California diners are cutting back as costs soar — but restaurant owner reveals one trend that’s booming

As California’s high cost of living squeezes household budgets, diners are choosing restaurant happy-hour deals more often and eating out less frequently. One restaurant owner says discounted drinks and meals, once a pre-dinner stop, are increasingly replacing a full-price night out.

Chef Alex Carballo said happy hour has grown from an estimated 5% to nearly 30% of his restaurant group’s business. He reported that some customers who ate out four or five times a week now go three times, while others have cut back from three visits to one. California’s overall prices were about 11% above the national average in 2024, and residents cited high rent, fuel and grocery costs; the discounts also leave restaurants facing the same expenses while charging less.