SAN JOSE – Amy’s Kitchen declared that its large frozen foodstuff plant in San Jose is closing its doors later on this yr, a transfer that surprised employees who showed up for operate on Monday.
The enterprise cited ongoing source chain challenges and greater costs for components as the reason for shutting down the plant, which would make frozen organic pizzas, on Las Plumas Avenue.
Seemingly, that ultimate selection was made very speedily, since workforce stated they were being blindsided Monday by the terrible information.
“Si, todos estamos, in shock,” said employee Alma Martinez arrived into work today and then was explained to to go household for the reason that she no for a longer period has a position.
Martinez explained she came to do the job on Sunday, and no one reported anything about the shutdown. She’s 1 of about 300 employees who will reduce their positions, which shell out about $17.50 an hour.
“Of course, it is unfortunate. We truly cherished the enterprise. They took care of us, they gave us every little thing to make us pleased, so it truly is sad,” said Leticia Castro, who was also laid off.
Amy’s Kitchen area stated the plant was dropping $1 million a thirty day period due to the fact demand from customers for its frozen pizzas is down, although at the exact time selling prices for raw ingredients are up.
Two of the major points that go into a pizza—flour and cheese—are up about 40 and 50%.
“We’re all acquiring killed a minimal bit by commodity charges appropriate now,” stated Chuck Hammers, president of Pizza My Heart, which has no connection to Amy’s Kitchen.
The area chain does have 36 years in enterprise and 25 dining places.
Hammers mentioned the hit to the base line—especially when you add in bigger employee costs—is important.
“It truly is radically cut margins the 1st half of this year. We just did a tiny selling price improve, 25 cents on slices, just mainly because we experienced to,” Hammers said.
Hammers mentioned claims it is really possibly even tougher on the frozen foodstuff aspect.
“When you happen to be in the grocery store, you do not truly have the potential to increase prices a great deal. They’re fighting a true restricted margin,” Hammers reported.
Amy’s Kitchen claimed it is making an attempt to enable it is really laid off employees with two months of severance, and providing all impacted personnel with vocation placement aid.
The business also reported its amenities in Santa Rosa, Oregon and Idaho are unaffected and managing at comprehensive ability.