Happy hour is becoming a focal point for many diners in California as the high cost of living drives customers to search for discounted meal options instead of splurging on full-price dining experiences.
Chef Alex Carballo from Grand Restaurant Group noted that happy hour used to make up about 5% to 8% of his business. Now, it’s surged to nearly 30%, even though patrons are dining out less frequently.
“My happy hour has really picked up,” Carballo commented. “I think people are just looking for deals and better options.”
This trend mirrors a larger issue of affordability affecting California residents, who report that soaring costs for essentials like housing, groceries, and gas are prompting them to reconsider their spending habits.
According to the U.S. Bureau of Economic Analysis, California has the highest overall price levels in the country, around 11% more than the national average. Yet, affordability challenges don’t stop at California’s borders; many Americans across the nation are dealing with similar rising prices for basic needs.
Carballo mentioned that while customers might be less frequent, happy hour is increasingly becoming the main event for dining out. “Now it’s like, that’s where they’re going and they’re hitting those scenes,” he shared, highlighting that diners can still enjoy the same food and atmosphere, just at more appealing prices.
However, this shift presents challenges for restaurant owners. “I’m still paying the same amount for food. My rent hasn’t changed. I’m just trying to offer discounts to attract people,” Carballo explained.
To add to this, other Californians shared how they are making financial adjustments beyond just dining choices. For instance, Jonas from Santa Monica, who is planning a wedding, is reevaluating his budget to keep up with ongoing expenses. “Gas is expensive, rent is high, and grocery prices aren’t helping either,” he said, mentioning that he spends around $100 a week on groceries. As a result, he and his fiancée have decided to eat out less, and he’s even started walking to work to save on gas.
“People are noticing price increases everywhere, and it feels like they’re getting less than they used to a few years back. It’s a shared experience,” he said.
For some, the financial pressure has led to leaving the state altogether. Justin, who moved from Glendora to Las Vegas seven years ago, cited California’s cost of living as a dealbreaker. “Affordability is crazy,” he remarked during a visit to Los Angeles for a Rams game. He pointed out that friends remaining in California often share struggles with high housing expenses.
“Ninety percent of my friends are living with roommates. It’s tough to afford living alone here,” he noted.
Housing affordability is indeed a significant issue in California. Just 19% of households can afford the state’s median-priced home, which stands at $916,750 as of the second quarter of 2026, according to the California Association of Realtors.
Residents like Tatiana in Venice expressed frustration over rising costs, stating, “Everything is more expensive, from gas to food. There are very few affordable dining options left on Abbot Kinney. Even local co-op prices have jumped at least 15%.” She concluded with a sigh, “We’re not getting any breaks in California.”
