Amy's Kitchen announced that its large frozen food plant in San Jose is closing its doors later this year, a move that stunned employees who showed up for work on Monday.
The company cited ongoing supply chain issues and higher prices for ingredients as the reason for shutting down the plant, which makes frozen organic pizzas, on Las Plumas Avenue.
"Si, todos estamos, in shock," said worker Alma Martinez came into work today and then was told to go home because she no longer has a job. Amy's Kitchen said the plant was losing $1 million a month because demand for its frozen pizzas is down, while at the same time prices for raw ingredients are up."We're all getting killed a little bit by commodity prices right now," said Chuck Hammers, president of Pizza My Heart, which has no connection to Amy's Kitchen.Hammers said the hit to the bottom line—especially when you add in higher employee costs—is significant.
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