Each year, market research companies like Technomic question consumers about their Thanksgiving plans in order to provide direction for the industry. Despite higher restaurant food prices, demand for ready-made Thanksgiving meals for pickup will remain strong.
In our article from last year, Restaurant owners were battling months of higher input costs and an inability to raise prices at the same level. From last year:
Input prices have gone up at a much faster pace than menu prices. In the last 18 months, menu prices have increased by only 6%. According to Paul Westra, managing director of restaurant investment research at Capital One.
Since then, menu prices have gone up, often significantly. Technomic discovered that 23% of consumers have plans to pick up a ready-made Thanksgiving meal from a restaurant. 22% say they will cook their own bird but pick up side dishes from restaurants. *
Although those numbers are good, they are down from the 29% last year who planned to purchase a full meal and some trimmings from restaurants.
Cheaper At Home Than Last Year
This year, it will be cheaper to cook at home than last year – primarily due to the price of turkey.
According to Winsight Grocery Business, the decrease is due to the reduced impact of avian flu. Avian flue affected nearly 59 million birds.
Turkey makes up about 45% of the cost of a Thanksgiving meal and this year, a 16-pound bird averages $27.35, down 5.6% from 2022. In addition, most other meal ingredients are less expensive. For example, a Half-pint of whipping cream is $1.73 (down 22.8%), and a 12-ounce bag of fresh cranberries is $2.10 (down 18.3%).
Data and tech company Numerator conducted a survey of 4,500 consumers to gauge their 2023 holiday plans. Over 90% plan to celebrate Thanksgiving, and more consumers will be cooking and baking this year compared to last—61% versus 54%. Turkey tops the list, with 59% of respondents choosing to cook turkey or turkey breast. *
The Technomic survey found that 94% of respondents celebrate Thanksgiving and that 63% will have a gathering about the same size as last year.
More People Will Hit the Road Than Last Year
In their annual survey, GasBuddy found that 41% of the U.S. will take a road trip. That’s up 8% from last year. Luckily for them, gas prices have decreased from recent highs.
Additionally, the national average price of gas is projected to drop to $3.25 per gallon, saving Americans $573 million during holiday travel compared to last year.
Fewer respondents (36 percent) said their plans were affected by high prices this year than last year, further demonstrating the relief at the pump, according to GasBuddy. **
Some other interesting findings from GasBuddy’s survey:
- 19% said they would not travel this year because of inflation.
- 46% said gas price was the most significant factor in choosing a pitstop versus location or convenience.
- 55% plan to use a loyalty program or cash-back to save money on gas
A Better Outlook
It was widely believed that the economy would be in recession this year and that the economy would be lucky to do as well as last year. Fortunately, consumers and businesses have generally found ways to deal with inflation and put most of the challenges of Covid behind.
America will be able to count its blessings this Thanksgiving.
** CSNews
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