Manufacturer lays off 400 workers: America's French fries have a problem

Americans are going to McDonald's and other fast food chains less often. Now the biggest French fries supplier has to lay off four percent of its workforce.

A big problem is brewing in the land of fast food chains: French fries are being eaten less and less in America. It's a bitter blow to Lamb Weston, the largest producer of French fries in North America. The company will now have to lay off 4% of its workforce, nearly 400 employees.

The reasons may be obvious: Americans are making fewer and fewer fries at home, and as prices have skyrocketed at McDonald's and Co., customers are buying smaller portions. According to Lamb Weston, about 80% of French fries consumed in the United States come from fast food chains.

Heavy reliance on McDonald's

The company's largest customer, McDonald's, accounts for 13% of Lamb Weston's sales. The bias is huge.

how “CNN” McDonald's is also reportedly struggling now. Sales fell 0.7% in the latest quarter compared to the same period last year as fewer customers visited the chain. Lamb Westodon can't deal with this because the potato giant now has excess supplies – in the land of fast-food chains.