Although it’s common knowledge that eating at home is generally more economical than eating out, there’s a little more nuance to the issue worth exploring.
For those who place different values on time, convenience, health and saving money, the answer may not be so straightforward. Nonetheless, we’ll give you some tips on choosing an approach based on your lifestyle and personal circumstances.
What Is the Average Fast Food Spending per Year?
How much the average American spends a year on fast food varies according to different sources.
A recent survey of 2,000 American adults conducted by OnePoll on behalf of The Habit Burger revealed that the average person spends more than $2,500 a year on eating out.
In contrast, the Bureau of Labor Statistics reports in its Consumer Expenditure Survey that Americans spent, on average, $3,639 on food away from home in 2022, compared to $5,703 on food at home.
No matter the exact amount, food spending is adding up for Americans everywhere.
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Is It Cheaper to Cook or Eat Out?
When comparing certain items dollar for dollar, cooking at home can be more economical. But sometimes, the fast food drive-through wins out on both time and money.
For instance, making a chicken sandwich at home to rival a budget chicken sandwich you’d get at a chain like McDonald’s or Wendy’s could be difficult.
For one, you’ll likely have to buy ingredients from the grocery store in larger amounts, as items like chicken breast, buns, veggies and sauces rarely come in single-serving sizes. In most cases, there’s no way to come in at the $2 to $4 price range for a single sandwich in a single sitting.
However, for this example, buying ingredients from the supermarket and making a batch of chicken sandwiches at home could make more sense.
Dennis Littley, a professional chef with more than 40 years of experience, says, “Cooking at home allows for leftovers, which stretches that grocery bill even further. Make a big batch of chili or a roast chicken, and you’ve got multiple meals covered for the week.”
When it comes to more extravagant meals like steak, there’s typically an extreme premium when eating out, sometimes up to a 300% markup. For instance, you could buy three or four of the same ribeye steak from your grocery store that would be priced at $80 to $100 each at a steak house.
Pizza orders from restaurants can easily reach $20 to $25 for two people, while the cost of ingredients like oil, flour, yeast, cheese and tomato sauce can come in at under $6 for a basic 12- to 14-inch homemade pizza.
But the actual dollars spent on fast food versus home-cooked meals only tell part of the story.
For instance, the numbers for cooking at home don’t factor in the time you spend getting your food to the plate — from traveling to the grocery store (including fuel), shopping, putting it away and then actually preparing and cooking it.
Time-strapped individuals may actually do better in the drive-through, whether it’s a temporary solution or a full-on lifestyle.
When Does It Make Sense to Eat Out?
For those who value time over money, hiring out the cooking to a local fast food restaurant could be more sensible.
If you’re juggling a busy schedule and have expendable income, eating fast food or using a meal delivery service could be “cheaper” from a convenience perspective, and it could also be an appropriate solution in a pinch.
However, there is a caveat. It’s important to consider the health consequences of relying too heavily on fast food. Studies show that people who eat fast food frequently consume more calories and unhealthy amounts of fat, sodium and sugar compared to those who cook at home.
So, if you go this route, it would be a good idea to seek out healthier options and balance your meals with some home-cooked options.
When Does It Make Sense to Eat at Home?
As mentioned, this option is almost always more economical.
Littley describes how to make eating at home more manageable and less expensive.
“When I was working in schools, I’d help families plan meals that made the most of bulk buying and leftovers. You can grab ingredients at Costco or other wholesale stores and make multiple meals for the family for the same price you’d pay for a single fast food meal,” he says.
Eating at home is almost always the better choice for those with special dietary needs or larger families.
“Health-conscious eaters or those with allergies will find fast food challenging. The options are usually limited, and you don’t always know exactly what’s in your food,” Littley says.
“Cooking at home lets you control everything — ingredients, portions and methods. You can cater to dietary needs, whether that’s gluten-free, dairy-free or just cutting back on processed foods,” he adds.
For those with limited time, cooking at home could still be an economical, time-saving solution with just a few tweaks, like looking for sale items, buying in bulk and batch cooking.
Sneaky Ways Your Food Is Costing More
Although we’ve established that cooking at home can be much less expensive, it’s important to understand some less obvious factors influencing the real price of food.
For one, shrinkflation, a phenomenon affecting grocery items and fast food, has been a hot topic as consumers take to platforms like Reddit and TikTok to note the differences in food sizing, packaging and pricing over the years.
In some cases, prices stay the same, but the quantity of the product decreases in ways that make it less likely for consumers to notice.
A report sponsored by Senator Bob Casey of Pennsylvania estimates that 10% of inflation is being driven solely by shrinkflation, with purchasing categories like household paper products and snacks impacted the most.
The report notes that many examples, such as Oreos and Doritos, “have become 26.4% more expensive since January 2019, and 9.8% of that price increase has been accomplished by giving families fewer chips and cookies for their dollar.”
Meanwhile, large fast food chains have changed their budget menus by either bumping up prices or decreasing the quality of their offerings. Though some have made official announcements about these changes, others are quietly making drinks smaller and burgers much thinner.
In fact, a 2022 report by Yelp noted that “In Q2, consumers experienced inflation the most at more casual restaurants and food businesses, with inflation mentions in reviews up 38% and 36%, respectively, compared to Q2 2021.”
Finally, it’s important to consider additional factors that can make your fast food orders more expensive.
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If you’re getting takeout from a food delivery service like Uber Eats or DoorDash, restaurants will often mark up menu items. As a result, delivery fees and tips can quickly turn a $10 meal into $20 or $25.
Ways to Save at Home and at the Drive-Through
Severine Bryan is an accredited financial counselor who helps clients see how their food budgets affect their overall financial picture.
“Cutting back on fast food requires discipline and strategic intent. The first thing I usually have clients do is compare the costs of similar meals. For example, what is the cost of a meal you cook at home, and how much does it cost when you eat out?” she says.
Once you see the cost difference, you may be more motivated to eat at home, at least a little more than before. If you decide to take the challenge to save more on your food budget in general, here are some tips to help you out:
Save at Home
— Watch for store sales.
— Sign up for rewards programs and coupons with grocery store apps.
— Buy local, in-season ingredients.
— Buy in bulk.
— Cook in batches.
— Use your freezer and other food preservation methods to avoid food waste.
Save on Fast Food
— Sign up for rewards programs and place orders through restaurant apps for deals.
— Join restaurant email or text lists to get special offers.
— Watch out for coupons in the mail.
— Share appetizers, main dishes or desserts.
— Skip out on sodas and fancy drinks.
— Avoid ordering through third-party delivery apps.
Final Thoughts
Littley sums up the eating out versus home cooking debate: “What works best really depends on your lifestyle. For families or health-conscious folks, cooking at home wins every time, both in terms of cost and quality.”
He notes some reasonable exceptions but maintains that cooking from home is best.
“For singles and travelers, fast food might feel like the go-to, but with a little planning, home-cooked meals can still be a cheaper, healthier alternative,” he says.
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Is Fast Food Cheaper Than Cooking at Home? originally appeared on usnews.com
Update 09/20/24: This story was published at an earlier date and has been updated with new information.
