Gousto said that operating two sites was “increasingly duplicative and less efficient”,
Recipe box brand Gousto is planning to shutter its production facility in Lincolnshire, resulting in the loss of around 290 roles.
All manufacturing at the Clay Lake site will shift to its more modern facility in Warrington.
Gousto said that operating two sites was “increasingly duplicative and less efficient”, and that the vast majority of demand “is now fulfilled through Warrington at greater scale and lower cost per portion”.
The proposed consolidation has been shared with colleagues as part of a formal consultation process.
“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,” said Timo Boldt, founder and CEO of Gousto. “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.”
The highly-automated Warrington site was opened in 2022 and has received “significant and sustained” investment, to develop it into a “world class fulfilment centre” Gousto said. The 300,000 square feet site is staffed by a team of around 600 workers.
It’s automated systems are controlled by complex algorithms that have enabled Gousto to offer subscribers what it claims is the widest choice of recipes each week (175) in the market, as well as costs per serving from £3.20, as well as highly customisable recipes.
Thanks to the efficiency of the operation Gouto said it has been able to “shield consumers from the full impact of food inflation”, limiting price increases to an average of 5% per annum compared to reported food inflation which has exceeded 7% per annum.
“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,” Boldt said.
“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,” he added.
For 2025 Gousto reported 10% year-on-year revenue growth to £342m and adjusted EBITDA up 7% to £45m – the third consecutive year of positive adjusted EBITDA. Annual revenues are now more than four times that of pre-pandemic levels.
No comments yet