Grabbing lunch from the cafe near work. Ordering Uber Eats on a Friday night because you cannot be bothered cooking. Weekend brunch with friends. A quick coffee and muffin on the way to the office. None of these feel like a big deal on their own. But when you add them all up over a year, the total is often genuinely shocking.
The average Australian household spends around $9,000 to $10,000 per year on dining out and takeaway food. For individuals who eat out frequently — say, lunch at work four days a week plus dinner out or delivered twice a week — the figure can easily exceed $12,000 annually.
Eating out is one of life's pleasures, and there is nothing wrong with enjoying it. But understanding the real cost helps you make intentional choices about how much of your income goes to restaurants and how much you would rather direct elsewhere.
Breaking Down the Numbers
Here is what a fairly typical week of eating out costs in an Australian city:
- Weekday lunches (bought, not packed): 4 x $18 = $72
- Morning coffee: 5 x $5.50 = $27.50
- Friday night dinner out: $55 (meal + drink)
- Weekend brunch: $35
- One food delivery order: $40 (meal + delivery fee + service fee)
Weekly total: $229.50
Monthly total: roughly $995
Annual total: roughly $11,930
Even if your habits are more moderate — say, lunch out twice a week and dinner out once — you are still likely spending $4,000 to $6,000 a year. Use our Latte Factor Calculator to see exactly how your daily spending habits compound over 5, 10, or 20 years.
Eating Out vs Cooking at Home
The cost difference between eating out and cooking at home is dramatic. Here are some real comparisons:
- Cafe lunch (chicken wrap + drink): $18 to $22. Homemade equivalent: $4 to $6.
- Restaurant pasta dinner: $25 to $35. Homemade equivalent: $5 to $8.
- Delivered Thai curry for two: $50 to $65 (with fees). Homemade equivalent: $10 to $15.
- Weekend brunch (eggs, toast, coffee): $28 to $38. Homemade equivalent: $5 to $8.
- Daily takeaway coffee: $5 to $6. Homemade equivalent: $0.50 to $1.50.
On average, a meal eaten out costs three to five times more than the same meal prepared at home. The difference is partly ingredients, partly labour, partly rent and overheads, and partly the convenience premium — especially with delivery apps that add fees on top of already inflated menu prices.
The Hidden Costs of Delivery Apps
Delivery apps deserve special mention because they have made eating out even more expensive than it used to be. When you order through an app, you are typically paying:
- Inflated menu prices — Restaurants often charge 15 to 30 percent more on delivery apps than they do in-store to cover the commission the app takes.
- Delivery fee — Usually $3 to $8 per order.
- Service fee — An additional percentage on top of your order.
- Small order fees — Charged if your order is below a minimum threshold.
A $15 meal can easily become a $25 to $30 transaction by the time all the fees are added. If you are ordering delivery two or three times a week, that fee creep alone could be costing you $30 to $50 per week — over $2,000 a year in fees alone.
How to Cut Back (Without Giving Up Good Food)
The goal is not to never eat out again. It is to be intentional about when and how you do it, so you enjoy it more while spending less. Here are practical strategies:
Meal Prep on Sundays
The number one reason people eat out during the week is convenience. You are tired, you are busy, and there is nothing ready to eat at home. Sunday meal prep solves this. Spend one to two hours on Sunday cooking a few batches of meals for the week. Store them in containers in the fridge and you have lunch and dinner sorted for most of the week.
Start simple: a big pot of curry or stew, a batch of grain salads, or pre-portioned stir-fry ingredients. You do not need to be a masterchef. You just need food that is ready when you are hungry.
Pack Your Lunch
If you buy lunch at work four days a week at $18 a pop, that is $72 per week, or $3,744 per year. Packing lunch instead brings that cost down to roughly $5 per meal, saving you over $2,700 annually. Make extra at dinner and pack the leftovers. It takes two minutes.
Set a Dining Out Budget
Rather than trying to eliminate eating out entirely (which usually leads to a binge-and-guilt cycle), give yourself a specific monthly dining out budget. Maybe it is $200 per month, or $100, or $300 — whatever works for your finances. The point is that it is a conscious choice, not an unconscious drift. If your dining out budget is part of a broader plan, see our guide on creating a budget that actually sticks.
Make Eating Out Special Again
When you eat out less often, each occasion becomes more enjoyable. Instead of grabbing mediocre takeaway three times a week, save that money for one really good restaurant meal. You will spend less overall and enjoy the experience more.
Pick Up Instead of Delivery
If you are going to order takeaway, pick it up yourself. You will save $5 to $15 per order in delivery and service fees, the food will be fresher, and you might discover new spots in your neighbourhood while you are at it.
Cook the Dishes You Order Most
What do you most commonly order when eating out or getting delivery? Chances are it is something you could learn to make at home. Look up a recipe, give it a try, and you might find your homemade version is just as good (and costs a fraction of the price). Stir-fries, curries, pasta dishes, and burgers are all surprisingly easy to cook well at home.
Use the "One In, One Out" Rule
For every meal you eat out, cook one extra meal at home that week that you would normally have ordered. This naturally reduces your eating out frequency by half without requiring you to go cold turkey.
The Compromise: Finding Your Balance
This is not about choosing between eating out and saving money. It is about finding the balance that works for your life and your goals. Here are three realistic approaches:
- The "special occasions only" approach: Eat out for birthdays, celebrations, and date nights. Cook at home the rest of the time. Potential savings: $3,000 to $6,000 per year.
- The "once a week" approach: Allow one meal out per week (say, Friday night dinner) and cook the rest. Potential savings: $2,000 to $4,000 per year.
- The "lunch swap" approach: Keep your weekend dining out habits but pack lunch every workday. This single change can save $2,500 to $3,500 per year with minimal lifestyle impact.
Whatever approach you choose, the key is to redirect the savings somewhere meaningful. Set up an automatic transfer to move the money you are no longer spending on dining out into a savings account or towards your financial goals. Automating your savings ensures the money does not just get spent on something else.
What Could You Do with the Savings?
If cutting back on eating out saves you $200 per month, here is what that adds up to:
- In 1 year: $2,400 — enough for an international holiday or a solid start to your emergency fund
- In 5 years: $14,300+ (with compound interest at 7%)
- In 10 years: $34,600+ invested
- In 20 years: $104,000+ invested
That is the real cost of eating out — not just what it costs today, but the opportunity cost of what that money could have become if invested. Use our Latte Factor Calculator to run your own numbers and see the long-term impact of your dining habits.
You do not have to give up eating out entirely. But by being deliberate about it — choosing when to eat out, how often, and what to do with the savings — you can enjoy great food and build serious wealth over time.