The economics of eating out versus cooking at home

Economically, cooking at home almost always beats eating out over a year, saving hundreds to thousands of dollars, as home meals average $4-$5 versus restaurant meals costing $16-$20+, with significant annual savings ranging from $2,000 to over $13,000 depending on frequency and location, though eating out offers convenience and potential time savings that must be weighed against the substantial cost difference and better health control at home. 

The Cost Breakdown

• Home-Cooked Meals: Average around $4.23 - $4.31 per serving, with potential savings even for complex dishes compared to takeout/delivery.

• Restaurant Meals: Can range from $16 (inexpensive) to over $20+ per meal, with delivery adding more cost.

• Annual Spending: Americans spend significantly more on food away from home ($3,600+) than food at home ($5,700+), but cooking at home can save thousands annually. 

  
  

Example Savings Over One Year (Hypothetical)

• If you eat out just once a day:

  • At $16/meal (average restaurant): $16 x 365 days = $5,840/year on eating out.

  • At $4.31/meal (home-cooked): $4.31 x 365 days = $1,573/year for groceries.

  • Annual Savings: Over $4,200!.

    
    

• Higher Frequency/Restaurant Choice: If eating out frequently or at pricier places, annual savings could easily exceed $10,000-$13,000, as some find they save over $10k just by reducing dining out. 

  
  

Key Factors & Considerations

• Inflation: Restaurant food costs have risen faster than grocery costs, widening the gap.

• Time vs. Money: Eating out saves prep and cooking time but costs significantly more; home cooking requires time for shopping, prep, and cooking.

• Health: Home cooking offers greater control over ingredients (fats, sugars, portion sizes), generally leading to healthier choices.

• Waste: Cooking at home might lead to more food waste if not planned well, while eating out often means larger portions or leftovers that get discarded. 

The Verdict

For significant economic savings and better health control over a year, cooking at home is the clear winner, though factoring in your time and the occasional restaurant treat is key to a balanced approach