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An analyst at Wells Fargo was celebrated by the mainstream media when he declared it could be a smarter financial move to eat out this Thanksgiving rather than cooking at home due to surging food prices.
Brad Rubin, the bank’s food and agribusiness analyst, argued that given the price of staple groceries, this year could be the first time eating out could be a better option than at home. At root of his theory is the fact that the cost of dining out rose 8.6 percent compared to a 12.4 percent increase in grocery bills.
He said what has been considered a “luxury experience” in past years, could now be considered a “value experience this year.”
“If you’re a family of four and you have to prep and buy commodities associated with that Thanksgiving meal, it actually may benefit you to go out to eat—it will be a similar price,” he said. “It’s considered a luxury to some, and this year there is a lot of value in eating out.”
The U.S. Bureau of Labor Statistics announced last week that the consumer price index increased by 7.7 percent in October compared to the previous year, which was the lightest year-to-year jump since January. The numbers were embraced by stock traders and the Dow increased by 1,200 points on the news. (See “SPOTLIGHT: INFLATION” and “AIRLINE TRAVELERS IGNORE INFLATION, HIGHER TICKET PRICES.”)
Wholesale turkey prices are up 23 percent this year, and bad weather for much of the country contributed to a jump in the cost for carrots, celery, onions, and potatoes. Butter has increased 26 percent, and canned fruit and vegetables are also up 18 percent.
TRENDPOST: Even eating dinner at a low-quality chain restaurant could be more expensive—and aggravating—than cooking at home. In 2021, according to the American Farm Bureau Federation’s Thanksgiving cost survey to feed 10 people totaled $53.31 or less than $6.00 per person.
Russell Boening, the president of the Texas Farm Bureau, told WFAA that the traditional Thanksgiving meal this year will likely cost a party of 10 at least $65.
The Trends Journal looked to place an order for 10 from Boston Market, and the bill came to about $120. If you go to McDonalds and buy the large Buttermilk Crispy Chicken meal for 10, the bill would come to $63.90, just below the average price of a home-cooked meal.
The National Retail Federation last week said it believes there will be a growth of about 8 percent in U.S. holiday sales in 2022, or up to $960.4 billion.
Price Waterhouse Cooper noted in its holiday outlook report that U.S. consumers plan to spend an average of $1,430 on gifts, travel and entertainment this holiday season, Investors Business Daily reported, which is down from the $1,447 they spent last year.