Amy's Kitchen set to close San Jose frozen food plant; employees in shock – CBS San Francisco

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By Len Ramirez
/ CBS San Francisco
SAN JOSE – Amy’s Kitchen introduced that its giant frozen meals plant in San Jose is closing its doorways later this 12 months, a transfer that surprised workers who confirmed up for work on Monday.
The corporate cited ongoing provide chain points and better costs for substances as the rationale for shutting down the plant, which makes frozen natural pizzas, on Las Plumas Avenue.
Apparently, that last choice was made in a short time, as a result of workers stated they had been blindsided Monday by the dangerous information.
“Si, todos estamos, in shock,” stated employee Alma Martinez got here into work as we speak after which was advised to go house as a result of she not has a job.
Martinez stated she got here to work on Sunday, and nobody stated something in regards to the shutdown. She’s certainly one of about 300 staff who will lose their jobs, which pay about $17.50 an hour.
“In fact, it is unhappy. We actually liked the corporate. They took care of us, they gave us every thing to make us comfortable, so it is unhappy,” stated Leticia Castro, who was additionally laid off.
Amy’s Kitchen stated the plant was shedding $1 million a month as a result of demand for its frozen pizzas is down, whereas on the identical time costs for uncooked substances are up.
Two of the principle issues that go right into a pizza—flour and cheese—are up about 40 and 50%.
“We’re all getting killed slightly bit by commodity costs proper now,” stated Chuck Hammers, president of Pizza My Coronary heart, which has no connection to Amy’s Kitchen.
The native chain does have 36 years in enterprise and 25 eating places.
Hammers stated the hit to the underside line—particularly whenever you add in increased worker prices—is critical.
“It is dramatically reduce margins the primary half of this 12 months. We simply did a small value improve, 25 cents on slices, simply because we needed to,” Hammers stated.
Hammers stated says it is most likely even more durable on the frozen meals facet.
“While you’re within the grocery store, you do not actually have the power to boost costs a lot. They’re combating an actual tight margin,” Hammers stated.
Amy’s Kitchen stated it is making an attempt to assist it is laid off staff with two months of severance, and offering all impacted workers with profession placement help.
The corporate additionally stated its services in Santa Rosa, Oregon and Idaho are unaffected and working at full capability.
San Jose native Len Ramirez has been a information reporter for KPIX 5 Information protecting the Santa Clara County/South Bay Area since 1989. Previous to his arrival at KPIX 5, Len was a reporter for KOMO Channel 4 in Seattle, Washington and at KMST Channel 46 in Monterey. Ramirez was additionally a normal project reporter for the San Jose newsroom at KSBW Channel 8 in Salinas.
First printed on July 18, 2022 / 6:51 PM
© 2022 CBS Broadcasting Inc. All Rights Reserved.
©2022 CBS Broadcasting Inc. All Rights Reserved.


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