More People Are Choosing to Dine Out. Here's Why.

If you checked your bank account right now, what percentage of it would you see was spent on restaurants or fast food?

As someone in the restaurant industry, the number likely wouldn't surprise you. But for those who aren't, the number might surprise them and show that they've been eating their meals out a lot more than they used to in recent years.

According to the U.S. Bureau of Labor Statistics, the average U.S. household spent an average of $3,693 per year on dining out in 2023. Also, according to a report by the USDA ERS, the total amount of money spent on food “away from home” (vs. at home) accounted for more than half (58.5%) of total food spending in 2023, which is the highest share ever recorded. This increases even more during the holiday season. A 2022 survey by the National Restaurant Association found that almost 60% of consumers plan to dine out at restaurants during the holidays, while 50% intend to order takeout.

In a Harvard Business Review study, researcher Eddie Yoon found that Americans fall into one of three groups:

• 10% of people said they love to cook

• 45% of people said they hate to cook

• 45% of people are ambivalent about cooking

As a result - and because there are more ways than ever to order food – more people are choosing to eat out… or order takeout right to their doorstep. While not everyone hates cooking, it's difficult to not choose convenience when life is so busy. This could spell trouble for the grocery industry, or it could result in a significant change in the way we shop. Either way, home cooking as a pastime is evolving, and so is the restaurant industry.

Lines at Restaurants Are Becoming a Thing of the Past

Whether the queue is full of office workers waiting to place an order at a busy lunch spot, families are waiting to get seated at a casual dining establishment, or servers are lining up at the POS terminal to send orders to the kitchen, restaurants are always full of lines.

There are plenty of patient people out there, but many just hate waiting in lines – especially when they’re hungry. And for those people, it might seem "easier" to stay home and eat whatever’s in the fridge. But many technologies help restaurants cut down on lines (AKA line bust), meaning hungry guests get the food they want faster.

• Automation: Kiosks allow guests to walk into a restaurant, place an order via a menu screen, and receive their order. It’s as easy as that and requires much less effort from consumers.

• Optimized space: Many restaurants are optimizing their space to allow for different eating styles. Most restaurants and cafes now give guests the ability to order ahead through an online ordering platform and then pick up at their convenience.

• Handhelds: Handheld POS systems allow restaurant workers to take someone’s order in the line, instead of at the register. The same goes for servers, who can use handheld POS systems to take orders and payments right at the table, so they can avoid running back and forth between the table and a terminal.

You Can Have It Your Way - Literally

A 2023 Axios survey shared that the eating-at-home rate reached a historic low in 2022, with people in America eating 8.2 meals per week at home compared to 9.4 meals in 2020.

Consumers like choices and autonomy, and many working professionals these days crave convenience in their dining experience more than anything else. Another factor is; home-cooked meals take time, money, effort, and often a certain prowess that some just prefer not to master.

The exception, of course, is meal kits, which have changed the landscape for people who wouldn't necessarily classify themselves as home cooks over the past few years.

At the end of the day, though, what makes a restaurant more convenient? Many features in restaurants, especially fast casual dining restaurants, help customers get their food fast.

• Kiosks: On many kiosks, customers can place orders through a touchscreen, access menus with QR codes, easily customize their selections, and route their orders directly to the kitchen.

• Online Ordering / Delivery: Customers can order delivery through online ordering platforms easily, on their phones and computers, and earn rewards and loyalty points. When these platforms save customers' credit card info, it becomes even more convenient.

• Order Ahead: Order-ahead apps allow customers to order food to be picked up at the restaurant. It’s a quick and easy practice for the lunch rush.

Hospitality Is King

In 2007, Danny Meyer wrote the book, Setting the Table: The Transforming Power of Hospitality in Business. In it, he wrote:

The Future of the Restaurant Industry Is in Your Hands

With more people choosing to eat out than cook at home, the restaurant industry is thriving. But with a move to cafes and restaurants, the industry will have to continue to adapt and stay on its toes.

FAQs

What are the top reasons people prefer eating out over home cooked meals?

Convenience is one of the top reasons consumers prefer eating out. Other reasons include time constraints, and the variety of dining options that make eating out an appealing choice. Many people also enjoy the dining experience, which includes a social atmosphere and trying different cuisines, which might be harder to achieve at home.

How has the restaurant industry adapted to the rise of eating out?

Restaurants have introduced convenient takeout delivery services, online ordering, menu customization, and order screens to meet consumer demands for convenience and personalization, making dining out even more accessible.

Is the trend of eating out sustainable in the long term?

While eating out has been very popular in recent years, it could soon face challenges due to rapidly increasing food costs and other economic factors. However, the convenience and enjoyment of the dining out experience remain strong motivators for a large number of consumers.

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