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As prices for household items continue to rise, consumers are finding new ways to save cash on food - and it could be a boon for grocery stores. According to a new study by the Food Industry Association (FMI), consumers are increasingly buying deli-prepared foods instead of dining out, with the portion of prepared food purchases more than doubling from 12% in 2017 to 28% in 2025. (1)

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Another 23 percent of shoppers surveyed said they're spending less at quick service or fast food restaurants. Instead, 85 percent said they are making more food service purchases from the grocery store. (2)

"[Consumers] want meals that deliver on quality and variety but also save time and money. This trend is substantiated by the steady growth in retail foodservice dollar sales rising 1.6% to $52.1 billion over the past 12 months,” said Allison Febrey, senior manager, research and insights at FMI. (1)

Are prepared meals actually cheaper?

Buying a hot rotisserie chicken or a pre-made sushi roll from the grocery store feels like a simple swap, but whether it's cheaper than eating out depends on where you shop and what you're replacing.

Fast-food and quick-service meals have surged in price, with many family dinners topping $40 once drinks and sides are added. By comparison, a grocery-store rotisserie chicken (around $6 to $8) plus a few easy sides like salad kits or roasted vegetables can feed a family of four for less. Even prepared entrees such as stuffed salmon or pasta trays tend to undercut restaurant prices while offering larger portions.

That said, the cheapest option is still cooking at home, especially if you shop sales or buy in bulk. A home-cooked pasta dinner with a simple sauce and salad can come in under $10 for a family of four. But grocery-prepared meals occupy a useful middle ground: less expensive than dining out, faster than cooking from scratch and increasingly available in a range of cuisines.

Warehouse clubs such as Costco, Sam's Club, and BJ's have leaned into this demand, adding affordable options such as sushi stations and ready-to-heat family meals. (3) However, those club prices - like Costco's $4.98 rotisserie chicken or $8.98 pizza - are often loss leaders and don't always reflect what's available at a standard supermarket. Still, many traditional grocers have expanded their own prepared-food sections, offering similar savings without a membership.

Ultimately, grocery-prepared foods bridge the gap between takeout and home cooking, making them an appealing choice for busy families watching both time and money. But it's not the only way for families to reduce food costs.

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How to balance your grocery and eating out budget

As household costs continue to grow, families need to find ways to balance convenience with cost. Finding the right balance between eating out, quick prepared meals and grocery shopping makes it easier to feed your family healthy meals without breaking the bank. Here are a few strategies that can help:

Shop the sales

Review weekly ads and plan meals around discounts - including pre-prepared items. A rotisserie chicken on sale can stretch into multiple meals, from tacos to chicken noodle soup. Hams, which often go on sale around the holidays, can be frozen and made into three or four meals later in the year.

Plan your meals in advance

A little planning eliminates the“What's for dinner?” scramble that often ends in expensive takeout. Consider planning out five meals for the week, then deciding the night before what you're in the mood for. Even planning for one or two grocery-prepared meals a week can help you stick to your budget.

Look for specials when eating out

If dining out is part of your routine, make it work for your budget. Many restaurants have family bundles,“kids eat free” nights, or weekday promotions that cut the cost of dining out. For example, if your favorite restaurant charges $14 on a regular night for a burger, but $10 on "burger night," a family of four could save $16 a week by dining out on Thursday versus Monday.

Join loyalty programs

Whether it's your local grocery chain or favorite takeout spot, loyalty programs often offer points, digital coupons, or exclusive discounts that add up over time. Maximizing coupons and loyalty programs is a simple way to stay on budget.

Create a spending plan

Allocate a fixed monthly amount for both groceries and dining out. Tracking your spending, even for a few weeks, can help you see how small splurges add up and help you find the right balance between convenience and cost.

As restaurant prices climb and household budgets tighten, grocery-prepared meals are becoming a go-to middle ground. Whether you're grabbing a rotisserie chicken or sushi from the deli, mixing in a few ready-made meals each week can help you save time and keep food spending in check.

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Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Food Industry Association (1 ); USA Today (2 ); CNBC (3 )

This article originally appeared on Moneywise under the title: As food prices climb, US families turn to prepared meals for a budget alternative - but is it cheaper than eating out?

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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