An iconic frozen meal delivery company behind classic brands like Red Baron has announced it is closing after over 70 years in the business.
Yelloh, a meal delivery service, plans to cease operations on November 22 due to ‘multiple insurmountable business challenges’.
The company began as Schwan’s Home Delivery in 1952 and set up its headquarters in Marshall, near southeastern Minnesota. Yelloh currently employs about 1,100 employees nationwide.
After its founding, the company quickly became known for its tasty and convenient frozen food offerings, including Red Baron pizza, Tony’s pizza, Kahiki and Mrs. Smith’s.
In an official statement, the company noted that economic and market forces as well as changing consumer lifestyles contributed to its shutdown.
‘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.
‘These challenges, combined with changing consumer lifestyles and competitive pressures that have been building for over 20 years, made success very difficult.
‘Digital shopping has replaced the personal, at-the-door customer interaction that was the hallmark of the company,’ said Board Member Michael Ziebell.
‘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 food delivery service rebranded from Schwan’s to Yelloh in 2022 after the being acquired by CJ Foods.
According to CBS News, 176 employees in Minnesota will be laid off and will be paid through November 22.
CEO Bernardo Santana declared: ‘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. 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 last day products may be purchased via Yelloh trucks will be November 8.
On hearing the news, Jennifer Heille from Esko disappointingly said: ‘I really don’t know why they’re closing down. I think that maybe, with different, apps out there, the UberEats and all of that, I think that that might be affecting their business. It’s really sad.
‘A lot of these restaurants are closing and so many of them, they’re family owned community operations. I feel like there’s a lot of bigger companies coming in and kind of swooping up that business.’
Becca Thompson a Cloquet resident reminisced to WDIO: ‘When we built this house, they started coming. I always kind of felt bad. So I always ordered. But the guy was so friendly. So I was so sad whenever they stopped coming.
‘We’re not always home. So the delivery things are probably just easier for people with busy lifestyles. We always tried to buy local and because we know how it affects us. But I don’t know. Hopefully they can find something in the area at least.’
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