Despite rates being on the decline, inflation continues to wreak havoc on American wallets. The rising costs of food and living essentials are affecting households nationwide, leaving many struggling to make ends meet, especially in the festive season. But in all that negativity, which U.S. states are dealing the best with these rising costs, and who is expecting a brighter future?

SumUp analyzed the rising costs of food across America ahead of Thanksgiving. The report took a deep dive into food insecurities, the price of traditional Thanksgiving meals, and social media trends. The data reveals the states that are dealing the best with the rising cost of food – looking at the rising costs for businesses and the effects it has had on foot traffic for restaurants across the country.

This study indexes data from nine different metrics and presents the “Worry Score”, which relates to the struggle of people to afford food, reducing the ability to enjoy luxuries like dining out. The lower the score, the better a state is at combating inflation.

Which States are the dealing the best with cost of living on Thanksgiving?

With Thanksgiving celebrations taking place today, families prepare to celebrate together around the dinner table, and some states are expected to struggle more than others due to rising costs. The impact of inflation has made the holiday's traditional meal significantly more expensive, with several high-cost states facing particularly steep prices. But some states have managed to keep the costs down:

New Hampshire ranks first as the least worried state about inflation on Thanksgiving, with a worry score of 16.85/100. Whilst the average cost of Thanksgiving meal in 2023 remains higher than other states in the Top 10 ($84.75), the low monthly cost of food ($183) and an average income of $74,663 makes it the most affordable state in the holiday season. New Hampshire is also the state where food insecurity is the lowest (6.20%). 

South Dakota takes the second spot as the least worried state about cost of living on Thanksgiving, with a score of 20.04/100. Last year, the average cost of a Thanksgiving meal was $77.65 and with an average monthly cost of $286.23, it is safe to say that South Dakotans are fortunate when it comes to food affordability. Moreover, it is the state with the lowest number of food bank searches (1,320) in the US.

Kansas completes the podium with a worry score of 20.49/100. In Kansas, the average price of a Thanksgiving meal stands at $79.98 and the monthly groceries ($261.35) are cheaper than in South Dakota.

New Jersey ranks 5th with a worry score of 22.92/100. The cost of a Thanksgiving meal in 2023 was $75.43 and despite an average monthly cost of groceries standing at $343.67, the Garden State remains one of the least worried states about cost of living in the holiday season.

Cost of eating out and the strains on small businesses nationwide

Despite the steady decline in inflation since July, restaurants and small businesses are still grappling with rising costs. Whilst the cost of a Thanksgiving meal hasn’t risen for the first time since 2020, the cost of purchasing food supplies keeps growing (see figure 1), leading to many small businesses being forced to raise their prices [2].

In the last year, restaurant prices have jumped as much as 3.5% due to the rising costs of buying products. The USDA, Economic Research Service (ERS) Food Price Outlook (FPO) reveals the increase in wholesale prices for businesses. Wholesale beef increased by 4.2% in the past year. Other increases include milk (4.6%), eggs (11.7%), and vegetables (5%) [3].

Other data also found unprocessed foods have gone down 2.5% year-on-year, but processed food (0.6%) and finished consumer foods (2.5%) both saw an increase.

Figure 1: The correlation between the cost of a Thanksgiving meal and PPI food wholesale

SumUp is dedicated to supporting businesses and their growth, a spokesperson at SumUp said: “With the rising costs of food prices, the strain on businesses is becoming increasingly more of a topic in the U.S. As more and more Americans struggle to afford necessities, dining out has turned from an occasional treat into a luxury that fewer can afford.

SumUp also focuses on helping businesses learn how to reach their goals and on site we have guides dedicated to push growth helping companies during these difficult times.

For example, SumUp has a blog post on how to use social media to attract new customers to your coffee shop – with the average coffee price across the US increasing by an average of 23% since 2021, these useful tips could help brands attract new customers during these tough times.

“While many businesses are relying on foot traffic and consistent customer demand, there are simple tricks to attract new customers through social media and other tactics during this tough time. The perks of eating out are becoming less of an option nationwide, leading to empty restaurants, adding to an already struggling food service industry. As inflation continues to impact every corner of the country, both families and businesses are left navigating an uncertain and challenging future”.

Want to know more about how you could be elevating your brand during these tough times? More information can be found on our blog: https://www.sumup.com/en-us/business-guide/

ENDS

Sources

[1] The Independent: https://www.independent.co.uk/news/world/americas/store-closures-us-inflation-chains-b2559894.html

[2] CNN: https://edition.cnn.com/2024/06/12/business/menu-prices-rising/index.html

[3] Economy.com: https://www.ers.usda.gov/data-products/food-price-outlook/

Other Study Sources

• Federal Reserve Bank: https://www.ers.usda.gov/data-products/food-price-outlook.aspx

• World Population Review: https://worldpopulationreview.com/state-rankings/cost-of-living-index-by-state

• Statista: https://www.statista.com/statistics/208104/average-price-of-a-thanksgiving-dinner/

• Fred St Louis: https://fred.stlouisfed.org/series/WPU578101

Methodology

This methodology analyzed food-related concerns across America by indexing data from nine different metrics. The higher the worry levels and costs, the more people struggle to afford food, reducing the ability to enjoy luxuries like dining out. The states were ranked from least worried to most worried about Thanksgiving costs.

The data was collected for each state and analyzed across the following categories:

• Grocery prices

• Food insecurity rates

• Average monthly food cost per person

• Cost of a Thanksgiving meal (2023)

• Cost of a turkey

• Social media posts discussing rising food costs

• Food bank searches

• Average income by year

About SumUp:

SumUp is a global financial technology company driven by the mission of empowering small businesses all over the world. Established in 2012, SumUp is the financial partner for more than 4 million entrepreneurs in over 35 markets worldwide.

In the United States, SumUp offers an ecosystem of affordable, easy-to-use financial products, such as point-of-sale and loyalty solutions, card readers, and invoicing.

For more information, please visit: https://www.sumup.com/en-us/business-guide/www.sumup.com/en-us/