Yelloh, the food delivery business formerly known as Schwan’s, is reducing its service area for the second time in a year. The company will be laying off 44 employees in Minnesota and closing delivery sites in various locations, including Breckenridge, Esko, Eveleth, Moorhead, St. Cloud, and Waconia. This marks a significant reduction to the company’s service area.
Despite efforts to turn the business around locally, Yelloh does not see a profitable path forward for these depots. The Bloomington-based company released a statement expressing sadness over the closures and announced that shipping would still be available to the Lower 48 via UPS.
Initially starting as a rural Minnesota ice cream delivery service in 1952, Schwan’s grew into a nationally recognized company with its trademark yellow trucks. Eventually, Schwan’s expanded into a food manufacturer and distributor. In 2019, South Korea’s CJ CheilJedang acquired the majority of the Schwan’s company for $1.8 billion while the Schwan family retained the delivery business and renamed it Yelloh.
Yelloh faces increased competition today from food delivery apps like Instacart and Uber Eats, which was not the case for most of its history. Some customers have expressed dissatisfaction with the company’s offerings since the transition to Yelloh. However, the company reaffirmed its commitment to supporting impacted team members and assisting customers in transitioning to online or app-based ordering solutions.