Study Shows Eating Out is Cheaper Than Cooking

The cost of feeding a family of four has risen from $601.50 in February 2003 to $830.30 in February 2013, a 38 percent increase in ten years, according to the United States Department of Agriculture.

GoBankingRates recently investigated the rising food costs, low prices of fast food value menus, as well as special offers from restaurants. What they discovered is that eating out is surprisingly cheaper than cooking. But many question whether it is healthier.

Still, when directly comparing the cost of a meal at a restaurant to preparing the same food at home - as reported in MSN.com’s article “Is eating out cheaper than cooking?" - often times the latter ends up costing more - especially if it's made using higher-priced organic items.

"When comparing the cost of a 10 oz. rib-eye dinner (with soup, salad and asparagus) from Outback Steakhouse with that of the homemade version, Outback was $2.53 cheaper," points out GoBankingRates expert contributor, Stacey Bumpus. "And comparing seafood alfredo (with unlimited salad and breadsticks) at Olive Garden to making it at home, Olive Garden was $3.79 cheaper."

The added convenience and time savings of eating out can also add extra value for consumers, according to the study. Bumpus points out that growing up, she was taught to prepare food at home because it was the cheaper alternative to eating out. 

"A few decades later, however, it appears that parents are no longer saving money by cooking at home," said Bumpus. "With fast food restaurants continuously adding value menus and grocery costs rising, dining out for many families has become the financial preference."

Eating at home may not be saving money the way it used to, but homecooked meals are often more nutritious and healthful, Bumpus said. The report also includes practical guidelines that consumers can apply to save money while preparing healthy meals at home.

Read the complete report here.