Incomplete list of announced United States food supply shutdowns for the month of May, 2014: Many food suppliers/distributors are consolidating operations and killing jobs due to the collapsing grocery store and restaurant industries, as well as rising costs of food production.
California: In Atwater, Mi Pueblo Foods shutting down in August, 279 jobs lost! In San Francisco, Grand Cafe shutting down in July, 63 jobs lost. In West Covina, California Pizza Kitchen announced they are laying off 60 employees in August. Also, San Francisco based Golden Gate Capital could be the new owner of Red Lobster restaurants. The agreed to buy it for $2.1-billion USD! However, the sale won’t be finalized until the first half of 2015. No word on what Golden Gate Capital has in plan for the restaurant. The executives of the original owner, Darden Restaurants, blames the sale on pressure from stockholders. In Riverside, Kroger owned Ralph’s grocery store announced they will shutdown in July, 80 jobs lost. In La Quinta, Kroger owned Ralph’s grocery store announced they will shutdown in July, 60 jobs lost. In Laguna Niguel, Kroger announced it is shutting down their Ralph’s grocery store in July, 66 jobs lost. In Ventura, New French Bakery/Starbucks Coffee announced they are shutting down in July, 90 jobs lost.
Georgia: In Tybee Island, after six years Doc’s Bar shutdown due to rent issues.
Illinois: In Chicago, after only four years Ing restaurant shutdown. In Bolingbrook, meat processor Quantum Foods lost a major contract. Company officials told 11-hundred employees not to come to work! The company has been losing revenue since 2012. In Rockford, Schnuck Markets killed 163 grocery store jobs! Schnucks began “restructuring” operations at its two largest stores, and shutdown two smaller stores that were suffering from crashing sales.
Michigan: In Lansing, Cup of Dessert (aka Decker’s Coffee) shutdown. In Ann Arbor, Kroger grocery store on South Industrial Highway shutting down in June, 103 jobs lost! It sounds like the property owners jacked up the rent, they claim they had rented the property out to Kroger at “dramatically under market” rates for decades and it was time they made a profit. A 35 years old Le Dog hot dog stand shutdown. After only four years Mercy’s Restaurant shutdown. The owners blamed the bad economy for creating inconsistent business. In East Lansing, after 50 years (some reports say 77 years) Goodrich’s Shop-Rite grocery store shutting down in July, 80 jobs lost. It’s blamed on the property owners who have new plans for the property. In Saline, after 22 years The Drowsy Parrot coffee shop shutdown without notice. Local news reports said employees were just as shocked as customers. There was no explanation from the owner, only confirmation via text message (the owner didn’t even have the guts to tell employees in person).
Minnesota: Grocery store operator Roundy’s sold off 18 Rainbow grocery stores, 1-thousand jobs affected! At this point the new owners say they will continue operating the stores, but the names might change. The owner of dozens of Minnesota Taco Bells and Pizza Huts is now chapter 11 bankrupt busted! 140 jobs threatened! Border Foods and Sky Ventures already sold off 54 Pizza Huts back in December. They’ve already been sued for $8-million in back due rent! The company is asking the bankruptcy court to allow them to sell off more restaurants. Company officials cry ‘What economic recovery?’: “Sales have remained stagnant, costs have increased….The combination of the factors has led to a condition where the….margins have decreased and making additional capital investments….is not prudent.”-Barry Zelickson, VP
New York: In NYC, Dallas Restaurant Management renovating Fireside Restaurant and Lounge, 38 jobs lost until the renovations are completed. National 42nd St. Realty/LIR Management shutting down their TGI Friday’s Restaurant, Tim Horton’s/KFC Food Court restaurants in August, at least 130 jobs lost! Company officials blame the bad economy.
North Carolina: In New Bern, after 79 years Maola Milk & Ice Cream announced they will shutdown in July, 98 jobs lost.
North Dakota: In Harvey, after several years of operations (and several shutdowns) the Branded Beef & Pack is being auctioned off on 04 June. The owner, Minnesota based Maas Companies, says the operation cost them more money then they were making: “Due to challenging economic conditions during the start up phase, the plant was forced to cease operations.”
Ohio: The new company created by the merger of Anchor Hocking and Oneida kitchen ware, EveryWare Global, is in big trouble. Even with huge layoffs and factory shutdowns in Ohio the company is reporting it lost $38.4-million in its first quarter of 2014! EveryWare Global is based out of New York, and was created by Monomoy Capital Partners. In Dayton, Ringo’s North Star Mobile Eatery shutdown. The owners admitted that running a food truck doesn’t jive with raising children.
Pennsylvania: In Monaca, kitchen utensil maker Anchor Hocking laid off 400 employees “temporarily”! Company officials say it is a money saving move. Anchor Hocking was consolidated with Oneida under the new EverWare Global name.
Texas: In Houston, after 19 years Crapitto’s Cucina Italiana shutdown. The property owner sold off the property to a developer who wants to tear everything down. In Austin, after 36 years the Tamale House shutdown, the owner died.
Vermont: Keurig Green Mountain (aka Green Mountain Coffee) laid off 12 people: “Over the past several months, we have combined our Massachusetts and Vermont-based consumer-facing teams, allowing us to have a single approach to our consumer care. As a result, we expect a reduction in the number of incoming calls the team will handle directly…”
Wisconsin: In Denmark, after more than 32 years butter/cheese maker Land-O-Lakes shutting down their soft cheese factory in July, at least 90 jobs lost. Company officials say soft cheeses are no longer profitable. An employee who worked there since 1982 called it “a kick in the gut”.