By Daily Mail (U.S.) | Created at 2024-09-25 15:14:18 | Updated at 2024-09-30 21:30:00
5 days ago
A Minnesota-based frozen food company is all set to shut doors after over seven decades - much to the dismay of its customers.
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.
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 Uber Eats and all of that, I think that that might be affecting their business. It's really sad.
Yelloh, a meal delivery service, plans to cease operations on November 22 due to 'multiple insurmountable business challenges'
'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.'
In an official statement, the company noted that economic and market forces as well as changing consumer lifestyles contributed to its shutdown - despite the company's delivery arm rebranding itself to Yelloh in 2022 after Schwan's was acquired by CJ Foods in 2019 and severed affiliation with the home delivery unit.
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
CEO Bernardo Santana made the official statement earlier this week
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.'
In an official statement, the company noted that economic and market forces as well as changing consumer lifestyles contributed to its shutdown - despite rebranding itself to Yelloh in 2022
The last day products may be purchased via Yelloh trucks will be November 8
Many believe that staffing and supply chain issues as well as change in customer attitudes especially during the Covid-19 pandemic is what ultimately forced the delivery store to cease operations.
Board Member Michael Ziebell confirmed: '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.'
The last day products may be purchased via Yelloh trucks will be November 8.
