After 72 years of delivering frozen foods to homes across America, Schwan’s Foods, operating recently as Yelloh, has announced it will permanently discontinue its home delivery service. The company, a household name synonymous with convenient frozen meals, cited a combination of economic pressures and evolving consumer preferences as the primary drivers behind this significant decision, set to take effect in November.
The announcement, made public on Monday, marks the end of an era for the Minnesota-based company that began its journey in 1952 as Schwan’s Home Delivery. For decades, the iconic yellow trucks of Schwan’s Foods were a familiar sight in neighborhoods nationwide, bringing a diverse range of frozen products directly to customers’ doorsteps. However, according to Board Member Michael Ziebell, the business model has faced increasing headwinds. He pointed to persistent nationwide staffing shortages and disruptions in the food supply chain, issues exacerbated by the recent pandemic, as major challenges.
Beyond these operational difficulties, Ziebell also highlighted a fundamental shift in how consumers shop and eat. “Digital shopping has replaced the personal, at-the-door customer interaction that was the hallmark of the company,” he stated. This evolution in consumer lifestyle, coupled with intensifying competition in the food delivery market, has made it “very difficult” for Schwan’s Foods to maintain its traditional home delivery service’s viability. Even a rebrand to Yelloh in 2022, intended to modernize the company’s image while retaining its core identity as “the original frozen food company,” proved insufficient to overcome these challenges.
The closure will impact approximately 1,100 employees across the country. CEO Bernardo Santana expressed that the company’s immediate concern is for these employees during this transition. The final day for customers to place orders from Yelloh trucks will be Friday, November 8th. Santana conveyed gratitude to both loyal customers and dedicated employees, acknowledging their crucial role in supporting Schwan’s Foods throughout its long history. While the home delivery chapter is closing, the legacy of Schwan’s Foods in the American frozen food landscape remains significant.
