MAJOR MCDONALD’S CHIPS SUPPLIER CLOSES PLANT IN WASHINGTON – 375 employees, or 4% of Lamb Weston’s workforce, would be laid off
A major chips supplier is cutting jobs as customers continue to count their pennies amid inflated prices at fast-food chains.
Lamb Weston, the largest producer of chips in North America, announced last week it was closing its plant in Connell, Washington, meaning 375 employees, or 4% of its workforce, would be laid off, according to an earnings report released last week.
The company’s president and CEO, Tom Werner, said that restaurant traffic and the demand for frozen potatoes relative to supply ‘continue to be soft’ and that he expects it will remain that way through fiscal year 2025.
Lamb Weston, based in Eagle, Idaho, stated that it does not expect the restructuring to affect supply for customers. But the measures are expected to amount to saving for the company and keep it in line for meeting its fiscal targets.
The Lamb Weston factory closing was announced weeks after Pizza Hut’s largest franchise, EYM Pizza L.P., put all 127 of its remaining locations across five US states up for sale as it was unable to bounce back from bankruptcy.
Fast-food chains have felt the consequences of inflation as customers have been more careful about patronising many restaurants. A survey in May revealed that 80% of Americans considered fast food to be a “luxury” because of high prices.
