Marketing Strategy for a Cafe: The Complete Overview
Creating and sustaining success in the coffee shop business requires more than delicious coffee or pastries. It's a competitive space, and depending...
6 min read
Happy hour began in the early 1900s as a US Navy tradition. It then grew in popularity during Prohibition, when US legislation banned the import and sale of alcohol between 1920 and 1933. Over time, it’s become an important part of the hospitality industry. Today, it's a popular tactic for increasing the number of restaurant and bar guests between the end of the workday and the beginning of dinner hour (usually 3pm to 6pm), and, in-turn, beverage sales.
By offering special deals, themed events, and unique experiences, businesses tap into a time of day when customers are more likely to relax and spend. In addition to filling seats, happy hour also encourages repeat visits, boosts average check value, and strengthens customer loyalty. With the right approach, happy hour can be a game changer for your business’s bottom line.
Successful happy hour menus appeal to each segment in your audience – even kids and teens! A mix of alcoholic and non-alcoholic beverages ensures everyone has a beverage to enjoy while encouraging customers to stick around longer. Wine or beer shops can also benefit from offering a variety of options that appeal to all tastes.
When it comes to food items, small, shareable plates are always a good choice. Think easy-to-share flavorful bites like sweet potato hummus, soft pretzels, pickle chips, or charcuterie sticks. These dishes support the social feeling throughout happy hour and encourage more orders as people sample and pass around.
Happy hour pricing needs to be considered as well. This is where your happy hour strategy can really shine.
While great deals are important, happy hour is also a chance to promote higher-margin items. On top of your standard offers, encourage upselling by featuring premium cocktails or top-shelf liquors at a slight discount. This entices customers to try something new without cutting too much into your margins.
Pairing drinks like classic cocktails with discounted appetizers or bundling add-ons can also boost your average check. It creates an experience that feels like a steal while still driving profit.
There's no better place than social media to conduct your happy hour marketing. Instagram and Facebook are go-to platforms to reach a wide audience. Here’s an example from Chops Steakhouse:
Segment your email list before sending out any communications. Group customers based on their behavior, for example, frequent visitors or new customers. This way, you can send targeted, meaningful messages.
Gathering, reviewing, and acting on customer feedback is a necessary way to keep your happy hour fresh and appealing. Feedback can be collected through a quick online survey (available by scanning a QR code or tapping a link in a social profile bio) or a simple conversation at the bar.
To encourage participation, you can offer incentives, like an extra discount on their next visit. If you’re already collecting feedback in simple ways, consider a deep dive into gathering restaurant customer feedback to refine your happy hour experience and better meet guest expectations.
Bar and restaurant loyalty programs are another effective method for generating more daily happy hour revenue. Rewarding repeat customers with points makes them feel appreciated and keeps them coming back.
Offers like a free menu item after a certain number of visits or early access to happy hour specials work well. You'll soon be turning one-time guests into regular patrons!
Additionally, encourage employees to join your program. Offer group discounts or special deals for outings with family and friends.
To evaluate the success of your happy hour marketing efforts, start by measuring key metrics related to both foot traffic and sales. Track how many people are walking through your doors during happy hour compared to regular hours. This helps to gauge whether your campaigns are successfully attracting new customers.
Next, look at your sales data. Are customers spending more, less, or the same during happy hour? Look at average check sizes to see if promotions are impacting sales. Analyze your point-of-sale (POS) data to track specific items and see what’s resonating with your customers.
Equally important is digital engagement. Measure social media activity such as likes, shares, comments, and video watch time, if applicable. For email, it will be metrics like open and click-through rates. When it comes to your website, focus on traffic and conversions to see how many people are visiting your happy hour page or signing up for promotions.
Use these insights to adapt your approach. If certain promotions or items are driving more sales, double down on them. If customer engagement is high on social media but not translating to sales, it could point to an issue with your timing or landing page.
Strategic timing, for instance, can also help ease the dinner rush by attracting more early diners. Consistently analyze your metrics and make tweaks to maximize ROI.
Happy hours are the period of time when many bars and restaurants offer special deals on specific drinks and menu items. They've remained a successful strategy to attract customers during off-peak hours, usually between 3pm and 6 or 7pm local time.
A happy hour promo is a special offer designed to attract customers. Such a promo may be discounted happy hour drinks, combo deals, or exclusive menu items that are only available during specific hours.
Yes, when done right, happy hour can net your establishment revenue it would otherwise be overlooking. Happy hour can bring in more guests during slow periods, increase average order value (AOV), and even promote high-margin items. With the right deals and strategic pricing, it can absolutely be profitable.
Happy hour is loved by many, which presents a lucrative opportunity for your business. Create fun themes around your events to generate interest and get people excited to join.
Along with this, offer exclusive deals guests can’t resist—ideally based on AI-driven customer insights from your customer relationship management (CRM) tool. With the right mix of both food and drink, including non-alcoholic options, you'll have people engaged. Then, use digital marketing strategies like email marketing and loyalty apps to keep them coming back once they walk through your doors. Nailing this approach will do wonders for your bottom line and loyalty.
Want to learn more about driving customer loyalty? Get the Paytronix Annual Loyalty Report for actionable insights to help you maximize retention and outperform competitors.