Why demand for French fries has dropped drastically in the US

A beloved snack has come under threat in the US – French fries.

A major supplier of the fast food this week shut a factory and laid off workers.

This comes as Americans continue to stay away from fast food outlets amid a hike in prices.

Let’s take a closer look:

What happened?

As per CNN, Lamb Weston, the biggest manufacturer of French fries in North America, is shutting its plant in Washington.

The company, which is based in Idaho, also announced it would fire 400 employees – around four per cent of its workers – as well as reduce production lines.

“Together, we expect these actions will help us better manage our factory utilization rates and ease some of the current supply-demand imbalance in North America,” CEO Tom Werner was quoted as saying by Fox Business.

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“We are also taking actions to reduce operating expenses, including reducing headcount and eliminating certain unfilled job positions, as well as reducing capital expenditures. The combined estimated savings from these actions are reflected in our updated fiscal 2025 targets.”

The company’s shares have lost a third of value this year.

Lamb Weston is a big supplier to McDonalds and other fast food chains.

As per MSN, 80 per cent of French fries in America are consumed at fast foot outlets.

Lamb Weston’s net income has also reduced by a third.

The fast food giant comprises 13 per cent of Lamb Weston’s sales.

The development comes as McDonalds and other outlets, which have raised prices of their items, struggle to lure customers back.

Fox News quoted a survey in May showing that 80 per cent of Americans now consider fast food to be a ‘luxury.’

As per CNN, McDonalds is seeing fewer customers visit its stores this quarter.

Sales at US restaurants last quarter fell 0.7 per cent compared to the same period last year.

Meanwhile, customer footfalls at fast food chains overall dropped two per cent and three per cent respectively in the past two quarters compared to the same period in 2023.

“Many of these promotional meal deals have consumers trading down from a medium fry to a small fry,” Lamb Weston CEO Thomas Werner warned last week, as per CNN.

The future also looks grim.

“Restaurant traffic and frozen potato demand, relative to supply, continue to be soft, and we believe it will remain soft through the remainder of fiscal 2025,” Werner was quoted as saying by Fox News.

The outlet quoted a GOP study in May as showing that the price of a medium order of French fries at McDonald’s was up by 167.6 percent.

Since President Joe Biden and Vice President Kamala Harris took office, the price of a Big Mac has increased 103.5 percent, while the price of a Hamburger Happy Meal rose 140.6 percent.