Let's eat, out in the city (7)
I believe the answer is:
seattle
'city' is the definition.
(Seattle is an example)
'let's eat out' is the wordplay.
'out' indicates anagramming the letters (out can mean wrong or inaccurate).
'lets'+'eat'='letseat'
'letseat' anagrammed gives 'SEATTLE'.
'in the' is the link.
(Other definitions for seattle that I've seen before include "Washington port" , "City of north-west USA" , "Port of north-west USA" , "somewhere in Washington" , "Let's eat at this US city" .)