Six Ways to Dine Out for Less

World Appetites for oil and grain have put higher food prices on the menu — literally.

Wholesale restaurant food prices rose 7.4% in 2007, the largest increase in three decades, according to the National Restaurant Association, an industry group. That's even bigger than the jump consumers are seeing at the supermarket, where grocery prices have gone up 5.3%, per the Consumer Price Index.

Blame a combination of inflation and surging demand for commodities in developing countries, says Nicole Miller Regan, senior research analyst at investment bank Piper Jaffray in Minneapolis. Oil prices hovering above $100 a barrel haven't helped, adding to shipping costs, as well as energy bills for on-site storage and cooking.

The end result might be sticker shock the next time you dine out, from haute cuisine to McDonald's — which has re-branded its Dollar Menu in many locations as the "Dollar Menu & More." Industrywide, average menu prices increased 3.7% in 2007, according to the National Restaurant Association. The group expects similar increases this year. Because consumers are also facing high grocery prices, restaurants have a little more wiggle room to raise prices without losing customers, says Regan.

Still, restaurants must eat other costs to avoid unsettling consumers' appetites, points out Paul Olson, a research analyst in Minneapolis with Restaurant Finance Monitor, an industry publication. They may be reducing portion sizes, finding creative uses for preparation scraps such as meat trimmings, or simply replacing loss-leader items like steaks with profit-heavy pastas and salads. "They're going to do their best to hide these changes," he says. "It's not going to be very noticeable to most consumers."

To counterbalance rising costs, restaurants also are offering more promotions to tempt consumers into a night on the town. Savvy consumers can easily trim their bill by 50% or more — without forgoing the filet mignon in favor of a cheap pasta dish. Try these six tips to spend less:

Reserve a Table

Planning ahead can yield significant savings, if you book the reservation through one of these two free sites:

DinnerBroker.com: Up to 30% will be deducted from your bill, depending on the restaurant and time of your reservation. A 5:30 p.m. table at Boston's highly rated (and pricey) Sel de la Terra, for example, would net you a 15% discount. Each reservation also earns 100 reward points, which can be redeemed for gift certificates at any of the site's more than 1,000 partner restaurants. Redeem 1,000 points for a $10 certificate.

OpenTable.com: Earn 100 to 1,000 points for each reservation. Redeem 2,000 points for a $20 gift check to use at any of the site's 8,000-plus partner restaurants.

Clip Coupons

Scan your local Sunday newspaper, pick up the free penny-saver publication and sort through the coupon packs in your mailbox, says Mary Hunt, founder of Debt-Proof Living, a consumer advocate in Paramount, Calif. Hunt also likes the widespread Entertainment Book, a series of regional coupon compilations. The Denver edition, currently $15, offers 20% off the city's popular Cork House wine restaurant and two-for-one medium pizzas at Domino's, among other deals. "Use it once or twice, and you've recouped the cost," she says.

Join the Club

Sign up for restaurant email lists and reward programs, which come with extra deals and exclusive coupons. Join the birthday club at Cold Stone Creamery for a complimentary ice cream sundae on your big day, plus coupons year-round. Sign up for T.G.I. Friday's e-club, and get a coupon for an appetizer on the house. You can also join its free reward program that nets you 10 points per dollar spent, with 5,750 points worth a $15 gift certificate. (A new loyalty club will debut in April.)

Pay With Plastic

"Credit-card companies are offering more dining rewards as food prices go up," says Curtis Arnold, founder of CardRatings.com in North Little Rock, Ark. "It's another hook they can use to get you interested in a card." Citibank Professional cardholders get 3% back on restaurant spending, as does the Capital One No Hassle Miles for Dining and Travel card. But be sure to read the fine print. The Chase Freedom card offers 3% back each month in three categories where that consumer spent the most. Although restaurants are a category, it only includes fast food and quick service retailers.

No matter which card you carry, consider signing up for the free Rewards Network program to earn airline miles, college savings or points on every dollar spent. Cash rewards are also available for a $49 annual fee. Just use your registered cards when dining out, and rewards will automatically be posted to your account.

Mind the Specials

Take note of when restaurants host promotional discount nights such as "Taco Tuesday," "Early Bird Specials," "Restaurant Week" or "Kids Eat Free," advises Tawra Kellam of Wichita, Kan., founder of Living on a Dime, a frugal living newsletter. These little-advertised specials can easily cut your bill by 50%. Each Tuesday at the Lone Star Steakhouse, for example, the purchase of an adult entree means two kids ages 12 and younger can eat for free. Entrees on the kids' menu generally cost $4 to $6 each. (Tuesday is also the day you'll get the best value for your money when dining out.) For more deals, check out the city-by-city lists at MyKidsEatFree.com and Unthirsty.com.

Give a Gift (Certificate)

Save up to 50% by purchasing discount certificates online. At Restaurant.com, a $25 e-gift certificate goes for just $10, whether you're dining at New York's pricey Luca Restaurant or more humble Big Nick's Pizzeria. The catch: Each has restrictions, such as night of the week or number of diners. Read up before buying. It's also worth checking eBay or swap sites like CardAvenue.com, CertificateSwap.com or Swapagift.com for unwanted items. Prices are closer to face value, says Kellam, but buyers can generally expect to save $5 on a $25 card. Right now, one Swapagift.com user is asking $200 for a $250 certificate to foodie haven The French Laundry in Napa Valley.