This study investigates factors influencing household decisions on food away from home (FAFH) consumption with special interest given to the effects of employer subsidized meals on FAFH consumption. Using data from a new urban food consumption survey and collected by the Center for Chinese Agriculture Policy from 2009 to 2012 in 10 cities, a double-hurdle model is utilized to estimate the demand for FAFH as a whole and by type of facility (restaurant, fast-food outlet, and other facilities). The key findings suggest that households with at least one member receiving subsidized meals are more likely to participate in the FAFH market, but these households spend less when they dine out than their counterparts without employer subsidized meals.