Dining out is weighing on our budgets.
The No. 1 thing Americans bust their budget on is dining out, according to research released by financial company Principal. Nearly one in three Americans (29%, up from 26% last year) said that this was this year’s top budget buster for them, followed closely by food/groceries (27%). And research released Monday by financial company Fidelity found that the No. 1 small financial mistake Americans admit to is dining out too much, with 36% saying they’d done that in the past year.
Government data shows that Americans spent nearly $3,500 a year on dining out in 2018 — a 2.8% increase just from the year prior. And restaurant sales are projected to hit a record high this year of $863 billion, according to the National Restaurant Association. What’s more, as MarketWatch reported in July of this year, “the cost of going out to eat or getting takeout food is rising a lot faster than the cost of buying groceries.”
What’s more, we eat out often: Gallup data shows that six in 10 Americans ate dinner out at least once in the past week, and 16% ate dinner out three or more times. “Dining rooms and kitchens across the U.S. are getting a little less use than they used to,” research firm Nielsen noted. “That’s because Americans have embraced the experience of eating out.”
One reason dining out is such a budget buster: People who eat out a lot tend to underestimate what this will cost them, according to a 2017 study from researchers at Penn State. The researchers asked the participants what they thought they would spend eating out at the beginning of a two-week period and then in the middle of that period; participants upped their average budget from a little under $18 in week one to about $55 in week two.
“What this tells us is that obviously they thought they would spend less in a week, but as the week progressed they realized they were spending a lot more and they rationalized that increase,” says Amit Sharma, associate professor of hospitality management and director of the Food Decisions Research Laboratory, Penn State.
Not only is eating out wreaking havoc on your savings, it may be expanding your waistline. On days when Americans eat out, they scarf an average of 200 more calories than when they eat at home, according to a 2015 study of more than 12,500 people published by Public Health Nutrition. Furthermore, government research reveals that “when eating out, people either eat more or eat higher calorie foods — or both — and that this tendency appears to be increasing” and additional studies have found that dining out is associated with obesity and more body fat.
All told, nearly three in four Americans are now either overweight or obese, according to the CDC. And that’s costly: “The medical cost for people who have obesity was $1,429 higher than those of normal weight,” the CDC notes.
Still, it’s important to point out that there are plenty of other reasons Americans are overweight and don’t have fat savings accounts besides dining out often, and that people can certainly put on the pounds — and spend big — when cooking their own foods.
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When I saw the headline and image, I was sure it that French Fries were to blame for it all!
Well, I heard there is going to be a big potato shortage so at least the French Fries will be made out of something else now.
That’s how it all unraveled in Venezuela; at the start of the crisis, they ran out of fries at McD’s and substituted with Yucca root.
First they came for the fries and I said nothing because I was not French.
Then they took the Chips and I was not a Flip.
I thought they were freedom fries now ….
Everything is free now… haven’t you heard? We are all “entitled” and it will be provided.
If you ask, it shall be given.
if you don’t ask, it’ll be forced on you ….
You can play by club rules but then you will become confused. When the queers take over, they will be called butt fries.
When the queers take over, turn out the lights. – Jim Morrison
These “averages” hide worse … many eat out for every meal: I know many. Further, the “mistake” isn’t “small” anymore. I help a disabled retiree get around some … he always eats fast food and likes one in particular. Sunday for a his lunch it was over $15. This is for a person on a low fixed income, disabled, etc. He’s just one example, I know many more. Finally, even many of those that buy in grocery stores buy the pre-prepped stuff that is essentially heat’n eat … hardly any better than eating out and just as expensive.
I just scarfed down two one dollar beefy friti burritos from the taco bell drive through window and I’m not fat or broke! Just old.
Aye, aye, aye, aye, I am the frito bandito.
That’s racist.
Thank you very much
I do like Fritos during a good college football game. Trader Joe’s non-gmo of course.
“this commercial could not be made today.”
but it should be.
I view dining out a rare occasion,usually a celebration/date ect.I try and always have me own lunch on job sites,amazes me the time folks spend getting their meals from outlets/or costs delivered to sites.I will say final day on job we orered a boatload of Chinese takeout,but,again a celebration type thing.
I’ll add that most Americans never do any work to produce or distribute any of the food they eat.
stopped eating out and now I can’t eat restaurant food anymore, it makes me sick. they buy the cheapest stuff they can and slather it with sauce and spices to hide what it is – it’s mediaeval.
drove by mcdonald’s last christmas morning at 0700, there were 50 cars in the drive through line. whatever they’re putting in that stuff it seems to attract the customers.
right you are, gman.
We cook almost everything from scratch. Last Sunday we made beef bone broth – 8 quarts – enough to freeze to make sauces later. If we want to go out, we go for sushi, or something that we don’t want to make at home. I’m amazed – you can read restaurant reviews where they say “they have a great burger.” Well who the hell can’t cook a hamburger at home? What a waste of time and money.
Here in Minneapolis there are a ton of restaurants. I don’t think the downtown could exist without restaurants and bars – cause there’s nothing much there. The millennial’s spend their money eating out, instead of saving money to buy a house.
I usually bring leftovers for lunch. The other day, I didn’t have any. Went with a coworker to ‘Crisp & Green’ – no lie – $10 for a small salad (packaged in a box). When you add the sales tax it was $11 for a tiny salad.
When the economic down turn hits – I believe there will be a restaurant bubble.
The Food Network just launched an App whose goal appears to be to make everyone a gourmet chef AT HOME. If successful, maybe it will have an impact, and bring people back to their own dinner tables again. The destruction of the extended family, the reduction in the passing on of cooking skills, the rise in two-breadwinner households, single parent households, etc. have truly taken a huge toll on home meal preparation.
I think people don’t want to plan. If you take a little time with your spouse and decide the meals for next week – then you have the food on hand and the plan. Lot’s of times we make two meals on a week end, It’s enough to feed us until Thursday or Friday. Last week we made spaghetti and meatballs, and also a turkey breast. Add some vegetables / starch / salad – and you’re all set. This is much cheaper and quicker than eating out.
People become financially broke because they won’t close their wallets, and they are overweight because they won’t close their mouths.
Simple as that.
To your excellent point, I’ll add they also won’t get off their fat arses.
“they are overweight because they won’t close their mouths”
they’re not entirely at fault, the foods these days are spiked with chemicals and fructose to induce a mental state to eat nonstop. and exercise can’t overcome excessive eating, it takes a three mile walk to work off a single coke.
eat less move more
ancient chinese secret
glad for the good news big guy
From the article:
“All told, nearly three in four Americans are now either overweight or obese, according to the CDC. And that’s costly: “The medical cost for people who have obesity was $1,429 higher than those of normal weight,” the CDC notes.”
So, how come my health (sick) care insurance provider (BC/BS of NJ) makes us declare if we are a tobacco user or not?
Discrimination.
If you puff or chew leaf, it’s a surcharge penalty cost. At each payroll.
Lying about it, and contracting medical complications from tobacco use can get one denied from treatment coverage.
I’d like to see the costs of clinics and hospital care provided annually, for treating all combined disease attributable to poor diet, junk food, and super sized diet Cokes.
Compare those costs, which drive care prices higher, to the combined costs of treating diseases related to tobacco use.
I’d bet we’ve seen reductions in tobacco use, and related diseases, while doubling or tripling the number of patients and diseases resulting from obesity.
How come Fatties don’t have to pay a surcharge on top of their healthcare premium?
Got nothing against my rotund fellow man.
But, geez.
A fast food meal is just sludge.
But a fine cigar is a smoke.
Simple math is what is wrong with America
$3 mocha frappe (400 calories)in the morning TWO $2 energy drinks /sodas during the work day (600 calories) $10 fast food lunch( 1500 calories) then what ever you had for breakfast and dinner easily $25-30 a day (3000-4000 calories)times 7 days a week .
And we haven’t even counted the beers yet !
I think eating out once a week isn’t that bad. It made my wife happy. My kids like Hamburgers so I just buy paddies to make at home. Enjoy life a bit before the coming economic collapse.
Very sad. We quit the restaurant habit several years ago. We eat better taste-wise and better nutrition-wise than we ever have. If we do eat out, its usually a breakfast place-the last meal that hasn’t been totally taken over by the pre-fabbed factory assembled food service crap. Yet. when breakfast succumbs to the garbage -is -food- evolution, I guess we’ll quit eating out all together.
Here is the problem that the Federal, State and Local governments are going to have. The decline in the standard of living for the middle class will have a cascading effect. As taxes go up and wages stay stagnant, while Healthcare expenses continue to climb into the stratosphere and the cost of higher education is going out of sight while food cost inflation is skyrocketing what are middle class consumers going to do. Everybody wants their pound of flesh so to speak. So families are going to cut back drastically. What does a family need at minimum. They need a roof over their heads and food and certain utilities. Beyond that everything is in play. They will learn to minimize wherever possible and that will effect local businesses big time who wont make enough revenue to stay in business and pay taxes. The whole modern Ponzi scheme will soon collapse.
True. We’re already seeing it in the slow death of bricks and mortar retail.
Now, online buying is a trend, but there, too, consumers are buying stuff they don’t really need, with money they either don’t have (credit), or money they should be saving, to eliminate debt.
-mostly buying stuff that are WANTS, not necessities.
Boss of mine said as much, about 20 years ago, after the dot com bust.
i.e.,
Our middle class standard of living will slowly erode, as wages stagnate, and all costs across the board will continue rising, due to an inflated fiat currency debasement.
About then (2000 Anno Domini) is when I got keen on eliminating debt drains on my limited income, and exchanging some fiat for metals became a priority, to hedge toward wealth preservation, if wealth growth was damn near impossible, in the search for yield on savings and investment dwindled to a mere pittance.
Nothing has changed in 20 years.
In fact, it has become even more difficult.
Living within our means is CRUCIAL, if any chance of financial survival is sought.
Requires discipline, which many simply refuse to practice.