What is Happy Hour? (+Tips to Make It Successful)

Happy hour is indeed the happiest time of day.

The term called, "the happy hour", originated in the United States Navy and became associated with the Prohibition era and cocktail hours. Customers find that happy hour offers the ideal setting for relaxing with friends and coworkers over half-priced nachos and discounted drinks. Happy Hour benefits restaurant owners by increasing foot traffic, capturing more orders through the bar POS and providing a small bump to revenue.

However, the appropriate ingredients are necessary to make your happy hour a success—just like when creating the ideal cocktail. Any restaurant can have drink promotions, but to get people to come in during this hour and stay for dinner, you need to provide an amazing experience.

Here’s our recipe for success broken down to help you organize and execute the ideal happy hour.

What is happy hour? 

Let’s start by answering the question, “What is happy hour?”

Happy hour, also known as beer o’clock, social hour, cheap drinks, or affordable cocktails, is that wonderful time of day when many restaurants and pubs provide a discount on beverages and appetizers. These savings include exclusive prices on some meal and drink combos as well as two-for-one offers.

It happens in the late afternoon and early evening, during the transitional period between the end of the workday and the beginning of the dinner rush. In any case, happy hour can happen almost any time of day (or night), depending on the kind of restaurant you own.

Yet, it’s important to remember that some states do not support this technique, even if it has long been the restaurant industry’s secret weapon.

Some states have laws prohibiting the type of alcohol specials that are typically associated with happy hour, including Vermont, Massachusetts, and Alaska.

Pro tip: In states where happy hour drinks are prohibited, you should concentrate your offer on food and non-alcoholic beverages.

Happy hour is profitable for your restaurant for four reasons

Customers will undoubtedly think it’s a terrific deal—after all, who doesn’t enjoy half-priced good drinks and discounted sliders?

Happy hour deals can attract customers with special promotions and exclusive offers, making it an enticing option for many.

For you as a restaurant, though, what’s in it?

Happy hour can be the secret to larger checks during slow periods of the day, even though offering discounts as a method to increase sales could seem weird. We go through a few of the main advantages of running this kind of promotion at your eatery below.

1. Increase revenue and traffic

It’s just excellent business, which is the main (and greatest) reason.

Even with significant reductions offered, happy hour accounts for 60.5% of average weekly revenue for American pubs and restaurants, according to a 2018 Nielsen survey. Additionally, the average bill during happy hour is $68.99, $8 higher than the average bill during other periods of the day.

Offering reduced prices during happy hour is a terrific method to increase foot traffic during dull periods of the week. According to Nielsen, Wednesday happy hour is the “fourth most valuable day part for bars and restaurants,” with average traffic being 23.9% greater than other weekdays.

It can be very effective in increasing traffic during slow times, as this surprising data shows.

2. Orders for upsells

The fact that happy hours offer a plethora of chances for upselling—the skill of slightly raising a customer’s order price—helps explain in part why happy hours can be so lucrative.

Offering menu items like appetizers at discounted prices can encourage upselling by attracting more business before or after peak hours. Put another way, not everyone has to pay extremely low costs just because a reduced drink menu is offered to entice customers in. Upselling can be incorporated into this campaign by offering customers the choice to upgrade to a larger drink for just one dollar more or to pay a little bit more for a side of guacamole.

3. Bring in new customers 

Happy hour can undoubtedly be a fantastic method to increase sales temporarily. However, it might also be a formula for sustained success.

Consider happy hour as an audition for your restaurant rather than as a one-time event. These patrons experience a little sample of what your eatery has to offer. If you execute it well, clients will be begging for more. Happy hour promotions, such as themed events like Taco Tuesdays or Thirsty Thursdays, can attract new customers and build loyalty.

Offering a carefully selected version of your normal food and drink menu is one method to guarantee that your new visitors become devoted regulars. When customers see the slider-sized lamb burgers or little espresso martinis at your restaurant, they are more likely to get the entire meal the next time.

4. Create excitement about your restaurant

Happy hour, unless you own a speakeasy, is usually not an enigmatic event that requires concealment. Conversely, this period is regarded as a social occasion that can create a lot of attention about your company.

A well-planned marketing strategy can significantly increase brand exposure and attract more customers. Promoting your happy hour food and drink offers can help you increase brand exposure through social media, table signage, and even word-of-mouth marketing. Based just on a discount or promotion, 80% of diners will choose to visit a new restaurant, according to research.

In other words, don't forget the marketing power of a great happy hour deal (plus a bit of FOMO).

7 Strategies for organizing and managing happy hour promotions

It's obvious that your restaurant stands to gain significantly from this campaign. However, executing the ideal happy hour is a little trickier than it first appears.

Offering reduced prices on drinks and food items can attract more customers. Implementing loyalty programs with rewards for frequent visits and providing referral discounts for bringing friends can also be effective strategies for offering discounts.

While cheap drinks are usually popular, a few dollars off a cocktail isn’t always enough to draw people in. Research by the National Restaurant Association shows that happy hour is about more than just half-price margaritas for patrons.

In fact, an impressive 43% of respondents see it as a great chance to relax, and 23% use it to connect with coworkers outside the office.

According to sociologist Ray Oldenburg’s 1989 book, The Great Good Place, people seek a “third place” to unwind, away from the demands of work and home.

We’ve gathered our top strategies to ensure your restaurant becomes that sought-after third place.

1. Get to know your customers 

Take some time to consider the type of customers that are currently coming into your restaurant before you start cutting cocktail rates or giving dollar beers. Look at POS records and analytics to see what products are selling well at different times of the day. Understanding customer preferences, including their favorite alcoholic drinks, can help you tailor happy hour offerings effectively.

A Sales by Menu Item report, for example, can show that most of your customers are business people who like wine more than beer or cocktails. Afterwards, you can use this information to customize your wine offers for later in the day, specifically targeting this population.

2. Try new things during your happy hours

Promotions like this usually happen in that lovely silence that exists between the end of the workday and the start of the evening rush. Although happy hours after work are traditional, with a little preparation, you can have a happy hour almost any time of the day.

While traditional happy hours focus on post-work drink promotions, experimenting with new concepts can attract different customer demographics.

For example, numerous clubs and restaurants are using late-night happy hours as a popular strategy to attract a younger clientele. In contrast to just 25% of consumers over 35, the National Restaurant Association reports that “more than half of consumers under the age of 35 make late-night restaurant visits several times a month.”

Furthermore, 41% of people between the ages of 21 and 34 claim that deals like this are a major factor in their decision to eat at a late-night restaurant. Stated differently, offering discounted cocktails at 10 p.m. may attract a younger clientele (as well as their friends).

Naturally, before holding this kind of campaign, make sure you are aware of the laws in your area and state. You don’t want to lose your liquor license.

3. Provide tempting meal deals

Although alcohol deals are typically linked with happy hour, 41% of attendees are pulled in by the cuisine. Therefore, to guarantee that you draw a crowd, you must do more than just offer a carefully chosen drink menu.

Historically, cocktail hours have included food pairings to attract customers, a practice that dates back to the Prohibition era when people would host 'cocktail hours' at speakeasies before dining at restaurants.

Among the several methods to incorporate food are:

• Innovative Food and Drink Pairings: For a discounted fee, pair various cocktails with free food.

• Small Plates: Serve smaller portions of your most well-liked lunch and evening items to introduce new customers to your menu.

• Snacks Platters: Expand your menu to include shared items to accommodate larger gatherings.

• Consider a Theme: Make it an occasion by serving food and beverages with a theme, such as Taco Tuesday or Monday Night Football.

Remember to pay attention to check sizes when you experiment with different happy hour menus. You may learn more about the popularity of each dish, how much is being ordered, and how it affects your bottom line by keeping an eye on this crucial parameter.

4. Offer non-alcoholic choices

You can be losing out on a significant portion of the market if your campaign simply highlights alcoholic beverages.

Unbelievably, 40% of customers globally are interested in cutting back on alcohol use for health-related reasons. In addition, a 32% growth in the market for drinks with little to no alcohol is predicted between 2018 and 2022. Health-conscious consumers who wish to reduce their alcohol consumption without sacrificing their social lives are a major driving force behind this expanding trend.

You can mix in some inventive mocktails with your other drink specials to appeal to those who don't drink and those who are "sober curious." You may also design a completely zero-proof happy hour menu, which is a fantastic choice for eateries that are located in states where these kinds of alcohol deals are prohibited.

5. Get staff ready

Your employees play a critical role in the execution of a successful happy hour. They should not only be completely familiar with the offers but also know exactly what your happy hour is all about.

Are you attempting to increase sales among your regular customers or attract new customers on a dull night? How about inviting the people who work after work to stay for dinner? Or are you hoping to draw in a completely other kind of customer?

Since every restaurant is unique, it's critical that your employees understand your objectives in order to support you in achieving them.

The greatest people to tell about your happy hour specials are your front-of-house staff. Urge your bartenders and servers to inform patrons about impending specials. As 85% of consumers state that a discount would encourage them to eat out rather than at home, make sure your visitors are aware of any offers that will entice them to return, according to RetailMeNot.

6. Provide the entertainment

It can be challenging to distinguish your happy hour promotion from the many that are offered by eateries. Using entertainment such as trivia or live music might help your restaurant stand out, rather than just providing extremely low costs.

Entertainment may fill tables and increase bill sizes, even if it may appear like an extra expense. Following studies conducted by the research firm LEGER and the music licensing organization SOCAN, 50% of Canadians believe that "live music makes them likely to eat and drink more and invite their friends to join them."

If you can't find live music, you might want to think about other unconventional forms of entertainment. For example, January and the first part of February are sluggish months for restaurants, yet it's the busiest time of year for guests to go on dates. You might have a happy hour exclusively for singles during the chilly winter months, offering discounted drinks to guests to help them break the ice.

7. Increase revenue

A large audience, exciting entertainment, and excellent food deals are all nice, but they mean nothing if your happy hour isn’t profitable. You should be observing how much each customer is spending, rather than just counting the number of people who walk through the door.

The concept of happy hour originated on naval ships after the First World War, where sailors would gather for scheduled entertainment and relaxation.

Use these profit-maximizing tips to make sure happy hour isn’t breaking the bank:

• Upsell: Seek chances to persuade clients to spend a little bit more money. For example, you could offer to make good drinks with a certain liquor for an extra dollar.

• Cross-Sell: Suggest complimentary appetizers or beverages from your main menu to go along with your happy hour offerings. For example, one of your pasta recipes would go well with your discounted wine bottles.

• Include Modifiers for the Menu: For a modest price, modify your happy hour menu by adding extra sides or sauces.

• Mix in Premium Items: To raise the perceived worth of your offer, include a premium item, such as oysters, on your happy hour menu. Customers are encouraged to pay more since they feel as though they are receiving a great deal on upscale dining.

• Utilize Overstock Materials: Take stock of your supplies and find new uses for items that would otherwise go bad, such as bruised vegetables that may be turned into soup.

• Give Your Menu Some Thought: For your happy hour menu, you can apply many of the same menu design techniques that you would for your normal menu. For instance, you may employ bold typeface or include decoy meals on your happy hour menu.

You can quickly determine whether your happy hour strategies are assisting you in making a healthy profit if you have a contemporary point-of-sale system. With the help of business data, you can see whether tactics like adding more menu modifiers are increasing your take-home pay.

Happy hour, whether it’s a post-work get-together or some late-night drink discounts, is a terrific method to boost foot traffic and revenue during underutilized hours of the day. If executed flawlessly, you’ll draw in a whole new clientele that stays even when pitchers are priced at full price.

Sell ticketing events with Eat App

Another way to improve your restaurant's revenue is by integrating ticketed events with your reservation system. With Eat App, you can easily sell tickets for special events, such as themed dinners, cooking classes, or wine tastings. Selling tickets early gets people excited about the event and helps you collect money upfront. This approach ensures better attendance and provides a guaranteed boost to your cash flow.

Now, before we toast on your new happy hour strategy, let's take a look at what you should consider having on the menu. 

What drinks to sell during happy hour

You've brainstormed happy hour ideas; now, it's time to curate the perfect drink list. Your beverage selection is key to drawing a crowd, particularly if you're new to the happy hour game.

Read on for must-know drink choices.

1. Cocktails

Cocktails are a top choice for happy hour drinks. With countless variations to try, you can decide whether your staff should follow recipes closely or have some creative freedom in their bartending.

Typically, cocktails involve mixing two or more alcoholic drinks. Popular recipes often include extra ingredients like syrups, fruit juices, cream, sugar, or bitters.

Here's a list of popular cocktails you could be mixing at the bar: 

Greyhound: The classic Greyhound is a simple yet delightful cocktail made with vodka or gin mixed with grapefruit juice. You can use various brands of vodka or gin to create this refreshing drink. It's easy to make, cost-effective, and perfect for those who enjoy a fruity kick in their alcoholic beverage.

Manhattan: This timeless cocktail combines sweet vermouth, whiskey, and bitters. Typically made with Tennessee or Canadian whiskey, the Manhattan features sweet undertones from the vermouth, balanced by the bitters. It's a sophisticated choice for those who appreciate a classic, rich flavor.

Amaretto Sour: Also known as a whiskey sour, the Amaretto Sour is one of the milder cocktails. It's crafted with Amaretto liqueur, lemon juice, syrup, maraschino cherries, and orange slices. Similar to the Greyhound, this drink offers a burst of fruity flavor, making it a popular choice for those who prefer a sweeter cocktail.

Gin and Tonic: The gin and tonic is a timeless favorite, made with one part gin and two parts tonic water or soda water, garnished with lime or rosemary. This refreshing drink is perfect for an afternoon pick-me-up and is a must-have on any spring cocktail menu.

Cranberry Sparkling Vodka: This tart and crisp cocktail is a great addition to your happy hour offerings. Made with a base of sparkling water or soda, one shot of vodka, two shots of cranberry juice, a splash of lime juice, and garnished with cranberries and optional ice, it's a delightful and refreshing choice for your customers.

2. Wine

While it’s not always the star of happy hour, wine can be a fantastic promotional beverage for your business. The key is to highlight the wines you have available and their perfect food pairings, considering the tannins that give the wine its unique colors and flavors.

A successful wine happy hour blends great wines with appealing promotions. Don’t forget to include wine cocktails in the mix. Here are three types of wine that make excellent happy-hour selections:

Rosé: Rosé is refreshing and light, with a wide array of flavors. There are two main types: semi-sweet and dry. Within these categories, you'll find familiar varieties like grenache, sangiovese, blush rosé, and vin gris. Whether your guests prefer a lighter rosé or a fuller-bodied one, they’ll have plenty of options to choose from.

Red Wine: Adding red wine to your happy hour menu is a wise move, especially if your establishment has a high-end vibe. There are many types of red wines with a variety of flavors that can draw impressive happy-hour crowds. Red wines are often stronger and spicier than white or rosé wines. Pair them with dishes that complement their bold flavors, such as salty, tart, and creamy foods.

White Wine: You can never go wrong with white wine. It’s often favored by those new to wine for its broad range of flavors and higher sweetness. White wines can be dry, semi-sweet, or sweet, and they are great on their own or paired with meals. Offer a selection that includes riesling, chardonnay, garganega, or pinot blanc to provide your guests with a variety of choices.

Liquor 

A well-stocked bar is the foundation of a successful happy hour. The six core liquor types – brandy, tequila, rum, vodka, gin, and whiskey – are essential for creating a diverse drink menu. These spirits are the building blocks for popular cocktails like margaritas, old-fashioned, and martinis, which often require precise liquor ratios.

To ensure a smooth operation, it's important to have a variety of drink options ready to serve. Let's explore some classic and creative happy hour recipes:

• Martini: A timeless choice, easily made with vodka, vermouth, ice, and a lemon or olive garnish.
• Vodka Tonic: Refreshing and simple, combining vodka, tonic water, ice, and a citrus wedge.
• Moscow Mule: A popular cocktail featuring vodka, ginger beer, lime juice, and ice.
• Aperol Spritz: A light and bubbly Italian aperitif made with prosecco, Aperol, soda water, and a citrus slice.

Beer

Beer is a beloved beverage enjoyed by many. Here are some innovative beer-based options:

• Michelada: A spicy and flavorful beer cocktail with Mexican lager, lime, spices, and hot sauce.
• Beer Sangria: A fruity twist on classic sangria, combining beer, fresh fruit, syrup, and sometimes frozen fruit.
• Pub Nog: A wintery delight made with beer, eggnog, and warm spices.
• Beer Slushies: A refreshing summer treat combining crushed ice, wheat beer, fruit juice, and liqueur.
• Lemon Shandy: A simple and classic combination of beer and lemonade.
• Beer-garita: A unique margarita variation using beer instead of tequila, blended with other ingredients for a fruity and refreshing taste.

Takeaways

Happy hour can be a profitable and enjoyable time for both customers and restaurants. By offering discounted drinks and food, restaurants can increase foot traffic, boost sales, and create a loyal customer base. However, success depends on careful planning, execution, and a deep understanding of customer preferences.

FAQs

What is considered a good happy hour drink? 

The key to a successful happy hour is offering drinks your customers crave. While classics like gin and tonics, margaritas, martinis, and Cosmopolitans are popular choices, the best way to determine your customers’ preferences is through experimentation. Consider rotating drink specials to gauge popularity and gather feedback. Rosé wine, summer shandies, and whiskey are other versatile options to explore. Ultimately, the drinks that resonate most with your clientele should form the backbone of your happy hour menu.

Does happy hour mean drinks?

Happy hour typically refers to a time when bars and restaurants offer discounted alcoholic beverages. However, the term has evolved. Today, it can encompass a wider range of offerings, including non-alcoholic drinks, food specials, and even social events. Essentially, it's a period when establishments offer reduced prices or special deals to attract customers.