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This is why I always use the Chase Sapphire when I dine out

This is why I always use the Chase Sapphire when I dine out

Whether you prefer to eat out or drive through on your way home from work, you’ve probably noticed that restaurant prices have gone up lately.

Until latest data from the Bureau of Labor Statistics shows that inflation may be cooling, some of the higher prices appear to remain. For example, the cost of eating out increased by 4.1% nationally in the 12 months to June 2024, and this after 7.7% increase during the one-year period until June 2023.

Fortunately, credit cards like the Chase Sapphire Preferred®, Capital One SavorOne Cash Rewards Credit Card*, and Chase Freedom Flex® Credit Card* can reduce your spending on dining out.

How a credit card can help offset food expenses

Credit cards that offer bonus rewards on restaurant purchases help consumers get cash back on their spending that they can use to offset higher prices at restaurants. For example, if a credit card earns triple points or 3% cash back on restaurant spending, that reward amount turns into a 3% discount on restaurant purchases if the cardholder redeems their rewards for statement credits.

Some rewards credit cards also allow users to exchange for gift cards at restaurants, while others offer discounts or credits for food delivery through providers like Uber Eats.

My favorite dining card: Chase Sapphire Preferred®

My personal card for purchases in the restaurant is Chase Sapphire Preferred® Card as it earns three times as many points on restaurant purchases, including takeout and delivery.

The card also earns 5 points on travel bookings through Chase Travel℠, 3 points on online grocery purchases (excluding Target, Walmart and Wholesale Clubs), 3 points on select streaming services, 2 points on other travel purchases and 1 point on everything other expenses.

My family uses this card heavily (along with my husband’s card Chase Sapphire Reserve®) to earn as many Chase Ultimate Rewards points as possible. These points are very valuable as they transfer to 14 different partner airlines and hotels. They can also be used to book travel through the Chase Travel portal or for gift cards, credit, merchandise and other flexible options.

How to get the most savings from the Chase Sapphire Preferred®

I maximize my Sapphire Preferred® rewards by using it for a variety of everyday purchases and bills, especially restaurant purchases. This helps me earn more rewards over time, which I usually exchange for travel expenses later.

I almost always transfer my Chase points to select partner airlines and hotels, including British Airways, Southwest Rapid Rewards, United MileagePlus, and World of Hyatt. This helps me earn more than 2 cents per point on most redemptions, making these rewards even more valuable.

It’s also worth noting that the Sapphire Preferred does not charge foreign transaction fees. This is a useful benefit because I travel outside of the United States a lot and want to earn rewards on dining and other purchases when I do.

Other great lunch cards to consider

There are many other great restaurant credit cards that can help cover the rising cost of dining out.

Capital One SavorOne Cash Rewards Credit Card

The Capital One SavorOne Cash Rewards Credit Card offers new cardholders a $200 cash bonus if they spend $500 in purchases within three months of account opening. Once you get the bonus, stay to get the lunch rewards.

You can earn 3% cash back on restaurants, entertainment, popular streaming services and groceries and 1% back on other purchases. Plus 5% on hotels and car rentals booked through Capital One Travel.

There’s no annual fee, and members even get 10% off Uber and Uber Eats purchases and pay Uber One membership fees until November 14 (registration required).

This makes this card a good option for both dining out and ordering from your favorite restaurant. Finally, SavorOne doesn’t charge any international transaction fees, so it’s a good option for traveling around the world.

Chase Freedom Flex® Credit Card

The Chase Freedom Flex®* other credit card with no annual fee which earns bonus rewards for restaurants and other everyday categories. It has the same welcome bonus as SavorOne: a $200 cash bonus after you spend $500 in purchases within three months of account opening.

It also offers 3% cashback on dining and 5% cashback on travel booked through the issuer’s travel portal. But that’s where the similarities end. Freedom Flex, somewhat uniquely, also offers 5% cash back (up to $1,500 on combined purchases in the quarterly bonus categories when you activate) on purchases that change quarterly, giving it a good earning potential, especially given the lack of an annual fee.

While earning 3% on dinner with this card is always nice, Chase Freedom Bonus Categories usually include restaurants at least once a year. For example, the Freedom Flex category for the second quarter of 2024 (April to June) included Amazon.com, hotels and restaurants. That means you could potentially earn up to 7% on $1,500 in restaurant spending for three months of the year.

Other ways to save money and still eat out

If you’re planning to use a rewards credit card to offset the sudden spending spree on dining out, you’ll want to pay off the credit card balance in full each month to avoid paying credit card interest. Other ways to save money at a restaurant with or without a credit card include the following:

  • Set a monthly food budget. Using a written monthly budget (or one of best budget apps) can help you track your spending and prioritize the things you need most. If you can cut something else in your budget, you can free up a little extra money for dining out.
  • Exchange credit card rewards for restaurant gift cards. Most cash back credit cards allow users to exchange rewards for restaurant gift cards, including the cards above. This redemption can help you get some restaurant meals for virtually free, which is always a good deal.
  • Go out for lunch instead of dinner. Lunch prices tend to be lower than dinner prices, even though you are very often getting exactly the same food. You can save a lot by going out for lunch (or even breakfast) instead of dinner a few times a month.
  • Click on happy hour. Finally, look out for early bird or happy hour deals on dining and drinks. Happy hour menus usually center around alcoholic beverages, but they also often include appetizers and small bites at lower prices.

Result

Restaurant prices aren’t likely to drop anytime soon, but we do have some power over how much we pay for our food. We can dine out less often, look for food deals, and go out to eat in the afternoon instead of in the evening.

Having an eligible cash back or rewards credit card can also save you a lot on dining out, whether you’re using the card to maximize rewards at restaurants or redeem points at restaurants after the fact. But this strategy only makes sense if you plan to pay off your credit card in full every month.

*All information about the Capital One SavorOne Cash Rewards and Chase Freedom Flex Credit Card was independently compiled by CNET and has not been verified by the issuer.