Best Credit Cards for Restaurants and Takeouts

We’re currently experiencing a global pandemic caused by the novel Coronavirus (COVID-19). Let’s face it, the virus has completely changed the way we eat, work, and interact with each other in social and professional settings. Our spending habits are changing, and many small businesses, especially those in hospitality, are suffering from loss of patrons. However, takeout and meal delivery services are still available options for many restaurants, bars, and cafes. If you want to support your favorite local establishment and earn points at the same time, consider using the cards below!

Craving a burger from your favorite local restaurant while saying virus-free? Use one of the cards below to maximize your points earning!

Citi Prestige

The Citi Prestige card earns 5X ThankYou points per dollar on dining at restaurants and airfare directly purchased with airlines, 3X on hotels and cruises, and 1X on all other purchases. The annual fee is that of a premium rewards card at $495, but it does provide a $250 annual credit that covers most travel and transportation, including tolls and parking. Recently, Citi expanded the categories for the $250 travel credit, and Citi Prestige cardmembers can now use the credit towards supermarket spends and restaurant bills through December 31st, 2020. Other benefits such as a 4th night free during your hotel stay can also significantly offset the annual fee. 

The Citi Prestige’s annual fee is on the higher side, but it also earns a total of 8.5% back on restaurant purchases. Photo credit: www.citi.com

Citi ThankYou points are currently valued at 1.7 cents each according to The Points Guy; the Citi Prestige will earn you 8.5% back on restaurant and takeout spending.

Chase Sapphire Reserve

The Chase Sapphire Reserve has one of the highest annual fees among premium rewards cards at $550, but don’t be scared by its price tag. It earns 3X Ultimate Reward (UR) points back on travel expenses, such as airfare, hotels, and dining, including delivery services, fast food restaurants, and cafes. The card also has plenty of benefits that can considerably reduce the annual fee. The Chase Sapphire Reserve comes with a $300 annual travel credit which is just as inclusive as the Citi Prestige’s travel credit. Due to its recent partnership, Chase also offers cardmembers an annual $60 statement credit for DoorDash. The partnership agreement is in effect until 2021, so that’s a total of $120 in credits to be used. Reserve cardmembers using DoorDash will have delivery fees waived as well. Given the unique circumstances shaped by COVID-19, there are several reports that Chase Sapphire Reserve cardmembers are receiving a $100 credit towards their annual fees. It’s unclear whether this applies to new applicants; nonetheless, it’s a great move by Chase to retain its client base.

The Chase Sapphire Reserve can earn you valuable UR points while saving you on takeout with its DoorDash credits.

Chase Ultimate Rewards are currently valued at 2.0 cents per point according to TPG, meaning the Chase Sapphire Reserve will earn you 6% back on restaurant and takeout spending. 

If you would like to learn more about the Chase Sapphire Reserve card, read our review HERE.

American Express Gold Card 

The American Express Gold Card comes with an annual fee of $250, considerably less than those of its Citi and Chase counterparts above. It earns 4X Membership Rewards (MR) points at restaurants worldwide and U.S. supermarkets, 3X on flights booked through airlines and hotels through the AMEX Travel portal, and 1X for all other purchases. The Gold Card comes with a $100 airline incidental credit every cardmember year and offers $120 dining credits, broken down into a $10 monthly allowance. The dining credits can be used on delivery services such as Seamless and Grubhub or at specific restaurants and merchants such as The Cheesecake Factory, Shake Shack, Ruth’s Chris Steakhouse, and Boxed.  I wish the dining credit was provided as a lump sum, but since most people do use delivery services at least once a month, I still value the $120 dining credit at 100%. Combining the airline incidental and dining credits, the effective annual fee of the Gold Card becomes $30, making it a worthwhile card for most people to have. 

The American Express Gold Card offers $120 worth of dining credits and earns 4X MR points per dollar on both grocery and restaurant expenses, making the card very useful during this challenging time. Photo credit: www.americanexpress.com

Using TPG’s valuation, AMEX MR points are valued at 2.0 cents per point; the Gold Card will earn you 8% back on restaurant and supermarket spending. Since most of us are probably spending a lot on groceries during this time, you should be able to rack up tons of MR points by using the Gold Card for these purchases.

If you would like to learn more about the American Express Gold Card, read our review HERE.

If you’d like to apply for the American Express Gold Card, please consider using my referral link. It will continue to help fund my blog and educate existing and potential cardholders make the most informed decisions to maximize their rewards earnings. Thank you! http://refer.amex.us/EDWARS3dEu?XLINK=MYCP

Honorable Mention: American Express Green Card 

The American Express Green Card has the lowest annual fee among the cards mentioned above. It will cost $150 a year to keep this one in your wallet, but it still earns 3X MR points on restaurants worldwide and travel categories such as flights, tolls, and parking, and 1X MR point on everything else. Though the Green Card does not come with dining credits, it does come with other travel benefits such as a $100 credit towards a CLEAR membership and $100 annual credit for lounge passes purchased through LoungeBuddy. These credits are harder to use than typical travel or dining credits, but if you could capitalize on them all, you’ll come out ahead of the annual fee. Luckily, AMEX recently tweaked its benefits packages for select cards due to changes in today’s world; Green cardholders can receive up to $80 in statement credits when they use the card to pay for wireless telephone services purchased directly from U.S. service providers. This perk is divided into $10 per month and will only last from May through December 2020.

The American Express Green Card has the lowest annual fee of all, but its benefits are more difficult to use than others. Photo credit: www.americanexpress.com

Using the valuation of 2 cents per MR point, the American Express Green Card earns 6% back on restaurant and takeout spending. Since it earns versatile MR points, the card ranks as a worthy honorable mention among cards to have during these strange times. 

If you’d like to apply for the American Express Green Card, please consider using my referral link. It will continue to help fund my blog and educate existing and potential cardholders to make the most informed decisions to maximize their rewards earnings. Thank you! http://refer.amex.us/EDWARSGhHQ?XLINK=MYCP

Summary

COVID-19 has drastically changed the way we live. Many people have lost their jobs, including those in the hospitality industry, which is reeling from the stay-at-home orders mandated across most of the country. Ordering takeout and using meal delivery services can be great ways to support local restaurants, and what better way to do so than by using cards that will maximize your earnings in these areas? The Citi Prestige will give you an 8.5% return on dining, while the AMEX Gold Card will yield an 8% return on restaurants plus grocery spending. The Gold also comes with a $120 dining credit that can be used towards meal delivery services such as Seamless and Grubhub. The Chase Sapphire Reserve only yields a 6% return on dining but also has a partnership with DoorDash that provides cardmembers a $60 annual credit. Lastly, the AMEX Green Card has the lowest annual fee of the bunch, while earning the least back on dining at 6%.  If you have any of the cards above, consider using them to maximize your points earning potential. Rewards bonuses aside, I hope everyone stays safe during this unprecedented health crisis!