Squander fried food on holiday (7,4)
I believe the answer is:
fritter away
'squander' is the definition.
(I know that fritter away is a kind of squander)
'fried food on holiday' is the wordplay.
'fried food' becomes 'fritter'.
'on holiday' becomes 'away' (away from one's home).
'fritter'+'away'='FRITTER AWAY'
(Other definitions for fritter away that I've seen before include "waste" , "Squander" .)