Barbecue lovers, rejoice: The cost of hosting a Fourth of July barbecue could be lower than it was in 2023 (provided consumers eschew convenience and prepare more staples at home).
The Consumer Price Index (CPI) for food at home increased 1% in mid-June 2024, compared to 5.9% last year. In contrast, the CPI for eating out increased 4%.
In a new report, Wells Fargo’s Agriculture and Food Research Institute breaks down the costs of popular Fourth of July menu items to reveal which items are more affordable this year and which are more expensive.
Grilling a burger is three times cheaper than taking it out
The current cost of ingredients to prepare a quarter pound burger with cheese, tomato, and lettuce at home is $2.15. In contrast, the average price of a quarter pound burger across a sample of five popular QSRs, including McDonald’s, Five Guys, and Smash Burger, is $6.95.
That means for a party of 10, home chefs can save about $50 on burgers by firing up the grill and trying out this season’s best barbecue trends.
“Undoubtedly, the biggest savings this year will come from those who prepare their burgers and side dishes at home,” said Dr. Michael Swanson, chief agricultural economist at the Wells Fargo Agri-Food Institute and author of the report. “But there’s hope for consumers who need convenience, because many of the most popular fast-food chains are rolling out ‘deal’ offers as restaurants fight for consumer dollars.”
Side hustle savings
Potato salad is a budget-friendly side dish to try this year, especially for hosts who want to prepare it at home.
According to the Bureau of Labor Statistics, white potatoes are selling for $0.96 per pound nationwide, down 4.4% from a year ago. As people look for more convenient options, the price of potato salad in supermarkets is also down 0.7% from a year ago.
In comparison, potato chip prices increased 2.7% year over year. In the dips category, salsa prices increased 2.5% and guacamole prices fell 1.1%.
“When you consider the total price of a bag of chips, they’re still a great value as an appetizer or burger side dish,” Swanson says. “Tortilla chips and guacamole are also a smart festive snack choice this year.”
The prices of most drinks are rising
Prices for ready-to-drink bottled iced tea increased 2.4%, in line with the overall beverage category.
Beer prices were still up 1.2%, while wine was up 3.4% year-on-year.
In the soft drink category, prices for 12-ounce cans rose 4.8% due to rising aluminum prices, while prices for 2-liter soda bottles fell 6.5%.
As Swanson points out, frugal people can save money by preparing iced tea at home and stocking up on 2-liter soda bottles and cups when hosting a barbecue.
Sweet treats are special
Ice cream prices are expected to be even higher this year, as they increased 3.3% from last year.
Prices for takeaway bakery items have also risen, with cakes increasing by 1.6% and cupcakes by 5.6%.
“This reflects the rising wage rates that bakers and supermarkets continue to face,” Swanson concluded. “Although cake mixes have increased in price by 6.6%, most other ingredients are already in your pantry or fridge, so there’s still an opportunity to make your wallet a little easier by putting your baking skills to use.”
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