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Thanksgiving Costs Are Down in 2025: What It Means for Small Businesses

Erika Willitzer
5 days ago
2 min read

Thanksgiving is more than a holiday—it’s a cornerstone of American tradition and a major driver of seasonal spending. This year, small businesses have reason to celebrate alongside their customers: grocery prices for the holiday feast are easing.

The Numbers Behind the Feast

Wells Fargo’s Thanksgiving Food Report found that a store-brand menu for 10 people costs about $80, while a name-brand menu comes in around $95—both reflecting a 2–3% decrease compared to last year.
The American Farm Bureau Federation’s annual survey reported the average cost of a classic Thanksgiving dinner for 10 at $55.18, down 5% from 2024 and marking the third consecutive year of declines.
Turkey prices, a major driver of the meal’s cost, have dropped significantly, helping offset increases in items like sweet potatoes and fresh vegetables.

Why This Matters for Small Businesses

For small businesses—especially those in food, retail, and hospitality—these findings carry important implications:

Consumer Relief = More Spending Power
Lower grocery bills free up household budgets. Families may be more willing to spend on extras like desserts, specialty items, or dining out.
Opportunity for Local Shops
With national headlines highlighting affordability, small businesses can position themselves as part of the “good news story.” Promoting locally sourced turkeys, pies, or side dishes taps into both affordability and community pride.
Marketing Angle: Value + Gratitude
Small businesses can emphasize value in their holiday promotions. Messaging around “celebrating together without breaking the bank” resonates strongly when consumers are already hearing about lower costs.
Hospitality Boost
Restaurants offering Thanksgiving specials may see increased interest, as consumers balance cooking at home with treating themselves to prepared meals. Lower grocery costs don’t eliminate demand for convenience.

The Bigger Picture

While costs are down, experts caution that declines don’t fully erase the sharp increases seen in 2022, when Thanksgiving dinner hit a record high of $64.05. For small businesses, this means:

Customers are still price-conscious.
Value-driven messaging remains critical.
Building loyalty through affordability and authenticity can pay dividends beyond the holiday season.

Thanksgiving 2025 offers a rare moment of financial relief for families. For small businesses, it’s a chance to lean into optimism, highlight value, and remind communities that local shops are part of what makes the holiday season special.

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