Happy Hour Profit Calculator
Happy Hour Profit
Analyze the profitability of your happy hour program by comparing discounted pricing, increased volume, and food sales to determine if promotions boost overall profit.
Formula
HH Drink Price = Regular Price x (1 - Discount %); HH Drink Profit/Hr = HH Drinks/Hr x (HH Price - Cost Per Drink); Net Gain = Total HH Profit - Equivalent Regular Period Profit
Frequently Asked Questions
Is happy hour profitable for restaurants?
Happy hour can be very profitable when it drives significantly higher volume and food sales. The key is that increased guest count and food spending offset the lower drink margins. Most successful programs double or triple drink volume.
What is a good happy hour discount?
Most restaurants offer 20 to 40 percent off drinks and select appetizers during happy hour. Half-price drinks are common. The discount should be enough to drive traffic but not so deep that margins disappear.
How can I maximize happy hour profit?
Promote high-margin food items alongside drink specials, offer discounted appetizers to increase food attach rate, time happy hour to fill slow periods, limit the discount to well drinks and select beers, and create a fun atmosphere to encourage return visits.
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