SAN JOSE, CALIF. — Amy’s Kitchen has announced plans to close its frozen pizza manufacturing plant in San Jose in September, citing “widespread supply chain disruptions, fluctuating consumer demand and persistent inflation.” The shutdown will affect 331 employees.
Amy’s Kitchen began leasing the San Jose plant in 2021 following “significant increases in demand” for its products in late 2020. The facility was expected to give Amy’s Kitchen additional space to provide its team with the room needed for safe production and social distancing in the face of the coronavirus pandemic.
Like many consumer packaged goods companies, Amy’s Kitchen over the past year has faced a tight labor market and supply chain challenges. In the case of the San Jose plant, the challenges were too much for the company to overcome.
“Since its founding, Amy’s Kitchen has brought thoughtful deliberation and a culture of care when making business decisions,” the company said. “Like many other businesses, we are working to meet the challenges posed by widespread supply chain disruptions, fluctuating consumer demand, and persistent inflation. While Amy’s Kitchen’s three other food processing facilities have been able to meet production and revenue goals, the San Jose plant was losing $1 million a month, which could not be offset by the company’s other facilities. We therefore made the difficult decision to cease operations at our San Jose food processing facility. We will continue to live our promise of doing what is best for our customers, our farmers, our employees, and our planet.”
Amy’s Kitchen’s other facilities are located in Santa Rosa, Calif.; White City, Ore.; and Pocatello, Idaho.