When the bride opens her gift save the ribbons and bows. Use them to make a bouquet. Traditionally, this is used by the bride at the rehearsal.
The decision as to where you have it and what you serve is all about your budget. I was maid of honor once and the bride told me where the shower would be held, who would be invited, etc. It broke my budget!
I have been to showers in fancy restaurants, halls, bowling alleys...you name it. Personally, I think ones in the home are nicest.
I think your sister's friend making the food is lovely. And that can be her gift.
I would be careful about having people address their own thank you cards. I know many who would be offended by this!





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