Frozen Food Delivery Company Yelloh, Formerly Schwan’s, Is Shutting Down

Once known as Schwan’s, frozen meal delivery company Yelloh is shutting down operations in November. Unable to overcome “insurmountable” challenges, including employee issues and food supply chain disruptions, the once-popular home delivery service will permanently park its fleet of yellow trucks after 72 years in business.

Personal, one-on-one interaction between delivery drivers and consumers made Yelloh unique. Yet, as consumer trends shifted to online shopping, the company had to make the “heartbreaking” decision to close.

“These challenges, combined with changing consumer lifestyles and competitive pressures that have been building for over 20 years, made success very difficult,” said Yelloh board member Michael Ziebell, per USA Today.

According to Ziebell, Yelloh’s home delivery trucks have served millions of families for decades, while at the same time providing careers for thousands of employees. The company will spend the next two months winding down operations, including the layoff of around 1,100 employees. Customers can still purchase meals from Yelloh trucks until Nov. 8.

“It has been our utmost pleasure and honor to serve our customers their favorite meals and frozen treats,” said CEO Bernardo Santana, according to CBS News.

What Happened to Yelloh Home Delivery?

In 1952, Marvin Schwan founded Schwan’s Home Delivery in Marshall, Minnesota. Soon after, it was common to see the company’s famous yellow delivery trucks in neighborhoods across America. The meal service became especially important to consumers living in rural areas where local supermarkets were scarce.

A majority stake in the company was sold in 2018 to CJ CheilJedang, a South Korean international food conglomerate. The two companies then split, with the Schwan family retaining full control of the home delivery business, which they rebranded to Yelloh in 2022 to offer a connection to the iconic yellow trucks. Meanwhile, Schwan’s Company continues to sell branded products in grocery stores and food-service venues and is not shutting down.

As deep-pocket competitors like Walmart and Amazon began offering food delivery, Yelloh had a difficult time keeping up. In 2023, the company shut down 90 delivery centers and laid off 750 workers.

As of April this year, customers in only 18 U.S. states can get frozen food deliveries direct from the familiar Yelloh trucks. The company has contracted with UPS to deliver to the rest of the country.