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Business & Tech

Is It Really Cheaper to Eat Out Than at Home?

Local restaurant owners and residents give their opinions on a recent federal government report.

A recent Bureau of Labor Statistics report says the cost of eating at home continues to be higher than eating out.

The latest in a string of similar reports, released in July, claims that the cost of eating at home has risen 4.7 percent over the 12 months (ended June 30), compared to a 2.3 percent rise in eating out (or, “food away from home”). Increased supermarket prices were due mainly because of escalating costs for staple food items, such as cereal, baked goods and milk.

While officials at Whole Foods Market and in Wynnewood declined to speak about the higher prices, customers at these stores were vocal about the price hikes.

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“I have definitely noticed an increase in food prices at both Whole Foods and Superfresh,” said Carole Roberti of Haverford. “We are vegetarians and it gets harder and harder to buy healthy as food prices go up.”

Meg Shattuck of Gladwyne also noticed the steeper prices in the supermarkets, but said, “I don’t think that is it cheaper to eat out. Restaurants have to be competitive, so I see why they would not want to raise their prices. They have to be more competitive than supermarkets.”

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Some local restaurant owners attribute the lower price increase in dining out to the struggling economy, and the reluctance of restaurants to pass along their own increased food costs to an already cost-conscious clientele.

“A family buying in a supermarket has to absorb most of the rising cost of the increased items,” said Joseph Mackay, general manager of in Suburban Square in Ardmore. “As a restaurant, we buy from various distributors and in bulk, which keeps our costs down. We do not want to pass on the increased costs to our customers, since dining out is considered discretionary spending.”

Mackay claims Plate absorbs most of the increased food costs with a variety of tactics, such as making substitutions on the menu “that do not affect the good quality food we serve to our customers.

“We will often use more seasonally available vegetables and replace less expensive sides or side dishes rather than pass on the price increase to our customers.”

Mackay also understands the draw of eating out versus eating at home. People come to relax or to celebrate, he said, so while cost is a concern, it’s less a factor than you might think. Nonetheless, he said he’s seeing more diners skipping or sharing appetizers—and in some cases, sharing entrees—to cut down on their bill while still having the dining-out experience.

From scratch = Less scratch

Smaller restaurants like in Ardmore are feeling the pinch more, as they try not to pass on increased prices for basics to their customers.

“Prices of staples like flour, bread and french fries have increased steadily since we bought the shop four years ago,” said Nick Millas, Original Eagle's owner. “In 2008, flour was $8 a bag. Now that same bag of flour is $24.

“We have only increased prices twice in four years and not on all menu items, only certain items that have skyrocketed. We don’t want to lose customers, so we absorb the price increases as much as we can, but it is tough. We care about the quality of our food, we will not switch to a lower priced and possibly lower quality item to save that increase.”

Another way Millas has found to cut costs is to make more food from scratch.

“Homemade is better anyway, and sometimes a lot less expensive,” he said. “It takes more time to make, but if it helps keep the costs down, it’s worth it. Customers have noticed that many of our items are homemade and seem to like it.”

Millas said he understands why supermarkets are more likely to pass on price increases. “I don’t think they have any choice,” he said. “They can offer other deals on select items from the manufacturers because of bulk purchasing to make up for the increased costs of other foods.”

Amanda, a shopper from Media who preferred not to give her last name, shops at the higher-end and dines out frequently, so higher check-out prices were not as noticeable to her—except for fish, fruit and vegetables, which she described as “a bit higher.”

That said, she added, “I eat out a lot and restaurants really have not raised their prices that much. They can’t just keep raising their prices because customers will revolt and not go out to eat.”

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