Food For Thought


Taco Bell, McDonald’s, Wendy’s, BK, Schlotzsky’s, Red Lobster, Chili’s, Panda Express, Olive Garden, Dairy Queen, Denny’s, KFC, and even Long John Silver’s, are all like members of the family to many of us. As Americans, we love to eat out. Despite the recent Great Recession, the typical U.S. adult eats out at restaurants an average of 4.8 times every week. Over half of those restaurant visits are for lunches, followed by dinner out and nearly once a week we have breakfast out (Living Social Dining out Survey, 2011).

The restaurant industry took a “hit” during the recession but is roaring back as Americans open their pocketbooks as the economic storm clouds slowly dissipate. Restaurant sales are estimated to reach $632 billion in 2012. There are approximately 970,000 restaurants in the U.S. who employ 12.9 million workers. We spend $1.7 billion during a typical day on meals out and the restaurant industry job growth has outpaced the U.S. economy for the past 12 years. We spend roughly half of our food budget on dining out (National Restaurant Association, 2012).

Let’s face it, we love to eat and don’t like to cook. Both of these propensities can have disastrous effects on our waistlines and pocketbooks. If you’re a regular reader of the Shiny Objects blog, you know where this discussion is headed. Let’s take for example a recent dinner out for the Roberts family of four. Allow me to preface this story by saying that the Roberts clan only eats dinner out once a week – usually Saturday nights. Because we were celebrating we went to Olive Garden. We had sworn it off previously because it’s too expensive – particularly for pasta dishes which cost the restaurant only pennies. Well, this meal totaled $65 including tip. And, we all had agua – no drinks which as you know would have added $10.00 to the bill (for sodas or tea not the hard stuff). If you’re like us you can’t out of good conscience buy soda for $2.50 when it costs the restaurant about .15 – .20 cents.

So, this started me thinking about how we could make better use of our money than the temporary enjoyment of a good meal out. Setting aside the argument that restaurant food packs a lot more calories than home-cooked meals, the financial implications of our decision to dine out can be staggering – it’s all about opportunity costs.
What could we do with the money we save from eating at home instead of at restaurants? If we cut back only three meals out a week we would all be burgeoning Rockefellers. Let’s assume that a family of four can barely get by for $40 or less for a typical dinner out (no drinks, please). Subtract from the $40 the $10 it would take to feed the family at home and you have a net savings of $30 for each meal out. That’s a savings of $90 per week if we ate at home three times per week instead of eating out.

Getting out my future value calculator, that would mean a nest egg of $186,057.30 over a 20-year time period at a 6 % rate of return, $412,049.52 over a 30-year time period, and $833,678.83 over a 40-year time frame. Definitely, food for thought.

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18 Responses to Food For Thought

  1. Molly Miles says:

    Very interesting – I hate how expensive drinks have gotten… and then at fast food places they fill your drink with so much ice, there’s hardly any drink in there at all! Ridiculous.

  2. Johnny Olenick Jr. says:

    Definitely some food for thought. I definitely agree about how much eating out for meals costs, even for a single College student. Fast food may seem like the best option for students who are busy for most of the day, but it can also be the most costly option. Instead, quickly making a sandwich or some quick meal can save a college student at least a couple dollars that they can use towards paying for the education they are receiving. I also completely agree about your no soft drinks policy. I have completely cut out soda because I believe it was unhealthy when I drank 72 ounces at every meal. But, cutting soda out had the benefit of saving me a lot of money.

  3. Coridon Quinn says:

    Very interesting article. Personally, I try to keep the number of meals I eat out to a minimum, both because they are more expensive and because fast food is generally not very healthy. I also live by your no soda policy, because they are overly expensive!

  4. jim_roberts says:

    I am impressed with your self-control. I find it hard to not order a soda but am getting stronger lately. And, you’re correct that fast-food is expensive and unhealthy. I wonder how many other people reading this blog don’t order sodas or tea because of the cost?

  5. Eating out can be costly, but whether I am with friends or family, there is something extra joyous about going out to eat versus staying home to cook up another pot of spaghetti. I enjoy the conversation that is shared across the table in restaurants and the atmosphere that places like Olive Garden provide. My apartment is cramped and routine, but going to Olive Garden provides a bit of escape. “When you’re here, you’re family” Olive Garden boasts – and it’s true. With the hustle and bustle of today’s life for college students, children and working parents – the family really feels like a family when we all make time to break bread with one another around the restaurant table.

    Also, I usually order water with lemon, unless I am at a place like Olive Garden that has to-die-for peach tea or Pei Wei’s delcious iced Chai Tea with an orange slice.

    It’s important to save money and know the value of a dollar, so I try to keep an eye on how much I eat out and eat in for almost every meal I plan on eating alone, but I think it is healthy to allow myself to splurge every once in a while for a night out with friends or a reward take-out meal from Pei Wei, McAlister’s or Cane’s after completing a killer exam.

  6. Allyson says:

    As a college student, fast food is very present in my life. However, I have to argue the fact that lazyness is only part of the reason why I believe college kids eat out constantly. I will admit some students eat out often because they don’t want to make the effort cook , they don’t have to use their own money, or they think the food will taste better than anything that they could make. However, I also believe college kids eat out as much as they do is because time is a valuable asset in college. Going from class, to work, to an intramural game, to Sing practice, etc. doesn’t leave a lot of time for cooking and grocery shopping. Most of the time when I buy fast food it is because I haven’t been home all day since I had been going, going, going…. However, eating out is a huge burden on the wallet and it is astounding how many of my friends eat out for almost every meal. I can definitely believe that restaurant sales exceed $600 billion.

  7. Kristin Allinson says:

    I feel like the reaosn people eat out is to get a nice meal, often better than they can prepare themselves, served to them while they enjoy some quality, care free time with friends and family. While the price restaurants are asking for say a Dr. Pepper is twice the amount of one you can get at home, you also have to consider refills are free at most places. I have sveral friends who drink soda like they’ve been stranded in the desert for ages in which case by the end of the meal, 5 refills later, they’ve consumed far more than they’ve paid for.
    Personally, if I’m going to pay for an expensive meal and to be waited on I might as well enjoy the full ambiance by ordering the drink of my choice to accompany my meal. Also, most places will give you a cup of your drink to go if you ask for it. 😉

  8. Bobby Draughn says:

    Usually when I go out to eat I always get a drink. Lately I have been trying to cut down on the amount of sodas I drink when I’m eating out. It really bugs me how they charge so much for a drink when it only cost them no more then .20 cents. I will say that every time I do get a drink, I always say light ice. If you do not say easy or light ice, they will fill the ice to the top.

  9. Griselda Ibarra says:

    I cannot believe how much Americans spend on eating at restaurants. I was mostly surprised, although I shouldn’t have been, at the average amount of times an adult may eat at a restaurant per week.

    I guess it’s just something I am not accustomed to; my family and I only eat dinner out once a week, if that. I used to try and encourage my parents to eat dinner at a restaurant so they won’t feel pressured to cook a meal…turns out their arguments were right all along.

  10. Adam Jackson says:

    Interesting figures at the the end of the article. I do agree that eating out can be expensive, but it also a luxury that we choose to spend our money on. We are not only spending our money not to cook, but we also enjoy the atmosphere, the social aspect, being around your friends and family and having a good time. So I believe that eating out is good for our well-being it helps us find a balance in out lives and relives stress. Like analysts say if you want to know how the economy is doing look at the restaurant industry.

  11. Kathryn Zollars says:

    Reading this makes me smile because I am guilty of this very act. I fell so swamped with taking 18 hours in school and working two jobs, most days I just give in and buy a meal once a day. When I look back at my monthly statement, I just can’t believe how fast those quick meals add up. I try to be much more conscious each time the monthly slate is cleaned but it never seems to happen!

  12. Cameron Bell says:

    Interesting stuff to be sure, especially for college students on a budget. Another area that can lead to savings is the choice of where to eat out at. As was said in the post, Olive Garden (and Red Lobster by extension) are rather expensive places to eat at, partly because they are major national chains; the same can be said of Chili’s and its subsidiaries. National chains are expensive to eat at just based on the fact that the restaurant operates on such a large scale, a good way to save money is to find local places or places that are off the beaten path and eat there. This can lead to huge savings in the long run as you are no longer “paying for the name,” but rather are paying a price that is closer to the actual cost of the food.

  13. Logan Angel says:

    I can definitely agree with many things that have been said in the comments above. As a college student the convenience of fast food and carry out can not be ignored. I personally find myself hardly ever eating at my house because it takes time to cook, as well as time to go grocery shopping. I also know that I can get better food going to various places in Waco to eat then what I would end up making for myself. This of course is possible because my parents pay for all of my food. When I am married with my own family I see myself being much more aware of where money is being spent. As a mom I will also want to cook for my husband and children. But at this time despite how expensive eating out maybe, it works for me as a college student.

  14. Clare Berlinsky says:

    The thing I have found most helpful is creating a schedule.

    I eat out on Tuesdays for lunch, and Fridays for dinner.

    I grocery shop for what I need every two weeks.

    I take the money I would spend eating out and put it towards an investment I want to make to a charity or cause I want to give to. Sometimes it is frustrating and difficult, but when I am giving that money away or holding my new bike I’ve been saving for, its so worth it!

    Another thing that has come to my attention is that people eat out SOLEY as a social engagement. Want to hang out with someone? GO eat or drink something. Its both unhealthy and a terrible waste of money! What do you think?

  15. Tyler Minchew says:

    Interesting article. I can’t believe not eating out can save you that much money over a longperiod of time. But i can’t resist a Dr. Pepper when I go out.

  16. Anton Melin says:

    If you would have asked whether or not it is worth to eat in a restaurant even though it is more expensive before I read this blog post, I would definitely have said yes. why? because it is convenient and it enables you to to so much other things that you would not have had time for otherwise. If you ask me after I read this blog post, I would answer that I should cook more food and eat less in restaurants. I am a little hesitant about the numbers though. I think the people that eat in restaurants very often eats at low-price restaurants, which means that they will not save as much as 30 dollars a week by cooking home. No matter what, people will save a lot of money by cooking by themselves, and I will for sure plan less restaurant visits when I do my budget for next semester.

  17. Diamond says:

    I am glad I found this post! I am typically very frugal but everyone has a vice and eating out is mine. When I first got to college it was very out of control, especially for someone with no job! I also added up how much I spent over a period of time and it was a huge wake up call.

    Now I make a conscious effort to eat out only once a week and at a cheap place at that. I have re-discovered my love for cooking, which is helpful. I subscribe to All Recipes so I can get yummy recipes to my e-mail to cook. I grocery shop every 2 weeks like clockwork and I make a list to be certain that I have enough food for the entire 2 weeks.

    I still do appreciate a good meal out. I love food and I think going out to dinner is great for dates and catching up. I am just much more deliberate about planning how much I spend now. And I ALWAYS get water when I am out 🙂

  18. jim_roberts says:

    I am glad you enjoyed this post. Another advantage, especially for an athlete like you, is that when you eat at home you tend to eat much healthier. It’s amazing how small things can add up. it appears that you have your financial act in order and that’s great, because the earlier you start saving and investing (the beauty of compounding interest) the easier it is to achieve financial peace and prosperity. Keep up the good work.

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