Hy-Vee is shutting down food production facilities in Chariton and Ankeny, a spokesperson for the company said, in a move that will affect hundreds of workers.
Closing after June 24 shifts will be a 48,000 square-foot Short Cuts facility in Chariton that cuts fresh fruit and vegetables and a 150,000-square-foot plant in Ankeny where Hy-Vee makes take-and-bake pizzas, salads, sandwiches and baked goods. A combined total of 461 jobs will be affected: 129 in Chariton and 332 in Ankeny, where the Hy-Vee Fresh Commissary is the city's ninth-largest non-retail employer, according to a city budget document.
The work was moved from individual stores when the facilities opened in 2018. Hy-Vee decided to shift the production back to the stores because the shelf life of items prepared at the facilities, especially of fresh fruit, is too limited, Hy-Vee spokesperson Tina Potthoff said.
"This move will significantly improve product freshness, quality, availability and customer service as more employees will be placed in retail stores," a news release said.
"This move gets us back to being an even stronger grocer," Potthoff said.
She said bringing more people back to the stores who are capable of processing produce also will pay dividends on other value-added products such as sandwiches, which currently are made in the commissary and shipped to stores.
"Now sandwiches produced in the stores can add tomato, lettuce, onion," she said. "We can't do that when everything is made in the commissary and shipped. When it is done in the store, everything is fresh."
West Des Moines-based Hy-Vee, the Des Moines metro's largest employer, filed a state-required Worker Adjustment and Retraining Notification Act, or WARN, notice concerning the move April 24. But Potthoff said the company is trying to find other positions for the affected employees, with "hiring events" beginning immediately at the two locations and human resources staff on hand to assist.
The news release said Hy-Vee "is committed to assisting all impacted employees during this transition," placing as many as possible at stores.
The two facilities will continue to be owned by Hy-Vee as the company explores manufacturing more shelf-stable products or repositioning them for different uses.
"I don't think we will have any problems finding uses for that space," Potthoff said.
Earlier in April, Hy-Vee also announced changes to the operation of its in-store Market Grille restaurants. Beginning May 1, Hy-Vee will end bar service in "select stores" and make other changes, including eliminating waitstaff. It has said those employees will be offered other jobs.
Philip Joens covers retail and real estate for the Register. He can be reached at 515-284-8184 or [email protected].
Kevin Baskins covers jobs and the economy for the Register. Reach him at [email protected].
(This story was updated to add a video, a gallery and add new information.)