The possible closure of Gousto’s Clay Lake facility comes as the recipe kit firm looks to consolidate its operations and focus its efforts on its ‘high tech’ Warrington site.
The move, which was revealed by our sister publication Retail Week earlier today, would see around 290 jobs lost if it went ahead.
Since opening in 2022, its Warrington facility – which employs around 600 people – has received significant and sustained investment. Today, it produces the vast majority of Gousto customer orders across its sprawling 300,000 sq ft estate.
The growth of the Warrington site has prompted Gousto to rethink its operations, with the meal kit provider saying the current set up is becoming ‘increasingly duplicative and less efficient’; with Warrington fulfilling the majority of demand at greater scale and lower cost per portion.
Alongside its desire to build a ‘simpler, more efficient operating model’, Gousto adds that the proposed consolidation would also enable more ‘accessible pricing’ for its customers in a competitive food market.
Between 2019 and 2023, the average price of meal kits rose by 14.8%.
Gousto’s plans follow strong FY25 performance, including 10% revenue growth and a third consecutive year of positive adjusted EBITDA.
Commenting, Timo Boldt, Founder and CEO of Gousto, said: “This is an incredibly difficult proposal given the impact on our colleagues in Clay Lake, who have contributed enormously to Gousto’s journey over a number of years. In a highly competitive food market, it is however essential that we operate as efficiently as possible so that we can continue to invest in our proposition and keep prices as low as possible for customers.
“Over recent years we have invested heavily in Warrington, building a highly advanced fulfilment hub with the technology, scale and capacity for future growth. That investment has transformed the way our network operates and gives us the opportunity to simplify our manufacturing footprint for the future.
“While this reflects the evolution of our operations, it does not make the impact on colleagues any easier. Our focus now is on supporting people through this process with care, respect and practical help.”
