Amy’s Kitchen, shaken by wide-ranging economic woes, will shut its production center in San Jose, a closure that will wipe out hundreds of jobs.
SAN JOSE — Amy’s Kitchen, jolted by an array of economic shockwaves, will close its San Jose production center for frozen pizzas, a shutdown that will wipe out hundreds of jobs, the company disclosed Monday.
Inflation, skyrocketing materials costs, labor shortages and disruptions in the worldwide supply chain coalesced to doom the plant after slightly more than a year of operations. Located at 1885 Las Plumas Ave. in San Jose, the Amy’s Kitchen plant began production in March 2021. Logistics costs, mainly fuel, soared higher by 74%, the company estimated. Wheat prices, part of the collateral damage arising from Russia’s invasion of Ukraine that wiped out much of the production of the staple grain in the European country, skyrocketed by 60%. Vegetable oil prices surged to a 90% increase.
“It really became obvious as sales results came in that continuing in San Jose wouldn’t be possible,” Scarpulla said. In what appeared to be a final blow, demand began to fade for the more expensive frozen pizzas that Amy’s offered for $10, $11, or $12 a package. Demand cooled for the San Jose plant’s primary pizza product as the economic impacts of the coronavirus began to ease — and inflation squeezed consumers.
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