Americans are spending more money to eat out than they do for groceries. According to USDA (U.S. Department of Agriculture) data, in the most recent year studied, 58.5% of money spent on food went toward food away from home, and the remaining 41.5% went toward food at home.
These expenses can be tweaked to stick to a budget, if needed. While cooking meals at home can be time-consuming, there are ways to make the process easier. And when you do eat out, there are a few simple steps you can take to save money.
Key Points
• Americans currently spend more of their food budget on dining out than on groceries.
• Cooking meals at home can lead to significant savings and healthier eating habits.
• To save money when dining out, consider sharing meals, skipping drinks, or ordering appetizers.
• To save on groceries, use what ingredients are on hand, buy what’s on sale, and shop at wholesale clubs.
• Gradually increasing the number of home-cooked meals can improve both health and finances.
Cooking at Home vs Eating Out: How They Stack Up
The pros and cons of eating at home vs. eating out have long been debated. As you’re deciding between the two, here are some factors to consider.
Is It More Expensive to Eat Out?
Because of inflation, grocery prices have been on the rise over the past year, though not as much as eating out. According to USDA data, the cost of food at home rose 1.2% in 2024, while the cost of food away from home rose 4.1%. That percentage for food at home is a bit below the usual figure, while the change for food away from home outpaced the typical annual statistic. That means dining out may drain your checking account more quickly than eating at home would.
Also, of course, eating out can involve additional charges vs. eating at home. You might have to pay for parking or transportation to the restaurant, you might order a pricey cocktail (or pay for bottled water), and then there will likely be a tip left as well. These can be reasons why eating at home can cost around $4-$6 per person, while dining out can be $15 or significantly more per person.
Is it Healthier to Eat at Home?
When you cook at home, you’re able to control what goes into each dish. You can easily make adjustments like reducing the amount of butter or using milk instead of cream.
And if you have any dietary restrictions or allergies, you don’t have to worry about consuming something you shouldn’t when you cook for yourself.
Research has shown that cooking at home typically leads to healthier choices. Generally, the more people cook at home, the healthier their diet, and the fewer calories they consume.
It can also be financially healthy to eat at home. For instance, you can cook with ingredients you have on hand or design your menu around what’s on sale at the supermarket. These moves can help you save on groceries.
How Much Time Will It Take to Cook at Home?
There’s no way around it, cooking can be time-consuming. But it also takes time to go out to eat or pick up a takeout order.
If you’re trying to do more cooking, don’t overextend yourself upfront. If you’re used to dining out several nights a week, pick one or two nights to make dinner at home. You can gradually increase the frequency to three nights a week, and so on.
Cooking is like any other skill. The more you do it, the better you’ll get. Find some go-to recipes that are easy to prepare and affordable. For instance, sheet pan dinners can be great for those with a hectic schedule. Stock your pantry with the essentials so you’ll have all the staples you need on hand. (Tip: Shopping at wholesale clubs can reduce the costs of those staples.)
Over time, you’ll become more comfortable in the kitchen, and what used to take you a half hour to do, will take you just minutes. Plus, you’ll be rewarded with a delicious meal you made yourself. Now you’ve maximized your time and money!
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Tips for Saving Money While Dining Out
Going to your favorite restaurant is one of life’s little pleasures. And you don’t have to give it up. There are a few ways to curb your spending, and manage your money, while still enjoying a great meal. Here are some simple strategies that could help reduce your bill.
1. Not Ordering a Drink
Skip the drink the next time you want to cut down on your restaurant tab. Restaurants tend to substantially mark-up the prices of drinks. They may charge two to three times the bottle cost for craft beer, for instance.
Or, if you want to treat yourself to one drink, spend wisely by sticking to just one and really savor it.
2. Skipping Dessert
A lot of the mark-up for desserts goes toward labor costs. A talented, creative pastry chef can be expensive to keep on staff. As a result, many high-volume casual restaurants outsource their desserts.
One creative way to save money is to eat your dinner out and then have dessert at home.
3. Sharing a Meal
Portion sizes at restaurants tend to be oversized. Share a salad and an entree with your dining mate to cut costs and calories. (You can use a peer-to-peer transfer app to split the bill.)
If your friend or family isn’t interested in sharing, save half of your meal for lunch or dinner the next day.
4. Go During Happy Hour
Instead of meeting friends for dinner, join up for happy hour instead. You can catch up over drinks and an appetizer or two, while enjoying discounted happy hour prices. You’ll get the experience of eating out, and pay less for it. You can put the money you save in your bank account.
5. Ordering an Appetizer as Your Meal
Instead of a full entree, order from the appetizer menu instead. These items typically cost less and may come in smaller portion sizes, too.
6. Limiting the Number of Times You Eat Out
If you go to restaurants a lot, you could start to cut back. For example, you could save eating out for once or twice a week. Not only does that make it feel more special, you can savor every bite without blowing your budget.
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The Takeaway
Eating out can be expensive, but there are ways to trim costs so that you can enjoy your food without stressing over the bill. For instance, skipping extras like dessert can keep the price down. And eating at home a little more often could help you save money — and may be healthier as well. With a bit of effort, you can likely hold onto more of your cash when paying for food.
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