What is a minimum spend? Everything you need to know when planning your event

If you’ve started planning an event and find yourself confused by all the terminology, then we’re here to help. In its simplest form, a minimum spend is the least amount of money a venue requires you to spend on food and drink in order to secure a particular space. However, if the minimum spend is not met, you will have to pay the difference.

Rather than paying a fixed hire fee for a private room, many establishments choose to enforce a minimum spend instead. That way guests can have a sense of flexibility with their event, whilst the venue ensures a minimum amount of revenue. For example, a private dining room may come with a minimum spend of £500. If your group spends that amount or more on food and drinks, there’s no additional cost for hiring the space.

Some venues may require customers to preorder food and drink to ensure the minimum spend is met, which usually comes in the form of packages or bundles. In this case, you can rest easy, knowing that you have met the minimum spend before the event even happens. When pre-ordering is not an option, however, things get a little trickier. In this case, you have to estimate how much people will eat and drink, then predict whether you will meet the minimum spend. This is very important as if you don’t meet the spend, you will have to pay the difference. Some venues may choose to add an additional charge if the spend is not met, so be sure you read all the terms.

Planning an event can be stressful, and a minimum spend is yet another thing that needs to be taken into consideration. Every venue has its own rules, packages and prices, so comparing them can be tricky. But don’t worry! This guide has everything you could possibly need to know - from explaining how minimum spend works, to helping you estimate how much you'll spend.

How does a minimum spend work?

Exactly how venues decide their minimum spend is up to them, but it usually depends on the date, time, and number of guests for your event. For example, a restaurant may require a £5,000 minimum spend in its private dining room on a Saturday night, but only a £2,500 minimum for a weekday lunch.

Restaurants and venues have different ways of enforcing their minimum spend policies:

Pre-order
Some venues require you to pre-order all food and drink before the event. This means you have to pay upfront, so is best suited to office parties where the company foots the bill or dining events with set menus. For standing events, pre-ordering canapes is standard practice.

No pre-order
If the venue doesn’t offer pre-ordering, then everything happens on the night. In this case, the venue will track how much your guests spend at the bar. This is better suited to large corporate events, where guests pay for their own drinks.

A bit of both
The third option is to have a combination, where some of the minimum spend is made up of pre-order, and the rest by the guests. This works well for events such as weddings, where you might pre-order enough bubbly for two glasses each, then the guests buy their own after that. Alternatively, you may be asked to pre-order canapes, but buy drinks on the night.

Things to consider with a minimum spend

Essentially, your estimated spend is the number of guests, multiplied by how much you think each guest will spend. However, there are a few more factors worth considering to make your estimate as accurate as possible.

Number of guests
It’s likely you’ll have to book the venue before you know the exact number of guests. Smaller events might see 100% attendance but as the guest list gets longer, this becomes less and less likely.

How much will they eat and drink?
Estimating how much each guest will eat and drink is the most important step. If the estimate is too high, you might not meet the minimum spend. Take into account people who don’t drink too, as this may have an effect as well.

How long will the event last?
The longer an event, the more guests will drink. So don’t forget to consider length when estimating your spend. However, some guests may leave early or arrive late, so bear that in mind too.

Price
Finally, consider how much the food and drink costs. Packages are a great way to save money, but spending is the aim so you'll want to find a good balance between getting good value for money and ensuring you hit your target.

How to estimate a minimum spend

Working out your estimated spend is easier than it sounds. Here’s a simple way to do it:

1. Start with the number of guests
2. Multiply that by how much each person is likely to eat and drink per hour
3. Multiply that by the number of hours your event will last
4. Then multiply by the average cost of a drink or dish

For example, if you have 100 guests, who will likely have two drinks an hour, and the event is three hours and each drink is £10, the estimated spend will be: 100 guests × 6 drinks × £10 = £6,000 

But what if the venue’s minimum spend is higher?

Let’s say the minimum spend is £7,000. You’re currently £1,000 short. In this case, you’ll need to increase your order to meet the target.

The easiest way to do this is to ask the venue how best to top up your spend. For instance, you could:

• Add pre-ordered canapes worth £10 per person
• Order extra bottles of wine - 50 bottles at £20 each would cover the shortfall

Discover London venues with a minimum spend

Maths aside, let’s get to the fun part - choosing a venue. Our in-house concierge has rounded up a range of private spaces that require a minimum spend. Each one has its own unique style, so there's bound to be one that suits your event.

Quo Vadis, Soho

What: Quo Vadis is equipped to host a huge range of events, from conferences and meetings to birthday parties and work dinners. This Soho venue lies in the heart of London, making it easily accessible from almost anywhere in London. Expect eye-catching plates of classic British fare, alongside a selection of private spaces for you and your guests. The Leoni Room, Blue Room and Library, and Marx Room, have capacities of 12, 23 and 32 respectively, each with colourful, but relaxed wood interiors. 
Minimum spend: £2,750
Where: 26-29 Dean Street, W1D 3LL
Enquire now: Quo Vadis

The Delaunay, Holborn

What: For a lavish event in Holborn, The Delaunay takes inspiration from the grand cafes of Europe, combining luxurious interiors and the sort of top-tier service you'd expect from The Wolseley Hospitality Group. The main private dining room can seat up to 24, or can be partitioned into smaller spaces for more intimate celebrations. Choose from a variety of set menus, and pre-order your dishes to ensure that you hit the minimum spend.
Minimum spend: £1,500
Where: 55 Aldwych, WC2B 4BB
Enquire now: The Delaunay

Now that you know exactly what to expect when it comes to minimum spend, it’s time to choose a venue. Explore our roundup of the best modern venues in London, as well as our guide to London's top garden party venues.