When Amy's Kitchen opened its new San Jose facility in March 2021 to focus on pizza production, the company did not predict that customers' preferences and the supply chain would change so drastically in about a year (via Just Food). "The tight labour market and inflation-driven near doubling of capital expenditure costs created missed distribution opportunities, while ongoing supply-chain woes exacerbated by the war in Ukraine increased raw materials and logistics costs by more than 100% in some categories," the brand said in a statement.
The company explained further that despite these challenges, other facilities have been able to meet quotas, but the San Jose facility has been hemorrhaging money to the tune of $1 million per month. While closing this plant seems like a smart financial decision, 331 people will be laid off as a result (via Food Dive). It appears to be an abrupt closure too, because operations stopped on July 18 and the facility will close for good on September 16.
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July 22, 2022 at 11:51PM
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The Huge Move Amy's Kitchen Just Made With Its California Factory - Mashed
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