Staying in vs. going out: home dining is here to stay

I recently ventured out on a Wednesday night in January during Newcastle Restaurant Week,  a week in January where you can dine in the top restaurants with set meal deals for less than you would normally pay. The cost? £160 for my family of four. At this price, eating out becomes a treat — something I can’t afford to do again in a single month.

The traditional divide between eating out and eating in is blurring, with UK consumers increasingly viewing “staying in” as an event in itself. Home dining has evolved into a premium experience rather than just a cost-saving measure, and this shift presents both challenges and opportunities for food manufacturers and retailers.

Several key factors are driving this behavioural change, and the shift towards staying in and recreating dining-out experiences at home. Let’s discuss them in more detail…

1. The cost of living crisis

The cost of eating out has soared due to things like rising ingredient prices and higher wages in hospitality. At the same time, household disposable income remains stretched. Even takeaways that were once considered a cheap alternative have become pricier due to delivery fees, service charges, and tip expectations. Households are increasingly looking for ways to enjoy the experience of dining out without the expense, leading to more home-cooked meals, “fakeaways,” and supermarket meal deals.

What does this mean for brands? Supermarkets and manufacturers can capitalise on demand by offering restaurant-style ready meals, meal kits, and “dine-in” experiences that replicate high-end dining at home.

2. Post-pandemic lifestyle shifts

The pandemic forced people to cook more at home, and many discovered they enjoyed it, or at least became more comfortable with it. Some habits that formed during lockdown have stuck, including many now preferring cosy nights in cooking, streaming films, and gaming, over going out to the pub and restaurants. People are also investing in home improvements and entertainment subscriptions, making a night in no longer a compromise — it’s a luxury in itself. 

What does this mean for brands? Manufacturers and retailers can create luxury meal kits from Michelin-starred chefs and restaurant collaborations to enjoy at home.

3. The convenience of technology

The way people shop online for food has evolved dramatically, making home cooking easier than ever. Brands like Gousto and HelloFresh make cooking simple, with pre-portioned ingredients and easy-to-follow recipes. The ability to order ingredients online or via rapid delivery services like Whoosh, Deliveroo and Just Eat also means people can spontaneously decide to cook at home.

What does this mean for brands? Enhancing convenience is crucial as consumers seek effortless home-cooked meals, pre-prepared ingredients, high-quality meal kits, and frozen gourmet options.

4. The rise of “fakeaways”

With restaurant prices rising, consumers have become more creative in the kitchen, replicating their favourite dishes at home. Cooking fakeaways is cheaper, healthier, and often more fun than ordering in. Grocers now sell pre-packaged kits that help customers make everything from Wagamama-style katsu curries to Nando’s peri-peri chicken.

What does this mean for brands? Retailers can develop and expand their own versions of popular takeaway dishes, from sushi kits to fresh pizza-making kits and gourmet burger packs.

5. Foodie culture of social media

Platforms like Instagram, TikTok, and YouTube have transformed how people engage with food, making home cooking trendy. TikTok has led to a boom in creative recipes, with trends like baked feta pasta, air fryer hacks, and gourmet grilled cheese sandwiches inspiring people to cook at home. Many people now host “come dine with me” evenings, themed food nights (e.g., sushi-making, taco nights), or dinner parties, replicating the social aspect of eating out.

What does this mean for brands? Creating and sharing innovative recipes on social media including their products can encourage people to share with their friends to try themselves at home.

What’s next for the future of dining in vs. out?

Looking ahead, we can expect a hybrid approach, where people continue to enjoy both dining out and dining in, but with smarter spending habits and greater emphasis on quality and experience. The shift towards premium home dining is here to stay, and food manufacturers and retailers must adapt quickly to remain competitive.

By leveraging consumer insights, they can develop innovative, high-quality, and cost-effective meal solutions that cater to evolving consumer preferences. The brands that successfully bridge the gap between dining out and dining in will be the ones that thrive in the changing food landscape. Get in touch with Trinity McQueen.