A FRENCH fry supplier for McDonald’s will be shutting down an entire plant and laying off hundreds of workers this fall.
The move comes after many consumers are turning away from fast food chains amid inflation rates and high menu prices.
A french fry supplier for McDonald’s is closing a plant and laying off some workers[/caption]
McDonald’s World Famous Fries are a staple for customers[/caption]
Lamb Weston, known as one of the largest french fry producers in North America, confirmed the impending closure last week, per CNN.
The company works with several big-name fast food chains, grocery stores, and restaurants to supply frozen potato-based products.
While Lamb Weston is headquartered out of Eagle, Idaho, it has a large production plant in Connell, Washington, about 100 miles southwest of Spokane.
The Connell plant is the affected location, laying off a total of 379 employees, about 4% of its total workforce, per information from the Washington State Employment Security Department.
Considering that the Worker Adjustment and Retraining Notification (WARN) applies in Washington, the affected workers at Lamb Weston must be notified at least 60 days before any layoffs or closures.
Forms were filed by Lamb Weston and received by the Employment Security Department as of October 1, according to its database.
With the closure date for the Lamb Weston plant set for November 30, 2024, it narrowly makes the window.
The U.S. Sun has contacted Lamb Weston and McDonald’s for further comment on the plant shutdown and layoffs.
VALUE BLOWBACK
Lamb Weston has faced some financial struggles in 2024.
Its market shares have dropped 35%, and CEO Thomas Werner said McDonald’s recent moves to draw customers back with lower-priced value meals aren’t helping.
The fast food giant introduced a $5 value meal earlier this summer with a McDouble or McChicken as an entree paired with a side of a four-piece chicken nugget, small french fries, and a soft drink.
“Many of these promotional meal deals have consumers trading down from a medium fry to a small fry,” Werner told investors during a recent earnings call.
It would be cause for concern, considering that McDonald’s accounts for around 13% of Lamb Weston’s revenue, according to CNN.
McDonald’s isn’t alone though in its attempts to appeal to customers recently, as fast food chains have suffered across the board this year.
Lamb Weston’s data showed customer traffic at the chains it works with dropped a collective 2% during last quarter, and 3% during the previous compared to the same time in 2023.
Brief Lamb Weston History
- Started back in the 1950s by F. Gilbert Lamb in Weston, Oregon
- Lamb bought a defunct co-op plant and converted it into a processing plant
- Invented Lamb Water Gun Knife in the 1960s to help cut potatoes into fries using high-velocity water
- Later developed the Automatic Defect Removal System in 1983 to weed out defected fries instantly
- Also invented Twister Fries (known by many as curly fries) and CrissCut Fries (waffle fries) around the same time
- Develops more premium fry products in 1989
- Partners with Meijer Frozen Foods in 1994
- Expands to Canada in 1998
- Introduces several new products in the early 2000s
- Expands further and becomes a public company on the stock market in 2016
Credit: Lamb Weston
PRICE PROBLEMS
Customers cried out over McDonald’s prices specifically last year and earlier this year, with a couple of viral videos online showing a Big Mac combo for $18 and a 40-piece McNugget for $25.39.
McDonald’s CEO Chris Kempczinski later promised customers more “menu innovation” and “affordable prices that will be more attractive.”
It’s also been testing a three-piece McCrispy Chicken Strips combo at select locations for $4.99.
National Cheeseburger Day on September 18 also saw the chain offer 50-cent burgers.
McDonald’s also recently saw backlash over its Happy Meal toy partnership with Crocs.
It’s change to McFlurry cups also had some customers confused over the new “flaps.”
