [date, 7 days
   before]; we charge for the final number or the guests who attend,
   whichever is higher.
6. CANCELLATION BY YOU. More than [ ] days before: deposit refunded
   [in full / less [ ]]. Between [ ] and [ ] days: [ ]% of the deposit
   kept. Less than [ ] days: deposit kept [and [ ]% of the minimum spend
   charged], unless we resell the space, in which case we refund what we
   recover.
7. CANCELLATION BY US. If we cannot hold the event, we refund all payments
   in full.
8. BAR TAB. Drinks on the organiser's tab up to [ ]; above that, only with
   approval from [name].
9. PAYMENT. Balance due [on the night / within [14/30] days of invoice to
   [company, PO number]].
10. CONDUCT AND DAMAGE. The organiser is responsible for guests' behaviour
    and for damage beyond normal wear. We may refuse service to anyone
    under age or intoxicated.
11. TIMES. The event ends at [time]; music off at [time]; guests leave by
    [time].
12. EXTRAS. Decorations, cakes brought in and outside suppliers by
    agreement only. Cake-cutting fee: [ ].

Signed for the venue: [ ]  Date: [ ]
Signed by the organiser: [ ]  Date: [ ]

Keep the language plain and the cancellation scale proportionate. If the event runs past your licensed hours in England or Wales, you may also need to give your council a Temporary Event Notice, at least ten working days before. Events you cater away from the restaurant are a different business, covered in our guide to starting a catering business.

What goes wrong on the night, and how to prevent it

• Allergies discovered at the table. Collect every dietary need with the final numbers, and check the set menu against your allergen matrix before you confirm it.
• The bar tab runs away. Agree the cap and the named approver in writing.
• Walk-ins turned away without warning. Close the space, or the whole night, in your booking system as soon as the deposit lands, and tell regulars on your website and Google profile.

Can TablePort handle this for you?

TablePort holds the event alongside the rest of your bookings.

1. Close a shift or a whole day for a private event, with a reason guests can see if you want one, so online bookings stop at once.
2. Deposits and cancellation terms are set per shift and collected through Stripe, and the deposit is credited to the bill as its own line.
3. House accounts give companies monthly invoicing and an account-level credit limit.
4. Enquiries through Sites: with Sites Advanced, enquiries from your website arrive in a console inbox.

The honest limit: the event contract is yours to write and sign; TablePort holds the booking, deposit and bill, not the agreement. See reservations.