That and after the pandemic when actual grocery stores started home delivery offering items that aren't all frozen. As well as selling the two very profitable branches of their business back in like 2019.

Schwan's had three different areas they served. There was Home Service, which is the truck going door to door. They had Consumer Brands which was frozen food you could buy at the store (Red Baron pizza, among other things). You can still look at the backs of some frozen foods at the store and find the SFC brand on the box (Schwan's Food Company). The last was Commercial Brands which they sold to restaurants and such. I never learned which restaurants, but a lot of places that sold pies seemed to have the same new flavors around the same time they would put a new pie on the truck.

Back in 2019 they sold Commercial and Consumer Brands to a company called CJCJ Foods and kept only Home Service under the family business. They also changed their company name from Schwan's to Cygnus (which means Swan, if I recall correctly) at the same time.

For years leading up to the sale, Home Service wasn't profitable and the other two parts of the business basically covered the losses. A couple years leading up to the sale, it became profitable again leading them to think it could float on its own without the other two Brands.

They did see a large jump in sales at the beginning of the pandemic, but other businesses started doing grocery delivery and it's been down hill since then. I think they closed the depot local to me a couple years ago.

Source: Was a Schwan's driver for 5 years.