H
appy-hour-goers? Your operation’s hero.
Oh, happy hour. Where work ends and unwinding begins. With 40% of consumers attending happy hour weekly, and nearly 75% planning to continue or increase visits in the next year, operators can’t afford to overlook this daypart.1 Happy hour is much more than just a time slot. It’s a high-impact, high-margin opportunity for operators to boost revenue, attract new business, and create memorable guest experiences.
If your operation doesn’t serve alcohol or it’s not the focus? No problem. Happy hour doesn’t have to revolve around cocktails. Smashburger, for instance, leans into non-alcoholic indulgence with its Shake Happy Hour, featuring half-price shakes on Fridays from 2-5.2 The core appeal is indulgence at a discount—that’s what draws guests in. And with the right pricing strategy and PepsiCo’s versatile beverage portfolio, operators can provide accessible entry points while protecting margins.
How to win happy-hour-goers over.
Consumers are increasingly cost-conscious—and they respond to promotions that make their visit feel like both a smart deal and a delicious one. Here are a few ways to keep happy hour menus working harder:
- Offer tiered pricing ($3, $4, $5), BOGO deals, or flat discounts.1
- If deep discounts aren’t possible, try pairing drinks with bar bites, rotating weekday specials, or offering limited-time flights to keep menus fresh and motivate guests to come out.3
- Consider a barbell pricing strategy. Chili’s, for example, balances $6 margaritas with $15 premium cocktails, appealing to a broader range of guests.3
Know your crowd, grow your sales.
The key to building a winning happy hour strategy is understanding who your guests are and what motivates them.
Happy hour-goers split evenly between planners and spontaneous visitors. Gen Z and Millennials tend to plan ahead, while older generations skew more spur-of-the-moment. Operators should consider both audiences—promoting deals digitally to reach planners while creating strong in-store draws for walk-ins.
Happy hour also sparks incremental sales. Nearly 58% of guests extend their stay beyond the discount window,1 opening the door to more food and beverage orders. And while 40% of visits are planned and another 40% are spontaneous, about 20% of visits are driven by invitations from friends or coworkers—making happy hour a social multiplier.1
The right hour for happy hour.
When you host happy hour is just as important as what you serve.
Friday is the clear favorite, drawing 72% of consumers, followed by Saturday at 57%.1 During the week, Thursday is strongest at 35%.1 The 5-7 PM slot remains the sweet spot, but “reverse happy hours” (9-11 PM) are gaining momentum with late-night guests.1
This flexibility gives operators room to test multiple windows and capture traffic across dayparts––whether that’s post-work crowds or night-owls looking for value.
The PepsiCo playbook.
PepsiCo’s portfolio provides operators with cost-effective, versatile ingredients that make happy hour execution easier and more profitable. From classic cocktails to modern takes, PepsiCo brands help elevate menus while managing costs.
Simple, high-impact cocktails include:
- Pepsi Smash: A smooth bourbon-and-PEPSI® classic.
- Pepsi Snap: A refreshing option designed for all-night sipping.
- Black & Dew: A spiced rum cocktail with bold flavor.
- Strawberry Margarita: A modern margarita featuring Starry.
- Blood Orange Paloma: Elevated with Bundaberg’s real blood orange.
- Bubly Picante Paloma: A fizzy, flavorful twist with bubly®.
Additionally, PepsiCo’s combo calculator helps operators design menu bundles that pair beverages with food for optimal profitability and guest appeal.
Turn one hour into lasting impact.
Happy hour is a value-driven ritual where consumers seek both enjoyment and affordability. Operators who tap into consumer behavior, experiment with timing and pricing, and deliver innovative drink options can transform this window into a powerful revenue driver.
With PepsiCo’s portfolio, operators gain the flexibility and tools to make happy hour irresistible, without compromising margins. Now’s the time to elevate your happy hour strategy and become the go-to destination where consumers want to sip, snack, and stay longer.
Sources
1 Datassential Happy Hour, November 2024
2 Restaurant Business, Menus are sweet on Cinco de Mayo and sweets, April 2025
3 Restaurant Business, How casual dining can recoup sagging bar sales and boost traffic, May 2025
