Anthony Chan, former chief economist at JPMorgan Chase & Co., said lowering prices will be a “first-day priority” even though he is already president of Barney & Co. Responding to Kamala Harris.
A major french fry supplier is cutting jobs as customers continue to count their pennies as prices soar at fast-food chains.
Lamb Weston, North America's largest producer of French fries, announced last week that it would close its Connell, Wash., factory, with 375 employees, or 4% of its workforce, being laid off, according to an earnings report released last week. Become. .
“Restaurant traffic and demand for frozen potatoes continue to be weak relative to supply,” Lamb Weston President and CEO Tom Warner said on an earnings call last week. I think the market will remain weak until then.”
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Wendy's french fries are displayed for a photo at a restaurant in Mount Vernon, Illinois, on Wednesday, July 29, 2015. Wendy's is scheduled to announce its quarterly results on August 5th. (Luke Charette/Bloomberg via Getty Images/Getty Images)
“Together, we expect these measures will help us better manage factory utilization and alleviate some of the current supply and demand imbalances in North America,” he added. “We have also taken steps to reduce operating expenses, including reducing headcount and eliminating some unfilled positions, as well as reducing capital expenditures.Estimated savings from these measures combined are reflected in our latest 2025 targets.”
The Eagle, Idaho-based company told Fox Business that the restructuring will not affect supply to customers.
Fast-food chains are feeling the effects of inflation as cash-strapped customers become wary of patronizing many restaurants. A May survey found that 80% of Americans consider fast food a “luxury” because of its high price.
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An employee is filling bags with french fries at a branch of the fast food chain McDonald's. A major supplier of French fries has closed its Washington factory, the company announced last week. (Matthias Bork/Photo Alliance via Getty Images/Getty Images)
To win back customers, many chains have launched meal sales. Over the summer, McDonald's launched a $5 meal deal that included a McDouble or McChicken sandwich, four-piece chicken nuggets, small fries and a small fountain drink.
FOX Business has reached out to McDonald's.
Other rivals, including Burger King and Wendy's, have launched similar fries-included sales. Despite being a great value meal, demand for fries is declining, Werner said.
“It's important to note that many of these promotional meal deals will discount consumers from medium to small prices,” he said.
McDonald's McDouble cheeseburger, small fries, 4 piece chicken nuggets and a small soft drink prepared on Monday, June 17, 2024 in New York, USA. On June 25, McDonald's launched a marketing campaign and new $5 meal deal. , increase your stake (Lucia Briccelli/Bloomberg via Getty Images/Getty Images)
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Overall U.S. restaurant traffic was down 2% last quarter and 3% last quarter compared to the same period last year, Lamb Weston said.
