Happy hour is becoming the main event for some California diners as the state's high cost of living pushes more customers to seek out discounted meals instead of paying full price for a night out.
asserted
cost → become → night
Chef Alex Carballo of Grand Restaurant Group told Fox News Digital that happy hour once accounted for an estimated 5% to 8% of his business.
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hour → tell → business
Now, that figure has climbed to nearly 30%, even as customers cut back on dining out.
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customers → climb → %
"My happy hour has increased a lot, so I think people are looking for deals and looking for options," Carballo said.
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Carballo → increase → options
The shift reflects a broader affordability squeeze across California where residents told Fox News Digital that rising costs for housing, groceries and gasoline are forcing them to rethink everyday spending.
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costs → reflect → spending
California has the highest overall price levels in the nation, according to 2024 data from the U.S. Bureau of Economic Analysis, with prices running roughly 11% above the national average.
uncertain
prices → have → average
But affordability pressures extend far beyond the Golden State, as Americans nationwide grapple with elevated costs for housing, groceries and other everyday necessities.
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Americans → extend → housing
Carballo said customers are visiting his restaurants less frequently, with some scaling back how often they eat out.
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they → say → restaurants
"They're going out three times a week, where they were coming out to see me four or five [times].
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they → go → times
And the people that used to see three times a week, they're only coming out once," he said.
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he → use → times
What was once a stop for drinks or appetizers before dinner is increasingly becoming the dinner itself, Carballo said.
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Carballo → become → dinner
"Now it's like, that's where they're going and they're hitting those scenes," he said.
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he → go → scenes
Customers can still enjoy the same food, service and atmosphere at lower prices, Carballo said, making happy-hour deals particularly appealing.
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deals → enjoy → prices
But those discounts also create challenges for restaurant operators who are already grappling with rising expenses.
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who → create → expenses
"I'm still paying the same amount for food.
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I → pay → food
I'm still paying the employees.
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I → pay → employees
My rent didn't change.
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rent → change → ?
Nothing changed.
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Nothing → change → ?
Only thing I'm doing is trying to discount my product to gain people to come here," Carballo said.
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Carballo → do → product
Fox News Digital also spoke with residents in Southern California who described making financial trade-offs that extend well beyond restaurants.
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that → speak → restaurants
Jonas, a Santa Monica resident who is planning a wedding with his fiancée, said he and his fiancée are reevaluating their budget as everyday expenses continue to add up.
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expenses → plan → budget
"Certainly gas is expensive, rent is high, and then grocery prices are pretty high as well," Jonas said.
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Jonas → say → ?
He estimated that he spends approximately $100 a week on groceries and said rising costs are influencing their decisions about dining out and transportation.
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costs → estimate → dining
The couple is "eating out a little bit less," Jonas said, adding that he has also started walking to work to "save money on gas as well.
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he → eat → gas
"
"I think that people are just seeing prices go up everywhere, and feeling like they're getting less than what they had four years ago maybe," he said.
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he → think → what
"I think everybody's really feeling that."
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everybody → think → that
For some Californians, the financial strain has gone beyond cutting back on restaurants.
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strain → go → restaurants
Justin, a California native from Glendora who moved to Las Vegas seven years ago, told Fox News Digital that the state's high cost of living was one of the reasons he left.
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he → move → reasons
"Affordability is crazy," Justin said while visiting Los Angeles for a Rams game.
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Justin → say → game
"I left seven years ago and I thought gas and you know rent was high then," he said.
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he → leave → ?
Justin said many of his friends who remain in California are still struggling with housing costs.
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who → say → costs
"90% of my friends are living with a roommate.
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% → live → roommate
It is really hard to live alone here," he said.
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he → live → ?
Housing remains another major affordability challenge in the Golden State.
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Housing → remain → State
Just 19% of California households could afford the state's median-priced home of $916,750 in the second quarter of 2026, according to the California Association of Realtors.
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% → afford → Realtors
In Venice, resident Tatiana described rising expenses across everything from gasoline to groceries and neighborhood restaurants.
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Tatiana → describe → groceries
"Everything is more expensive, gas is more expensive, food," she told Fox News Digital.
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she → tell → Digital
Even our local co-op prices have gone up at least 15%.
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prices → go → ?
Everything costs more.
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Everything → cost → more
"
"We're not getting any breaks in California," she said.
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she → get → California
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