The most common and most likely answer to this crossword clue is the 3 plus 4 plus 7 letter word OFF ONES TROLLEY
I've seen this crossword clue in The Guardian
O
F
F
O
N
E
S
T
R
O
L
L
E
Y
Buddy explains!
The straight part
We know that "out to lunch" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case out to lunch = off ones trolley.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.