happy hour

School of Tourism

Unit Reflective Commentary

Student Surname: Nghiem
Forename: Ngoc
Programme: International Hospitality Management
Level: C
Unit Name: Global Hospitality
Unit Tutor:
Assignment Marker: Dr Hanaa Osman/ Dr Heather Hartwell
Date Due: W/C 30 September 13
Date Submitted: Friday 10th Jan 14 at 12.00 noon

Declaration:
I have read and understand the University’s regulations on assessment offences.
I confirm that the piece of work submitted is to be regarded as the final and complete version of this assignment.
The work submitted is entirely my own work or, where I have referred to the work of others, it is fully and appropriately referenced.
Signed: Ngoc
Date: 10.01.2013

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GLOBAL HOSPITALITY
Unit Reflective Commentary

Contents

Introduction
The report aims at identifying the ability of students in understanding the implication of happy hour in hospitality business. According to Black ( 2010 ), happy hour can be one singular in a day in which public venues such as restaurant, bar or other licensed establishment offers discount on alcoholic drinks. Happy hour is widely famous at several public venues as it is the best marketing strategy. The report will discuss the implication of the happy hour for business and recommendations will also be provided so that the business could reach to a further avenue by applying the topic.
Main body
According to Keynote (2007), the UK spirits and liqueurs market was reached at £11.25 bn in 2007 and it is evaluated to raise nearly £17 bn by 2012, becoming one of the most significant markets in the world. One of the contributors to that great result is price discount on happy hour period at public venues. Price discount includes price reduction and multiple-buy promotions ( e.g: buy one, get one free ). According to Kohn et al ( 1985 ), in Toronto (Canada), happy hour incorporated a variety of discounted drinks, some included lunch meals. Most of happy hours are between 4 and 9 p.m accounting for approximately 17.8 hours per week ( only on Monday to Friday ). About 60 % of happy hours involve price reductions and the remainder are two-for-one offers. Therefore, happy hours is a contributor to increase drinking and it cannot be denied that happy hours is the greatest marking strategy while the economics is slowing down. According to Ruggless (2012 ), under the economic situation and the raise of “take-home” drinking, ( fuelled by cheap supermarket alcohol) , a number of casual – dining operators discovered that happy hours can boots traffic and ensure a financial bright spot in their sales. Ruggless (2012) provided an example about Texas-based Bar Louie concept, which has 56 units in 16 markets, has seen its sales increase 32 % each year by applying happy hours to the business.
Well-designed happy hours can offer a range of benefits to operators. A happy hours program can attract more customers to visit the concept, ensure a number of loyalty customers, offer a taste upscale food in a difficult economy and provide characterised experience to customers. A hospitality manager should understand the desire of customers is good food at a reasonable price, therefore, happy hours should not only discount for beverage but also for food. According to Technomic’s survey (n.d cited by Ruggles,2012) found that only 2% of customers do not want to eat during happy hour. 53% preferred typical bar sides such as nachos and nuggets, 21% like burgers or sliders, 10% went for pizza and the rest want small-plate fare. Customers want to keep dining out but affordably, understanding that, a number of hospitality catering offer discounts not only on drinks but also on foods for customer. “Restaurants that offer and promote happy hours with attractive prices and alluring food and drink have a key opportunity to turn their premises and labour to profit at an otherwise 'dead' time of day." ( Ruggless,R, 2012 ).
In spite of the fact that happy hour offer a wide range of benefit for hospitality operators; it brings several disadvantages to society especially young people. Many studies have found the negative relationship between alcohol consumption and price, Hoof et al (2008 ) claimed that happy hour is effecting on teenagers since they likely to start drinking earlier and more within happy hours. In the Netherlands, 90% of 16 year-old-adolescent have experience with alcohol. About 20 % of male and 10 % of female teenagers drink more than 10 glasses of alcohol on a weekend day, 63% have been drunk at least once. These figures are the evidence to claim that alcohol discount do affect the drinking behaviour of adolescents and tempt them to drink more with less money. “Respondents said they were aware of offered discounts, used discounts on a regular basis, and drank more alcohol when discounts were offered” (Hoof et al, 2008 ). Moreover, harm from alcohol is increasing steeply in the UK, according to Rice and Drummond (2012), in 2010, alcohol had become 44% more affordable than in 1980. Consequently, there was a raise in alcohol-related harm, between 2002 and 2009 alcohol-related hospital admissions have doubled in England and now over 1 million per year. The number of people who died from liver diseases has more than doubled in the UK since 1980, mostly due to alcoholic liver disease. These figures have no signs of declining while many public venues are offering not only happy hour but also other promotions and gift cards. The reason for having happy hours in many hospitality operations is because in the UK all alcohol can be sold alongside other goods, therefore, hospitality managers and retailer accept a low profits ( or even loss ) in beverages to attract customers and make profits by selling other goods.
Happy hour in particular and other alcohol discounts in general is becoming popular to hospitality operations as it is one of the main incomes for the business and a greatest marketing strategy to attract more customers . Nevertheless, by offering happy hour, public venues are encouraging people to drink more and leaving the negative impacts to society. Since discount on alcohol is increasing, some governments such as Canadian or Scottish promulgates a ban on discounts for multiple purchases and happy hours. Moreover, thousands of pubs across the UK are about to end happy hours and cheap drinks promotions due to a campaign by 32,000 members of the British Beer and Pub Association since binge drinking costs the UK around £20 million each year. The campaign is supported by all pubs owned by Carlsberg, Heineken, Scottish and Newcastle, Youngs and Theakston. The campaign is described as “ step in the right action” in order to save the government’s money and more importance is to support society health. ( BBC, 2005).
Conclusion
Public venues may not want to “endanger” their profits by ending alcohol discounts since it is the best action to attract customers. However, in order to reduce the conflict between harm and industry interests, hospitality organisations should continue offering promotions but limited it as much as they can. Opening and closing times is also a factor to stop binge drinking. In the future, people and hospitality operations should be educated about how alcohol could effect on health and society so that both retailers and customers would have knowledge about right drinking behaviour.

References
Black, R, 2010 Alcohol in Popular Culture: An Encyclopedia 2th edition, Greenwood.
Keynote, 2007. Spirits and Liqueurs Market Report [online]. Teddington: Key Note Limited.
Kohn,P.M; Smart, R.G and Adlaf, E.M, 1985 Happy hours in Metropolitan Toronto: Their prevalence, timing and content. Canada : Canadian Public Health Association, 62-63.
Ruggless,R, 2012, Happier Hours at Restaurant. Nation's Restaurant News, 46 (9).
Hoof, V.J; Noordenburg , V.M and Jong, D.M, 2008. Journal of Public Health Policy. Happy Hours and Other Alcohol Discounts in Cafe´s: Prevalence and Effects on Underage Adolescents; 29 ; 340-352.
Rice, P and Drummond, C ,2012. The British Journal of Psychiatry: The price of a drink: the potential of alcohol minimum unit pricing as a public health measure in the UK; 201; 169-171.
BBC News (2005). Pubs to scrap Happy Hour drinks. BBC [online]; 23 May 2005. Available from: http://news.bbc.co.uk/1/hi/uk/4571989.stm [ Accessed 05 January 2014 ].