Open Bar, Bar Tab, Drink Tokens or Cash Bar: Which Payment Model to Choose

For weddings and most corporate events an all-inclusive open bar priced per guest works best: the client knows the budget in advance and the bar carries the volume risk. The other models solve specific problems: paying per consumption saves money when drinking is moderate, tokens cap the budget at large events, a cash bar fits when guests pay for themselves, and an hourly bartender suits clients who already have their own drinks.

What payment models are there for a mobile bar?

There are five common models, and most bars in Latvia work mainly with the first.

1. All inclusive per guest (open bar). A fixed per-guest price, usually €29–50 excl. VAT, with tiers by guest count. Drinks, bartenders, equipment, ice and delivery are included.
2. Pay per consumption (bar tab). The client pays a service fee for the bar and team plus drinks as consumed, often with unopened bottles returned.
3. Drink tokens. The host prepays a set number of tokens, and guests exchange them for drinks.
4. Cash bar. Guests pay for their own drinks; the host pays only a service fee or minimum guarantee, sometimes nothing.
5. Hourly bartender. A bartender at €15–55 per hour; the client supplies drinks and often glassware.

How do the models compare?

The key difference is who carries the volume risk: the client, the bar or the guests.

When should you choose all inclusive?

Choose all inclusive when the client cares more about knowing the total in advance than about saving on guests who drink little. That covers almost every wedding and evening corporate event of 4–6 hours.

It pays for the bar if the price is based on real consumption: at evening events people usually drink more than the client expects and less than you fear. Protect yourself with service hours and guest numbers in the quote, with extra hours and extra guests charged separately. How to set the price and tiers is covered in How much does mobile bar hire cost and Bar catering packages.

When should you choose pay per consumption?

Pay per consumption fits when drinking is hard to predict and probably low: daytime events, conferences, business breakfasts, lots of drivers and non-drinkers. The client pays for what is actually drunk, and the bar does not gamble on stock.

Risks of this model:

• the total is unknown until the end of the night, and the client may be surprised;
• counting bottles at the end takes time and trust;
• without a service fee the bar works for nothing if guests barely drink.

So the service fee (bartenders, counter, glassware, ice, delivery) should be fixed and cover your staff and logistics even at zero consumption.

When does a drink token bar make sense?

A token bar makes sense when the host wants to treat guests but with a firm budget limit. Typically 2–3 tokens per guest at a corporate event or conference.

Agree in advance: which drinks a token buys, what happens when tokens run out (the bar closes or switches to guests paying), who hands out tokens and what happens to unused ones. Unused tokens are normally not refunded unless the quote says otherwise.

When should you run a cash bar?

A cash bar fits public events where guests buy their own drinks: festivals, concerts, ticketed parties, fairs. It costs the organiser almost nothing, but for the bar it is retail alcohol sales.

That requires licences for selling alcohol and a cash register setup, and the requirements depend on format and location. Do not rely on hearsay; in Latvia check with VID and the local municipality in advance. Agree a minimum guarantee with the organiser: if bar takings fall below an agreed amount, the organiser pays the difference or a service fee.

Worked example: one event, four models

A corporate party, 80 guests, 5 hours. Rule-of-thumb figures, excluding VAT.

For a client who wants one number and a relaxed evening, all inclusive looks simplest, even if consumption billing might have come out slightly cheaper.

How do you write the payment model into the quote?

Write down what the price includes, what is charged separately and what happens at the edges (extra hours, extra guests, tokens running out). Ready-made wording:

• All inclusive: "€33 per guest excl. VAT includes drinks from the menu, 2 bartenders and a barback, counter, glassware, ice and delivery for 5 hours of service. Each extra hour is €250."
• Pay per consumption: "The €900 service fee is fixed. Drinks are charged as consumed at the attached price list; unopened bottles are not charged."
• Tokens: "240 tokens prepaid, 1 token = 1 drink from the menu. Once tokens run out, the bar continues on a guest-pays basis."
• Cash bar: "Guests pay for their own drinks. If bar takings are below €1,500, the organiser pays a €500 service fee."

The rest of the quote is covered in How to write a catering quote.

How this works in Garnify

In Garnify a quote is built from packages with a per-guest price and tiers, or from individual lines such as a service fee or hourly bartender work. The client opens the quote by link and approves it in one click. Every event detail lives in one place, and the team sees the same thing.