In yet another blow to American businesses, one of the nation’s largest french fry suppliers has been forced to cut jobs and close a factory as inflation and burdensome regulations continue to squeeze consumers and companies alike. Lamb Weston, the primary supplier of McDonald’s famous fries, announced last week that it would be slashing 4% of its global workforce and shutting down a factory in Washington state due to falling demand for its product.
With fast-food prices surging, thanks in part to California’s new $20 minimum wage for fast-food workers, cash-strapped Americans are either skipping their usual french fry orders or downsizing to smaller portions. Consumers are feeling the pinch of inflation at every turn, and it’s impacting their eating habits as even McDonald’s, long seen as the go-to for a cheap meal, is struggling to maintain sales.
To combat falling sales, McDonald’s rolled out a $5 Meal Deal this summer, which includes a McDouble or McChicken, a four-piece chicken nugget, small fries, and a small drink. Competitors like Wendy’s and Burger King have followed suit with their own value offerings, but even these discounts are not enough to stave off the financial pressures most Americans face. Inflation has hit the pocketbook hard, and many families are choosing to either cook at home or skip the side order of fries when they do eat out.
According to Tom Werner, CEO of Lamb Weston, the value meals are encouraging customers to trade down from medium fries to small fries, further reducing the demand for his company’s products. Lamb Weston, which supplies 80% of the french fries served at fast-food restaurants across the U.S., relies heavily on chains like McDonald’s to stay afloat. The company is now facing the brunt of the economic downturn, as its biggest customer is also seeing a dip in sales.
As a result, Lamb Weston shares have taken a nosedive, dropping nearly 35% this year. The company’s net sales declined 1%, operating income fell by 34%, and net income plummeted by a staggering 46% compared to the same time last year. To cope with this economic fallout, Lamb Weston announced it would be closing its Connell, Washington plant, leading to the loss of 375 jobs. For those affected workers, this is yet another painful consequence of the current administration’s reckless spending and anti-business policies.
The company pointed to a broader softening of restaurant traffic and frozen potato demand, which Werner believes will persist through 2025. With inflation showing no signs of slowing, and states like California continuing to implement job-killing wage hikes, the fast-food industry—and the companies that supply it—are finding it harder than ever to stay profitable.
The closure of Lamb Weston’s factory and the layoffs that followed are yet another stark reminder of how misguided policies hurt the very people they claim to help. Higher wages and government overreach may sound good in theory, but in practice, they lead to fewer jobs, higher prices, and a shrinking economy.
As businesses like McDonald’s and Lamb Weston continue to struggle, it’s clear that Americans need relief—not more regulations and taxes. If we are to preserve the American dream, we must support policies that encourage economic growth, lower costs, and give businesses the freedom to thrive. Until then, we can expect more job losses, higher prices, and fewer fries on our plates.
