Key takeaways

• 89% of Americans believe cooking at home is the best way to save money

• Gen X reports the highest food spending, while Gen Z spends the least

• Americans spend an average of $1,546 a month on groceries and dining out combined
   

Rising grocery and restaurant prices have Americans spending an average of $1,546 a month on food according to Empower Personal Dashboard^TM data. Generational differences, inflation pressures, and shifting habits are reshaping how households budget for meals.

Americans’ food spending habits are shifting. Higher grocery bills, lifestyle changes, and the cost of convenience are influencing how households weigh the trade-offs between dining out and cooking at home. For some, restaurant spending is now rivaling what they pay at the supermarket — a sign of how budgets and behaviors are evolving in real time.

Dining out trends

Dining out can account for a significant share of food budgets. Empower research shows Americans dine out for about 1 in 5 (20%) of their meals — and the number is even higher for Gen Zers (26%). With the cost for food away from home edging up 3.9% annually, people dish out about $879 monthly at restaurants on average for the year ended August 2025, according to Empower Personal Dashboard^TM data. Though Gen Z visit favorite dining spots most, they spend the least doing so of any generation at $572 monthly on average. Gen X are the biggest restaurant spenders, paying out $1,022 monthly on average — nearly double the amount of Gen Z.

Read more: The big shrink

Grocery spending by generation

Empower Personal Dashboard data shows Americans spend $667 on groceries monthly on average. Who dishes out the most? Dashboard data shows Gen X has the biggest supermarket bills, spending $807 monthly on average, followed by Baby Boomers ($696), Millennials ($643), and Gen Zers ($335). This could be due in part to Gen Xers buying for families or purchasing more expensive brands or items, while they’re in their peak earning years.

And according to the July Consumer Price index, costs for many household grocery staples continue to climb:

• Beef steaks increased 2.3% month over month and 12.4% year over year

• Ground beef increased 2.4% month over month and 11.5% year over year
• Bacon increased 0.6% month over month and 4.6% year over year
• Coffee increased 2.3% month over month and 14.5% year over year

Read more: Price check: Find out which states spend the most on groceries

Stress and strategies for saving

Food inflation has left many households uneasy. A McKinsey report finds that 24% of consumers expect to spend more on fresh produce in the months ahead, 21% think they’ll spend more on meat and dairy, and 17% anticipate paying more for pantry/center-aisle grocery items.¹ Price increases have more than half (52%) of Americans feeling stressed about the cost of food — and many are looking for ways to cut down on the expense.² More than 4 in 5 (81%) Americans say saving money on food is a priority this year, and 89% believe cooking meals at home is the best way to do it.³

This has some embracing the idea of buying in bulk, with 36% turning to warehouse stores like Costco.⁴ Walmart has reported a surge in higher-income shoppers, as inflation, tariffs, and broader economic uncertainty push consumers to seek better deals. And more than half (53%) of consumers say they’ve switched to a generic brand as they shop around to save money, according to Empower findings.

Read more: Gold bars, trips, and tires fly off the shelves as warehouses go big

Convenience comes with a cost

While some Americans are looking to cut costs with bulk buys and brand swaps, others are trying to find a balance between saving money and saving time. Some shoppers looking to cook at home, but seeking convenience, are opting to use meal kits. At about $10-$12 per meal, these kits may run less than a typical visit to a favorite dining spot, but likewise can make a dent in some grocery budgets.⁵ Still, for those craving not just ease, but variety too, meal kits can sometimes be a cost-effective alternative to the supermarket, especially for dishes that involve specialty ingredients, complex sauces, and pricey spices.

What’s next for 2025

Food is one of the most visible areas where rising costs meet daily life. For some, it’s a balancing act between dining out and cooking at home. For others, it’s about experimenting with bulk buying, brand swaps, or meal kits to save time and money. As prices evolve, Americans are finding creative ways to manage grocery carts and restaurant tabs as they adapt to rising costs.