Any list of which cities have the best restaurants is bound to start an argument. However, if you want to know where people put the most value on dining out, you can let the numbers do the talking.
CardRatings.com analyzed consumer expenditure data from the Bureau of Labor Statistics to see what spending habits say about how much people in different cities like to dine away from home. This allowed for a numbers-based approach, rather than subjective judgments about which cities had the best barbecue or foie gras.
The results included some surprises. For example, New York City did not crack the top ten – but Honolulu did. Whether or not you agree with these rankings, keep in mind the methodology for this study let each city’s residents vote with their wallets.
Measuring the cities where people most like to dine out
So, how can one measure how much people like to dine out?
The Bureau of Labor Statistics conducts consumer expenditure surveys which provide details on how much American households spend on a variety of things – including a category called “food away from home.”
This survey breaks down consumer spending in several of America’s largest metropolitan areas, spread across all regions of the country.
We looked at this data in two ways. First, the survey ranked cities according to which spent the most annually on food away from home. This produced a ranking of where American households spend the most on eating out.
That dollar figure is one indicator of how much people value going to restaurants. However, differences in dollar amounts can be driven by geographic disparities in income and cost of living. So, we also calculated how much households spent on eating out as a percentage of total annual expenditures.
This produced a ranking of the proportion of household budgets people in different cities were willing to allocate towards eating out.
We then averaged these two rankings and used the combined score as the basis for its overall rankings.
➤ LEARN MORE:Guide to dining rewards programs
Where dining out is most popular – what the numbers say
Here are the five cities we identified as places where people most like to eat at restaurants, according to the methodology explained above:
- Los Angeles. Whether they’re going out for the food or just to be seen in fashionable places, Angelenos really seem to enjoy going to restaurants. Households in the area put an average of 6.49% of their total spending towards food away from home. That’s the highest in the nation. The average total of $5,584 spent annually at restaurants ranks fourth nationally. Those two scores combined to put Los Angeles in the top spot.
- San Francisco. Up the coast from Los Angeles you’ll find the city where households spend more on dining out than those in any other metropolitan area. The average tab runs to $6,237 per year. That represents 5.62% of the average household budget, which ranks fifth nationally.
- Boston. Almost $6,000 buys a lot of New England clam chowder; $5,687 is the average amount households in Boston spend on dining out annually, which ranks second nationally. Of course, the area’s cuisine is a lot more varied than that, which helps explain how households spend 5.62% of their budgets on dining out. That ranks sixth nationally.
- Honolulu. This city’s placement on the list might come as a surprise at first, but between a vibrant tourist industry and a generally high cost of living, it’s easy to see why restaurants in the area are a big business. Honolulu ranks second for the percentage of household budgets spent on food away from home, and seventh for the average dollar amount spent.
- Philadelphia. Households in this metropolitan area rank third for the percentage of spending that goes towards dining out, so there’s a lot more to it than Philly cheese steaks – though those are hard to resist. Philadelphia households spend an average of $5,125 a year dining out, which ranks sixth nationally.
➤ LEARN MORE:5 ways foodies can get more from credit cards
Choosing the best credit card for dining out
Whether you dine out often or hardly ever, there’s a good chance that you use a credit card to pay for the meal. How you use that credit card can make an important difference in how much the meal actually costs you.
Here are some things to consider when choosing which credit card to use for dining out:
- Look for high rewards for spending in restaurants. Some credit cards offer different reward levels for various types of spending. Restaurants are often a category credit cards single out for special treatment. We find that the best cards for dining out often pay at least 3% in rewards. Try to use a card like this whenever you pay for a meal away from home.
- Watch out for caps on rewards spending. Some credit cards will cap how much of your spending is eligible for special rewards levels. If you eat out a lot, keep an eye on whether you’re approaching that cap. If you exceed the maximum amount, your rewards for eating out may not be as generous as you expected.
- Figure out whether the annual fee is worth it. When you choose a credit card, don’t let the size of the rewards blind you to the cost of earning those rewards. If the card has an annual fee, you have to make sure the amount of rewards you can earn and other benefits of the card can offset the cost of that fee.
- Consider the interest rate you’re paying. If you frequently carry a balance on your credit card, the interest rate it charges is of great importance. If you choose a card with a significantly higher rate than other alternatives, the added interest charges could wipe out the benefits of the rewards you earn.
We regularly update our list of the best credit cards for dining out. Choosing one of these cards might help you afford to dine out more often.
Tips for not overspending on dining out
You can enjoy dining out without it ruining your finances as long as you follow some common-sense rules:
- Don’t let restaurant charges become long-term debt. Dining out only takes an hour or two, so don’t let it lead to credit card debt that drags on for months. Paying your balance off by the end of the billing cycle can save you from adding 20% to 30% annual interest to the cost of your meals.
- Don’t take on debt to earn rewards. Generous credit card rewards are a nice plus. However, if they become a primary motivator for dining out you’re basically spending $100 just to get $3 back.
- Keep an eye out for good bargains. Restaurants tend to come and go, so regularly check out new places in your area to find reasonably priced good food. Looking at menus and reviews online can allow you to do your research before you head out to dinner.
- Plan your meals. People often resort to dining out because they get home from work and don’t see any quick and easy options for dinner. Going to a restaurant should be a treat, not a routine. Use the weekend to do some meal planning, including doing some preparation in advance. This can make it easier to make a quick meal when you’re too tired for a lot of fuss.
Being able to visit restaurants without worrying that you’re spending too much might even help you digest your food better. Bon appetit!
