California’s grocery industry is facing another shutdown as major chains continue reshaping their operations. Safeway plans to permanently close its commercial bread plant in Richmond, affecting 92 employees.
The facility at 905 South 34th Street opened in 1965 and has produced bakery goods for Safeway stores for 61 years. Its closure will end a long-running piece of the chain’s Northern California supply network.
The shutdown affects 92 workers
Safeway filed notice with California regulators on October 20. The state’s current WARN report lists December 20 as the effective date and identifies 92 employees affected by the permanent closure.
Safeway spokesperson Sarah Holland told SFGATE that a limited number of employees will be offered other jobs, but the company has not said how many positions are available.
That means 92 workers and their current positions are affected, but it does not necessarily mean all 92 people will ultimately become unemployed. The number who transfer or find another role within the company remains unknown.
California requires covered employers to provide advance notice before large layoffs or a plant shutdown. That notice gives workers and local workforce agencies time to prepare, including access to job-search assistance, training and unemployment-benefit information.
What the closure means for Safeway shoppers
This is a production facility rather than a neighborhood supermarket, so shoppers are not losing a retail grocery store at the Richmond address. The impact will happen behind the scenes, where the plant has supplied bakery products to Safeway.
Safeway has not disclosed where its Bay Area stores will source branded bread after the plant closes. The company also has not warned customers about shortages or changes to bakery availability, making it too early to know whether shoppers will notice a difference.
The company has not publicly explained why the 61-year-old plant is shutting down. Safeway’s parent, Albertsons Companies, has been cutting costs and reviewing its operations after its proposed merger with Kroger was blocked, but no company statement has tied that broader strategy to a specific reason for the Richmond decision.
Another Bay Area contraction
The factory closure arrives alongside Safeway’s planned November 13 shutdown of a 57-year-old supermarket in San Jose. Other Bay Area Safeway locations in San Francisco, Pinole, Vallejo and Hayward have also closed in recent years.
For Richmond, the immediate effect is on workers rather than shopping access. The unanswered questions now are how many employees will secure transfers, where Safeway will move bread production and whether local stores will see any changes after the December shutdown.
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