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

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.

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.

Now, that figure has climbed to nearly 30%, even as customers cut back on dining out.

"My happy hour has increased a lot, so I think people are looking for deals and looking for options," Carballo said.

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.

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.

But affordability pressures extend far beyond the Golden State, as Americans nationwide grapple with elevated costs for housing, groceries and other everyday necessities.

NEWSOM UNDER FIRE AS CALIFORNIA GAS TAX HIKE SENDS PUMP PRICES EVEN HIGHER Carballo said customers are visiting his restaurants less frequently, with some scaling back how often they eat out.

"They're going out three times a week, where they were coming out to see me four or five [times].

And the people that used to see three times a week, they're only coming out once," he said.

What was once a stop for drinks or appetizers before dinner is increasingly becoming the dinner itself, Carballo said.

"Now it's like, that's where they're going and they're hitting those scenes," he said.

Customers can still enjoy the same food, service and atmosphere at lower prices, Carballo said, making happy-hour deals particularly appealing.