After nearly 40 years of absence, bars and restaurants in Indiana will again be able to offer happy hour specials beginning Monday with the goal of attracting more customers with discounted drink deals.
The legislation, House Bill 1086, which was authored by Rep. Jake Teshka, R-District 7, comes after a couple of years of study and lobbying by the restaurant industry to bring back happy hour promotions, which were banned in 1985.
Drink deals were eliminated back then because of concerns about drunk driving, but Teshka says incidences have been going down ― likely because of the penalties ― and that there is no correlation between drunk driving and states that allow happy hour specials.
Indiana was one of eight states with a ban on happy hours, and Teshka believes enough safeguards have been put in place to ensure that drink promotions are done responsibly with no drinking contests, a maximum of 15 hours per week, a 9 p.m. cutoff and a requirement of $500,000 in liability insurance, among other things.
“This is pro-business legislation that should also be good for consumers,” Teshka says. “If we were wrong, I’ll be spearheading the effort to make changes or take it back.”
The new law, which also allows bars and restaurants to sell pre-packaged mixed drinks such as margaritas and Manhattans, for example, is part of a general loosening of alcohol-related laws in recent years.
In 2018, Sunday carryout sales of alcohol became legal in Indiana, and last year, the General Assembly allowed for the creation of Designated Outdoor Refreshment Areas ― which are currently being considered in South Bend, Mishawaka and other locations ― as well as relaxed rules for minors eating in bar areas.
“We’ve been politely having a conversation about this for a number of years,” says Patrick Tamm, president and CEO of the Indiana Restaurant and Lodging Association. “It gives restaurant and bar owners another tool to drive sales at slow times, slow days.”
Already operating on thin margins, restaurants have been facing challenges such as higher costs for labor, food and insurance while their customers have felt the sting of inflation, forcing them to make budget cuts where necessary, Tamm says.
Illinois and Michigan are among the states that allow happy-hour promotions, so the new law is leveling the playing field for Indiana restaurants and taverns, Tamm says, adding that the change should help Hoosier businesses attract more customers.
Beginning Monday, expect some venues to jump on board by offering happy-hour specials and to-go cocktails. More will join in when they determine what’s best for their bars or restaurants.
Expect deals to roll out at Howard Pork at 521 E. Jefferson Blvd. in South Bend’s East Bank neighborhood when Ben Dahl, corporate chef for East Bank Eats, determines what makes the most sense for the restaurant.
“People are being a little more careful spending,” Dahl says. “So we have to figure out what will get them in the door and then stay to eat.”
Similarly, restaurants and bars operated by Navarre Hospitality Group aren’t in a rush to offer happy hour deals, but they will likely be implemented based on what makes sense for each location, says Matt Soutra, vice president of operations.
“I could see it having a place at all of our locations,” he says. “People like a discount or an incentive, but maybe the discount is on the food.”
Though Navarre Hospitality isn’t in a rush to implement happy hour deals at all its locations, Soutra says he does like having another tool to attract customers — especially when business is slow.
The same is true at Craft One Half at 112 N. Main St. in downtown Mishawaka, which will eventually offer happy hour specials from 4 to 6 p.m. Tuesdays through Thursdays as well as bottled cocktails, business partner LaRae Perrin says.
While some are moving slowly, Hacienda Mexican Restaurants plans to hit the ground running on Monday by offering $2 frozen margaritas from 2 to 4 p.m. Mondays through Fridays and takeout premixed margaritas in sealed containers at its Indiana locations, excluding Warsaw, says Cody Jackson, senior marketing director.
The Warsaw restaurant currently doesn’t have the right type of license to allow for margaritas to go, but it’s something that the local chain is going to look into, Jackson says.
Like most, Hacienda views the liquor law changes as an opportunity to attract more customers and business at a time when many people are looking for the best value because of inflation, Jackson says.
Consumers should pay attention to websites and social media operated by their favorite restaurants and bars to learn the deals that will be rolling out beginning Monday.
The Madison Oyster Bar at 129 N Main St. in downtown South Bend will offer happy hour drink specials to pair with some new food items that eventually could be included on the menu, business partner Rosa Federico says.
“We have a 20-year-old recipe book,” Federico says. “So this would be a good way to get feedback on some of the menu items from the past and try some of the things that customers have been asking for.”
Some businesses, such as Bin 23 Bistro in Mishawaka’s Grandview development, Taphouse on the Edge in South Bend and Chicory Cafe in South Bend and Mishawaka already have plans finalized for Monday.
Bin 23 is offering 23% off the happy hour menu along with $3 off select wines and cocktails from 4 to 7 p.m. Mondays through Fridays. Taphouse, near the University of Notre Dame, is offering beer, wine, drink and appetizer deals from 3 p.m. to 6 p.m. Sundays through Thursdays. And Chicory Cafes in South Bend and Mishawaka will have deals on coffee drinks and alcoholic beverages from 2 to 5 p.m. Mondays through Fridays.
“This gives us the flexibility to get creative,” Taphouse and Chicory co-owner Jeff Morauski says. “For us, it can drive traffic while also giving consumers a break.”
Again, check online sites and social media to get the latest deals at area spots as they’re rolled out beginning Monday.
“I imagine every restaurant is eventually going to take advantage of the opportunity,” Morauski says.
Email Tribune Market Basket columnist Ed Semmler at esemmler@sbtinfo.com.
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