Downtown Restaurants Find Remote Workers Return for Happy Hours

Downtown restaurants have been battling losing the lunch hour crowd since the pandemic and the start of remote and hybrid work, but it appears as though they are making it up with well-attended happy hours.

Data from payment technology firm Square show that although many office workers continue to prefer remote and hybrid work schedules, end-of-day happy hour remains a priority.

Restaurant and bar traffic between 4 p.m. and 6 p.m. (the happy hour time slot) has remained resilient and is slightly above pre-pandemic levels when comparing 2019 to 2023.

The same cannot be said for weekday lunch traffic, which is down across all major US cities and remains below pre-pandemic levels.

“There’s a perception that consumers are cutting back at restaurants, when in fact total spending has increased,” Ara Kharazian, Square Research Lead and principal developer of Square Payroll Index, said in prepared remarks.

“The bigger change is in consumer behavior. Before COVID, consumers were going out more during the week to eat lunch by their office and grab drinks after work. Now with remote work, restaurant spend has shifted to the weekend and we now see that weekend traffic is at its peak.”

A recent blog from Amir Forouhar, Karen Chapple, and Jeff Allen from the University of Toronto showed that all American downtowns have exhibited a greater decrease in activity levels during working hours, reflecting a trend towards remote work and flexible schedules.

But after work-hour activity is surging in many downtowns, according to the authors.

Nearly one-third of downtowns have more activity on weeknights and weekends than before the pandemic. Almost all are in warmer US regions such as the Southwest, Pacific, or Southeast. This pleasant weather helps attract visitors and shoppers downtown.

Downtowns with high levels of activity on weekends are generally similar to those that flourish after work hours. There are exceptions. Jacksonville, Tulsa, and Las Vegas all experience activity levels 13% higher on weekends than after hours generally, suggesting that they may have special weekend events that bring visitors from out of town.

Meanwhile, Louisville and St. Louis, which struggle to attract visitors and shoppers – in addition to workers – will most likely experience a longer road to recovery.