Cashback on dining: a treat for your wallet as well as your taste buds. Imagine savoring that perfectly cooked steak, indulging in a decadent dessert, or enjoying a casual brunch with friends, all while earning money back on your bill. It sounds too good to be true, but with the right strategies, maximizing cashback on dining is entirely achievable and can significantly reduce your overall dining expenses. Let’s dive into how you can make every meal a rewarding experience.
Understanding Cashback on Dining
What is Cashback and How Does it Work?
Cashback is essentially a rebate you receive on your purchases. In the context of dining, it means a percentage of your restaurant bill is returned to you, either as a statement credit, direct deposit, or points that can be redeemed for various rewards. The amount of cashback varies depending on the program, credit card, or app you’re using.
- Credit Card Cashback: Many credit cards offer cashback rewards on all purchases or specific categories like dining.
- Dining Rewards Programs: Restaurants themselves might offer loyalty programs with cashback or discounts for frequent diners.
- Cashback Apps and Websites: Numerous apps and websites partner with restaurants to offer cashback to users who dine at participating locations.
Benefits of Earning Cashback on Dining
Earning cashback on dining offers a plethora of benefits beyond simply saving money. It can help you budget, explore new restaurants, and even turn dining into a source of passive income (however small).
- Reduced Dining Expenses: The most obvious benefit is the reduction in your overall dining expenses. Even a small percentage of cashback can add up over time.
- Opportunity to Try New Restaurants: With cashback incentives, you might be more inclined to try new restaurants you wouldn’t have otherwise considered.
- Budgeting and Tracking: Cashback apps often provide tracking tools, allowing you to monitor your spending and identify areas where you can save more.
- Potential for Travel Rewards: Some cashback programs offer points or miles that can be redeemed for travel, making your dining expenses contribute to your next vacation.
- A Sense of Financial Savvy: It’s always satisfying to know you’re getting the best deal possible, and cashback on dining can provide that sense of financial accomplishment.
Top Credit Cards for Dining Cashback
Overview of Leading Credit Cards
Choosing the right credit card is crucial for maximizing your dining cashback. Several credit cards offer generous rewards specifically for dining expenses. Here are some of the best options:
- Chase Sapphire Preferred® Card: Offers bonus points on dining and travel, plus additional perks like travel insurance.
- American Express® Gold Card: Provides high rewards on dining at restaurants worldwide, as well as at U.S. supermarkets.
- Capital One SavorOne Rewards Credit Card: Offers a good cashback rate on dining, entertainment, popular streaming services, and at grocery stores. It also has no annual fee.
- Discover it® Chrome Gas & Restaurant Rewards: Offers rotating quarterly bonus categories that often include restaurants, plus cashback on gas.
Comparing Cashback Rates and Fees
When comparing credit cards, consider the following factors:
- Cashback Rate: The percentage of your spending that you receive back. Look for cards offering 3% or more on dining.
- Annual Fee: Some cards with higher cashback rates also have annual fees. Calculate whether the benefits outweigh the cost.
- Welcome Bonus: Many cards offer a sign-up bonus after you meet a certain spending requirement.
- Other Perks: Consider other benefits like travel insurance, purchase protection, and extended warranty coverage.
Example: The American Express Gold Card offers 4x Membership Rewards points on dining, which translates to roughly 4% cashback (depending on how you redeem the points). However, it has an annual fee. Weigh this against a card like the Capital One SavorOne, which offers a smaller percentage of cashback but no annual fee.
Using Cashback Apps and Websites
Popular Dining Cashback Apps and Websites
Several apps and websites partner with restaurants to offer cashback directly to users. Here are a few popular options:
- Rakuten: Offers cashback at a wide range of retailers, including select restaurants.
- Dosh: Automatically provides cashback when you pay with a linked credit card at participating restaurants.
- Upside: Focused on providing cashback on gas, groceries, and restaurant meals.
- Seated: Allows you to book reservations at restaurants and earn rewards, which can be redeemed for gift cards.
How to Maximize Your Earnings with Apps
To get the most out of cashback apps, follow these tips:
- Link Multiple Cards: Link all your eligible credit and debit cards to the app to ensure you’re earning cashback on every purchase.
- Check for Offers Regularly: Restaurants and cashback rates change frequently, so check the app before you dine to see what offers are available.
- Combine Offers: Look for opportunities to combine cashback offers with credit card rewards. For instance, you could use a credit card that offers bonus points on dining to pay for a meal through a cashback app.
- Be Aware of Restrictions: Some offers may have restrictions, such as minimum spending requirements or specific days when the offer is valid.
Example: Use the Upside app to find a restaurant offering 15% cashback on your meal. Pay with your American Express Gold card, which earns 4x points on dining. This allows you to “stack” the rewards for maximum savings.
Restaurant Loyalty Programs and Direct Deals
Exploring Restaurant Loyalty Programs
Many restaurants offer their own loyalty programs with exclusive perks, including cashback, discounts, and free items.
- Starbucks Rewards: Earn stars for every purchase, which can be redeemed for free drinks and food.
- Chili’s Rewards: Earn points for every dollar spent, which can be redeemed for free appetizers, desserts, and entrees.
- Panera Bread MyPanera: Receive personalized rewards and offers based on your past purchases.
Finding Direct Deals and Discounts
In addition to loyalty programs, restaurants often offer direct deals and discounts through their websites, social media, and email newsletters.
- Sign Up for Email Lists: Subscribe to your favorite restaurants’ email lists to receive exclusive offers and promotions.
- Follow on Social Media: Many restaurants announce special deals and discounts on their social media channels.
- Check for Coupons: Look for coupons in local newspapers, magazines, and online coupon websites.
Example: Sign up for the email list of your favorite pizza place. You might receive a coupon for 20% off your next order, which you can combine with cashback earned through a credit card or app.
Strategic Dining for Maximum Cashback
Planning Your Dining Experiences
Strategic dining involves planning your meals to maximize your cashback earnings. This includes choosing restaurants that participate in cashback programs, dining on specific days when offers are available, and optimizing your payment methods.
- Research Restaurants in Advance: Before you go out to eat, research restaurants in your area that participate in cashback programs or offer direct deals.
- Consider Timing: Some restaurants offer discounts or special deals on certain days of the week or during specific hours.
- Make Reservations Strategically: When using apps like Seated, make reservations at restaurants offering the highest rewards.
Combining Strategies for Increased Savings
The real magic happens when you combine multiple cashback strategies. For example:
By combining these strategies, you can significantly reduce your dining expenses and enjoy your meals even more.
Conclusion
Earning cashback on dining is a smart and simple way to save money while enjoying your favorite restaurants. By understanding the different options available, choosing the right credit cards and apps, and strategically planning your dining experiences, you can maximize your rewards and turn every meal into a rewarding experience. Start exploring your options today and begin reaping the benefits of cashback on dining!