According to an analysis by the Wells Fargo Agri-Food Institute, celebrating Independence Day with a homemade burger will be significantly more economical this year compared to dining out.

Cost Comparison: Home-Cooked vs. Restaurant Burgers

Cooking a quarter-pound hamburger at home, complete with cheese, tomato, and lettuce, will cost approximately $2.16. This calculation includes the cost of ingredients, with labor costs typically subsidized by family or friends. In contrast, the same burger ordered at a restaurant will set you back an average of $6.95, based on data from five fast-food establishments analyzed in the report.

Economic Insights: Factors Driving Cost Disparities

The analysis highlights a notable disparity in costs between dining at home versus at restaurants. Inflation rates at supermarkets have stabilized, with the mid-June Consumer Price Index (CPI) for food at home rising by just 1%, a stark contrast to the nearly 6% increase observed in mid-June 2023. Conversely, food away from home saw a 4% rise in the CPI during the same period, driven largely by escalating labor expenses that restaurants are passing on to consumers.

Courtney Schmidt, sector manager for protein at the Wells Fargo Agri-Food Institute, emphasized, “It’s always been cheaper to eat at home, but we are seeing a widening of that spread.” She explained that approximately 70% of the cost of dining out is attributed to factors beyond food expenses, such as labor, convenience, and overhead costs, underscoring the financial advantage of cooking at home.

Smart Shopping Tips for Your July Fourth Celebration

Considering side dishes, making your potato salad can lead to significant savings, with white potatoes currently priced around $0.96 per pound nationwide, marking a 4.4% decrease from last year. Even prepared potato salad from grocery stores costs less than what you’d pay at a restaurant, with prices down by 0.7%.

While potato prices have fallen, indulging in chips may incur a higher expense, as mid-June prices showed a 2.7% increase compared to the previous year. On the other hand, salsa prices rose by 2.5%, whereas guacamole saw a slight decline of 1.1%, according to NielsenIQ data.

For beverages, opting for two-liter bottles of soda can lead to savings, as they are down by 6% in price this year compared to the rising costs associated with aluminum affecting 12-ounce soda cans, which have increased by nearly 5%. Courtney Schmidt recommended, “Bring out the cups and share to save money,” encouraging cost-effective strategies for enjoying beverages during festivities. By making informed shopping choices and leveraging the economic advantages of preparing meals at home, consumers can maximize their savings while celebrating Independence Day in style.