Why Some Restaurants and Bars Don’t Offer Happy Hours or Discounts
Everyone loves a good deal. Whether it’s a two-for-one cocktail special or a discounted meal, happy hours and promotions feel like a win for customers. So why do some restaurants and bars refuse to offer them?
It’s not because they don’t want to reward their customers—it’s because in many cases, discounts do more harm than good for a business.
Here’s a breakdown of why some venues choose to skip happy hour and big discounts, and why their pricing strategy might be more about survival than profit.
Hospitality Runs on Thin Margins
Many people assume restaurants and bars make huge profits on food and drink, but the reality is completely different.
Most successful venues operate under the 30-30-30-10 rule, meaning:
30% goes to stock costs (food, drinks, ingredients).
30% goes to wages (chefs, bartenders, servers, managers).
30% covers everything else (rent, utilities, marketing, repairs, cleaning, etc.).
That leaves just 10%—and that’s before tax.
Now, imagine offering a heavy discount. That money has to come from somewhere—either reducing staff pay, lowering ingredient quality, or making up the difference elsewhere. For many venues, cutting prices isn’t sustainable.
Discounts Can Create the Wrong Expectations
One of the biggest risks of running frequent discounts is that customers start to expect them.
If a venue offers cheap cocktails every day from 5-7 PM, customers stop coming outside those hours because they know they can get a better deal later.
Some people only visit during promotions and never pay full price.
When prices go back to normal, customers may feel like they’re overpaying—even if the original price was fair to begin with.
In the long run, constant discounts can devalue the experience a venue is offering. Instead of attracting customers who appreciate the quality, atmosphere, and service, it attracts those who are just looking for the cheapest deal.
Happy Hours Aren’t Always the Right Crowd
It’s a simple truth in hospitality—discounts change the type of customer you attract.
A bar running a half-price drinks deal is more likely to bring in people who are just there to drink as much as possible for the lowest price.
That’s not always the kind of crowd a venue wants to build. Instead of attracting loyal customers who appreciate the drinks, food, and service, it brings in people who spend less overall, tip less, and only come for the deal.
For bars that focus on craft cocktails, premium drinks, or a unique atmosphere, happy hour discounts can undercut their brand rather than help it.
Not All Discounts Are Bad—But They Have to Be Strategic
This isn’t to say all promotions are bad. When done properly, discounts can be a great tool to bring in business—but they need to be planned carefully.
Successful venues use discounts and promotions strategically, such as:
Loyalty programs instead of random discounts, rewarding repeat customers.
promotions for quieter days or seasonal periods when business is naturally slower.
Bundled offers that encourage higher spending rather than reducing prices across the board.
For most businesses, slashing prices isn’t the solution—building value is.
The Bottom Line
If a venue doesn’t offer happy hour or big discounts, it’s not because they don’t want to treat their customers well—it’s because they’re focused on long-term sustainability.
Instead of relying on promotions, they might be:
Investing in high-quality ingredients and better service.
Creating a strong atmosphere that makes customers want to return.
Keeping fair pricing all the time instead of hiking prices just to discount them later.
So next time you wonder why a bar doesn’t have happy hour, just remember—some places don’t want to be cheaper. They want to be better.
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