The Case for Happy Hour Promotions

Happy hour promotions - generally offered at a restaurant's bar/lounge from 4 p.m. to 7 p.m. to encourage business before the major dinner hour rush - offer operators and patrons alike a basket full of benefits, which explains their enduring popularity.

And popular they will almost certainly remain, at least for the foreseeable future. According to research commissioned by Atlanta-based Coca-Cola Company:

• 35% of consumers go out for happy hour at least monthly.
• 35% of Millennials and 32% of Gen Xers are more likely to have dinner at a restaurant offering happy hour deals.
• Over three-fourths of consumers aged 21 to 44 indicated they specified the brand of sparkling soft drink to be used as a mixer when ordering a mixed drink.

The enduring charm of happy hour, like all of hospitality itself, is rooted in human psychology. "Happy hour is a mindset," says Arlene Spiegel, FCSI, a veteran restaurant operator and consultant, and President of Arlene Spiegel & Associates in New York City. "The expectation of the experience is one of social connection with friends, colleagues and the hopes of meeting some like-minded strangers. It's a place that encourages connections."

She adds, the lighting, music, seating, and even what's playing on the TV set the stage for making conversation and social connections. A good bartender also plays a role in creating conversations and making introductions to make people comfortable.

"I think one of the most compelling reasons to establish a solid happy hour business is that you will develop long-term relationships with your happy hour customers," says Jody Birnbaum, president and founder of Caterconsult, Inc. in Buffalo Grove, IL. Those customers, she adds, tend to be very loyal.