Business & Real Estate

Nearby Sacramento businesses react to Blue Diamond closing. ‘Hate to see them go’

Key Takeaways
Key Takeaways

AI-generated summary reviewed by our newsroom.

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  • Blue Diamond will wind down its Midtown Sacramento plant over the next 2 years.
  • Closure affects 600 jobs, though only 10% of roles will end before late 2025.
  • Neighboring businesses expect reduced foot traffic but stability from local ties.

New Roma Bakery has been a staple of the midtown Sacramento area since its opening in 1934, selling various breads, cakes and other sweets. While a lot has changed in the 91 years since then, the bakery’s biggest neighbor — the now more than 50-acre Blue Diamond Growers plant and transfer — has been a constant.

That is, until now, according to a Friday announcement from the almond-production powerhouse that has been in its location in on 16th and C streets for 115 years.

The company announced it will wind down operations at its midtown location over the next two years and transfer most manufacturing to Turlock and Salida, Blue Diamond said in a news release.

Blue Diamond CEO Kai Bockmann cited the building’s outdated design and status as a historic landmark, which led to inefficiencies, as reasons for the move in the release. The company said roughly 600 employees will be impacted by the move out of Sacramento, but only about 10% will leave by the end of 2025.

Jenifer Leshay, a cashier at New Roma Bakery who has lived in the Sacramento area for over 30 years, said the Blue Diamond plant brings a lot of business to the shop, but likely wouldn’t put it in jeopardy since it has a significant base of other local customers.

“I feel it would be a great loss, though,” Leshay said.

John Scheeutle has lived in Sacramento for roughly 50 years and has been going to New Roma Bakery for more than 20.

Scheeutle said the plant has had less of a community impact in recent years but said he hopes the closure doesn’t affect the bakery.

‘They’re great neighbors’

Daniel Flores, owner and operator of Taqueria Jalisco, a Mexican restaurant across the street from the plant, said the closure won’t significantly affect his business because it has become a “staple” of the area. Flores has served as owner for more than 30 years and his family has owned the business since the 1970s.

Flores said the restaurant gets some business from plant workers eating out, but said it won’t impact him significantly. He also noted that the plant employs some part-time workers who don’t often come to Taqueria Jalisco due to various reasons including money and scheduling.

However, he said he will miss the Blue Diamond plant because “they’re great neighbors.”

Flores said other surrounding businesses have been wanting a housing development to take the plant’s place in order to improve business, but he said there are other factors to consider.

While Flores said the creation of more housing would likely help his business, he said he would miss some benefits the plant brings, including a 24-hour security team it funds and its good upkeep.

“They even vacuum the grass,” Flores said. “Not today, though.”

Flores said Blue Diamond had made multiple “verbal threats” in the past that forced the City of Sacramento to give them money or perks to stay. Previous Sacramento Bee reporting showed that the city gave Blue Diamond roughly $20 million in incentives in 1995 and two blocks of land in 1999. Councilmember Roger Dickinson said Friday he would like to convince Blue Diamond Growers to stay in midtown, pointing to their history and presence as a “significant employer” in the capital region.

A study by the Sacramento Area Commerce and Trade Organization in 1992 found that Blue Diamond’s presence boosted the capital region’s economy around $260 million.

“We’ll have to see what comes out of it,” Flores said. “I’d hate to see them go.”

This story was originally published June 6, 2025 at 3:50 PM.

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Sean Campbell
The Sacramento Bee
Sean Campbell is a 2025 and 2026 summer reporting intern covering sports and news at The Sacramento Bee. Campbell is studying journalism at USC and serves as a news editor at the student-run Daily Trojan. He previously covered sports for the Davis Enterprise.
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