5 Reasons To Stop Dining Out
In 2015, the American Enterprise Institute reported that Americans spent more at restaurants than grocery stores that year for the first time in history. The pandemic only exacerbated the trend, mostly thanks to take-out and delivery, and the behavior soon became the norm. According to SoFi, people spent 21% more on restaurants than on groceries in 2022, and by early 2023, that number had jumped to nearly 30%.
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If you’re one of the people steering this trend, consider that you might be eating yourself into the poorhouse the next time you sit down, pick up a menu and listen as a server reads the specials.
“The decision to eat out less frequently is both a lifestyle choice and a strategic move that can impact one’s economic well-being,” said Marcel Miu, founder and lead wealth planner at Simplify Wealth Planning. “Day-to-day choices, such as dining out, impact long-term financial goals.”
Here’s why you should consider recommitting to your kitchen and leaving eating out behind.
It’s an Expensive Time To Be Hungry, No Matter Where You Eat
According to the Wall Street Journal, Americans are spending a larger percentage of their income on food today — more than 11% of their earnings — than at any time since George H.W. Bush was president more than 30 years ago. “For many households, food is one of the largest expense categories,” said Miu.
Because grocery inflation remains stubbornly high even as overall inflation cools, it’s getting expensive to eat, even for those who cook from scratch. With even the cheaper option of cooking at home now an imposing financial burden, you might have to treat the higher-priced option of dining out as a luxury to forgo for all but the rarest of occasions.
“Smart grocery shopping strategies like buying in bulk, choosing seasonal produce, and utilizing discounts can make home cooking more economical than eating out,” said Miu. “The price per meal is generally lower when preparing food at home, offering both savings and the opportunity to control nutritional content.”
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Affordable Restaurants Are Going Extinct
Restaurant prices rose 5.1% in January year over year, compared to 1.2% for grocery costs. Restaurant inflation is more than four times higher than grocery inflation, and according to the Journal, the industry does not expect relief any time soon.
“The cost of dining out has been rising at a faster pace than many other consumer goods and services driven by higher labor costs and rent,” said Miu. “These costs are passed on to the consumer, making eating out less affordable over time.”
A Meal Is One Thing, but a Meal and Drinks Can Break You
Eateries work hard to get you to order drinks with your meal because that’s where the real money is. “Alcoholic drinks are marked up considerably in restaurants,” said Miu.
According to bar inventory software provider BinWise, “Most restaurants are aiming for 20% pour cost and 80% margin on liquor sales. That means the average drink prices at bars are between $5 and $15.”
That’s another money-saving reason to eat and indulge in adult beverages where you live. “Opting for water or dining at home where you can purchase drinks at retail prices can lead to substantial savings,” said Miu.
Unlike So Many Other Things, You Can Choose Not To Eat Out
With household budgets feeling the strain from the higher cost of just about everything, restaurants offer something that so many other spending categories don’t — an opportunity to cut back.
“Eating out is one of the most easily adjustable budget categories,” said Carter Seuthe, CEO of Credit Summit Consolidation. “If someone is struggling with tight finances, there are a lot of budget categories that they probably can’t do much about, like rent, car payments, debt repayment, insurance, etc. Miscellaneous spending and specific categories like eating out, however, are where changes can be made. By eating out less often, a person can have more money at their disposal for other, more important things.”
Excessive Convenience Spending Can Become Habitual
Paying someone else to set your table, cook your food, serve it to you, take your dishes and silverware away, wash them for you and call you sir or ma’am throughout is an experience that was once reserved for the aristocracy. Today, ordinary people spend more on that experience than on trips to the grocery store, which can breed a complacency that Miu calls a dangerous “psychological aspect” of normalizing convenience that borders on luxury.
“The convenience of eating out can often overshadow the financial implications,” she said. “By becoming more mindful of spending habits and the true cost of convenience, individuals can make more informed decisions that align with their financial goals. By understanding the costs associated with eating out, people can make more informed decisions that benefit their wallets and their well-being.”
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This article originally appeared on GOBankingRates.com: 5 Reasons To Stop Dining Out
