When I was little, back in the mid-70’s, a typical birthday party was at the home of the party person, and the parents had some games and some lunch and cake, and then gave out goody bags, and after 2 hours, everyone went home.
Now, where I live (not sure if it’s like this around the country) everyone has parties at a place. Mini golf, pool, ice skating, gymnastics, pottery, jumpy house, you name it. I bet by the time my kid graduates from high school I will have been to every type of party place imaginable. It’s 1½ to 2 hours, the place does the whole thing, the parents may bring the food and cake or it may be supplied by the place, and then everyone goes home. Nobody sees the home of the party person, which is great because nobody has to deal with a bunch of kids in their house.
For my daughter who just turned 7, the first party for 4th birthday was at a food place where they had a room to rent. The attendants did crafts, food, activities, and then the food and cake was supplied by the store. Classmates were invited. Age 5 was at the nursery school and we hired a magician and had ice cream and cake. Since it was at school, it was classmates. The past two years I rent a building near my house with a full kitchen, and we hire entertainment (about $350) and have pizza and cake and food for the parents. This year it probably cost close to $1000 with everything (entertainment, crafts, food, pinatas, the facility, etc.). The class was invited plus a few extra kids. In addition to the above, the family has a dinner for her where it’s a more intimate gathering.