Food at Home vs. Food Away from Home

How It Works

The Bureau of Labor Statistics divides the food component of the CPI into two major categories: food at home (FAH) and food away from home (FAFH). In 2024, Americans spent approximately 55% of their food dollars on food away from home — the first time FAFH has consistently exceeded FAH in nominal terms. This represents a dramatic shift from 1960, when only 25% of food spending was away from home. The Cheeseburger Index sits at the intersection of these two categories. It tracks food-at-home ingredient prices (what you pay at the grocery store to make a burger), but its value as an indicator comes from comparing that cost to food-away-from-home alternatives (Big Mac, Five Guys, restaurant burger). Since 2019, food-at-home prices have risen about 25% while food-away-from-home prices have risen about 27%, narrowing the traditional gap. However, the absolute cost gap remains enormous: a $3.29 homemade burger versus a $5.91 Big Mac or $14.64 restaurant burger means home cooking still delivers massive savings. The USDA tracks FAH and FAFH spending through its Food Expenditure Series, updated annually with monthly estimates.

Related Terms

• Grocery vs. Restaurant Costs — The price comparison between cooking food at home with grocery ingredients and purchasing equivalent meals from restaurants — home cooking is typically 3-5x cheaper per serving.
• Fast Food Pricing — The pricing strategies used by quick-service restaurant chains, where raw food costs typically represent only 25-35% of the menu price, with the rest covering labor, rent, and profit.
• Food Expenditure Share — The percentage of household income or total spending devoted to food — lower-income Americans spend roughly 30-35% of income on food versus 8-10% for higher-income households.