Urban convenience-store retailer Foxtrot Market and urban grocer Dom Kitchen & Market have agreed in principle to merge the two companies. Upon closing, they will become a new entity, Outfox Hospitality.
“With a shared vision to redefine food shopping and dining experiences for the local communities they serve, this merger is just the beginning of a prosperous partnership that will bring thoughtfully curated products and experiences to consumers,” the companies said in announcing the deal.
Liz Williams, CEO of Foxtrot, will become the CEO, leading all day-to-day operations for the company, with Don Fitzgerald, CEO of Dom’s, serving as Dom’s Kitchen & Market president and COO through a transition period. Mike LaVitola, co-founder of Foxtrot, Jay Owen, co-founder and co-chairman of Dom’s, and Bob Mariano, co-founder and co-chairman of Dom’s, will continue to hold advisor and board roles within the organization.
“Dom’s has long admired the Foxtrot brand, viewing it as an industry trailblazer and a market disruptor,” said Owen, co-founder and board chairman. “Our shared vision centers on bringing the convenience of a market together with the experience of a restaurant into hospitable spaces that are destinations in the communities we serve. We do this by curating high-quality goods, preparing expertly crafted meals, and delivering warm and friendly service.”
“Foxtrot was created with the vision of building a community of people who love to discover new and interesting products, either by gathering at our stores, or having them delivered from our user-friendly app – a goal we’ve proudly accomplished over the past 10 years,” said Williams. “We’re excited for this new venture with Dom’s Kitchen & Market because we share a common mission of modernizing the way people shop. Merging our two brands will elevate the experience for our customers and move the retail industry forward.”
The merging of these two high-growth companies will provide fan-favorite food and wines from both brands across all stores. Together, the two will continue to advance their stated goal of disrupting the food shopping and cafe landscape while redefining the neighborhood market with a multi-format and ecommerce experience.
With both concepts headquartered in Chicago, there are scale advantages and the ability to leverage resources across both formats, the companies said. The combined brands have 34 locations in the Chicago, Washington, D.C., Dallas and Austin markets.
“We are thrilled to share Foxtrot cult favorites like our gummy candies, savory snacks and unique wines with the Dom’s community and to bring Dom’s delicious, expertly prepared meal options to local Foxtrot stores,” added Williams. “In addition to our markets, our cafe and coffee businesses are at the heart of our stores, and we look forward to continued growth through our partnership. Together, we will bring together community, convenience and curated culinary to create a unique experience for consumers.”
The companies expect the merger to close in fourth-quarter 2023. It is subject to customary closing conditions. Guggenheim Securities is acting as financial advisor to Foxtrot Market and Latham & Watkins is serving as the legal advisor. Greenberg Traurig LLP is serving as legal advisor to Dom’s Kitchen & Market.
Foxtrot combines a c-store with a café, and offers 30-minute delivery and five-minute pickup through the Foxtrot App. It also ships its foods, goods and curated gifts nationwide via Foxtrot Anywhere. There are currently 32 Foxtrot locations across Chicago, Washington, D.C., Dallas and Austin, with plans to continue expansion in existing markets.
Dom's Kitchen & Market is an omnichannel food experience providing guests a place to eat, drink, discover, shop and connect to their community. With locations in Lincoln Park and Old Town, as well as River North opening this summer, each store serves as a neighborhood hub offering curated market products, chef-crafted meals and in-store dining. Additionally, Chicagoans can shop the stores and order meals online via Dom’s Go, for quick pickup or delivery.
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