Be Wise With Your Wallet: Think Twice Before Eating Out On A Major Holiday

While once it might have seemed unheard of to eat out at a restaurant during the holidays, it's increasingly becoming the top choice for many Americans. In fact, according to a 2022 National Restaurant Association survey, 50% of consumers reportedly planned on ordering either takeout or delivery for a family gathering during the holidays. While in the 2023 survey, 63% of surveyed consumers planned to go out to eat at a restaurant during the holidays. This trend was even more likely among younger generations with 75% of millennials reporting they planned to dine out in order to avoid busy grocery shopping during the holidays.

As Michelle Korsmo, President & CEO of the National Restaurant Association, explained, "When you choose restaurants, you get the flavors you crave without grocery shopping and preparation. You get familiar holiday dishes, without the dishes to wash. You get beloved traditions, without all the preparations. When you let restaurants do the cooking, restaurants let you take a holiday from the holidays." However, while the convenience factor of eating out can certainly be appealing, it can also be a fundamentally more expensive choice (not to mention just how much money Americans already lose every year thanks to food waste at home). Not only did food prices increase 25% between 2019 and 2023, according to the all-food Consumer Price Index, but the share of consumers' income being spent on food increased 13% just in 2022 alone. All of this is to say, it might be the best financial decision to eat out on the holidays.

Eating out on major holidays can lead to a larger bill than normal, even at places you might regularly dine. This is because more and more restaurants use prix fixe or fixed price menus, meaning each member of your party will pay a (generally elevated) flat rate for their meal. Whether that is a Thanksgiving buffet, a themed meal, or even a multi-course per-person meal, chances are good the price will be more than what you would normally spend. For those with big families, this can add up, and fast. Remember that restaurants often save money at the expense of customers.

According to data from Tock, special experience reservations (like special holiday menus) generate 30% more revenue than ordinary reservations do. To add to this, 38% of diners reported planning to celebrate in a group of between 6 to 10 people. Not only can this be brutal on a bank account but the influx of larger parties on holidays can make the actual dining experience less enjoyable than you might hope for. From crowded dining rooms to longer wait times for food, the actual experience of dining out on the holidays might make the price tag feel even less worth it. However, it's also worth mentioning that Tock's data found that 88% of surveyed diners reported being willing to spend more on a holiday celebration than a usual meal. 17% of people reported being willing to spend 50% or more than usual while 27% reported being willing to spend 25%-49% more.

It's worth noting that takeout and delivery have both also grown significantly in popularity since the pandemic. This is seen in both regular consumer dining behaviors and during holidays. In fact, according to a 2023 report from the U.S. Foods, 57% of people reported preferring takeout or delivery compared to just 43% who preferred dining in a physical restaurant. They also found that people, on average, ate out at a restaurant three times a month but ordered takeout or delivery 4.5 times a month. Deciding to order part of or even an entire holiday meal via takeout or delivery could offer another option for those looking to avoid cooking yourself this holiday season. However, make sure you look into the delivery fees and potential markups of your holiday food before ordering (and discover if a subscription service like UberOne could be worth it financially).

If you do decide to eat out this holiday season, there can be some important tips to know to save money when dining out at a restaurant. From avoiding add-on items to sticking to water, there are ways to ensure your elevated holiday meal bill doesn't break the bank. Plus, it can be particularly important to manage your expectations before going out (especially when it comes to crowds, prices, and wait times for your food). Ultimately, deciding if the reduced stress of eating out is worth the price tag attached is up to your individual budget, and just how much you don't want to cook.