Factor, a ready-to-eat meal delivery service focused on health and wellness, and owned by HelloFresh, will open a packaging and shipment center in Lake Zurich by the end of the year, company officials announced in a news release earlier this month.
The 100,000 square feet facility is expected to employ some 700 full- and part-time employees and will ship prepared meal kits across the Midwest, according to the Feb. 1 news release.
Company officials said in the release that HelloFresh, which purchased Factor in 2020, is one of the leading meal kit companies, specializing in offering fresh ingredients paired with simple steps for single meals. Customers choose from dozens of meals to fit various dietary needs.
The facility is located at 1325 Ensell Road and Lake Zurich officials called the move good news.
Roy T. Witherow, the assistant village manager, said the property tax from the building had been nearly $165,000 as of 2020, when it was used by Peapod, a grocery delivery service.
The anticipated property tax revenue, coupled with expected sales and fuel tax income from hundreds of new workers, is anticipated to net the village a sizeable stream of tax income, according to officials.
With 700 new employees, Witherow said Factor will be among the largest employers in Lake Zurich.
“Seven-hundred new people buying things in Lake Zurich is a good thing,” Witherow said.
Sarosh Saher, the Lake Zurich community development director, said the village first heard interest from the company last summer. He recognized the company had local roots and wanted to expand.
“At that time, the Chicagoland based company had two kitchens in Aurora and Burr Ridge. However, due to the increasing demand for this product they were looking to expand,” Saher said.
Factor has corporate offices in Batavia, production facilities in west suburban Burr Ridge and Aurora and a distribution in Lyons, according to the release.
“Once fully operational, the new Lake Zurich facility will increase Factor’s overall meal delivery production and distribution capacity threefold,” company officials said in the release.
A recent tornado in Burr Ridge nudged the company toward diversifying its warehouse operations.
“Shortly thereafter, they signed a lease with the property owner and followed through with submitting their applications for occupancy and interior buildout,” Saher explained. “They were issued a temporary occupancy permit in September to begin operations. Since their use of the build is a permitted use in the industrial district, they did not require any additional variance or special use permits.”
While the larger expansion and hiring increase will happen later this year, Saher said the company is already using the site in a limited capacity while development on the space continues.
Lake Zurich Mayor Tom Poynton said he thought Lake Zurich had several attractive qualities for Factor.
“I think there were multiple factors,” Poynton said. “One, our industrial park had an available facility that clearly met their needs. Two, our reputation as a community that values working with potential new business partners, and three, a village board and village staff that goes over and above the call of duty to ensure a smooth, angst free process for any and all potential new businesses.”
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For their part, Factor’s chief executive said he was happy to keep operations close to home.
“As a company born in Chicago, we are thrilled to be expanding our operations in the region, which will support Factor’s growth plans to serve an increasing number of customers with delicious, ready-to-eat meals that fuel their active lifestyles,” said CEO Mike Apostal said in the release.
Jesse Wright is a freelancer.