Question 1

What should I include in the 'cost' for happy hour?

Accepted Answer

The primary cost is the discount itself—the revenue you 'lose' compared to full price. For example, if you sell 100 beers at a $2 discount, your cost is $200. You should also include the cost of any specific marketing materials for the happy hour.

Question 2

What are common costs for an 'event night'?

Accepted Answer

Event night costs are usually more extensive. They can include fees for DJs, trivia hosts, or bands; marketing and advertising spend; costs for prizes or giveaways; and any additional staffing required to handle the larger crowd.

Question 3

My happy hour has a higher ROI, but my event night brings in more total profit. Which is better?

Accepted Answer

This is a great problem to have! It highlights the difference between efficiency (ROI) and scale (Net Profit). A high-ROI happy hour is very efficient. A high-profit event night is great for big revenue days. The best strategy often involves both: use the efficient happy hour to drive consistent, low-cost business, and use the high-impact event nights to create big revenue spikes.

Question 4

Should I compare a single happy hour to a single event?

Accepted Answer

For the most accurate comparison, you should try to compare equivalent time periods. For example, compare the total revenue and cost of all your happy hours over one week versus the revenue and cost of a single big event that week. This helps to normalize the data.

Question 5

How can I use this data to improve my business?

Accepted Answer

If you find your event nights have a much higher ROI, it might be a sign to invest more in unique, ticketed experiences. If your happy hour is the clear winner, it might be more profitable to focus on perfecting that daily special and building a loyal regular crowd rather than spending heavily on one-off events.

Happy Hour vs. Event Night ROI Tool

Happy Hour

Event Night

Results

Comparing Profitability

Frequently Asked Questions

Need Help Optimizing Your Hospitality Business?