Savory Savings: Expert Tips to Cut Costs on Dining and Takeout
It's no secret that dining out and ordering takeout can quickly drain your wallet. According to the Bureau of Labor Statistics, the average American household spends about $3,600 a year dining out. Even as inflation eases, U.S. Department of Labor data shows prices at restaurants and other eateries were up 5.1% last month compared with January 2023.
Restaurant and food company executives also say they are still struggling with rising labor and ingredient costs, which are only getting more expensive. “If you look historically after periods of inflation, there’s really no period you could point to where [food] prices go back down,” said Steve Cahillane, chief executive of snack giant Kellanova, in an interview.
What’s a reasonable food budget?
Determining a reasonable food budget depends on various factors, including your income, lifestyle, family size, dietary preferences, and where you live. However, a commonly recommended guideline is the 10-15% rule. This suggests that you should allocate 10-15% of your monthly income towards groceries and dining out combined.
Below is a common breakdown for most households:
Groceries (5-10%): Aim to spend 5-10% of your monthly income on groceries. This includes all the food items you purchase for cooking at home. Planning meals, buying in bulk, and taking advantage of sales can help you stay within this range.
Dining Out/Takeout (5%): Allocate an additional 5% for dining out or ordering takeout. This provides room for occasional meals at restaurants or the convenience of takeout without overspending.
It's important to note that these percentages are general guidelines, and your actual spending may vary based on your individual circumstances. For example, if you have dietary restrictions or preferences that lead to higher grocery costs, you might need to adjust your budget accordingly.
Additionally, consider factors such as where you live, your cost of living, and your food prices can significantly impact your budget. Keep track of your spending, review your budget periodically, and make adjustments as needed to ensure that it aligns with your financial goals and priorities.
What are ways to save on dining out and take-out?
With a strategic approach and a dash of creativity, you can savor delicious meals without breaking the bank. Below are expert tips to help you save money on dining out and takeout without compromising on taste:
Explore Daily Specials and Happy Hours: Many restaurants offer daily specials and happy hour discounts, providing an excellent opportunity to enjoy your favorite dishes at a fraction of the regular cost. Check out the timings and offerings of these promotions to plan your meals strategically.
Loyalty Programs and Apps: Take advantage of loyalty programs and mobile apps offered by your favorite restaurants. Many establishments reward frequent customers with discounts, free items, or exclusive deals. Downloading restaurant apps can also unlock app-only discounts and promotions.
Subscribe to Newsletters: Subscribe to newsletters from your preferred restaurants and delivery services. They often send out exclusive deals, promo codes, and special offers to their subscribers. By staying in the loop, you can seize opportunities to save on your next meal.
BYOB (Bring Your Own Beverage): Opting for restaurants that allow you to bring your own alcohol can significantly reduce your bill. Check the establishment's policy beforehand and enjoy your favorite drinks without the hefty markup often associated with restaurant beverages.
Utilize Cashback and Reward Credit Cards: Paying with cashback or reward credit cards can earn you significant discounts or cashback on your dining expenses. Look for credit cards that offer bonus rewards for restaurant spending and watch the savings accumulate.
Share Entrees and Appetizers: Portion sizes at many restaurants are generous. Instead of ordering individual entrees, consider sharing with a dining companion. This not only saves money but also reduces food waste.
Dine During Off-Peak Hours: Timing is everything. Dining during off-peak hours often comes with lower prices and faster service. Book your next date for lunch at a place that may offer special lunch menus or early bird discounts, providing a budget-friendly dining experience.
Cook at Home with Friends: Recreate your favorite restaurant dishes at home by experimenting with recipes. Not only does this allow you to learn new recipes and level-up your cooking, but it's also a cost-effective way to enjoy restaurant-style cuisine without the restaurant price tag.
Compare Prices and Reviews: Before placing a takeout order, explore multiple platforms and compare prices. Additionally, read reviews to ensure you're getting value for your money. Sometimes, the same dish may be priced differently on different platforms.
Take Advantage of Group Discounts: Coordinate dining plans with friends or family to take advantage of group discounts. Many restaurants offer special deals for larger parties, making it a win-win for everyone.
The bottom line
With a bit of savvy planning and a willingness to explore different options, you can savor the joy of dining out and takeout without emptying your pockets. By incorporating these expert tips, you'll find that enjoying great food doesn't have to come at a premium price. Bon appétit!
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