I saw this post on Fatwallet. The poster tends to make the point that people are eating out based on any sort of economic consideration. Check out the original post to see some of the other responses. Here’s the initial post:
———-
“I’m surprised that, on a site devoted to financial prudence, more people haven’t savaged the notion that it is consistent with the ideals of financial discipline to eat out one or more times per week.
At a time when there is a growing disconnect between what food costs at the supermarket or wholesale level, and what restaurants charge for the same items, it is sheer economic folly to pay 5, 10, or even 25 times as much or more for comparable items of food cooked at home and at a restaurant.
Examples: 12 ounce sirloin at Outback Steakhouse = $14.99 plus tax, plus tip, or $17.82!!! That’s more than $24 per pound, NOT including a tip ($1.50 per ounce).
The same steak, bought on sale at the grocery store, and prepared with minimal effort at home, is no more than 32 cents per ounce, or $3.71.
To eat the sirloin at Outback is 500% more!
Let’s use the example of a side dish, such as a baked potato.
A baked potato, if not included with a meal, is about $3.00 at Outback.
The same baked potato, of comparable or better quality, is about 14 cents, if prepared at home, with all acoutrements.
So, the baked potato at Outback is 2100% more than the one at home!!!
Soft drinks?
Ones at home are about 28 cents. The same one at Outback is $1.75
Beer? Ones at homes are 45 cents. At Outback? $3.50
Eating out is not consistent with habits of financial discipline.
Edit #1 – Let’s assume John and Mary, a couple, eat out twice a week and get carry out or Pizza once a week, and the bills for this indulgence are $16 once a week for the carry out Chinese or Pizza, one meal without drinks during the week for $34, and one meal on the weekend with drinks, for $54 (this would include 2 drinks per person, at $5 per drink for beer, wine or mixed drink – average of price).
So, that’s $104 per week for 3 meals (one carry out, two sit down), or $416 per month, or $5,408 for the year.”
———-
contrary1 says
Loved this post. We had just discussed as a family, the costs of eating out. We’re not doing it anymore!!!
Her says
For us, the value of a restaurant meal isn’t in the food itself. A relaxed dinner out allows us to create a relaxed envrionment where we are facing each other, discussing big issues, and enjoying our relationship for a few hours without interference from the stress of housework and the distractions of home entertainment. To us, that’s worth a few dollars each month (within reason).
RS says
This is very true…but I will say that my wife and I do enjoy going out.
Dan says
Excellent analysis!
I have to say though, that like the first commenter, eating out is a luxury that I don’t want to live without. To me, I cut corners by sacrificing cable TV and Broadband internet before I cut out my one or two meals out a week. (But I know many others who would disagree.) But yes, I acknowledge that eating out can get out of hand if done more than that too…
Frugal Momma says
Good analysis and it puts things into perspective about why eating out is so expensive.
I did a recent poll on my blog out eating out including lunches.
How often do you go out to eat?
Never 11%
1-4 times a month 53%
5-8 times a month 22%
over 8 times a month 14%
I get a fairly frugal bunch over at my blog so it maybe skewed towards eating out less.
Theresa :)