California customers are increasingly using restaurant happy hours as a lower-cost alternative to a full-price night out, according to chef Alex Carballo of Grand Restaurant Group. He told Fox News Digital that happy-hour business, which he previously estimated at 5% to 8% of sales, has risen to nearly 30% as diners seek deals.
Carballo said the increase has come alongside fewer visits overall. Customers who once came to his restaurants four or five times weekly may now come three times, he said, while some who visited three times a week are coming only once. Rather than stopping for discounted drinks or appetizers before dinner, he said, some customers are making the happy-hour visit their main meal.
The discounts help customers access the restaurants’ food and atmosphere at lower prices, Carballo said. For operators, however, offering deals can mean lower revenue while expenses remain unchanged. He said food, staffing and rent costs have not fallen, even as he discounts items to attract customers.
The accounts from diners and residents in the source report place the restaurant shift within broader concerns about affordability. The U.S. Bureau of Economic Analysis’ 2024 data, cited in the report, put California’s overall price levels roughly 11% above the national average, the highest among states. The report also notes that people across the country face elevated costs for housing, groceries and other necessities.
Jonas, a Santa Monica resident planning a wedding with his fiancée, said expenses for fuel, rent and groceries are affecting their budget. He estimated his grocery spending at about $100 a week and said the couple is eating out less. He also said he has begun walking to work to reduce gasoline costs. Jonas described a broader feeling that prices have risen while consumers receive less for their money than several years ago.
Housing costs were a key concern for Justin, a California native from Glendora who moved to Las Vegas seven years ago. Visiting Los Angeles for a Rams game, he told Fox News Digital that affordability was one reason he left the state. He said many of his friends who remain in California share housing, and that living alone is difficult.
The report cited California Association of Realtors figures showing that 19% of California households could afford the state’s median-priced home, listed at $916,750, in the second quarter of 2026. That figure offers a measure of the housing pressure described by the residents, though it does not indicate what any particular household can afford.
Tatiana, a Venice resident, also described higher costs for gasoline, food and local businesses. She said few restaurants on Abbot Kinney Boulevard remained affordable to her and estimated that prices at her local cooperative grocery store had risen at least 15%. Her comments, like those of the other residents, reflect individual experiences rather than a statewide survey.
Together, the interviews depict households adjusting discretionary spending in response to higher everyday expenses. For restaurants, Carballo’s account points to a trade-off: discounted offerings can draw customers who might otherwise stay away, but businesses continue to face costs that he said have not eased.
