Dive Brief:
- Red Lobster this week launched a happy hour deal with $5 drinks and $2 off of some appetizers from 3 p.m. to 6 p.m. for dine-in on weekdays, the company said Monday. The happy hour will be a permanent feature of the menu, a company spokesperson said.
- The drink offers are not valid in some states or are only available during a limited time frame, since many states and some individual cities restrict the ability of restaurants to offer discounts on alcohol.
- Happy hour is part of the chain’s effort to make its menu more appealing and to revive traffic and consumer interest after exiting Chapter 11 earlier this year.
Dive Insight:
The addition of happy hour comes less than a month after the chain updated its menu with seven new dishes and old favorites across its 545 restaurants nationwide. The chain’s post-bankruptcy plan includes simplifying the core menu, cutting back on promotions and having fewer LTOs.
The drinks deal applies to the Classic Margarita, Top-Shelf Long Island Iced Tea, Tito's Twisted Strawberry Lemonade, 14 oz. draft Blue Moon and Bud Light, 6 oz. Mark West Pinot Noir and 6 oz. Ecco Domani Pinot Grigio.
The $2 discount on appetizers covers the chain’s Lobster Flatbread, Seafood-Stuffed Mushrooms, Crab Queso, Lobster Dip and Mozzarella Cheesesticks. While prices vary from market-to-market, a pickup order placed at a location in Connecticut charges $17.49 for the flatbread and $10.99 for the cheesesticks, amounting to a discount that ranges from 11% to 18%.
Other casual dining chains have used discounting or value plays to try to bolster traffic, to varying success. Chili’s Big Smasher Burger has helped the chain take share from QSRs and powered it to multiple quarters of dramatic same-store sales growth. But Applebee’s, which launched the alcohol-based Dollarita promotion in May, still saw its sales slip that quarter.
Promotions that mix alcohol and food tend to focus on elevating the dining experience rather than providing a value play. Happy hours also help drive traffic and sales during slow periods of the day and help build customer loyalty.
