The largest producer of french fries in North America, Lamb Weston, has announced the closure of its plant in Connell, Washington, resulting in the layoff of 375 employees. This decision comes in response to declining demand for french fries due to rising food prices and cautious consumer spending.
In a recent earnings report, Lamb Weston’s President and CEO, Tom Werner, stated that restaurant traffic and frozen potato demand have softened and are expected to remain weak throughout the remainder of fiscal 2025. To address this, the company is implementing various cost-saving measures, including closing the Connell plant and reducing its workforce.
Despite promotional deals offered by fast-food chains to attract customers, the demand for french fries has decreased. Many customers are opting for smaller fry sizes as they seek to save money during this inflationary period.
Lamb Weston’s restructuring efforts are aimed at improving its factory utilization rates and easing the supply-demand imbalance in the North American market. While the company expects these actions to help reduce operating expenses, it has assured customers that the supply of french fries will not be impacted.
Overall, the French fry industry is facing challenges due to economic uncertainty and changing consumer behavior.
As prices continue to rise, consumers are becoming more cautious about their spending and seeking ways to save money. This has led to a decline in demand for french fries, forcing suppliers like Lamb Weston to adjust their operations accordingly.
