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SAN JOSE – Amy’s Kitchen announced that its big frozen meals plant in San Jose is closing its doorways later this year, a move that stunned personnel who confirmed up for get the job done on Monday.
The corporation cited ongoing offer chain troubles and bigger charges for ingredients as the cause for shutting down the plant, which can make frozen organic pizzas, on Las Plumas Avenue.
Evidently, that closing conclusion was created incredibly rapidly, because staff explained they had been blindsided Monday by the poor information.
“Si, todos estamos, in shock,” stated employee Alma Martinez came into operate right now and then was told to go house due to the fact she no longer has a task.
Martinez claimed she came to get the job done on Sunday, and no a person mentioned just about anything about the shutdown. She’s a person of about 300 personnel who will reduce their employment, which pay out about $17.50 an hour.
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“Of training course, it’s unhappy. We genuinely liked the company. They took care of us, they gave us every little thing to make us delighted, so it is sad,” mentioned Leticia Castro, who was also laid off.
Amy’s Kitchen area reported the plant was dropping $1 million a thirty day period since demand for its frozen pizzas is down, whilst at the identical time prices for raw substances are up.
Two of the key points that go into a pizza—flour and cheese—are up about 40 and 50%.
“We are all obtaining killed a little bit by commodity price ranges proper now,” said Chuck Hammers, president of Pizza My Heart, which has no connection to Amy’s Kitchen area.
The regional chain does have 36 years in company and 25 dining places.
Hammers said the strike to the base line—especially when you incorporate in bigger personnel costs—is significant.
“It is substantially slash margins the initially 50 percent of this yr. We just did a smaller price tag enhance, 25 cents on slices, just because we had to,” Hammers explained.
Hammers claimed states it truly is most likely even tougher on the frozen food items facet.
“When you’re in the grocery store, you will not actually have the skill to increase charges considerably. They’re battling a serious restricted margin,” Hammers mentioned.
Amy’s Kitchen area mentioned it really is hoping to assistance it’s laid off staff with two months of severance, and giving all impacted personnel with vocation placement assistance.
The business also stated its facilities in Santa Rosa, Oregon and Idaho are unaffected and operating at whole capacity.
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