What does happy hour mean?
The Cambridge Dictionary defines happy hour as a time, usually in the early evening, "when drinks are sold cheaply in a bar or a pub". Its American entry adds restaurants: "a period of time during which a restaurant or bar sells drinks at a reduced price".
Most happy hour menus today include food as well. Cheap snacks keep guests at the bar longer, and they're easier on an empty stomach than a second cocktail. A discounted dinner served early is a different deal, closer to an early bird menu.
How do you price happy hour?
Discount the drinks that cost you little, and keep the discount simple. A dollar or two off is easier to read than a percentage off selected items.
Here's an example. Say a 16 oz draft lager costs you $1.50 to pour and sells for $7. At $5 during happy hour, you still keep $3.50 on each glass. A cocktail that costs $2.50 and sells for $13 still leaves $6.50 at $9. Fries that cost $1.10 still leave $3.90 at $5. Run the same math on every line before you print. Our guide to pricing menu items shows how to find each cost.
Leave premium pours and your most expensive dishes at full price. The hope is that guests who come for the deal stay for a second round, or for dinner.
Are happy hour deals legal everywhere?
No. Some places limit or ban them, so check your local rules before you print two prices. A few examples:
- Utah. The Utah Code stops bars and restaurants from selling alcohol at a special or reduced price for only certain hours of the day, and names happy hour as the example.
- Ireland. The Intoxicating Liquor Act 2003 says "A licensee shall not supply intoxicating liquor on the licensed premises at a reduced price during a limited period on any day."
- England and Wales. The mandatory licensing conditions ban "irresponsible promotions", which can include unlimited drinks for a fixed price.
Other US states have their own limits, and the rules can change. Your state or local licensing authority can tell you what applies to you.
Sources
- Cambridge Dictionary, âhappy hourâ
- Peter Jensen Brown, Early Sports and Pop Culture History Blog, âHappy Hour Update: the History of âHappy Hourâ on the U.S.S. Arkansasâ (2014)
- Wikipedia, âHappy hourâ
- Utah Code, Section 32B-5-305
- Irish Statute Book, Intoxicating Liquor Act 2003, Section 20
- The Licensing Act 2003 (Mandatory Licensing Conditions) (Amendment) Order 2014, Schedule
