My thinking is to make it on the longer side so people can arrive late or leave a bit early to suit their schedule but still be worth them coming. Which would you find it easier to attend as the parent of a two year old?
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Doing it in the afternoon also gives you some extra time for getting stuff ready, enjoy their birthday to yourselves for a bit and not adding to the usual morning rush around

yeah for this reason I personally would prefer afternoon

after 2:30, so kids would of alreay had their lunch and naps & then they would be tired from playing when its bed tine

*time