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Cyan comments on How Not to be Stupid: Know What You Want, What You Really Really Want - Less Wrong
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Your example only shows that your preference ordering is:
"go to an Italian restaurant with friends" > "go to a Mexican restaurant with friends" > "ditch my friends and go to an Italian restaurant alone"
I agree, however, the definition of preferring A to B that he gave was choosing A over B (and if we don't specify that A and B must be total world-states, then it would turn out that I prefer Mexican to Italian because I chose Mexican over Italian). Psy-Kosh's comment above explains why that isn't what he meant.