The laws get interpreted for take out and groceries depending on the state and how the law is written. It should be two very different things. In some states people order their McDonald’s take out and then sit themselves right down and eat in. It’s a loophole in my opinion.
When I think of tax free food I think grocery store, not restaurants, but many grocery stores have buffets and prepared meals and even tables and chairs to eat right there, so one could argue that food should or could be taxed differently than other grocery food items.
Most people feel grocery taxes are regressive taxes, hurting the poor most of all.
I don’t think taxation on particular food items affects purchasing much. I don’t think people opt for fresh produce over packaged goods, because of tax.
Back to the main Q I don’t think it’s about home consumption, it’s just whether something is eaten in a restaurant or not and the definition of restaurant. You can take it all one step further and tax on goods you think are bad, like a sin tax. Tax things like coca cola, desserts, but would you tax all packaged goods? Frozen veggies are healthy. I think we could argue Boca Burgers aren’t that bad for you?
When I talk about racing foods I think if what is found in a grocery store/supermarket and I don’t think any if it should be taxed. Especially not staple goods like milk, cheese, bread, produce, etc.