People may not dining out as much in Ballard but they seem to still be flocking to the bars.

While restaurant business is down, happy hours, specials and promotions are on the rise.

For the Austin Cantina, "business crashed right along with the stock market," said owner Jefe Birkner. The restaurant is likely to close before the holidays.

Retrospectively, Birkner wondered if it would have been a good idea to try to lower meal prices to meet people's expectations and needs.

Even though restaurants are feeling the effects of penny-pinching attitudes, they are hanging in there and adapting to customers new savvy-spending trends.

"They (people) are still coming in to dine, but being more cautious about what they are spending," said Rays Boathouse marketing and public relations manager, Lori Magaro.

Rays Boathouse has joined up with five other local businesses (Tableau, Kitchen 'n Things, Duque Salon and Spa, Kick It Boots and Stompwear, and Kavu World) to help promote each other by offering special discounts.

For Lombardi's, a traditional Italian restaurant, business is generally down. However, happy hour business is up.

"People are being more frugal," said owner, Diane Symms, "but I think people are still wanting to go out."

The recession is making some people less willing to spend thier extra cash on a meal, but they are still looking for a drink.

To promote business, Lombardi's now offers half-price Washington wine nights, Sunday through Thursday.

Just like Lombardi's, business for the Hi-Life eatery is down, yet its happy hour is thriving.

The Hi-Life will soon feature a "blue plate special," a hearty meal for $10.

"We know times are hard and we're trying to do things to keep people coming in," said general manager Dave Kearns."People are trying to save money during happy hour."

Business is also good for trendy cocktail lounge the BalMar, on the corner of Ballard Avenue Northwest and Northwest Market Street.

Alcohol consumption may be indifferent to the economic times, suggested Dwayne Edwards, managing partner of the Bal Mar.

"If the Great Depression taught us anything, in good times or bad, people drink," Edwards said.

The Bal Mar specializes in cocktails, so it's no surprise that business is still good.

"People don't want to stop living their lives just because the economy is down," said Edwards.

He pointed out that business is better than other restaurants because Bal Mar is not a traditional, sit-down place. It's a cocktail lounge that happens to serve food.

"It's not fine dining, it's not casual dining, it's comfortable dining," Edwards said.

People can save money by ordering food and drinks in Bal Mar's lounge setting rather than being confined to a table, with a designated waiter, at a traditional restaurant.

During happy hour, customers can expect to pay an average of $20 for drinks, food and tip.

When people choose to go to Bal Mar "it's costing a smaller percentage of what it's costing them for fine dining," Edwards added.

Contact Liz Sternberg at liz.sternberg@yahoo.com.