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Schwan’s name change and layoffs challenge its legacy

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Mary Bartels looks forward to seeing the yellow Schwan’s truck pull up outside her apartment building in Vermillion, South Dakota. She’s been getting frozen food deliveries – including ice cream, meat and meals — for nearly 60 years.The company’s customer service is at the heart of her loyalty.“It’s always been just unbelievable,” she said. “I trust them so much, I would hide a key outside for them if I wasn’t going to be home.”On this day, driver Nate O’Grady rings the doorbell and takes a seat at Mary’s kitchen table. As a child, the yellow trucks came to his grandparent’s house. Now he said getting to know the customers, kids and pets along his route is a highlight of his day.“You have much more connections with customers than with Amazon, where they ring your doorbell and leave. We have time to sit and talk with people,” O’Grady said.He knows what customers will order before they ask – for Mary, every order needs a box of peanut butter cup ice cream minis.

Elizabeth Rembert

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Harvest Public MediaMary Bartels keeps her freezer stocked with peanut butter cup ice cream treats from Yelloh. She’s been ordering ice cream and other frozen food from Yelloh – previously Schwan’s – for nearly 60 years.

Schwan’s started in 1952, when a 23-year-old Marvin Schwan went door-to-door delivering 14 gallons of his family’s ice cream to homes in rural western Minnesota. Over the next 70 years, the company became beloved for its yellow trucks, friendly delivery people and frozen food.In 2018, South Korean food manufacturer CJ CheilJedang agreed to pay $1.8 billion for a majority stake in Schwan’s. The Schwan family spun off the home-delivery business and kept 100% ownership.Schwan’s Home Delivery changed its name to Yelloh in 2022 in an effort to appeal to a broader customer base in what is now a crowded food delivery space. The following year it cut 750 employees and closed around 90 delivery centers.Today, customers in all but 18 states rely on UPS to deliver their Yelloh frozen products, instead of the familiar yellow trucks.
Yelloh is contending with a much more competitive market. Danny Edsall – a co-leader for Deloitte’s global grocery practice – said the food space has gone through several phases of evolution in the last few decades.“Everyone got this idea that grocery is an incredibly important category,” he said. “And so there are a whole new wave of entrants chasing the grocery dollar.”Yelloh’s major competition was once local, family-owned markets. Now it’s facing big box stores like Walmart, Target and Costco. Amazon, Grubhub and others will even bring your groceries straight to your door.“I think we’re right in the heat of that battle, it’s yet to be decided who wins,” Edsall said. “The people who are doing it right are the ones who genuinely try and get to know their customer and tailor services to meet their customer’s needs.”It’s not unusual for a legacy company like Yelloh to shift strategies as it reckons with a more crowded market and changing customer preferences, Edsall said.“The art of retail is to reinvent yourself for a new consumer,” he said. “You always have to reinvent your brand while staying relevant. The companies who pull it off are the ones still around in 100 years.”

The company’s new name draws on its yellow trucks. “It’s not easy to build a new brand,” CEO Santana said. “But the food and the service is the same, and we will reinforce the new name with our customer base and attract new customers.”

From Schwan’s to YellohO’Grady, the delivery driver, said he’s seeing the new brand name Yelloh slowly catch on with his customers – but not with Mary.“They changed the name of it?” she asked O’Grady. “I didn’t know that; when did they do that?”The new name is inspired by customers’ memories of the yellow trucks, according to CEO Bernardo Santana.“It’s really common for us to hear ‘I remember when I was a child in my grandma’s house, seeing the yellow truck with the ice cream,’” he said. “The strongest brand we have is our yellow truck, so we wanted to bring back and keep this connection with our customers.”But Akshay Rao, a marketing professor at the University of Minnesota, is concerned that Yelloh’s new name moves away from a 70-year-old brand and confuses its devoted customers.“They may think ‘Who are these people? Are they the same friendly people with my ice cream?’” he said. “So Schwan’s had a monopoly that it has said, to the best of my understanding, goodbye to.”Rao said he hasn’t seen the company’s research, but he suspects Yelloh’s new rebranding and cuts are part of a strategic shift, emphasizing costs rather than customers. He said only time will tell if the move is successful, but he’s skeptical.“Schwan’s had an intimate relationship with its customers,” he said. “It’s now stepping back from that relationship, and customers are going to start looking at other options.”Deb Kuwamoto is one of those customers. The Lincoln, Nebraska resident can no longer receive deliveries straight from a Yelloh truck. She loved chatting with the delivery men and can name all her drivers going back 10 years.Now, Kuwamoto said she’ll just go to the grocery store instead of ordering from UPS.“It makes me a little sad,” she said. “I think it’s the end of an era. I miss the drivers.”

Marvin Schwan stands by the original branded truck in this picture from the 1950s. The Schwan’s company grew out of a drive on March 18, 1952, when Schwan packed a Dodge panel van with ice cream and delivered the tubs to families in rural Minnesota.

And she’s not fond of the new name. Kuwamoto said ordering from Schwan’s felt like stepping back into her childhood in rural Nebraska.“It’s really kind of ironic because Schwan’s was kind of like the first grocery delivery,” she said. “And now everybody has caught up to them.”Yelloh CEO Santana said customers are still the company’s priority, even as it scales back its delivery footprint.“We are trying to deliver for customers in an efficient way and keep up with all the changes in logistics. We didn’t have the internet when Schwan’s started,” he said. “And there’s all the changes in the market environment — 20 years ago, there was no Amazon. Now it’s this stronghold.”Plus, Santana said, some customers prefer a quick drop off over small talk with a driver.“Some people just ask, ‘Leave my product in a bag outside the door,’ and then others are happy to chat with our drivers,” he said. “It will take time, but we are building a new brand that can attract all of the customers we can get.”

Mary and Fritz Bartels celebrate their 40th anniversary in 1993 with their nine kids, grandchildren and Schwan’s ice cream. One of their daughters flagged down a driver and asked him to come to the celebration, saying, “My folks love Schwan’s and have ordered for years and years. Can you surprise them with a visit?”

60 years of Schwan’sBack in Mary’s apartment, she remembers when she started ordering from the company nearly six decades ago. Her nine kids would rush up the farmhouse driveway to meet the delivery man and climb all over his yellow truck.“They’d all come in with an ice cream bar or something. And now I realize he was giving those to the kids out of his pocket,” Mary said, “because I wasn’t paying for them.”At one point she was ordering to feed a family of 11, and she kept ordering from Schwan’s through her kids leaving for college, moving into town from the farm and her husband’s death.As she sits in her chair with her memories, driver Nate O’Grady checks her freezer for what she needs, grabs the peanut butter ice cream cups, fantail shrimp and chicken pot pies from his truck and packs them onto the freezer shelves. She’s done her grocery shopping without standing up.O’Grady tells her goodbye and climbs into his yellow truck idling outside of her apartment – still stamped with the Schwan’s logo.Editor’s note: Mary Bartels is the mother of the author’s stepdad.This story was produced in partnership with Harvest Public Media, a collaboration of public media newsrooms in the Midwest. It reports on food systems, agriculture and rural issues.

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Laclede’s Landing is moving from nightlife hub to neighborhood

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Laclede’s Landing has cycled through many identities throughout the history of St. Louis. Now, some people involved with its redevelopment in recent years hope the landing’s next one will be as a residential neighborhood.The small district tucked directly north of the Gateway Arch National Park has quietly undergone a massive redevelopment with more than $75 million pouring into the rehabilitation of many of the historic buildings at the landing.“We are starting to feel that momentum, especially in the last really 60 days. Things have drastically changed around here,” said Ryan Koppy, broker and owner of Trading Post Properties and the director of commercial property for Advantes Group.Advantes alone shouldered the rehabilitation of six of the historic buildings, which now sport a mix of apartments and retail or office space, he said. Four of those buildings are completed, and of the 119 apartments available, about 90% are filled, Koppy said.“It just shows you what kind of demand we do have for the area,” he said. “We’re separated from downtown a little bit, and for the tenants, their local park where they’re walking their dogs, it’s a national park.”

Sophie Proe

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St. Louis Public RadioInterior of the Peper Lofts at Laclede’s Landing on Aug. 16

Another 40 apartments are set to come online next year along with some retail space, Koppy said. He added he’s noticed a wide range of people who are considering and moving into the newly refinished apartments.“It’s very mixed, surprisingly,” Koppy said. “We have a lot of young professionals, maybe on their second job out of [university], we have some empty nesters too.”Part of the newfound momentum comes from a new market, the Cobblestone, and coffee shop, Brew Tulum, opening recently and bringing more foot traffic to the area, said Brandyn Jones, executive director of the Laclede Landing Neighborhood Association. She added that more apartments are set to come online within the next few months.“We have a great riverfront area here and so there are plans in the works to activate those spaces, bring people in,” she said.That could be more daytime events, like a farmers market, music festivals (one of which is happening this weekend) or just bringing in food trucks to Katherine Ward Burg Garden, Jones said. It’s a departure from the identity the district held a few decades ago as a hub for nightlife and entertainment.“That’s part of what connects so many people to Laclede’s Landing,” Jones said. “It’s important to tell the story of where we’re evolving. It won’t be what it was in the same exact way, but it will still be fun, and it can be fun early morning, midday or late night.”It’s a view shared by Koppy.“It’s grown up, it’s a bit mature,” he said. “We’re not going to have 3 a.m. bars here anymore because we have residents here.”Koppy added that Advantes is joined by other developers working to rehabilitate buildings in the district.“We all work in unison,” he said. “If I get a call and [a client is] asking for something and maybe the square foot doesn’t really match up with what I have available, but I know it matches up over there, they’re getting a very warm welcome and introduction.”

Sophie Proe

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St. Louis Public RadioRyan Koppy looks out the window of Brew Tulum Specialty Coffee Experience on Aug. 16 at the Cobblestone on Laclede’s Landing in downtown St. Louis.

This push toward making Laclede’s Landing a residential neighborhood also comes alongside broader conversations about the future of downtown St. Louis more generally as it looks to move away from a dependence on office space. While the city as a whole continues to lose population, downtown added about 1,700 people between 2010 and 2020, according to U.S. Census data.“It’s been wonderful timing to have all that going on, that stress that you’re not just in downtown to work has been critical to part of this rejuvenation and energy down here,” Jones said. “Sometimes people forget Laclede’s Landing is part of downtown, really the original downtown.”And success in the small district could spread beyond its small confines and potentially serve as a model for success, Koppy added.“My idea is, if we could get all the great things of St. Louis coming in through here, we can eventually spread that,” he said. “We understand we can’t change the whole world, but we’ll just make the effort to try and change the world around us.”

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St. Louis barbecue festival Q in the Lou canceled

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The largest barbecue competition and tasting festival in St. Louis, Q in the Lou, has been canceled. The event was planned for Sept. 6-8, but organizers decided to cancel it due to poor ticket sales and insufficient corporate sponsorship.The traveling festival had low attendance in Denver last week, said Sean Hadley, a festival organizer.“We made the tough decision to cancel Q in the Lou,” said Hadley. “We’re seeing a lack of support … it’s just not there.”The traveling event first came to St. Louis in 2015 and drew hundreds of people to downtown St. Louis for barbecue, live music and a “major party.”“It shut down out of the blue … I’ve gone every year,” said Scott Thomas, local chef and food blogger. “It’s brilliant. You could take a tour of some really amazing barbecue restaurants and competition barbecue guys all in one place.”In a late July news conference, city officials touted Q in the Lou as a significant tourism draw and a boost for downtown revitalization.“Bringing a signature national festival back to downtown St. Louis … is making us stronger,” Greater St. Louis Inc. CEO Jason Hall said then.Less than a month later, ticket holders from every festival stop learned they’d be refunded. On Monday, organizers privatized the Q in the Lou website and deleted its social media accounts.Conner Kerrigan, a spokesperson for Mayor Tishaura Jones’ office, said city officials are disappointed the festival won’t be back this year.“St. Louis knows how to throw a festival … bringing people together to celebrate our culture is one of the things we do best as a city,” Kerrigan said in a statement. “Should Q in the Lou try to come back next year or any year after that, they’ll have the support of the Mayor Jones administration.”

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Alton’s Jacoby Arts Center likely to relocate permanently

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The Jacoby Arts Center, a staple of Alton for many in the Metro East community, will likely permanently move out of its downtown building at the end of September.Its departure and relocation from the historic building that the arts center has called home for the past 20 years has created a tense situation for not only the arts center’s supporters but also the local development company working to revitalize Alton’s downtown that owns the building.“It’s an unfortunate situation,” said Chad Brigham, the chief legal and administrative officer with AltonWorks, the real estate company owned by another prominent local attorney working to develop the town. “I wish there wasn’t misunderstanding and disappointment in the community. It’s difficult sometimes to clarify that.”When news of the likely departure spread in June via a letter from the Jacoby Arts Center to its supporters, an outcry on social media quickly followed. Some assumed it would be the end of the arts center.“There’s a lot of feelings right now that I think are more about the building itself than there are about the Jacoby Arts Center,” said Valerie Hoven, vice president and treasurer of the nonprofit arts center’s board.For supporters of the Jacoby, moving from the building and likely never returning will be a sad affair. Exactly what’s next for the arts center remains unclear. However, Jacoby board members believe this will not be the end of the organization. It will likely look different though.

Sophie Proe

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St. Louis Public RadioThe Jacoby Arts Center earlier this month in downtown Alton

Sophie Proe

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St. Louis Public RadioThe Alton-based Jacoby Arts Center features more than 75 St. Louis-area artists and their work.

The history of the buildingFirst dubbed the Madison County Arts Council, the nonprofit arts center renamed itself after the Jacoby family gave it the current building in 2004. AltonWorks founder John Simmons purchased the Jacoby Building in September 2018, according to property records from the county.Managing the large building, at 627 E. Broadway, became too expensive for the Jacoby Arts Center. In 2018, the organization approached Simmons to purchase it, said Dennis Scarborough, a past president of the board and a downtown business owner.“Of course, it sounded really, really good,” Scarborough said of Simmons’ purchase. “He took over the insurance, property taxes, all those kinds of things that were really, really getting into our budget, and he rented it to us at a fair price.”The two parties entered into a lease agreement initially for five years. Since then, Simmons has spent more than $1 million in upkeep, taxes, insurance and more on the building. The lease has been extended twice until the end of September this year.Over the six years, Jacoby paid $1,500 per month, which covered a portion of the utilities.“It’s been wonderfully generous of AltonWorks,” Hoven said.Because the building is aging and needs repairs, Brigham with AltonWorks and those connected to the arts center have long known the Jacoby Arts Center would need to relocate — at least temporarily.

Renovations on the Jacoby building will begin this fall. They’ll include modernizing the aging building, repairing the old elevator and putting in apartments on the second and third floors.

News of the likely departure and controversyRenovations will begin this fall. They’ll include modernizing the aging building, repairing the old elevator and putting in apartments on the second and third floors.In May, it became clear that a preliminary proposal for the arts center to return to the building after renovations finished in 2026 would not work for them, Hoven said.She estimates the first floor and basement of the Jacoby Arts Building span roughly 20,000 square feet.

Chad Brigham is a business and legal adviser for AltonWorks.

AltonWorks’ initial idea floated to the arts center would only provide 2,553 square feet, according to both Hoven and Brigham. While the board calculated the price for the new space to be at least triple the current payment, Brigham said there was never a specific price discussed.“No discussion in terms of actual rent price,” he said.AltonWorks didn’t make a specific rent offer because the organization doesn’t even know itself, Brigham said.In addition to cash from John Simmons, there will be loans, tax increment financing and state tax credits to cover the $20 million in building renovations. The entities financing the cost of renovations will also help determine the rent when the construction is complete, Brigham said.Regardless, the price required to return will be too much for the arts center to pay, Hoven said. Also, the organization would like to maintain the many programs it offers to the community — a rentable event space, a dark room and a clay studio, for example — in the future.“For us to really meet the needs of the community and be sustainable, we need a space where we can offer some of those programs — the artists’ shop, and other spaces that offer some kind of income as well — so that we can continue to give money back to the community,” she said.AltonWorks offered at least two other locations as possible alternatives from their vast stock of buildings along Broadway to house the arts center during the roughly 18 months of construction. Those alternatives came with similar deals requiring the Jacoby to cover only utilities, Brigham said.“We did put in a great deal of work behind the scenes in trying to find an interim solution,” Brigham said. “We wanted to find a place for them to go, where it was easy for them to continue programming, whether it’s 100% of it or some portion of it, that would work for them.”Initially, the arts center hoped to keep the basement during the renovations, Hoven said. When it became clear the preliminary offer to return was for much less space than the arts center anticipated, the letter to the community was sent.“The letter that came out was merely showing our surprise,” Hoven said. “Don’t misinterpret it as panic. Don’t misinterpret it as desperation.”

Sophie Proe

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St. Louis Public RadioA smorgasbord of radios are displayed at the Jacoby Arts Center in Alton.

The commentary on social media was passionate. Some critics of AltonWorks said the organization has good intentions but hasn’t executed those plans. Others said Jacoby hasn’t planned well enough for the future.For Brigham and the AltonWorks team, some of the criticism has been disappointing.“I thought that there were some decent solutions. Were they perfect? No, but they were very, I thought, very good solutions,” he said. “And the fact that it has come to the point that it is right now is a bit hurtful.”AltonWorks remains committed to the arts, Brigham said. John Simmons remains one the largest donors of the Jacoby Arts Center, Hoven and Brigham said.“I don’t think there’s ever been a question of our support of that organization — of our affinity for that organization,” Brigham said. “While some of the events were unfortunate, some of them were encouraging. The entire community rallied around the Jacoby Arts Center. That’s a good thing. It’s a good thing to have a love for the arts like that in a downtown community.”Sara McGibany, the executive director of Alton Main Street, an organization aimed at preserving the town, said AltonWorks should be commended for its vision. In many ways, her organization and AltonWorks share a vision for a thriving downtown.Even though AltonWorks hosts public meetings, McGibany believes the current situation lacks true community engagement.“We really think that if AltonWorks can get past some of the communication hurdles — and harness the community’s passion and shift to more of a bottom-up decision-making process that centers on community input — then we can turn around the growing sentiment of distrust that’s happening now,” McGibany said.Scarborough, the past board president and downtown business owner, echoed the praise for Simmons and his support of the Jacoby Arts Center. With the Jacoby likely moving, the future looks bleak, though.“It’s a community arts center that does a lot of good work,” Scarborough said. “The community is going to suffer, and they’re going to be missed by the community if they’re not there.”

Eric Lee

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St. Louis Public RadioShalanda Young, director of the federal Office of Management and Budget, talks to Illinois U.S. Rep. Nikki Budzinski, D-Springfield, during a tour of a construction project by AltonWorks last April in Alton. AltonWorks, who is building the LoveJoy Apartment Complex is receiving over $1 million in federal funding.

What does the future hold?AltonWorks will continue forging ahead with its ambitious plans to revitalize Alton. The organization hopes to conclude construction on the Wedge Innovation Center, which will have a restaurant, retail and co-working space, this fall. Lucas Row, a mix of apartments and retail space, is scheduled to be completed next spring.The remainder of the arts and innovation district, currently named after the Jacoby, will also move forward.“I believe in two years it’s going to be a much different place,” Brigham said of Alton. “It’s going to be thriving. It’s going to be new businesses, new tenants — and it’s going to be a nice proof of concept for what you can do in a small community like that.”The Jacoby board recently formed a strategic planning committee. Its task: figuring out what’s next for the arts center. The committee will reevaluate what space the Jacoby needs, what programs it wants to offer to the community and how they want to make that a reality.Keeping the arts center is essential for board members like Hoven. In her experience, it’s been a place where local aspiring artists get their start.“Art is one of the only ways to show your true authentic self,” Hoven said. “And there’s more people than I realized who do not get that opportunity every day.”The Jacoby will shut its doors to pack over the next month. Hoven said she’s optimistic the board will have concrete plans by the end of September when their lease officially ends.“Alton is such a fabulous and supportive community,” she said. “We still have lots of great options, so that the Jacoby Arts Center will continue to thrive in Alton and beyond.”

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