Corporate Entertainment

Settai is a deeply ingrained practice in Japanese business culture, referring to the lavish entertainment of clients or important business partners at upscale restaurants and nightclubs to strengthen relationships.

This practice goes beyond mere dining and drinking; it aims to build trust and facilitate business negotiations. The venues chosen for settai are typically prestigious establishments such as high-end clubs in Ginza or Akasaka, kaiseki restaurants, and members-only lounges.

The flow of settai usually begins with the host selecting a venue that matches the budget and preferences of the guests, arranging course meals and open bars. On the day, the hosting party covers all expenses, including tips and additional services.

Etiquette requires the guests to be polite but not overly reserved, while the host should accommodate the guests' pace and avoid pressuring them to drink. Conversation during settai is often casual and unrelated to business, creating a relaxed atmosphere.

Costs vary widely depending on the venue's grade, number of guests, and menu, but it is common to spend tens of thousands of yen per person, and sometimes over one hundred thousand yen. In high-end Ginza clubs, the total can be even higher when including bottle charges, service fees, and tips. Settai expenses are typically recorded as corporate entertainment costs and handled according to accounting rules.