The single largest producer of french fries in North America will be shutting down its plant in Washington state, a move that will leave nearly 400 employees jobless.
According to Breitbart, the announcement was made by Tom Werner, the president and CEO of Lamb Weston Holdings Inc., who blamed the layoffs on “soft” traffic in restaurants and reduced demand for frozen potatoes. The announcement was included in a press release on October 1st which detailed the company’s business failures in the first quarter of Fiscal Year 2025.
“We delivered first quarter financial results that were generally in line with our expectations, driven by sequentially improved volume performance, solid price/mix, and strict management of operating costs,” said Werner. “However, restaurant traffic and frozen potato demand, relative to supply, continue to be soft, and we believe it will remain soft through the remainder of fiscal 2025.”
Lamb Weston saw its net income fall by a staggering 46% in the first quarter of 2025 compared to the first quarter of 2024, down to $127 million.
As such, Werner said the company will take “key actions” to restructure its business, which includes shuttering the “older” and “higher-cost” facility located in Connell, Washington. This will result in approximately 375 workers being laid off, which accounts for at least 4% of the company’s total workforce.
The closure of the plant will be part of a series of “proactive steps designed to improve our operating efficiency, profitability and cash flows, while also positioning us to continue to make strategic investments to support our customers and create value for our stakeholders over the long-term,” Werner explained further.
Lamb Weston, which is headquartered in the potato-rich state of Idaho, is known for producing french fries for numerous restaurants; its most famous client is the global fast food chain McDonald’s.
This development marks a continuation of the trend of fast food prices increasing due to inflation. Since 2019, fast food prices have, on average, risen by about 33%. Grocery costs have risen by 26% in the same time period. Efforts by McDonald’s, as well as other prominent fast food chains such as Burger King and Wendy’s, to increase traffic by offering discount deals have, thus far, failed to reverse the ongoing tide of decline.
But, Werner pointed out, “it’s important to note that many of these promotional meal deals have consumers trading down from a medium fry to a small fry.”
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