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This situation actually comes up quite often. The basic question is whether the similarity in business names would create confusion in the minds of either business' customers. For Diva's business (an aircraft maintenance records management solution), it certainly would. For the neighborhood bar and grill example you gave, it probably wouldn't. When there is a doubt, one party or the other usually adds something generic to the name as you indicated just to differentiate the two.

Another question is whether or not a registered trade name or trademark is associated with that specific business name. In Diva's case, her product name is the same as the company name, and it is trademarked -- no one else in a similar or related business can trade under that name. So let's say the Happy Hour bar in SC created it's own line of drink mixers, and marketed them nationally (including in CA) under the Happy Hour brand name. That might make things more complicated for you, because they could then claim that your bar was trading on (and benefitting from) their brand identity. Conversely, if you were planning to franchise your Happy Hour bars across the country using that name, then having a similarly named company in the same business in SC is a situation you'd want to resolve now rather than later.

Hope this helps. Best wishes.