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Restaurant Chains Hope Alcohol Will Fuel Profits

Applebee's has knocked $1 off the price of a 16-ounce glass of draft beer after 9 p.m. and introduced specialty drinks, like the "Dos 'Rita Rocks" Margarita to woo late-shift service-industry workers looking for a place to go after work.

Bennigan's Grill & Tavern last month rolled out a menu of inexpensive "bar bites" to attract 25- to-45-year-old working professionals and singles--and boost alcohol sales to 25 percent of its total sales, up from the current 20 percent. With cash-strapped consumers eating out less often, so-called casual-dining chains are looking to sell more alcoholic beverages, which carry profit margins of 35 percent compared to 15 percent for food.

The timing is good. After nearly two decades of moderating their consumption, Americans are drinking more alcohol, and industry projections indicate growth will continue. Mothers Against Drunk Driving isn't complaining about the new push--as long as the restaurants "make sure [it] does not result in increased death and injury on the highway," says MADD's chief executive, Chuck Hurley.

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