Food is one area where I don't really try to save money, mostly because I follow a "paleo" style diet, meaning I eat mainly fish, meat, eggs, fruit, vegetables, seeds, and nuts; I don't eat any processed food, which is usually cheaper. I buy my eggs, nuts, meat and fish and Whole Foods, because at the moment I'm trying to stick to grass-fed,no hormones, cage-free, etc. etc. So that definitely adds up; probably $300 a month. I buy produce at a local stand, which sells everything dirt cheap (some of it is not as pretty as grocery produce, but it tastes great!). They have a mix of organic and non-. I buy bags and bags of produce but only spend about $50/month there. With some incidentals on top, I probably spend $375-400 a month. I always eat breakfast at home, and bring my lunch to work every day. Dinners are a mix. I eat out at least twice a week, so the $400 does not include those meals.
I know I spend a lot on food but since I am sticking to a somewhat restrictive diet (no dairy, grains, sugar, soy, peanuts, potatoes, beans...) it is worth it to me to really love the food I AM eating. Plus my health has benefited in so many ways, I'm probably going to be saving lots of money on medications.
If I had a family, or had to take a big income hit, I'd rethink this part of my budget. But for now it's something I'm willing to spend money on. Though, to be honest, reading this post has made me think "hey, if I cut it down by $50, that could go into my vacation fund..."