Yelloh, the food delivery service formerly known as Schwan’s, has announced its impending closure after 72 years of operation. The company, recognized for its distinctive yellow trucks, will cease all activities in November 2024, citing “insurmountable business challenges” as the primary reason for its shutdown.
Founded in Marshall, Minnesota, in 1952, Yelloh grew to become a nationwide leader in frozen food home delivery. The company’s CEO, Bernardo Santana, expressed deep regret over the decision in a September statement, stating, “It’s with heavy hearts that we made the difficult decision to cease operations of Yelloh. We are thankful to our many loyal customers and hard-working employees for everything they have done to support us.”
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Santana added, “I am deeply grateful for our employees’ tireless and bold efforts, and our customers’ dedication. It has been our utmost pleasure and honor to serve our customers their favorite meals and frozen treats.”
The closure will impact approximately 1,100 employees, with the company pledging to adhere to the Worker Adjustment and Retraining Notification (WARN) Act requirements during the wind-down process. Customers can continue to purchase products from Yelloh trucks until Nov. 8, 2024, according to CBS News.
Board member Michael Ziebell, a 22-year veteran of the company, outlined the multifaceted challenges that led to this decision. “The current Yelloh team has worked hard against external headwinds such as the nationwide staffing challenges and crushing food supply chain disruption caused by the pandemic,” Ziebell explained, per the statement. He further noted that “changing consumer lifestyles and competitive pressures that have been building for over 20 years” contributed to the company’s struggles.
Ziebell emphasized the personal impact of the closure, stating, “As it is for the people of Yelloh, closing this company is a heartbreaking decision for me personally. Our concern is now for our employees and caring for them as we all come to terms with the fact that this business – that served millions of families and provided a livelihood for thousands over the decades – has regrettably run its life cycle.”
A significant factor in Yelloh’s decline was the shift in consumer behavior toward digital shopping. Ziebell explained, “Digital shopping has replaced the personal, at-the-door customer interaction that was the hallmark of the company.”
Yelloh’s history is intertwined with that of Schwan’s Company. In 2018, a majority stake in Schwan’s was sold to CJ CheilJedang, a South Korean food conglomerate. Following this transaction, the Schwan family retained full control of the home delivery business, rebranding it as Yelloh in 2022. It’s important to note that Schwan’s Company, which continues to sell branded products in grocery stores and food-service venues, is not affected by this closure, according to Retail Wire.
The company had already shown signs of struggle in recent years. In 2023, Yelloh shuttered 90 delivery centers and laid off 750 workers, the outlet reports. By April 2024, direct frozen food deliveries from Yelloh trucks were available in only 18 U.S. states, with the company relying on UPS to serve the rest of the country.
With Yellow’s closure, an era in American food delivery comes to an end. The company’s yellow trucks had become a familiar sight in neighborhoods across the country, particularly in rural areas where access to local supermarkets was limited. Over its seven-decade history, Yelloh has served millions of families and provided livelihoods for thousands of employees.
