Just by looking at the picture of her groceries, I would say that there's still some savings to be made in a few places. Buying the ingredients in bulk, and avoiding pre-made foods, like the spaghetti sauce and muffins would make some savings. You can buy large bags of flour, rice and sugar at Costco. Same with tomato paste and whole tomatoes. Of course, cooking from raw ingredients takes more time, and having three little ones is demanding.
All in all, I think this story just shows that with some attention to the bottom line, there are ways to make the trip to the grocery store a little less painful, but other factors often come into play.
I bought a 20 lb bag of Basmati....I'm set for life.
I make a huge batch...and freeze portions in baggies. Flat and stack.