How much would buying a weeks groceries for three people cost in southern france?

If you were buying primarily things for lunch like sandwiches/drinks like milk and water?
Also how much does the average restaurant in southern france cost for dinner?

I live in southern France. Just got back from my local Carrefour, and prices for two (for a week) were 70 euros. If you are really going to go on a shoe-string, I would recommend you allow around 150-200 euros a week. France is definitely more expensive than the States (as has already been noted by another contributor), and given the USD-Euro exchange rate--well, let me just say that I can imagine how frustrating that is at the moment.

If you are a wine drinker and a dessert eater, count on the average dinner (evening) at a restaurant costing about 80 euros--if you are in a city like Nice or Aix-en-Provence or Montpellier. Other places will more than likely be cheaper.

a lot less then in america.

The Euro to US Dollar exchange rate fluctuates. I just returned from Provence and it was a fantastic trip. Food was relatively inexpensive except in Monaco/Monte Carlo. For instance, we normally picked up 1 liter water bottles (depending on the manufacturere) for about 1 Euro (high side) and great red/white wines were very inexpensive from about 4 Euro on the low side to 15 Euro on the high side.

Average meals ranged from 6-7 Euro's to very expensive (50-70 Euros in Monaco/Monte Carlo).

Stick to where the locals go to shop and eat...it's a lot cheaper.

Good Luck and have fun.

Groceries in France are not so much more or less expensive than what you find in the U.S., how much you spend will depend on what you buy and where... much the same as in the U.S! Will you buy name brand or store label? Expensive or cheaper cheese, bread, meat, etc....? You can buy a very good sandwich "to go" at a market, bakery or restaurant for about 3 euro, but you could buy groceries to make your own for less than 2 euro/ea.

Basic things like the things you mentioned - milk, water - as well as bread, cheese, meat, veggies, are generally not expensive if they are regionally produced, and for produce, in season. Probably comparable to the U.S., though with exchange rate, everything costs 30% more for Americans.

If you shop at large supermarkets, you will spend alot less money (33-50% less) than if you go to a small convenience/food market. You will also pay less if you shop in more residential areas and not a touristy area.

As for restaurant dining, you can get a decent meal with wine for less than 15 euro. If you're in a touristy spot, you'll pay a premium (whether in money or quality).