Food Delivery Service Yelloh, Formerly Known As Schwan's To End Operations in November

Photo byYelloh Media

Minnesota-based company cites economic challenges and changing consumer habits as reasons for shutting down.

MARSHALL, Minn. — Yelloh, a pioneer in the home food-delivery market, announced it will cease all operations in November 2024, concluding its 72-year legacy of delivering frozen meals and treats to American households. Founded in 1952 and headquartered in Marshall, Minnesota, Yelloh became a household name with its fleet of iconic yellow trucks, known for bringing high-quality frozen products directly to consumers' doorsteps.

The company, originally known for its personal and trustworthy service, built long-lasting relationships with customers across the nation. However, facing significant economic and market pressures, Yelloh has decided to park its trucks permanently. CEO Bernardo Santana expressed his gratitude to both employees and loyal customers, 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.”

Photo byYelloh Media

Challenges Proving Insurmountable

The decision to close comes as Yelloh struggles against a range of challenges that have intensified over the past two decades. Economic factors, shifting consumer preferences, and increased competition have all contributed to the company’s decision to wind down operations. The COVID-19 pandemic exacerbated existing issues, disrupting the food supply chain and creating nationwide staffing challenges that proved difficult to overcome.

Board Member Michael Ziebell, who has a long history with the company, remarked on the emotional impact of the closure: “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.”

The Decline of At-the-Door Service

One of the primary factors cited for Yelloh’s closure is the changing landscape of consumer behavior. The rise of digital shopping has shifted consumers away from the traditional at-the-door service model that defined Yelloh’s business. While the company adapted by offering direct-ship options, the competitive pressures from e-commerce giants and evolving consumer lifestyles made it difficult to sustain its unique approach.

“Digital shopping has replaced the personal, at-the-door customer interaction that was the hallmark of the company,” Ziebell noted, highlighting a fundamental shift in how people purchase food and other essentials.

Looking Ahead: Supporting Employees and Customers

As Yelloh prepares to shut down, its leadership has pledged to support its approximately 1,100 employees during the transition. The company has committed to providing notice and compensation in accordance with the Worker Adjustment and Retraining Notification (WARN) Act. The last day for customers to purchase products from Yelloh’s yellow trucks will be Friday, November 8, 2024.

Yelloh’s closure marks the end of an era for a company that brought frozen food delivery to the forefront of American households. Despite the changing market dynamics, the company will be remembered for its dedication to quality service and the personal connections it forged over its long history.

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