The platform says the owners of Red Robin and other concepts have tracked more than 74 billion in sales for over 200,000 locations. Convive Hospitality’s Jonathon Horowitz says patrons still want to have the experience along with a terrific value.
“People inevitably turn to deals or promotions, or combos, or in this case, happy hours. You’re getting reduced costs on still good menu items, but you’re not necessarily paying $20, $25, $30 dollars for a large entrée. Horowitz said.
In addition, there is a wave of Americans using prescribed medication to lose weight. “People are eating less. We have talked in the past about the GLP 1’s and there’s a good percentage of folks who are reducing their intake, and that pushes people towards smaller portions that you typically find on happy hour menus.” He said.
Horowitz says Americans are known for having oversized food portions compared to European countries, as well as a good amount of food waste. “We are starting to see an evolution away from that. I think people realize they don’t need to have enough food on one plate to feed 3 people.” Horowitz said.
Prices for protein, especially beef, have increased and restaurants have had to pass along that increase to their customers. The hospitality expert says that is coined: “the center of the plate conundrum” as restaurants try to figure out a way to recoup the added cost in operations enabling them to bring in new customers. He says BBQ places locally in Houston and in Texas have been hit hard by this increase in beef, pork and chicken.
Horowitz says the industry is extremely competitive, and restaurants must find a way to stand out among the thousands of choices. If restaurant owners can find a way to bring in traffic with excellent value options, along with delivering great service- patrons will want to return. Even with the success that comes with higher sales driven by happy hour, Horowitz doesn’t suspect there will be a spike in happy hour to continue to drive sales. He says that would defeat the purpose entirely.