Cover Charge meaning in hospitality

A cover charge is a one-off fee to get into a venue, usually a bar, nightclub or restaurant with live entertainment. This is separate from any food or drink you buy and is often collected at the door or added to your first bill. Cover charges can vary depending on the day of the week, special events or the popularity of the act.

Cover charges are huge in the hospitality industry, especially for venues with live entertainment. They help offset the cost of hiring performers, sound systems and creating an atmosphere. For bar and club owners, cover charges can increase revenue during peak hours and control the crowd. They also help attract a certain type of customer and maintain the venue's reputation.

Let’s say you have a trendy cocktail bar that does live jazz every Friday night. You’ve decided to charge a £10 cover to help pay for the band and create a more exclusive atmosphere. As customers arrive, your staff at the door collect the cover charge and give them a stamp or wristband to get in. Inside, customers enjoy the music while ordering drinks and small plates. The cover charge allows you to have high-end entertainment without having to increase drink prices too much and keeps the balance between profitability and customer satisfaction. You can also use the cover charge as a marketing tool; offer discounts or waive it for regulars or on slower nights to encourage attendance.