While some restaurants have shortened hours to control costs, others – from casual to fine dining – are staying open later to capitalize on what they are finding to be an underserved market: late night.

“We began staying open late because the owners realized there were very few places for industry people to dine after their shifts,” says Will Baldwin, manager, The Vanderbilt, Brooklyn, NY. An abridged version of the regular menu with food and beverage discounted 30% is offered. Popcorn (bacon fat or olive oil/smoked paprika) is free. To make the distinction between regular dinner service and late night (11pm weekdays, midnight on weekends), lights are dimmed, and the music is turned up to create a more casual, intimate environment. Late night can be as much as 10% of a typical day’s business …. Alan Popovsky, owner, Hudson and Lincoln restaurants, Washington, D.C., says when Hudson started offering late night service, very few restaurants were doing it; now more recognize the potential. He says late night attracts people attending events and concerts, plus tourists from nearby hotels. “A lot of places offer a late night limited menu, but we feel it’s important to provide the best we can at all times for our guests.” There are some special drink offers, but menu prices and offerings remain the same – after all, Alan says, “There are some who want a steak at midnight.”

“Staying open late is an opportunity to give our guests an additional experience and a way to increase our bottom line. Late night contributes 5-10% of overall sales.”
Kip Clayton, vp, Parasole Restaurant Holdings, Minneapolis, MN

At some locations of Kabuki Restaurants, headquartered in Burbank, CA, The Reverse Happy Hour has helped compensate for lower lunch volumes, and it’s also popular at those located near malls and universities, according to Young Kim, director of marketing. Specially-priced drinks and appetizers are served. “We use a skeleton crew, and make sure the menu items are easy for the small staff to make and expedite efficiently” …. Nopa, San Francisco, CA, began staying open late night five years ago because there was no place offering a full menu late night. Nopa attracts people after the opera and symphony, those who fly in late, and hospitality workers according to manager, Brooke Town, who advises, “If you’re going to stay open late, you have to commit to it, as it takes a little while to catch on” …. Michael Herchuck, national bar manager, Smokey Bones, headquartered in Orlando, FL, says they got into late night because it was a segment they weren’t capitalizing on. “We’re not into heavy discounting and we have a fun, energetic product and atmosphere that we felt lent itself to late night.” Appetizers and sandwiches from the regular menu are $4-6, plus daily drinks specials, and some locations offer the entire menu. “We don’t pretend to be a club, but we’re not a corner bar either – we’re an alternative,” says Michael. He adds that late night can account for as much as 20-25% of daily sales, and the customer demographic is broad, with ages ranging from 21 to 50+, half male and half female.