Yelloh decreases delivery footprint and enacts layoffs

Yelloh, previously known as Schwan’s, will be reducing its service area and sending its yellow delivery trucks to fewer locations starting this summer. This marks the second reduction in service area for the company within a year. As a result, Yelloh is laying off 44 employees in Minnesota and closing delivery sites in various locations across the state and country.

The company will continue to operate in parts of Minnesota as well as 15 other states. Yelloh expressed sadness over the closures, stating that they do not see a profitable path forward for these depots despite efforts to turn the business around locally. In the previous fall, Yelloh announced layoffs and delivery site closures, reducing services in 18 states. Shipping will still be available nationwide via UPS.

Founded in 1952, Schwan’s started as a rural ice cream delivery service in Minnesota and expanded to become a nationally recognized company with its iconic yellow trucks. In 2019, the majority of Schwan’s was acquired by South Korea’s CJ CheilJedang for $1.8 billion, leaving the delivery business under the ownership of the Schwan family, rebranded as Yelloh.

Yelloh now faces a more competitive market with the rise of food delivery apps like Instacart and Uber Eats. Some customers have expressed dissatisfaction with the company’s offerings since the transition to Yelloh. Despite the challenges, Yelloh is committed to supporting its impacted team members and customers in transitioning to online or app-based ordering solutions.