When Philadelphia Flyers television play-by-play announcer Jim Jackson shouts “Gagne Shoots! He Scores for Case of Tastykakes!”, the Flyers winger won’t have to go far to pick up his Peanut Butter Kandy Kakes.
The Tasty Baking Company, maker of Butterscotch Krimpets and many other cakes and treats have moved their production facility from the Nicetown section of Philadelphia, where they had been located since the 1920’s to the Philadelphia Navy Yard in South Philly.
The Philadelphia Inquirer has the story:
Swapping an inefficient, six-story bakery with equipment jammed in every which way for a one-story bakery substantially smaller in square footage but much more open and easier to use is expected to have a big financial payoff. The new site also has twice the capacity.
With the economy still generally in the crapper, it’s good to a see a company be able to simultaneously shrink and grow at the same time.
Tasty has estimated that it will log annual pretax savings of $13 million to $15 million, which would amount to a cost reduction of about 11 percent, based on last year’s results. A one-third reduction in the bakery workforce, from 500 to 315, made possible by automation, is the biggest factor in the cost savings.
And although Tasty did shrink the size of its payroll, management says they did not have to layoff employees, but rather reduced their staff through attrition.
I mention the lack of Tasty Klairs in the title of this post because I’ve had a craving for one last week and couldn’t find one in three different convenience stores over a period of a few days. I’m sure production has been down a bit while they ramp up the new operation.
You can find Tasty Baking on Twitter @TastyBakingCo
And on Facebook here
Tasty Baking stock was up 6 cents to $7.10 per share as of 3:40 p.m. today.
The Daily Belch 