Formal LunchFor a formal luncheon, the table is set much as for dinner with a few exceptions. The presence of an iced teaspoon and iced beverage glass announce a daytime event. The lack of candlesticks, too, is appropriate for a daylight meal.
Stemware is limited to a water goblet and a wine goblet. Old etiquette books dictated that the flatware should align at the bottom of the handle. Looser customs now allow you to arrange them in a graceful angle, if you prefer.
Formal DinnerThe primary difference between a formal luncheon and formal dinner setting is the increased number of glasses for red wine and champagne. Notice the glasses are arranged over the knife in the order in which they are to be used: water, white wine, red wine, champagne. Also, the fish fork moves to the left of the plate.
Candlesticks may be present on the table since the candles will be lit. The coffee cups and spoons will all be brought to the table after dinner, when coffee is served. Place cards reinforce the fact that this is a well-planned, organized event.