A major french fry supplier is cutting jobs as customers continue to count their money amid inflated prices at fast food chains.

Lamb Weston, the largest french fry maker in North America, announced last week that it would close its Connell, Washington, plant, laying off 375 employees, or 4% of its workforce, according to an earnings report released last week.

“Restaurant traffic and demand for frozen potatoes continue to be weak relative to supply, and we expect them to remain weak through the end of fiscal 2025,” Tom Werner, president and CEO of Lamb Weston, said at a meeting last week Earnings conference call.

MCDONALD’S IS AGAIN BRINGING MINIATURE VERSIONS OF POPULAR SHOES TO US. HAPPY MEALS

Wendy’s Co. french fries are arranged for a photograph at a restaurant in Mt. Vernon, Illinois, USA, on Wednesday, July 29, 2015. Wendy’s Co. is scheduled to release its quarterly results on August 5. (Luke Sharrett/Bloomberg via Getty Images / Getty Images)

“Together, we expect these actions will help us better manage the utilization of our factories and alleviate some of the current imbalance between supply and demand in North America,” he added. “We are also taking measures to reduce operating costs, including reducing headcount and eliminating certain unfilled positions, as well as reducing capital expenditure. The combined estimated savings from these measures are reflected in our updated targets for fiscal year 2025.”

The Eagle, Idaho-based company told Fox Business that the restructuring will not impact supply to customers.

Fast food chains have felt the effects of inflation as cash-strapped customers have become more cautious about visiting many restaurants. A survey in May found that 80% of Americans consider fast food a “luxury” because of its high prices.

MCDONALD’S IS GIVING THE CLASSIC MENU ITEM A “MAKEOVER” TO REVERSE DECLINE IN SALES

An employee fills a bag with French fries in a branch of the fast food chain McDonald’s. A major French fry supplier has closed a plant in Washington, the company said last week. (Matthias Balk/Picture Alliance via Getty Images / Getty Images)

To win back customers, many chains introduced meal deals. Over the summer, McDonald’s rolled out a $5 meal deal that includes a McDouble or McChicken sandwich, four-piece chicken nuggets, small fries and a small soda drink.

FOX Business has reached out to McDonald’s.

Other competitors such as Burger King and Wendy’s have also launched similar offerings that also include fries. Despite the inexpensive meals, demand for fries has fallen, Werner said.

“It’s important to note that in many of these meal specials, consumers are moving from a medium-sized meal to a small meal,” he said.

A McDonald’s McDouble cheeseburger, small fries, four-piece chicken nuggets and a small soft drink arranged in New York, United States, on Monday, June 17, 2024. On June 25, McDonald’s launched a marketing campaign and a new $5 meal deal, the Increase stakes (Lucia Buricelli/Bloomberg via Getty Images / Getty Images)

CLICK HERE TO READ MORE ABOUT FOX BUSINESS

Overall, restaurant traffic in the U.S. fell 2% last quarter and 3% in the previous quarter compared to the same period last year, Lamb Weston said.