Takeout takes a bigger bite

Restaurants dish out more of our food

Food prices are rising rapidly. So what are people doing about it? Harry Balzer, a vice president at market research firm NDP Group of Port Washington, N.Y., and author of its annual report on Eating Patterns in America, spoke about the issue Tuesday with Newsday.

Q. Your survey says food prices are increasing at the fastest pace in 17 years. What's the main reason?

A. I wish I knew there was one main reason. Is it crop failures around the world? Is it increasing demand of growing populations? Is it the falling dollar, which affects oil prices? I'm sure it's all of those and more.

Q. What are people doing?

A. There's a psychological issue here. You go to the supermarket and you say, "It's cheaper to eat out." It's never cheaper to eat out. People say they have been eating at home more. That's been the case for the past six or seven years.

Q. In these tough times, your survey says takeout is a big thing now?

A. Yes. The average American eats 81 meals a year in a restaurant, and takes out [food] 127 times. Let's go back a generation. In 1987, the average American ate 93 meals in a restaurant a year and took out 85 times.

Q. Takeout is always cheaper?

A. Yes. The first thing you eliminate from takeout is the beverage. Second, you're probably going to go to a fast-food restaurant for takeout. About 90 percent of takeout meals come from fast-food restaurants.

Q. How much do you attribute to the economy?

A. Well, the economy goes up and down. But in recent years, we love to eat at home. Now, the question is: Who will do the cooking? I don't want to make the statement that we're not going out. But going out has not been an increasing market.

Q. Your survey also says people are stocking up more.

A. That's what people say they do. And I do know our homes are stocked. Our homes have become great warehouses. Over 80 percent of American households have 39 different categories of food items stocked.

Q. What percentage of our income do we spend on food these days?

A. It's about 10 percent of disposable income. In the 1930s, about 25 percent of our disposable income went for food. We're always looking for ways to moderate our food costs. We always make sure that food costs do not rise as fast as our income.

Q. The food industry itself has helped out here, right?

A. Right. One of the best innovations in the supermarket business was when Wal-Mart came into the food business. We've found ways to make food more efficient.