Happy Hour Pros & Cons
In today’s intensely competitive environment, many operators are presenting happy hour or similar promotions (where permitted) to drive traffic through their doors. Consumers today can take their pick of restaurants to visit for a happy hour experience, from high-end steakhouses to broad menu casual concepts and even fast-casual restaurants. With so much competition, it’s important to understand the appeal of happy hour.
Socializing is the top reason consumers go out for happy hour, but price and value are the attributes that will determine what restaurant or bar they actually visit, according to Technomic’s recently released BarTAB Report. Three-quarters of consumers say overall value for the money spent and seven in 10 say the price of drinks are the top factors that attract them to a particular venue for happy hour.
Offering popular, new or trending beverages and food at special prices during happy hour is a proven strategy to increase guest traffic. However, be mindful of its impact on the overall business. In today’s environment, consumers are looking to curtail spending and some may substitute happy hour for a dining occasion. In fact, the deals offered today are so appealing that more than half of Millennials say they’re encouraged to go out for happy hour instead of out to dinner.