I go against popular opinion here. When I was hosting live, I charge $20 a head. I take $20 from the tournament buy-in. It's required and baked into the cost of the tournament. $100 entry.
For the $20 the guys have access to two local craft beers on tap. A fridge full of other craft beer, Miller light, water, soda. Hot dogs and snacks. A shelf full of premium bourbon and scotch, and a second shelf full of regular booze for mixed drinks. Access to my humidor which is full of premium cigars. And coming after COVID, a premium espresso machine.
I've polled my players and overwhelmingly the consensus is that there is no objection to the entry fee, and most state that they would gladly pay more, and they do. The winners will typically toss me $20-$40 in tips at the end of the night.
I don't charge because I can't afford it. I charge in order to provide a premium experience. Sure I could ask the guys to BYOB, and BYOSnacks, but if they are willing to drop $20 to show up empty handed and leave with a pocket full of cash, I'll continue to charge the hospitality fee. It's the difference between smoking While Owl cigars and drinking Jack versus smoking Cohibas and sipping on a nice bottle of special sauce. I hosted 20 players with a wait list, and that's all the proof I need.