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Who Pays for a Business Lunch?

For many of us, owning and operating our own home business is really our first foray into all sorts of aspects of “doing business.” Even if we have had a traditional job, working for someone else, we may not have had to learn protocol and what is considered “best practices” in the business world. One of those slippery slopes can be trying to figure out who pays for a business lunch? What is the protocol and how can it best be handled?

The last thing you want is some sort of awkward squabbling or strange silence at the end of an otherwise great business lunch upon the arrival of the check. There are several ways that you can either prevent this from happening, or quickly recover and handle things smoothly when the time for settling the bill comes.

If you are lunching with someone you know well, or if the other party has suggested that you have separate checks and pay separately for whatever reason, than it is fine to do this. However, it is generally considered ill-advised to be the one who suggests separate checks. You can also get in to trouble if you just ASSUME that the lunch will be on separate checks.

Instead, if you are the one who has set up the lunch, it is you who offers to pay. If you are being “taken to lunch” by a sales representative or someone who has asked you to the lunch meeting for whatever reason, you can assume that the other party will paying, but it is best to be prepared just in case and it certainly will not hurt your reputation or your position if you offer.

One technique that works well is if you give your credit card to the server in advance and give instruction that the meal will be paid by you—then you simply need to sign at the end and tell the other party that everything has been taken care of. If the other party does offer and insist upon paying at the end, you can balance the “power” by suggesting that you will be the one who picks up the check next time (make sure you follow up with a “thank you “ e-mail or note and a future invitation.)

On a side note, keep receipts and records of any business lunches you do pay for, as these may be tax deductible as a business expense. It is also a good idea to keep accurate records of any lunch meetings you attend, keeping track of who paid, who was present, etc.

Also: Take Your Business Seriously–Or They Won’t

If I Work at Home–Why Am I Still Eating at My Desk?

How Much Can You Squeeze in a Lunch Hour?