The Money You're Wasting By Ordering Takeout Instead Of Cooking Your Own Food

Chances are good that, at some point, you've come home from a long day and decided to order takeout or delivery instead of cooking. For some, that might even be a frequent occurrence. Ordering food for delivery has become easier than ever thanks to a variety of delivery services, apps, and even memberships. While the ease of food delivery has a lot of perks for consumers, the unfortunate downside of this ease is that what might have simply been the occasional treat after an especially hard day has increasingly become a much more regular expense. In fact, according to The National Restaurant Association, 52% of consumers reported that ordering delivery and takeout from restaurants was an essential part of their lifestyle in 2024.

However, all of this delivery and takeout can add up, and fast. According to consumer survey data from Empower, despite food delivery being one of the most popular splurges for consumers it is also one of the top three that consumers felt the most regret about. Not only can food delivery services cut into your monthly budget, but it's worth noting how much food delivery also contributes to just how much food Americans waste every year (which can similarly cost you). Whether your New Year's resolution is to cut back on food delivery, or you simply need to rethink your budget or diet choices, let's dive into just how much food delivery is costing you and how cooking at home can save your wallet.

It can be easy to lose track of how much you spend on food delivery every month. According to data from Empower, the average monthly amount that U.S. consumers spent on food delivery in 2023 was $118. However, depending on your food delivery app of choice you could be spending significantly more every month. For instance, the average monthly spending for Uber Eats users was $144.53 whereas Postmates users spent an average of $1,028.50 a month. This is a significant part of why the food delivery industry is expected to hit $746.55 billion by 2033 (the industry hit $242.09 billion in 2023).

There are a few specific things to keep in mind when pricing your food delivery. For starters, many restaurants actually increase the price of their items to offset the fees that food delivery apps charge them for using the service. This means that the same item you might purchase in a restaurant for a certain price could be listed for several dollars more in your app of choice. This means that, from the start, your takeout order will have an inflated cost. However, the price increase doesn't stop there. App service and delivery fees can also increase your total, with service fees anywhere from 10% to 15% of your order total. These fees can vary depending on the specific app you use and if you participate in any membership plans. Finally, tipping your food delivery driver is an additional cost on top of your already inflated order total.

Between inflation and price hikes on staple items like eggs (which are skyrocketing again and unlikely to come down anytime soon), many consumers might be wondering if cooking at home is really that much cheaper than ordering out. According to data from the U.S. Bureau of Labor Statistics, spending on food increased almost 7% in 2023, fueled by increases in both food at home (6.1%) and food out (8.1%). More importantly, the average American consumer unit spent $6,053 on food at home in 2023, which breaks down to about $504 per month. These units also spent $3,933 on food away from home, adding an extra $327.75 in food expenses every month.

According to USDA food plans, a family of four (with two children under age 11) sticking to a moderate food budget (compared to thrifty or liberal budgets) should plan to spend around $1,184 per month on food. However, grocery prices can fluctuate significantly depending on the state and even city you live in. For instance, residents of Honolulu, Boston, and New York City pay substantially more for groceries every month than residents of Virginia Beach, Virginia, Cheyenne, Wyoming, and Little Rock, Arkansas, according to data from Move.org. However, while grocery prices increased 25% between February 2020 and June 2024, data from the Bureau of Labor Statistics found that the average menu price at restaurants increased 27.2% during the same time (which does not include the additional costs and fees associated with delivery).