Typically reserved for the hours between 2 p.m. and 6 p.m., when customer traffic tends to be slowest at restaurants and bars, happy hour helps bring in extra business with events, discounts and/or promotions.

This moniker is rooted in the Prohibition era, when happy hour took place at speak-easies prior to people going out to dinner at restaurants where alcohol was prohibited.

Happy hour may consist of drink and food specials, small plates, pairings or drink flights and is a good vehicle for introducing limited-time offers (LTOs). “Happy hour went away for a while [during the pandemic], so we’re talking about it coming back,” says Erica Holland-Toll, culinary director at The Culinary Edge, headquartered in San Francisco. “Everyone is excited to get back in spaces together.”

Revving Up Revenue

New York-based Statista reports good food prices as the top reason why U.S. consumers participate in happy hour at bars and restaurants.

“When people ask about happy hour at a bar, some are looking for a good deal and the other half won’t order those items; either way, I need a happy hour,” says Peter Vestinos, owner of The Bar Medic beverage consulting firm and partner and beverage director for Chicago’s Bar Sparrow. “Customers want to know that there is a happy hour even if they don’t partake in it.”

Sixty percent of people that attend happy hour cite cheaper drinks as one reason, according to Newsweek. Moreover, 45% come to relax, 39% want to catch up with friends and 29% think it’s less expensive than going out to dinner. In the U.S., adults usually spend 2½ hours at a happy hour, and the ideal day for adults to hit the bars after work is Tuesday.

“One of the biggest things we’ve seen is Friday is not a hot day to go out after work; the end of the week may be on a Thursday, so happy hours on that day are increasing,” Holland-Toll says. “Also, operators are flexible on what a happy hour is. It’s still the late afternoon daypart at 3 p.m., 5 p.m. or 6 p.m. which drives sales in the slower afternoon daypart. That’s where happy hour snacks come in, with people having a beer and some food but saving room for dessert.

“When we look at it generationally, Gen Z is hitting drinking age, so a cross platform of food plays into the popularity,” Holland-Toll adds. “The international mash-up will continue as these terms rise since Gen Z is known for exploratory eating patterns.”

Food Trends

During happy hour, the kitchen is usually at its slowest, so there is extra time to prepare items. “Restaurants don’t want to offer happy hour menus that are complicated to execute, but it’s a good time to offer smaller plates,” Vestinos says.

Creating a happy hour destination is as much about the food and beverage offerings as it is about the value pricing. Many of these trends mirror what’s popular overall. “We’ve seen more movement in low- or zero-alcohol drinks, which is positioning happy hour as a more inclusive space,” Holland-Toll says. “It’s not just about drinking but also coming together for food and beverages.”

With more people looking to limit or pause their alcohol intake with dry January or dry July, it has become necessary to cater the offerings to a more diverse clientele. “Even those who are not drinking want to go out and have a fun drink,” Holland-Toll says.

This is in line with those focusing on their health and seeking options that are atypical of a traditional happy hour menu. “Health-forward trends are evolving in the snacking space, and we are seeing more movement in plant- and veggie-forward items,” Holland-Toll notes, adding that veggie-forward items such as fried Brussels sprouts, fried cauliflower and cauliflower wings have made headway on happy hour menus. “There are ways to look at veggies like meats, where these are fried, air-fried or baked. We’re also seeing the return of shared items, whether on charcuterie boards, communal plates, dips for the table or wing platters.”

Chicken wings have been a staple on happy hour menus, yet the most recent versions have added a twist to this familiar fare. “Wings are still super hot, and we don’t see these sales decreasing,” Holland-Toll says. “It has been nice to see people exploring different flavor profiles and operators having fun pairing new flavors with familiar forms like wings.”

The Culinary Edge ran a wings promotion that paired a couple flavors together. Some examples include lemon pepper and creamy jalapeno, and Korean chicken with garlic parmesan featuring a sweet and spicy sauce. “Consumers are excited with new flavors on familiar items and playful combos, like boneless wing flatbread,” Holland-Toll notes. “We’re encouraging people to play in that space with flavors as we still see a ton of fried food like wings on happy hour menus.”

When it comes to appetizers, happy hour menus are including more international flavors and items, including spring rolls, pot stickers, mini tacos and arancini. “Larger chains are playing with different versions of Southwestern egg rolls, for example,” Holland-Toll says. “There also are now a lot of loaded items like tots, nachos and fries [with a bevy of toppings] that play toward American comfort food but in a shareable way.”

In addition, when it comes to happy hour, restaurants continue to focus on smaller portions and shared plates so as not to fill up customers prior to dinner. “Drinks are still the revenue driver, and food is a fun add-on,” Holland-Toll says. “Happy hour is still appetizers and small plates; it’s more about sliders than burgers.”

However, this marketing opportunity can be scaled down and simplified. “Bars aren’t discounting alcohol but instead are offering experiences like putting out free relish trays, chips or nuts so customers have something to snack on,” Vestinos says. “This adds value to alcoholic beverages without discounting drinks; it’s upscaling.”

Leveraging Equipment

A successful happy hour is about having the bandwidth to prepare items in a short period of time.

“There is really no equipment specific to happy hour,” Vestinos says. “It’s about getting drinks out fast, so wine, beer and frozen drinks from a machine can be easily offered. It’s a short period to get people in, provide beverages and hopefully get them to stay [for dinner].”

A successful and profitable happy hour relies on properly allocating equipment during this time period. It is easier for restaurants that have streamlined menus across all platforms, including happy hour. “If you have fryers, it’s simple to have one person do prep and fry for happy hour so you’re not pulling people away from getting ready for dinner service,” Holland-Toll notes. “Realistically, anyone can create a feasible happy hour menu, even if you don’t have a fryer.”

Speed ovens, induction burners and microwaves are options for cooking. Hoodless equipment also has come a long way.

“The key is to leverage the equipment you have in a thoughtful way,” Holland-Toll says. “You may just have pretzel bites that can be popped into a microwave.”

Happy hour is having something to sell people during off times to help boost revenue. “In reality, many of these menus revolve around wings, fries and mozzarella sticks, but it helps to construct a platform customers will attach to,” Holland-Toll advises. “It doesn’t have to be exciting and can lean into smaller portions, leveraging off-the-shelf items. Operators can be creative in putting items together with an air fryer and speed oven instead of a traditional fryer.”

It’s important to keep the bar area tight and not have too many people cooking food that isn’t the majority of the sales. “It’s best to keep bartenders making drinks and make sure the kitchen is ready for service,” Holland-Toll says. “That’s the challenge.”

Allocating labor, which is in short supply, is also an issue. “The nice thing about happy hour is, you’re selling drinks at the same time, so restaurants aren’t losing the ability to get high-margin items sold,” Holland-Toll says. “Happy hour is much more of a win that way. It’s about keeping the labor model tight and focusing on the high-margin items.”