Balancing Fun and Safety: Best Practices for Happy Hour Management
By Amanda Fagan, MSMI, CIC, CISR
Illinois Casualty Company
Loss Control West Team Leader
Imagine if every hour could be happy at your favorite bar and grill, not just 4:00 – 6:00, Monday through Thursday. It sounds like fun but could become dangerous.
Incorporating happy hour or daily drink specials to be enjoyed in a reasonable manner can draw in customers and encourage them to spend more at your establishment. While a happy hour with friends after work is intended to be a way to relax and loosen the tie, there are instances where happy hour drinks have led to over consumption, visible intoxication, and even death.
At Illinois Casualty Company, we consider the state laws and regulations to determine reasonable sales and service standards. As the Loss Control Team and Underwriters review accounts with onsite inspections and social media searches, we look for specials that are not deeply discounted, free, or excessive in nature.
While happy hours are generally limited to short periods of time, it is important to follow state liquor laws and serve responsibly. Deep discounts such as $1 shots, 2-for-1 cocktails, $1 beers, and progressive drink specials should be a thing of the past. Financially, these prices do not provide the best return on investment, and employees may feel pressured to serve more to make up the difference. These deep discounts can cause harm to the patrons and staff with excessive consumption.
A new trend that can be seen in restaurants is Happy/Appy Hours. This concept offers a slight discount on beverages, including mocktails, and on appetizers or small plates. Now more than ever, patrons are looking for great deals and a great time. Happy/Appy hours can be an enticing incentive to attract more business.
Providing the proper training for selling and serving alcohol is essential. Following procedures to monitor consumption and offering limited hours for discounts will ensure patrons can continue having a great time without endangering themselves or others.
Offering only a slight discount and including food specials and non-alcoholic beverages may be a better option to draw in business at different times of the day and may appeal to a broader audience.
If you have questions on whether a happy hour promotion would be considered excessive in nature, reach out to your ICC agent. If you aren’t with ICC, you can find an agent in your area at www.ilcasco.com. Alcohol server training and more are available through ICC’s partner in safety education, Katkin, at www.katkinco.com.
Editor’s Note: Illinois Casualty Company is the exclusive preferred vendor of the Pennsylvania Licensed Beverage and Tavern Association for liquor liability insurance. At ICC, qualifying PLBTA Members can save up to 10% on their businessowners and liquor liability insurance. To find out more about their insurance programs and to locate an agent in your area, visit https://www.ilcasco.com/insurance-programs.