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Money Management

Understanding the Rise in Dining Out Costs


If you enjoy dining out, you’ve probably noticed that it’s becoming more expensive.

Full-service restaurants throughout the US have been steadily raising their prices over the years. Data compiled by Bloomberg shows that food prices, both at home and in restaurants, have been on the rise since the early 2000s. While some increase in prices is normal, starting from 2012, the cost of eating out began to rise at a faster rate compared to groceries. When adjusted for seasonal changes, it seems like a more cost-effective choice for Americans to cook and eat at home.

There are various factors contributing to the surge in dining out costs. Full-service restaurants in the US are grappling with escalating food and labor expenses, which are being transferred to the customers. A report from the US Labor Department in January revealed that these rising costs resulted in the most substantial price hikes in full-service restaurants in seven years by December 2018, and this trend has continued through 2019.

The disparity in cost increases between groceries and full-service restaurants has become more apparent to American consumers. The consumer price index, which covers essential items like food and utilities, has been rising at a modest rate of around 0.1%, as per the Bureau of Labor Statistics. This pales in comparison to the price surge in full-service restaurants, which recorded a 0.5% increase in December 2018 alone. With this widening gap, more Americans may opt to dine at home more frequently.

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