Got 18% savings on gift cards to spend on dining from Giant Eagle. We drink water, which makes the dining plan a bad deal for us. We ate what we wanted and at fabulous places because food is a big part of travel for me. Spent more on food than our villa rental at Beach Club or on park tickets (though I got amazing deals on both thanks to the people here on the Budget Boards.) I had $1000 in gift cards, so spent about $820.
Honestly, unless you are doing character meals or Boma, save on breakfast and eat it in your room. The hot breakfast we got at the Beach Club quick service was not good. I would have preferred cold cereal. We did a bunch of character meals for the characters. Food was ok, but if your family doesn't care about characters, then save your money for something else.
If you opt for making your own meals, then splurge on special snacks in the parks. You may not remember or crave the burgers and fries, but you will remember Dole Whips, Mickey Bars, and Karamel Kuche. $10/person for snacks a day would get you about 3 memorable treats each. Kids feel spoiled when you say yes to something they spot and want, and it's fun for about the same cost as a boring quick service meal, only you get to eat 3 times.
Decide what is important to you and then figure out how to minimize the cost. I wanted a luxury vacation at a deluxe resort eating at character and fancy restaurants, so we shortened the trip to 5 days/ 4 nights and arrived at 8:30am the first day and left at 9pm the last day. This saved not only the cost of another hotel night or two but also saved a vacation day from work. We left Saturday night so we had Sunday to recover from our trip before work. Don't be fooled. Regardless of the length of trip, Disney will almost always be high energy. You will probably be tired at the end. Anyway, shorter trip also meant fewer meals to buy, so I could go to expensive places and spend about the same as eating at more quick service on a longer vacation.
For our first trip when we were poor students, we bought canned soups with the pop off lids, PB & J and cheap bread, cereal and milk, bananas, and a few pastaronis. Spent $10-15 for 4 days on food for the 2 of us. We did splurge on a $10 turkey leg that DH saw people eating everywhere and really wanted (costs more now).
So $820 or $25. Both are savings- the first is 18% savings off of expensive meals, the second is downright cheap, but it was all we could afford at the time. We even slept our last night in the airport for an early flight the next day because we couldn't afford another hotel night (bought buddy tickets to Orlando 6months prior for $180 total, so we had the flights before we knew we would have other expenses that used up our savings). Again, what you end up spending is really about your personal priorities.